International markets - Information needs

Objective: To introduce the learner to the information needs of international businesses, and methods for meeting them



Overview: Overview: Good information is crucial and depends on:

o . The information needs of international businesses
o . Methods for meeting them
o . Different kinds of information
o . Why and how it is organized
o . Where it can be sourced
o . How it can be usedo o



Information helps to reduce risks and enable sound decisions.The international marketer needs two kinds of information:·

. Strategic information to enable the right countries and markets to be identified;·
. Tactical information to enable effective entry to be made into the selected markets.·

These form a continuing International Marketing Information System.



The Strategic information needed will: o

o. vary with each business.o
o. It will need to feed into strategic decisions about what products and services to develop to serve long-term trends in global demand.o

This will include:· o

o- Global and regional market trends;· o
o- Changes in global fashion;· o
o- Development of global technologies;· o
o- Broad cultural variations.o


Strategy is about what markets to attack and how to attack them.

It needs to be based on analysis of the global environment of the business.This should follow the PESTEL model, which breaks the environment into 6 basic areas of analysis:· o

o· Political
o· Economic
o· Socio-Cultural
o· Technological
o· Environmental
o. Legalo


After identifying countries to enter, the business will need Tactical Information for effective entry.This will include:· o

o. Market size;o
o· Trends and seasonality;o
o· Useful segments;o
o· Price/quality price-pointing;o
o· Distribution channels;o
o· Local regulation and legislation;o
o· Local standards;o
o· Local packaging requirements;o
o· Logistics and customs requirements;o
o. Product protection needed (against climate and handling).oo


Tactical information includes knowledge about competitors, and other barriers to entry.o

o· This is based on Game Theory.
o· The key players in the game who can affect our operations are competitors, customers, suppliers, and government officials.
o· What is each likely to do?

Game Theory analysis is particularly important in B2B markets.o




More detailed Marketing Research will establish the target segments best for entry. This research is in 2 steps:·

o. Step 1: desk research for secondary data such as published market surveys, databases and news media.o

o· Step 2: on-the-ground research for primary data such as focus groups, consumer panels, conference sampling Many countries have regular conferences of expert specialists and businesses. These conferences are important for networking into a market and for opinion sampling. Sampling is a form of market research in which you select a percentage of a goup and ask them questions about your product and service. A conference is a good apportunity to sample many of the leading thinkers, managers, and opinion-formers in a target market..o


On-the-ground research normally involves visiting the market to check business culture and protocols. Primary and Secondary data can then enable selection of an entry segment based on:

· Costs of adapting the marketing mix to the market A product may need to be adapted to local tastes or technical standards. If a great deal of adaptation has to be made, this will increase cost, and this could become a barrier-to-entry for a company trying to enter the market
· Ease of access to distribution
· And Economies of scale in logistics.


Visiting the local university business school library will avoid information overload. Business librarians will normally recommend the most efficient route to information. Government trade ministries have information departments, such as the Trade Partners Research Centre in London.The Financial Times and The Economist both provide strategic information and analysis online.


There are many commercial sources of market information.o

· These include databases of potential customers in B2C markets from companies such as Acorn and Mosaic.o
· These databases are lists of potential customers, addresses and other details.o
· They will often feature the probability of potential customers purchasing a specific product or service.o


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Commercial data on B2B markets is less reliable, because of the complexity of Buying Centres.

B2B analysis normally starts with analysis of the supply chain, and the key players in it. Information is needed on the buying centres, their key members, and likely networking conferences, trade fairs, and professional organizations.



Source: svuonline.org