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Lesson#8
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INTERNATIONAL MARKETING INFORMATION
REQUIREMENTS
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INTERNATIONAL MARKETING INFORMATION REQUIREMENTS
Categories for Information Requirements
Importance of identifying the problem:
• Managers are
seldom criticized on the grounds that they cannot solve the problems.
• This they can do
most of the times.
• But they solve
the wrong problem.
• The managers are
often better at finding the right answers than asking themselves the right
questions.
• The real problem
in management is that executives are likely to come up with right answer to
wrong
problem.
To improve decision making managers need to focus to first
understand the environment and issues
properly. If their understanding of the issues is correct and
comprehensive then they are much more
likely to be able to make correct decisions with respect to the
issues.
Difficulties in rational decision making:
• Managers’
capacity for information processing is significantly limited.
• Managers tend to
follow what is called the law of small numbers, whereby even small samples are
viewed as representative of the population from which they are
drawn, and they are likely to
underestimate the errors and unreliability inherent in such
small samples.
• They are also
subject to the availability fallacy, whereby they are led to draw conclusions on
the
evidence that they have because it is available rather than
because it is relevant.
• There is abundant
evidence that managers overestimate their own abilities and suffer from
illusions
of control.
• A common way
managers obtain confidence about a decision is by structuring thesis.
Marketing intelligence must drive marketing research because in
ever- changing competitive market
place more emphasis will be on determining where to move the
business? and why?, and less on how to
get there.
Categories for global marketing information requirements:
Managers need a vast variety of information for successfully
operating in international markets. In the
following are described seven categories in which managers need
timely and comprehensive
information to make appropriate business decisions.
• Marketing Mix:
to add, delete, change products, stage of product life cycle, marketing/sales
campaign, distribution channel selection, price/demand and
profitability analysis.
• Competitor
information: corporate, business, functional strategies, market share.
• Foreign
exchange info: interest rates, exchange rates, balance of payment,
attractiveness of a
country’s currency, and expectations of analysts.
• Market
potential: demand estimates, consumer behavior, review of products,
channels,
communication media, and market performance.
• Prescriptive
info: laws, regulations, rulings concerning taxes, earnings, dividends in
both home &
host countries.
• Resource info:
availability of human, financial, information, physical resources.
• General
conditions: overall review of socio-cultural, political, technological
environments.
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