Adaptation of Marketing Mix Elements in International Markets

ABSTRACT

This research identifies the extent to which individual marketing mix elements are adapted for international markets and how company, industry, and market factors influence the level of adaptation. The study is based on a survey of executive-level managers in U.S.-based companies that market products internationally. The survey obtained information on the extent of adaptation across the marketing mix elements and on company, industry, and market factors that influence this process. The results indicate that adaptation is greatest for distribution, followed by price, promotion, and product. Product adaptation is influenced by market factors, price adaptation is influenced by market and industry factors, promotion adaptation is influenced by market factors, and distribution adaptation is influenced by company factors. The results of the research can be used to both understand and manage the extent of adaptation necessary for products in international markets.     

Market Potential Estimation in International Markets: A Comparison of Methods

ABSTRACT

Marketers use various market potential estimation techniques in international markets. These include method of analogy, proxy indicators, chain ratio method, time series analysis, and multiple regression modeling. This study shows how demand or market potential can be estimated using these methods and compares the findings. The study should be useful to both managers and academics interested in the theory and practice of demand estimation. Although emerging markets and durables are used as examples, the methods discussed are universal and can be applied in any country market.     

Perceptions of the Environment and Wholesaler Structure in a Channel of Distribution in a Developing Country

Abstract

This study explores relationships between perceptions of the technological environment and selected structural variables of wholesalers in the channel of distribution for petroleum products in a developing country from a systems theory perspective. Survey research was used to collect primary data related to technolgical environment factors and size, assortment structure, and market coverage of wholesalers of petroleum products in Nigeria. Canonical correlation analysis was used to assess the relationships between constructs. From a theory development perspective, the study explores the applicability of systems theory concepts to an important marketing area. From a managerial standpoint, the study has implications for international marketing managers concerned about the nature of specific aspects of the business environment in newly emerging third world markets.     

Assessing the needs of international markets against an emerging market company's capabilities: A tool for internationalization

Senior managers in emerging markets often strive to ensure that their companies develop sufficient capabilities to confront the needs they encounter in international markets. However, extant research and practice remain unclear as to how senior managers in emerging market companies can approach assessing the needs of their international markets against their own company's capabilities, to aim for a balance between both. This article offers an innovative approach for assessing the needs of international markets against an emerging market company's capabilities. Based on the assessments of 100 senior managers leading emerging market companies, we explain how this approach can provide two key insights. First, evidence of a balance between the needs of international markets and an emerging market company's capabilities, that indicates the company's competitive position is focused; or evidence of an imbalance between the needs of international markets and an emerging market company's capabilities, that indicates the company's competitive position is either vulnerable or overqualified. Second, an understanding of where the gaps between the needs of international markets and an emerging market company's capabilities are, that enables improving the company's competitive position by closing these gaps. Drawing on this approach, we offer an open access tool that allows senior managers in emerging markets to identify and improve their own company's competitive position for internationalization. Using this tool, senior managers can lead their emerging market companies toward a focused competitive position in international markets, providing better chances of successfully capturing potential benefits.     

Delineating Foreign Market Potential: A Tool for International Market Selection

International expansion is becoming more imperative in today's marketplace. However, determining which markets best suit a specific company is not a straightforward task. This study tackles the question of how managers should go about identifying, evaluating, and selecting foreign markets. For this purpose, we propose a practical, flexible, and forward‐looking three‐stage template for assessing foreign market opportunities and identifying the most promising international markets. The three stages include determining country responsiveness for a specific industry, estimating future industry growth, and incorporating an industry‐relevant aggregate measure. The study illustrates the tool for three companies from various industries and discusses the implications. The proposed tool offers insights on crucial dimensions for the industry‐specific market potential, and assists managers in identifying favorable foreign markets. This study also addresses the gap in the international market selection literature by developing a new empirical tool for foreign market analysis and selection using longitudinal secondary data. © 2015 Wiley Periodicals, Inc.     

Normalising alternative practices: the recovery,distribution and consumption of food waste

ABSTRACT

Certain practices are excluded from markets, even though they may contribute to more sustainable systems. Other practices are integral to markets despite their highly detrimental impacts. This study investigates how alternative practices in the food sector became integrated into the market through normalisation processes. Using a qualitative approach, it examines the processes by which practices, including the recovery, distribution and consumption of food waste, went from being excluded from a mainstream food market to becoming normalised within it. Normalisation occurs as a result of retracing the biography of an object, building community, rituals and sacrifices. The author discusses theoretical and managerial implications.     

Lessons learned from Brazilian multinationals’ internationalization strategies

Internationalization of emerging market multinationals is a recent phenomenon gaining importance in the global economy. This foreign expansion of a new breed of companies has challenged established theories and practices in the field of international business (Cuervo-Cazurra, 2007). This article addresses the issue of whether or not there is something to learn from these emerging market companies and their foreign expansion. Focusing on the international trajectories of four Brazilian multinationals (i.e., Odebrecht, Embraer, Stefanini, and Marcopolo), this study analyzes their strategies and managerial processes during and after the recent economic crisis with regards to internationalization. Our qualitative fieldwork suggests that the trajectories of these Brazilian multinationals are quite unstructured and evolve as a reaction to the opportunities they face in international markets. It seems all four companies in our sample shared a strong entrepreneurial spirit and a high motivation to expand their international operations despite the crisis and the obstacles they faced. Our findings and suggestions in terms of lessons learned should provide valuable implications for multinational managers from other emerging markets by providing a better understanding of how Brazilian multinationals expand internationally, deal with economic crisis, and manage relationships with local and foreign institutions.     

Determinant factors of failures of international retailers in foreign markets

Abstract

This article seeks to identify why international retail chains (IRCs) sometimes fail to successfully establish operations in foreign markets. The study focuses on the quality of managerial decision-making as a cause of failure. Four such causes are identified relating to the quality of: (1) strategic decision-making, (2) tactical decision-making, (3) decision-making by the management of the local entity (LE), and (4) cooperation between the IRC and its LE. Based on survey data from Israel, we find that causes (1), (3) and (4) are most critical. These results highlight that to avoid retail failure, strategic decisions, such as ensuring clear, distinct and superior values adapted to local consumer preferences, should take precedence over tactical ones. Furthermore, to ensure high quality of local management and smooth cooperation with their LEs, IRCs should strive to control local management and coordination mechanisms.     

Exploring How Managers Conceive and Practice Market Orientation in Near “Perfect” Food Markets

Abstract

This paper explores what it means to be market-oriented in food commodity markets, i.e., markets that are near “perfect” as characterized in economics. This is an almost neglected topic in past research on market orientation. By eliciting how top managers in food commodity firms conceptualize market orientation, we reveal that their understanding and practice of market orientation partly deviates from the prototypical views reflected in the market orientation literature. Findings are discussed and implications highlighted.     

The Role of Systematic International Market Selection on Small Firms' Export Performance

This article hypothesizes that, on average, small and medium-sized enterprises (SMEs) that use a systematic methodology in selecting foreign target markets (what we call systematic market selection) perform better than SMEs using an ad hoc international market selection methodology. Using a sample of Greek exporting firms, we found that systematic international market selection is a significant determinant of export performance, even when controlling for decision-maker and firm-specific characteristics previous studies found to be related to export success. Implications for managers, trade promotion agencies, and future research are discussed.     

International Strategic Alliances

Abstract

This paper reports the findings of an empirical investigation of strategic alliance agreements between UK firms and their European, Japanese and US partners. The aim of this paper is to shed some light on the international strategic alliance activity of UK firms and ascertain the objectives and motives of international strategic alliances. In addition, the perceived performance of the strategic alliance is considered together with the perceived level of satisfaction of a range of alliance activities. The findings should prove to be a useful guideline for researchers and practitioners engaged in understanding international strategic alliances. The analysis should allow managers to examine the important issues in the formation of international strategic alliances and allow them to understand the assessment of performance and satisfaction of the alliances formed.

Key Results: The findings have shown a definite pattern in UK international strategic alliance activity. The results of the study indicate that the majority of UK firms engage in international partnerships for marketing-related activities and are essentially driven by the financial cost and risk of entering a foreign market; access to overseas market and improving market share. The findings have also indicated that the majority of UK managers are satisfied with the overall performance of the international strategic alliance.     

An Objective and Task Media Selection Decision Model and Advertising Cost Formula to Determine International Advertising Budgets

Abstract

A company needs to estimate the cost of media plans and advertising upon introducing a new or existing product into an unfamiliar environment such as a new international market. This article presents a conceptual framework for making media decisions and a method for estimating the cost of advertising in international markets. The objective and task method is used to build a working model in order to articulate the necessary steps leading to informed media decisions for budgeting an international advertising campaign. Methods of estimating product demand and a flow model for media selection are also presented.     

Market entry in japan—Some problems and solutions 1

Japan is recognised as a major competitor in world markets but is less well‐known as an attractive market in its own right. This paper proposes that with the right strategies it is possible to successfully penetrate the difficult Japanese market. Problems and opportunities presented by the market are discussed, and some of the findings of a survey of Japanese and German managers in Japan and German‐based managers are reviewed. The paper covers the survey findings on market characteristics, barriers to entry, information requirements, factors contributing to success and methods of market entry. German and UK sources of information and advice on the Japanese market are given for those interested in pursuing the matter further.     

Intercultural competencies for emerging markets: A contextualized approach

Emerging markets are increasingly important to researchers and managers focused on helping multinational enterprises to thrive in often attractive yet unfamiliar environments. However, empirical knowledge about emerging markets is relatively under-developed when it comes to managing international talent, particularly with regard to the specific demands placed on human capital in an emerging market context. We review the existing literature about macro-level trends and micro-level characteristics of emerging markets, and we conduct cluster analyses using secondary data in order to identify the individual intercultural competencies required for managers to succeed in this environment. We propose three context-specific competencies that are especially salient in response to the complexities of emerging markets – recognizing perspectives, managing relationships, and navigating uncertainty. Finally, we discuss organizational implications and future research directions for those seeking a more nuanced view of talent management via contextualization.     

An assessment of Colombian managers' perceptions of international strategic alliances

This article reports the results of a survey of Colombian managers concerning their perceptions of strategic alliances with foreign firms. The survey focuses in particular on partner selection and the managerial expectations from such partnerships, as well as the potential difficulties involved in developing interfirm linkages. The survey of Colombian managers shows that international strategic alliances are considered a viable approach to building a competitive advantage, especially in domestic markets, either through acquiring Western technology or marketing know-how. However, the survey results also suggest that a number of obstacles need to be overcome. The important considerations in partner selection, competence building through strategic alliances, and dealing with potential problems in establishing interfirm partnerships are discussed. © 1995 John Wiley & Sons, Inc.     

International Production Sharing Opportunities in Mexico and the Caribbean

Abstract

In an effort to take advantage of access to valuable resources and increased market presence, many U.S. manufacturers have pursued production sharing relationships in a variety of overseas locations. These efforts are seen as methods of combating several threats to firm performance: increased domestic production costs, escalating international manufacturing competition, and ever changing barriers to entry regulations. From the perspective of an integrated North American competitive strategy, two geographic areas-Mexico and the Caribbean Basin-have received much attention as potential operating locations. Using a survey of corporate managers responsible for strategic business unit operations, this study investigates and compares the manufacturing and logistics performance of U.S. manufacturers operating in Mexico and the Caribbean. Relationships between logistics performance, manufacturing performance, and firm performance are examined and managerial implications are discussed.     

Examining the Role of Brand Equity in Business Markets: A Model,Research Propositions,and Managerial Implications

ABSTRACT

This paper presents a model of brand equity for business markets. It is argued that the potential benefits of branding and brand equity development have been neglected in business markets and that a general model and stream of relevant empirical research could be useful to managers in business markets depending on the situational nature of their market and competitive structure. The model adapts and extends existing brand equity literature to reflect the unique aspects involved in a business-to-business marketing context. The model developed considers marketing strategies as antecedents, two different classes of moderator variables, brand equity as a perception by the buyer or the market, a series of consequences of brand equity perceptions, and perceived risk as a moderator of the brand equity-consequences relationship. Propositions have been defined and discussed to help facilitate research and provide guidelines for industrial marketing managers.     

The Impact of Changes in the Political and Economic Environment on Foreign Direct Investment Opportunities in Romania

Abstract

This study reports findings of a survey including 139 Finnish and 97 Austrian companies active in Eastern Europe. The study focuses on two major areas in the firm's business activities in Eastern Europe, namely on market strategies-the timing of market entry, market selection, entry modes and motives-and company performance. The number of market entries has increased after the transition, but the majority of business activities still take place in geographically-close countries. Companies have gradually started to use more high-commitment modes of operation, but contrary to our expectations, high commitment modes were also frequently used in more unstable markets. Company performance in Russia and especially in other countries of Eastern Europe was in general clearly lower than in domestic markets and foreign markets in general. Against expectations, firm size, dependence on international markets, length of operation, and mode of operation in Eastern Europe did not significantly influence the performance. However, firms which concentrated on Russian markets on a continuous basis performed much better than other firms.     

Differences in Marketing Managers' Decision Making Styles Within the Asia-Pacific Region

Abstract

Marketing managers around the world are being asked to work with foreign counterparts as never before, but with limited success. This requires integration of decision making styles. The purpose of this study is to apply a management style of decision making measurement technique to selected countries of the Asia-Pacific region to determine the extent of differences in decision-making style among marketing managers.

This study surveys marketing managers within Australia, Hong Kong, The Philippines, Vietnam, New Zealand, and China. Within each country different sampling processes and modes of data collection were used by locally-based associates of the researchers, as appropriate for the country.

The study results indicate that substantive differences do exist between marketing managers from different cultural/national backgrounds within the Asia-Pacific region and these managers differ in their decision-making styles from managers in other parts of the world. doi:10.1300/J042v21n01_06     

A decision support system for optimizing advertising policy of a national tourist office model outline and case study

Application of standard optimization routines to advertising decision-making is straightforward once the relationship linking market response to input has been modeled adequately. Sometimes, however, advertising management has to cope with decision situations where econometrics fail to detect a reliable relationship. A new decision support procedure eliciting managerial judgments on the pairwise relative importance of market share influence factors provides the factor weights otherwise inaccessible by objective parameter estimation. Allocation of an advertising budget to international travel markets thus becomes susceptible to optimization through dynamic programming.