GLOBAL MARKETING

1. 2. YESTUREDAYS FANTASY HAS BECOME Todays REALITY . For e a!"#e e "a$s%o$ o& US &as' &ood ()r*er +,a%$ s'ores %$ -,%#%""%$es &a+ed #o+a# +o!"e'%'%o$ e$'ered ()r*er !ar.e' /%', "rod)+' ',a' /ere !ore ada"'ed 'o #o+a# 'as'e. T,e $e ' ",ase %$ Ca#%&or$%a &as' &ood +ra0e (y F%#%"%$o C,a%$ ',a' ser1ed ()r*ers /%', 'as'e o& %s#a$ds. Ha!()r*ers 'o""ed /%', -%$ea""#e a$d Deser' "%es /%', !a$*o &%##ed /ere a S)"er H%'. A +o!"a$y /%', *#o(a# o)'#oo. r%s.s #oos%$* %'s do!es'%+ !ar.e' 'o +o!"e'%'ors ,a1%$* #o/er +os'3 *rea'er e "er%e$+e a$d (e''er "rod)+'. Mar.e'%$* ,as U$%1ersa# d%s+%"#%$e a$d *e$era##y /or.s o$ M.'*. !% o& 4 -s %.e. -rod)+'3 -r%+e3 -#a+e a$d -ro!o'%o$. 5-#a+e o& D%s'r%()'%o$ a$d -ro!o'%o$ &or Co!!)$%+a'%o$6 No/adays 4 -s +a$ (e+o!e 7 -s a$d ',a' %s -ro(e3 /,%+, !ea$s Resear+,.

2. 4.

THREE -RINCI-ALS OF MARKETING 5-)r"ose a$d Tas. 8 Co!"e'%'%1e Rea#%'y 8 A+,%e1e (o',.6 1. C)s'o!er 9a#)e a$d 9a#)e E:)a'%o$; a6 K$o/#ed*e o& ',e +)s'o!er +o!(%$ed /%', %$$o1a'%o$ a$d +rea'%1%'y +a$ #ead 'o '%da# o&&er%$* ',a' o&&ers s)"er%or +)s'o!er 1a#)e. I& (e$e&%'s are s'ro$* a$d 1a#)ed e$o)*, (y ',e +)s'o!er ',e$ Cos does $o' re:)%re 'o (e #o/ "r%+e +o!"e'%'or 'o /%$ +)s'o!ers. 9< 9a#)e3 B<-er+e%1ed Be$e&%'s 5e 'ra &ea')res 8 "er+e%1ed +os's3 - 8 -r%+e. 2. Co!"e'%'%1e o& D%&&ere$'%a# Ad1a$'a*e ;

For "e$e'ra'%$* a $e/ $a'%o$a# !ar.e' %s 'o o&&er a s)"er%or "rod)+' a' #o/er "r%+es. A6 -r%+e ad1a$'a*e /%## %!!ed%a'e#y a''ra+' +)s'o!er a''e$'%o$. B6 S)"er%or :)a#%'y /%## !a.e a$ %!"ress%o$ 5 Crea'e Bra$d a/are$ess a$d Good/%##6. Fo+)s ; 5 IBM < O',er +o!"e'%'ors < COM-A= < DELL 6 16 Fo+)s or Co$+e$'ra'%o$ o& a''e$'%o$ 'o s)++eed %$ 'as. o& +rea'%$* +)s'o!er 1a#)e a' +o!"e'%'%1e ad1a$'a*e. 26 Co!"a$%es ,a1e 'o +#ear#y &o+)s o$ +)s'o!ers $eed a$d /a$'s. T,%s +a$ (e a++o!"#%s,ed (y +o$+e$'ra'%$* o$ reso)r+es a$d e&&or's o$ +)s'o!ers $eed a$d /a$'s a$d ,o/ 'o de#%1er ',e "rod)+' 'o !ee' ',ose $eeds a$d /a$'s. GLOBAL MARKETING 1. U$%1ersa# d%s+%"#%$e. 5So)$d )$ders'a$d%$* o& !a$)&a+')rers d%s+%"#%$e6 2. A "ro+ess o& &o+)s%$* ',e reso)r+es a$d o(>e+'%1es o& a$ or*a$%0a'%o$ o$ e$1%ro$!e$'a# o""or')$%'%es a$d $eeds. 2. Se' o& +o$+e"'s3 'oo#s3 ',eor%es3 "ra+'%+es a$d "ro+ed)res a$d e "er%e$+es. 4. !ar.e'%$* "ra+'%+es 1ary &ro! +o)$'ry 'o +o)$'ry a$d +a$$o' a#/ays a""#y e "er%e$+e o& o$e +o)$'ry 'o a$o',er +o)$'ry. Ea+, e$1%ro$!e$' %s )$%:)e. C)s'o!er3 +o!"e'%'%o$s3 D%s'r%()'%o$ +,a$$e#s a$d Med%a %& d%&&ers3 ',a$ !ar.e'%$* "#a$s are $e+essar%#y +,a$*ed. 7. H%*, :)a#%'y /or#d "rod)+'s are !ar.e'ed )s%$* s'a$dard%0ed ad1er'%s%$*3 "r%+%$*3 d%s'r%()'%o$. For e a!"#e Co+a Co#a (e#%e1ed %$ ?G#o(a# #o+a#%0a'%o$@. T,%$. G#o(a##y 8 A+' Lo+a##y. Co+a Co#a ada"'ed sa#es "ro!o'%o$3 D%s'r%()'%o$ a$d +)s'o!er ser1%+es e&&or's 'o #o+a# $eeds. Co+a Co#a +rea'ed U(%:)%'o)s Red a$d A,%'e sy!(o# a1a%#a(#e ?GLOBALLY@. A S'ro$*es' (ra$d %$ ',e /or#d. A#so "rod)+es o1er 2BB o',er $o$ a#+o,o#%+ (e1era*es 'o s)%' #o+a# (e1era*e "re&ere$+es.

Page 2.. O',er +o!"a$%es /,o +rea'ed s'ro$* G#o(a# Bra$ds s)+, as ?Mar#(oro@ 5C%*are''es63 Da%!#er C,rys#er3 Mer+edes3 BMA. G#o(a# Mar.e'%$* %s a#so (ased )"o$ "rod)+' or sys'e! des%*$ "rod)+' "os%'%o$%$*3 "a+.a*%$*3 d%s'r%()'%o$3 +)s'o!er ser1%+es a$d So)r+%$* Co$s%dera'%o$. M+ Do$a#ds des%*$ed a res'a)ra$' sys'e!C+)s'o!%0ed !e$) o&&er%$* I$ a++orda$+e /%', #o+a# ea'%$* +)s'o!s a$d ,a((%'s. U$%#e1er )ses 'eddy (ear 'o +o!!)$%+a'e (e$e&%' o& +o!"a$ys so&'e$er. Har#ey<Da1%dso$s "os%'%o$ed as ? A## A!er%+a$ B%.e@. G%##e''e ado"'ed sa!e "a+.a*%$* &or %'s &#a*s,%" Se$sor ra0or a## o1er ',e Aor#d. Be$e''o$s )'%#%0ed so",%s'%+a'ed d%s'r%()'%o$ sys'e! G#o(a##y. LEADING GLOBAL MARKETING STRATEGY 1. BRAND NAME 2. -RODUCT DESIGN 2. 4. 7. D. E. -RODUCT -OSITIONING -ACKAGING DISTRIBUTION CUSTOMER SER9ICE SOURCING COM-ANYCHOME COUNTRY Co+a Co#a3 -HILI- MORRIS3 Da%!#er C,rys#er M+. Do$a#ds3 Toyo'a3 Ford3 C%s+o sys'e!. U$%#e1er3 Har#ey Da1%dso$ G%##e''e Be$e''o$ Ca'er"%##ar Toyo'a3 Ho$da3 GA-

e.*. A !er*er (e'/ee$ Da%!#er Be$0 F C,rys#er %$ 1GGH /as US I 2D (%##%o$s dea#. Lar*es' I$d)s'r%a# 'a.e o1er %$ ',e ,%s'ory o& *#o(a# !o'or 1e,%+#e %$d)s'ry a$d rea+,ed &ro! D ', a$d 1D', "#a+e 'o 7', "#a+e ra$.%$* a!o$* GM3 FORD3TOYOTA AND 9OLKSAAGON. J GE < 2$d ,%*,es' !ar.e' 1a#)e Ra$.s G', $ re1e$)es a$d 2$d %$ "ro&%' !a.%$*. J GM < EGTH %$ !ar.e' 1a#)e3 Ra$.s 1s' %$ re1e$)es3 42$d %$ -ro&%'. Ma$a*e!e$' Or%e$'a'%o$ ETHNOCENTRIC ORIENTATIONK 1. Co!"a$y "erso$$e# ',%$. Ho!e +o)$'ry %s s)"er%or3 sees s%!%#ar%'%es %$ &ore%*$ +o)$'r%es. 2. T,ey ',%$. ',a' ',e "rod)+'s ',a' s)++eed %$ ,o!e +o)$'ry are s)"er%or a$d ',ere&ore +a$ (e so#d e1ery/,ere /%',o)' ada"'a'%o$. 2. Fore%*$ o"era'%o$s are 1%e/ed as (e%$* se+o$dary or s)(ord%$a'e 'o do!es'%+ o$es. 4. T,ey o"era'e )$der ',e ass)!"'%o$ ',a' are 'r%ed a$d 'r)e %$ #o+a# !ar.e' +o$s)!"'%o$. 7. Head:)ar'ers .$o/#ed*e a$d or*a$%0a'%o$a# +a"a(%#%'%es +a$ (e a""#%ed %$ o',er "ar's o& ',e /or#d. D. So!e'%!es ',%s +a$ /or. 'o +o!"a$ys ad1a$'a*e ,a1%$* 1a#)a(#e !a$a*er%a# .$o/#ed*e a$d e "er%e$+e %$ #o+a# !ar.e's. E. T,ey are !os'#y I$'er$a'%o$a# +o!"a$%es !os'#y (e#%e1e %$ d%s"os%$* o& s)r"#)s do!es'%+ "rod)+'%o$ a$d "#a$ 'o ,a1e o"'%!)! )'%#%0a'%o$ o& ',e%r !a$)&a+')r%$* )$%'s3

-a*e 2LLL..

H. No sys'e!a'%+ !ar.e' resear+, %s do$e $e%',er !a>or !od%&%+a'%o$s are !ade 'o "rod)+'s. T,e d%&&ere$+es %$ +o$s)!ers $eeds a$d /a$'s 1ar%es &ro! ,o!e 'o %$'er$a'%o$a# !ar.e'3 ',ey are !os'#y %*$ored a' ,ead:)ar'ers. G. I$'er$a'%o$a# !ar.e's are de1e#o"ed )'%#%0%$* "o#%+%es a$d "ro+ed)res %de$'%+a# 'o ',ose e!"#oyed a' ,o!e. -OLYCENTRIC ORIENTATION 1. I' %s o""os%'e 'o e',$o+e$'r%+ or%e$'a'%o$. 2. T,ey (e#%e1e ',a' ea+, +o)$'ry %$ /,%+, ()s%$ess %s "er&or!ed %s )$%:)e. 2. Ea+, s)(s%d%ary ,as 'o de1e#o" %'s o/$ )$%:)e ()s%$ess a$d !ar.e' s'ra'e*%es. I$ order 'o s)++eed. 4. T,ey are 'er!ed as M)#'%$a'%o$a# +o!"a$%es. 7. T,ey ado"' a$d +,a$*e ',e%r !ar.e'%$* s'ra'e*%es as "er ',e e$1%ro$!e$' a$d +o$s)!ers de!a$d a$d /a$' %$ "ar'%+)#ar Na'%o$. REGIOCENTRIC AND GEOCENTRIC ORIENTATION 1. T,e !a$a*e!e$' 1%e/s re*%o$s as )$%:)e a$d see.s 'o de1e#o" a$ %$'e*ra'ed S'ra'e*y. e.*. Ca$ada3 Me %+o a$d U$%'ed S'a'es are +o$s%dered as o$e re*%o$ a$d s'ra'e*y %s de1e#o"s as o$e re*%o$ &or !ar.e'%$*. 2. S%!%#ar#y a +o!"a$y ',a' &o+)ses %'s a''e$'%o$ o$ EU or E)ro"e %s re*%o$+e$'r%+. 2. T,e +o!"a$y see.s 'o de1e#o" a +o!!o$ s'ra'e*y &or e$'%re re*%o$ a$d are .$o/$ 'o (e G#o(a# +o!"a$%es. 4. Nor!a##y ',ey s'a$dard%0e ',e%r s'ra'e*y3 (ra$d $a!e3 #o*o3 "r%+e e:)a'%o$3 d%s'r%()'%o$ a$d ad1er'%s%$* ',ese or%e$'a'%o$. PHILLIPS VS MATSUSHITA :

Case study reveals that Phillips Electronics, relied on relatively autono ous national or!ani"ations in each country# Each developed its o$n strate!y# This approach $or%ed &uite $ell until Philips 'aced co petition 'ro Matsushita and other (apanese consu er electronics co panies in $hich ana!e ent)s orientation $as !eocentric# The di''erence in co petitive advanta!e *et$een Phillip and its (apanese co petition $as dra atic# Matsushita adopted a !lo*al strate!y that 'ocused its resources on servin! a $orld ar%et 'or ho e entertain ent products# In television receivers, Matsushita o''ered European custo ers t$o odels *ased on a sin!le chassis# Philips product desi!ns created *y the +os# $ere no *ased on custo ers pre'erences# Custo ers $anted value in the 'or o' &uality, 'eatures, desi!n and price# Philips decision to o''er !reater desi!n variety 'ailed as they did not o''er as per Custo ers re&uire ent *ut rather on Phillips structure and strate!y# There'ore Polycentric approach *y Phillips 'ailed and $as irrelevant to consu ers, $ho $ere loo%in! 'or value# Matsushita ,s success $as *ased upon !reater value and lo$erin! the cost and hence lo$erin! the price 'or consu ers# Ulti ately Philips had to chan!e their approach 'ro Polycentric Multinational approach to -eocentric -lo*al orientation# ./0L1 EC/+/MIC T0E+1S2 There are three reasons $hy econo ic !ro$th has *een a drivin! 'orce in e3pansion o' the international econo y and the !ro$th o' !lo*al ar%etin! # 'irst is !ro$th has created ar%et opportunities that provide a anor incentive 'or co panies to e3pand !lo*ally##

Pa!e4555

Second econo ic !ro$th has reduced resistance that i!ht reduce resistance 'ro do estic co panies other$ise due to entry o' 'orei!n 'ir s in to do estic econo ics# Thirdly the $orld $ide ove ent to$ards dere!ulation and privati"ation is another drivin! 'orce# The trend to$ards privati"ation is openin! up 'or ally closed ar%ets si!ni'icantly, tre endous opportunities are *ein! created as result# 10IVI+- A+1 0EST0AI+I+- 6/0CES A66ECTI+- -L/7AL I+TE-0ATI/+ A+1 -L/7AL MA08ETI+-: The dyna ic interplay o' various drivin! and restrainin! 'orces have shaped !lo*al econo y# 7y pursuin! International, Multinational and -lo*al strate!ies ost o' co panies have achieved !reat success# -ro$in! i portance o' -lo*al ar%etin! ste s 'ro the 'act that drivin! 'orces have ore o entu that the restrainin! 'orces# 10IVI+- 6/0CES : Conver!in! ar%et need and $ants, technolo!y advances, pressure to cut costs, pressure to i prove &uality, i prove ent in co unication and transportation technolo!y, !lo*al econo ic !ro$th and opportunities 'or levera!e# Industry su*9ect to these 'orces is a candidate 'or !lo*ali"ation#
TECHNOLOGY:

I' %s a U$%1ersa# &a+'or a$d o$+e %' %s de1e#o"ed %' +rosses $a'%o$a# a$d +)#')ra# (o)$dar%es. I' soo$ (e+o!es a1a%#a(#e e1ery/,ere %$ ',e /or#d. A,%+, !ea$s ',e e!er*e$+e o& G#o(a# !ar.e's &or s'a$dard%0ed "rod)+'s.
OTHER DRI9ING FORCES

C)#')re . Mar.e' $eeds3 Cos'3 Free Mar.e's3 E+o$o!%+ I$'e*ra'%o$3 -ea+e3 Ma$a*e!e$' 9%s%o$3 S'ra'e*%+ I$'e$'3 G#o(a# s'ra'e*y a$d A+'%o$.
RESTRAINING FORCES

C)#')re3 Mar.e' D%&&ere$+es3 Cos's3 Na'%o$a# Co$'ro#s3 Na'%o$a#%s!3 Aar3 Ma$a*e!e$' Myo"%a3 Or*a$%0a'%o$ H%s'ory3 Do!es'%+ Fo+)s. 1. Re*%o$a# e+o$o!%+ a*ree!e$'; A $)!(er o& !)#'%#a'era# 'rade a*ree!e$'s ,a1e a++e#era'ed ',e "a+e o& *#o(a# %$'e*ra'%o$. Nor', A!er%+a$ Fore%*$ 'rade a*ree!e$' 5NAFTA6 %s a#ready e "a$d%$* 'rade a!o$* US3 Ca$ada a$d Me %+o. GATT 5Ge$era# A*ree!e$' o$ Tar%&& a$d Trade ,as (ee$ re"#a+ed (y ATO 5%$+reased &ro! 12B $a'%o$s 'o 174 $a'%o$s !e!(ers6 /,o ,a1e "ro!o'ed a$d "ro'e+'ed FREE TRADE (e'/ee$ ',e !e!(er $a'%o$s. ATO ,as +o!e )$der a''a+. (y EURO-EAN UNION 5EU6 /,o %s e "a$d%$* %'s !e!(ers,%" a$d %s #o/er%$* %'s 'rade (arr%ers a!o$* EU NATIONS. 2. Mar.e' $eeds a$d /a$'s; T,ere %s +)#')ra# )$%1ersa#s a$d +)#')ra# D%&&ere$+es3 %& /e s')dy !ar.e's aro)$d ',e /or#d. G#o(a# !ar.e's are +rea'ed (y !ar.e'%$* e&&or's a$d are $o' Na')ra# !ar.e's. e.*. I$ +ase o& So&' dr%$.s %$ so!e +o)$'r%es ',ere %s ,ard#y a$y +o$s)!"'%o$ ()' %$ so!e +o)$'r%es %' %s +o$s)!ed !ore ',a$ dr%$.%$* /a'er (y +o$s)!ers.

-a*e 7LLL 2. Tra$s"or'a'%o$ a$d Co!!)$%+a'%o$ I!"ro1e!e$'s K T,e '%!e a$d +os' (arr%ers ,a1e &a##e$ 're!e$do)s#y. Me' a*e re1o#)'%o$%0ed +o!!)$%+a'%o$ a$d :)%+. de#%1ery 'o/ards d%s'r%()'%o$ sys'e!. I' %s "oss%(#e 'o 'ra1e#

aro)$d ',e /or#d %$ >)s' 4H ,o)rs. Ne/ 'e+,$o#o*y s)+, as e<!a%#3 &a 3 +o$&err%$* a$d 1%deo +o$&err%$* !ade Ma$a*er3 e e+)'%1es a$d +)s'o!ers 'o #%$. )" a$d 1%r')a##y &ro! a$y "ar' o& /or#d &or >)s' &ra+'%o$ o& a!o)$' 'o ',e%r ad1a$'a*e. a6 -,ys%+a# d%s'r%()'%o$ sys'e! %s de+#%$ed %$ 'er!s o& Go1'. s'r)+')re. (6 S,%"!e$' '%!e a$d +os' ,as (ee$ red)+ed 'o *rea' e 'e$'. 4. -rod)+' De1e#o"!e$' Cos's ; De1e#o"%$* $e/ dr)* +a$ +os' a#!os' 2DB !%##%o$s US DOLLARS3 ',e +os' +a$ (e o$#y re+o1ered %$ G#o(a# Mar.e' "#a+e. Tra$s&er o& &or!)#a a$d roya#'y a!o)$' o& de1e#o"ed dr)*s %$ -,ar!a+y ,as ()s%$ess ')r$o1er o& 2BB (%##%o$s o& US Do##ars *#o(a##y e1ery year %$ ",ar!a+e)'%+a# I$d)s'ry. 7. =UALITY ; G#o(a# Mar.e'%$* +a$ *e$era'e *rea'er re1e$)e ,e$+e *rea'er !ar*%$ o& "ro&%'s. A#',o)*, do!es'%+ a$d *#o(a# Co!"a$%es s"e$d 7N o& ',e%r sa#es o$ Resear+, a$d De1e#o"!e$'3 I$$o1a'%o$ a$d de1e#o"!e$' o& $e/ 'e+,$o#o*y. T,e G#o(a# +o!"a$%es ,a1e !)+, !ore e "e$d%')re as %' +a'ers Aor#d Mar.e'. 5 More R F D < More (e''er -rod)+' 1a#)es "rod)+ed a$d o&&ered6.
AORLD ECONOMIC TRENDS.

T,ere are ',ree reaso$s &or *o%$* G#o(a# %$ G#o(a# Mar.e'%$* 're$ds.
F%rs' reaso$ %s *ro/', ,as +rea'ed !ar.e's o""or')$%'%es ',a' "ro1%de !a>or %$+e$'%1es &or +o!"a$y 'o e "a$d *#o(a##y. S#o/ *ro/', %$ Do!es'%+ !ar.e's s%*$a#s 'o #oo. &or o""or')$%'%es o1erseas (y #o+a# or*a$%0a'%o$s a$d *o G#o(a# &or &as'er *ro/',. Se+o$d#y e+o$o!%+ *ro/', ,as red)+ed res%s'a$+e (y do!es'%+ +o!"a$%es 'o e$'ry o& &ore%*$ +o!"a$%es e$'er %$ 'o do!es'%+ e+o$o!%es. Co)$'rys ra"%d *ro/', %s o$#y "oss%(#e /,e$ ',ere %s #%(era#%0a'%o$ %$ "o#%+y &or FDI 5Fore%*$ D%re+' I$1es'!e$'6 *ro/%$* %$ Co)$'ry !ea$s Gro/%$* !ar.e's a$d e+o$o!%+ *ro/',. T,ere %s a!"#e o""or')$%'y &or e1eryo$e %$ ',e /or#d !ar.e'. T,%rd reaso$ %s %' %s "oss%(#e &or &ore%*$ &%r!s 'o e$'er Do!es'%+ e+o$o!y a$d 'o es'a(#%s, %'se#& /%',o)' 'a.%$* a/ay ()s%$ess &ro! #o+a# &%r!s 5 T,ey +a$ #oo. *#o(a##y6. For *#o(a# !ar.e's ()s%$ess !ay 'a.e a/ay ()s%$ess &ro! Lo+a# o$e. Do!es'%+ e$'er"r%se ',ere&ore #oo. &or/ard a$d see. Go1'. %$'er1e$'%o$ a$d "ro'e+'%o$ a' ',e '%!e o& re+ess%o$. Aor#d o1er !o1e!e$' &or dere*)#a'%o$ a$d "r%1a'%0a'%o$ %s a$o',er dr%1%$* &or+e. S'a'e !o$o"o#y %s d%s+o)ra*ed o& Na'%o$a# +o!"a$%es. -r%1a'%0a'%o$ %s !ore %$+#%$ed 'o #oo. &or (es' o&&ers a$d e 'e$d (e''er ser1%+es %$ ',e !ar.e's. Co$'%$)ed o$ "a*e DLLL

-a*e DLLLLL. LE9ERAGE GLOBAL COM-ANIES -OSSES THE UNI=UE O--ORTUNITIES TO DE9ELO- LE9ERAGE.

A$ ad1a$'a*e ',a' +o!"a$y e$>oys (y 1%r')e o& &a+' ',a' %' +o$d)+'s ()s%$ess %$ !ore ',a$ o$e Na'%o$. 5 %.e. G#o(a# +o!"a$%es ,a1e ed*e o1er M)#'%$a'%o$a#3 I$'er$a'%o$a# a$d Lo+a# +o!"a$%es as ',ey ,a1e 1as' area o& d%s'r%()'%o$ a$d +a$ 'ra$s&er ',e "rod)+' %& ',ey &a%# 'o !ar.e' a$d a+,%e1e ',e%r 'ar*e'3 %$ +er'a%$ Na'%o$6. FOUR IM-ORTANT TY-ES 1. EO-ERIENCE TRANSFER: Ma$a*e!e$' -ra+'%+es3 s'ra'e*%es a$d -rod)+'s3
ad1er'%s%$*CA""ea# 5 Sa#es -ro!o'%o$ Ideas6. e.*. Co!!o$ s'ra'e*%es o& *%1%$* e 'ra :)a$'%'y 'o +o$s)!er as %$+e$'%1es 'o sa#es "ro!o'%o$ o& ',e "rod)+'s. Mos'#y +o$s)!er *oods a$d esse$'%a# +o!!od%'%es. T,ere are 1ar%es s+,e!es %$'rod)+ed (y ',e G#o(a# +o!"a$%es 'o a+,%e1e ',e%r 'ar*e's. T,e o)'da'ed "rod)+' %$ o$e +o)$'ry a' %'s sa')ra'%o$ "o%$' +o)#d (e !ar.e'ed %$ o',er )$derde1e#o"ed $a'%o$ as $e/ %$'rod)+'%o$3 /,%+, !ea$s G#o(a# !ar.e'%$* ,as 1ery 1as' area 'o +o1er a$d +a$ e$>oy %$'e$se ()s%$ess o$ #o$* 'er! (as%s. T,e%r resear+, /or. o$ s)+, s'ra'e*%es .ee" o$ /or.%$* ',ro)*,o)' ',e year a$d ',ey /or. o$ )$%:)e s'ra'e*%es &or 'err%'or%es o& e$'%re re*%o$.
2. SCALE ECONOMIES; Trade s+a#e ad1a$'a*e /%', s%$*#e &a+'ory !a$)&a+')r%$* *rea'er 1a#e &or +o$s)!er. T,ey +rea'e &%$%s,ed "rod)+'s (y +o!(%$%$* +o!"o$e$'s !a$)&a+')red %$ #ar*e s+a#e &ro! d%&&ere$' "#a$'s %$ d%&&ere$' +o)$'r%es. For e.*. Ma's)s,%'a "rod)+es D9D -#ayers3 Co!")'ers a$d ',e%r +o!"o$e$'s &ro! 1ar%o)s !a$)&a+')r%$* )$%'s a' !os' +o!"e'%'%1e "r%+es a$d o& 1ery ,%*, :)a#%'y as ',ey ,a1e 1ery #ar*e orders 'o +a'er . He$+e ',ey o&&er ',e%r "rod)+' *%1%$* ,%*, 1a#)e a' !os' +o!"e'%'%1e "r%+es 'o ',e%r +o$s)!ers. S+a#e e+o$o!y ,e$+e a+,%e1ed *rea'er s)++ess. No/adays &#e %(#e !a$)&a+')r%$* 'e+,$%:)es a$d %$1es'!e$' %$ &a+'or%es o)'s%de ',e ,o!e +o)$'ry ,a1e (e''er s'ra'e*%es a$d ada"'ed (y G#o(a# +o!"a$%es. 3. RESOURSE UTILSPATION; A G#o(a# s'ra'e*y %s &or!ed (y s+a$$%$* /or#d ()s%$ess e$1%ro$!e$' a$d ()%#' o$ %$&or!a'%o$ ',ro)*, sys'e! o('a%$ed. 5+ase s')dy o& HAIER<BAMAM< MIDEA6 'o %de$'%&y o""or')$%'%es 3 're$ds3 ',rea's a$d reso)r+es. Le1era*e s.%## a$d &o+)ses3 %'s reso)r+es 'o +rea'e a s)"er%or "er+e%1ed 1a#)e &or +)s'o!ers a$d a+,%e1e +o!"e'%'%1e ad1a$'a*e. T,e *#o(a# s'ra'e*y %s a des%*$ 'o +rea'e a /%$$%$* !ar.e' o$ *#o(a# s+a#e. S'ra'e*y D%s+%"#%$e3 !)+, +rea'%1%'y a$d +o$s'a$' e&&or's a$d re/ard %s $o' >)s' s)++ess ()' a#so s)r1%1a#. 4. THE GLOBAL TRANSNATION COR-ORATION ; A$y G#o(a# e$'er"r%se /o)#d #%.e 'o ,a1e /or#d reso)r+e 'o a+,%e1e ',e%r ()s%$ess o(>e+'%1e a$d a''a%$ /or#d !ar.e' o""or')$%'%es. T,ey res"o$d 'o ',e /or#d !ar.e's o""or')$%'%es as /e## as +o!"e'%'%1e ',rea's &ro! +o!"e'%'ors (y *o%$* G#o(a# a$d ,a1e dr%1%$* &or+es 'o/ards ',e%r *rea'er *#o(a#%0a'%o$. Continued on page 7. -a*e ELLLLL RESTRAINING FORCES; MANAGERIAL MYOO-IA 5S,or' S%*,'ed$ess6 8 Or*a$%0a'%o$ +)#')re3 Na'%o$a# Co$'ro#s3 Aor#ds Dr%1%$* &or+es "redo!%$a'e ',ese res'ra%$%$* &or+es . Ma$a*e!e$' !yo"%a ; T,e s,or' s%*,'ed$ess o& !a$a*e!e$' s%!"#y %*$ore o""or')$%'%es 'o ")rs)e *#o(a# !ar.e'%$*. T,e%r (e,a1%ors %s e',$o+e$'r%+ a$d ',ey +a$$o' e "a$d *#o(a##y. Head :)ar'er s,o)#d #%s'e$ 'o %'s #o+a# 'ea! a$d $o' d%+'a'e3 /,o +a$ %$&or! a(o)' ',e #o+a# 're$d a$d *%1e e$o)*, %$&or!a'%o$ o& #o+a# !ar.e's. T,ere s,o)#d (e !ore /e%*,' *%1e$ 'o #o+a# %$%'%a'%1e a$d %$")'s F 1%s%o$s.

Na'%o$a# Co$'ro# a$d Barr%ers; E1ery Na'%o$ "ro'e+'s %'s #o+a# e$'er"r%ses a$d %$'eres's (y !a%$'a%$%$* +o$'ro# o1er !ar.e' a++ess a$d e$'ry %$ #o/ a$d ,%*, 'e+, %$d)s'r%es. Na'%o$a# *o1er$!e$'s )s)a##y +o$'ro# !o$o"o#y o$ a++ess 'o 'o(a++o !ar.e's3 (road+as'3 a$d e:)%"!e$' a$d da'a 'ra$s!%ss%o$ !ar.e's. I$ +ase o& $o$ 'ar%&& (arr%ers ',e *#o(a# +o!"a$%es (e+o!e %$s%ders %$ e1ery +o)$'ry %$ /,%+, ',ey do ()s%$ess a$d a+:)%res or es'a(#%s,es a s)(s%d%ary 'o re+e%1e !a>or ()s%$ess +o$'ra+'s a$d re+e%1e 'rea'!e$' as o',er #o+a# +o!"a$%es.

7ALA+CE /6 PA:ME+T The balance of payment is a record of all of the economic transactions between residents of a country and the rest of the world. The US and Japan balance of payments statistics for the period 1990 and 1993 are in tables.. The format closely mirrors that used by International onetary !und to "alance of #ayments yearboo$% which summari&es conics acti'ity for the countries of the world. The balance of payment is di'ided into so called current and capital account. The current account is a record of all of the recurrin( trade in merchandise and ser'ice % and #ublic aid transactions between countries. The capital account is a record of all lon( term direct in'estment% #ortfolio in'estment and other short and lon( term capital flows. The minus si(ns si(nify out flows of cash% that represents payment for imports. In (eneral country accumulates reser'es when the net of its current and capital account transactions shows a surplus. It (i'es up reser'es when the net shows a deficit. The important fact to reco(ni&e about the o'erall balance of payment is that it is always in balance.. Imbalance occurs in subsets of the o'erall balance. ) country reported balance is merchandise trade balance and plus in both its current account and its merchandise trade balances. ) country offsets its trade surplus with an outflow of capital and another country outflows its trade deficit with an inflow of capital. Therefore a country owns an increasin( *uantity of products %whereas the country with outflow of capital owns more land% real estate and (o'ernment securities. T+),- #)TT-+.S Se'enty/fi'e percent of world e0ports were (enerated by industriali&ed countries and 12 percent by de'elopin( countries. The -U accounted for 30 percent% US and 4anada 15 percent and Japan 9 percent. 6ence if -U is considered as sin(le country . its share in world e0ports would be nearest to US Similarly (rowth rate of china % South 7orea and e0ico ha'e been to (reat e0tent. 8hereas after pri'ati&ation there was 209 increase in their e0ports . a:or factors for increased emphasis is from Industrial sector in the world.
Continued on page 8.

#a(e 5 ./0L1 EC/+/MICS; A+ /VE0VIE. Global market is fortunate in a!ing a substantial bod" of data a!ailable in t at # art t e nature of en!ironment on a #ountr" b" #ountr" basis. $a# Countr" as national a##ounts data% indi#ating estimates of gross national produ#t% gross domesti# produ#t% #onsumption in!estment% go!ernment e&penditures and pri#e le!els.

'lso a!ailable on a global basis are demograp i# data indi#ation t e no. of people% t eir distribution b" age #ategor" and rates of population gro(t . )ational a##ounts and demograp i# data do not e& aust t e t"pes of e#onomi# data a!ailable. $#onom" relates to global data on agri#ulture% mining% manufa#turing #onstru#tion% energ" produ#tion and #onsumption% internal and e&ternal trade% rail road and air transport% (ages and pri#es% ealt % ousing edu#ation% #ommuni#ation and mass #ommuni#ation *mail % telegrap % telep one and mass #ommuni#ation is radio and tele!ision.+. , e (orld e#onom" as # anged to great e&tent per aps most fundamental # anges is t e emergen#e of global markets. $mergen#e of global markets responding to ne( opportunities global #ompetitors a!e sturdil" displa#ed lo#al ones. , e importan#e of (orld e#onom" as in#reased signifi#antl". $#onomi# integration as gone to -. /from 1./ in t e past 1.. "ears parti#ularl" in $012P$') 0)32) ')4 )21,5 '6$13C') 71$$ ,1'4$ '1$' *)'7,'+. , e produ#t # anges refle#t organi8ational # anges. Capital mo!ements rat er t an trade a!e be#ome t e dri!ing for#e of t e (orld e#onom". Produ#tion as be#ome un#oupled from emplo"ment. , e (orld e#onom" dominates t e s#ene. , e ma#ro e#onomies of indi!idual #ountries no longer #ontrol e#onomi# out#omes. , e gro(t of #ommer#e !ia t e 3nternet diminis es t e importan#e of national barriers.

Three

a9or chan!es have happened in the $orld econo y ;

The 'irst chan!e is the increased volu e o' capital ove ents# Trade in !oods and services is runnin! a a"in!ly around US < 4 trillions per year and Euro < ar%et turnover <4== *illions each $or%in! day# The total < >== trillion per year $hich is 4= ti es volu e o' the $orld trade in !oods and services# Capital ove ents and trade deter ine the currency value o' a nation# The second chan!e concerns the relationship *et$een productivity and e ploy ent# Althou!h e ploy ent is on decline *ut productivity continuous to !ro$# The pattern is especially clear in A erican a!riculture $here 'e$er 'ar e ployees product ore output# A erican have ?@A o' !ross national Product 'ro anu'acturin! and also in all other a9or industrial econo ies as $ell#

The third chan!e is the e er!ence o' the $orld econo y as the do inant econo ic unit# Co pany e3ecutive and national leader $ho reco!ni"e this have !reater chance to success# Those nations pro!ress and achieve !reat success in $ho 'ocus on $orld econo y and $orld ar%ets and it is on top priority o' -overn ent and *usiness policies# The success o' the capitalist ar%et syste had caused the overthro$ o' co unis as an econo ic and political syste # The superior per'or ance o' the $orld)s ar%et econo ies has led socialist countries to renounce their ideolo!y#

EC/+/MIC S:STEMS

, ere are t ree t"pes of e#onomi# s"stems; #apitalist% so#ialist and mi&ed. , e" are based on t e met od of resour#e allo#ation% market allo#ation and #ommand *Central plan allo#ation+. 1. 6arket allo#ation 9 , e" (ork on #onsumers to allo#ate resour#es from ( ere t e" (ould like to re#ei!e t e goods. 3t is like demo#ra#" s"stem #onsumer a!e rig ts to sele#t t e produ#t of t eir # oi#e. , e role of state in a market e#onom" is to promote #ompetition and ensure #onsumer prote#tion. 3t is !er" #lear to mention t at t e superiorit" of t e market allo#ation s"stem.

2. Command 'llo#ation : , e #ountries ( ere state as broad po(ers to ser!e publi# interest de#iding ( i# produ#ts to make and o( to make t em. Consumer is free to spend t eir mone" on ( at is a!ailable is limited and planned b" ;tate. , e #ountries t at relied on #ommand allo#ation s"stems for de#ades are no( engaged in e#onomi# reforms dire#ted at s ifting to market allo#ation s"stems. *e.g. C ina% 1ussia and 3ndia+. , ere are no strategi# !ariable used su# as relian#e on produ#t differentiation% ad!ertising and promotion% distribution andled b" t e go!ernment to #ut out <e&ploitation= b" intermediaries. $lements of marketing mi& are eliminated. 6arket reforms and #apitalism in man" parts of t e (orld are #reating better opportunities for large s#ale in!estments b" global #ompanies.

3. 6i&ed ;"stem 9 , ere is pra#ti#all" no pure market or #ommand allo#ation s"stems among t e (orld e#onomies. 6arket s"stems a!e #ommand se#tor% and all #ommand s"stem a!e a 6arket se#tor. > i# means t e" are mi&ed. 3n market e#onom"% t e #ommand allo#ation se#tor is proportion of gross domesti# produ#t*G4P+ t at is ta&ed and spent b" go!ernment. 2rgani8ation for $#onomi# Cooperation and 4e!elopment t is proportion range from 32 per#ent *0.;.+ of G4P to ?4/ of G4P*;(eden+ ( i# are #ontrolled b" Go!t.% t e e#onomi# s"stem is more in #ommand t an market. , e re!erse is true in 0; and similarl"% farmers in most of so#ialist #ountries (ere traditionall" permitted to offer part of t eir produ#ts in a free market. 'lt oug C ina as gi!en #onsiderable freedom to businesses and indi!iduals in some pro!in#e to operate (it in a market s"stem. ;till C ina@s pri!ate se#tor #onstitutes on 192/ of )ational output.

MARKET SYSTEM
;tages of market 4e!elopment : G)P P$1 C'P3,' pro!ides a !er" useful (a" of grouping t ese #ountries for #omplete information about t em. , ese Countries $#onomi# ;tatus of ea# #ountr" and predi#tion #an be made out of Ci!il ratio. Predi#tion #an be made of G)P ratio. Countries do a!e similar # ara#teristi#s but in#ome of ea# stage is arbitrar" in four #ategories. LOA INCOME COUNTRIES; , e" are kno(n as pre 3ndustrial #ountries (it in#omes of less t an 0;A 78. per #apita. , e" #onstitute 37/ of (orld population but a!e less t an 3 / of >orld G)P.

C5'1'C5,$1;,3C;: 1. Bimited 3ndustriali8ation and ig per#entage of population mostl" engaged in agri#ultural and subsisten#e farming. 2. 5ig Cirt rates. 3. Bo( Bitera#". 4. 1elian#e on 7oreign 'id. -. Politi#al instabilit" and unrest. LOAER MIDDLE INCOME GROU-: , ese are less de!eloped nations a!ing G)P per Capita of more t an 0;A 78. and belo( 0;A 312- . , ese #ountries a!e 37/ of >orld Population but onl" 11/ of (orld G)P and are at earl" stage of 3ndustriali8ation% 7a#tories suppl" domesti# markets. , e" are also Countries for t e Produ#tion of standardi8ed or mature produ#ts *e.g. $&ports of 1ead"made% $ngineering goods% 'gri#ultural eDuipments. et# et#+.

Consumer 6arkets in t ese #ountries are e&panding. , e" are #ompetiti!e t reats as t e" mobili8e t eir relati!el" # eap and often ig l" moti!ated labor to ser!e target markets in t e (orld. , e" a!e maEor #ompetiti!e ad!antage in mature standardi8ed% labor intensi!e produ#ts.

U--ER MIDDLE INCOME GROU- : , e" are kno(n as 3ndustriali8ing Countries and are t ose (it G)P per Capita bet(een 0; A 312? and 0; A F?--. , e" a##ount for 7/ of (orld population and 7/ of G)P of >orld. Population as s ifted from agri#ulture to 3ndustrial se#tor in maEor (a". , e" a!e rapidl" industriali8ed and in#reased (ages and ig rates of litera#" and ad!an#ed edu#ation but a!e maintained lo(er (age rate as #ompared to ad!an#ed Countries. 't su# pa#e of de!elopment t ese #ountries freDuentl" be#ome formidable #ompetitors and e&perien#e rapid gro(t and e&port dri!en e#onomi# gro(t . Page 14.. HIGH INCOME COUNTRIES: , ese are kno(n as ad!an#ed industriali8ed post industrial or first (orld Countries. , ere G)P per Capita in#ome is abo!e 0; A F?-- (it e&#eption of fe( oil ri# Countries. , ese #ountries rea# ed present in#ome le!el due to sustained e#onomi# gro(t . , e" a##ount 1?/ of >orld Population but 82/ of >orld G)P. , e"

are kno(n as Post 3ndustrial #ountries. e.g. 0.;. % ;>$4$)% G'P') , e" go be"ond mere measure of in#omes. , e" al(a"s ea!il" depend upon ne( produ#ts and inno!ation t an in industrial so#ieties instead of in#reasing t e s are in e&isting markets. , e" #on#entrate on #reating ne( markets. i.e. 3ntera#ti!e 6ultimedia forms of Global Companies intera#ti!e in range #ommuni#ation related 3ndustries (ere seeking to #reate ne( market for ele#troni# #ommuni#ation. 2(ners ip le!els of basi# produ#ts are e&tremel" ig in most of ouse olds

CONCLUSION : , e Countries (it serious e#onomi# so#ial and politi#al problems be#ome un attra#ti!e for in!estment and operation. 5en#e t ese #ountries #an not be stabili8e in >orld $#onom" and s all a!e lo( in#ome a!ing no gro(t . *$t iopia% 6o8ambiDue + , e" lur# from one disaster to anot er. 2n#e su##essful gro(ing #ountries t at a!e be#ome di!ided b" Politi#al (ould al(a"s struggle. , e result is #i!il strife% de#lining in#ome and often #onsiderable danger to residents. Ci!il (ars and disturban#e keep most marketers sta" a(a" from t ese #ountries or do limited business. THE STAGES OF MARKET DE9ELO-MENT , e" are based on G)P per #apita #orrespond (it stages of e#onomi# de!elopment. Bo(er and lo(er middle in#ome #ountries are #alled less de!eloped #ountries *B4C+.

0pper middle in#ome #ountries are #alled 3ndustriali8ing #ountries. 0pper in#ome group #ountries are referred as ad!an#ed 3ndustrial and Post 3ndustrial #ountries. $stonia% ;out 'fri#a% Peru are mo!ing up(ard to upper middle in#ome group from lo(er middle in#ome group. Cig emerging markets t at a!e annual G)P greater t an 1.. billion dollars are gro(ing at faster rate t an t e (orld@s a!erage rate and are (ell positioned to mo!e to ne&t ig er in#ome group. 6arkets s ould be #onsistent of tremendous gro(t potential t at e&ists to t ese #ountries and de!elop plans a##ordingl". *PPP9 Pur# ase po(er Parit"+.

There are 'aries ways of di'idin( countries of the world into different re(ional mar$ets.

.ESTE0+ EU0/PE )lthou(h physically less that si&e of )ustralia (enerated 319 of (lobal income in the year 1000. There are 13 4ountries < 12 -U and 3--) 4ountries= plus Swit&erland% the channel Islands% >ibraltar% >reenland and alta. Total population is 3?0 illions appro0imately. The countries in 8estern -urope are most prosperous despite of une'enly income distributed in the re(ion <e(. #ortu(al@s annual income par capita income is US A 10%B0B )., IS )C DST 1E3rd of Swit&erland@s A 3?%3B9.= The 'aried societies of 8estern -urope ha'e (rown remar$ably ali$e and are mo'in( in the same direction despite of different family patterns and wor$. F. I #.

-U ember countries ha'e ob:ecti'e to harmoni&e national law and re(ulations so that the (oods % ser'ice% people and money can easily flow freely across different nations of -U. The -U is encoura(in( the de'elopment of 4ommunity wide labor pool% Impro'ement in hi(hways and rail networ$. - S < -U#-). D.-T)+G SGST- = is already operatin( with H-U+D@ as -uropean currency to be $now as common currency. The #roduct% #rice% #romotion strate(ies are followed fa'orably to suit the distribution system in -urope to each and e'ery nation with an understandin( and laid upon to benefit of the -U.

Eastern and Central EuropeI

7al%an Countries BAl*ania, 7osnia, Her"e!ovina, 7ul!aria, Croatia, Macedonia, Montene!ro, 0o ania, Slovenia and :u!oslaviaC 7altic Countries B Estonia, Latvia and LithuaniaC Co on$ealth Independent states B 6/0ME0 USS0C The Chec% and Slova% repu*lics, hun!ry and Poland had e3tra ordinary political re'or s $hich s$ept the re!ion and 'ocused attention on ore open ar%ets# They have population $ith over DD illions person#

The 'or er Soviet *loc% countries accounted 'or E#FAo' .orld -1P in >FF= and per capita -+P $as < DEE@in year ?===# the sa e countries accounted 'or @#@A o' $orld population and only ?#@A o' $orld -+P $ith per capita -+P o' < ??>F $ith uch lo$er $a!e rate than those in Spain, Portu!al and -reece# Eastern and Central Europe represents attractive potential location 'or lo$ cost anu'acturin! and !iven their increasin! $ealth are i portant developin! ar%ets# Europe)s version o' econo ic Ti!ers# Poland B< DF@G per capita -+PC Hun!ry B <44?FC Chec% 0epu*lic B4@GC and Slova% 0epu*lic B< D@FDC each adopted radical econo ic policies, $hich appears to have *een &uite success'ul# Hence they $ere placed in Upper Middle Inco e Cate!ory# Ar enia, A"er*ai9an, 8yr!y" 0epu*lic and Ta9i%istan all 'or er 0epu*lic o' Soviet Union are still lo$ inco e Countries # 0ussian econo y accounted 'or >A o' $orld -+P in ?=== year# 0ussian 'ederation $as only < ?D?F and in the year ?=== $as a s all player in the $orld ar%et s$eepsta%es yet the potential 'or !ro$th and develop ent in 0ussia is enor ous#

V# IMP
ar$etin( is untruthfully a $ey achie'in( the economic de'elopment of 4ountries in 4entral and -astern -urope% where it may ta$e decades to reach le'el of sophistication as compare to 8estern -urope. The reforms are ine'itable and youn(er (eneration is defiantly loo$in( towards democracy and 4apitalism. They need to de'elop infrastructures and mo'e beyond capricious le(al and contractual frame wor$s% de'elop mechanism for forecastin( demands. In #oland they started ha'in( mar$etin( departments in more that 359 of companies and are spearheadin( the adoption of separate mar$etin( di'isions to promote the systems. -astern -urope@s distribution system is wea$ and underde'eloped % wholesales% lac$ of proper warehousin( and monetary situation are deterrent <Cac$in( professionalism =. +/0TH AME0ICA US 4).),) -JI4D < US 1B0 ICCID.S #opulation K per 4apita >.# A 19923=

A1VA+TA-EI 6i(h per capita income % Car(e #opulation% Fast space and plentiful .atural resources. 6i(h technolo(y le'els are associated with hi(h income and relati'ely hi(h recepti'ity towards inno'ation and new concepts within consumer and Industrial #roduct. US and 4anada are >lobal Industrial leaders in the world. a:or production is be'era(e% 4omputers% Software% aero space% -ntertainment% edical e*uipment and specialty retailin( Industries and ser'ices. ain reason for their success is the arms len(th relationship between business and >o't. 6ence (reater opportunity for mar$et access .

-lsewhere closer partner ship between >o't. and "usiness hampers the mar$etin( efforts of !orei(n supplies.

ASIA -ACIFIC E +e"' A)s'ra#%aCNe/ Pea#a$dCM%dd#e eas' a# +o)$'r%es %$ As%a are .$o/$ as As%a -a+%&%+. As%a -a+%&%+ ,as 72N o& Aor#ds -o")#a'%o$ a$d 27N o& *#o(a# %$+o!e. O)' o& /,%+, 7BN %$+o!e /as +o$+e$'ra'ed %$ Ma"a$ ,a1%$* "o")#a'%o$ o& >)s' 7N o& re*%o$. T,e &as'es' %$d)s'r%a# re1o#)'%o$ /as %$ Eas' As%a a!o$* &o)r Co)$'r%es SOUTH KOREA3 TAIAAN3 SINGA-ORE AND HONG KONG a$d are ra$.ed %$ /or#ds ,%*, %$+o!e *ro)" $a'%o$s. Be,%$d ',ese $a'%o$s are $e ' &o)r $a'%o$s so +a##ed T,a%#a$d 3 Ma#ays%a3 I$do$es%a a$d +,%$a. A$d /ere $o' e+o$o!%+a##y a' ,%*,er #e1e# d)e 'o As%a$ F#) 5 I$'er$a# d%sorder6. C,%$a /%', -o")#a'%o$ o& 1.2E B%##%o$s "o'e$'%a# +o$s)!ers %s a Co)$'ry /,%+, $o !ar.e'er +a$ a&&ord 'o %*$ore a#',o)*, $o' a## &ore%*$ +o!"a$%es are !a.%$* e$o)*, "ro&%'s. D)e 'o #ess &a1ored E$*#%s, #a$*)a*e e&&e+'ed !ar.e'%$* %!"#%+a'%o$s. I$ Ho$.o$* 'a.e o1er (y C,%$a C,%$a /%', a "o")#a'%o$ s)r"ass%$* 1.2E (%##%o$s ',e #ar*es "o")#a'%o$ %$ ',e /or#d a#!os' 17N o& /or#d "o")#a'%o$ a''ra+'s !a$y !ar.e'ers. C,%$a %s ra"%d#y *ro/%$* a$d de1e#o"%$* $a'%o$ a' ',e ra'e o& 1BN a$$)a##y. GD- %$ ',e year 2BBB /as 1.2 (%##%o$s ()' %$ "er +a"%'a %$+o!e (as%s ',%s 'ra$s#a'e 'o !ere#y )s I G2B a$d 1ar%es /%de#y %$ +oas'a# "ro1%$+es /,%+, are ,%*,#y %$d)s'r%a# . G#o(a# +o$1ers%o$ &ro! a +o!!)$%s' sys'e! 'o Free Mar.e' sys'e! /as ',e s'ra'e*y a""#%ed &or ',e%r a+,%e1e!e$' a$d s)++ess %$ %$+reas%$* ',e%r GD- AND GN- s,are %$ ',e /or#d !ar.e'. C,%$a %s #ar*es' 'rad%$* "ar'$er o& US. I!"or's (y U.S. are ,ea1%#y s.e/ed 'o e#e+'r%+a# !a+,%$ery3 'oysC*a!es3 -o/er *e$era'%o$3 !a+,%$ery3 +o$s)!er d)ra(#es a$d a""are#s /,%+, %s 'o ',e ')$e o& USI 2D (%##%o$s /,ereas C,%$a %!"or's &ro! US A%r+ra&'3 -o/er *e$era'%o$ !a+,%$ery3 Fer'%#%0ers3 e#e+'r%+a# !a+,%$ery 'o ',e ')$e o& US I G B%##%o$s. Ma$y o& &ore%*$ a)'o!o(%#e I$d)s'ry %s +o$'%$)o)s#y !a$)&a+')r%$* Cars %$ C,%$a. Ma$y Co!"a$%es &ro! o1erseas ,a1e !ade d%re+' %$1es'!e$' %$ C,%$a ()' o$#y 1C2rd o& ',e! ,a1e (ee$ s)++ess&)# 'o *e$era'e "ro&%'s.

MA-AN

LATI+ AME0ICA A%', EN o& ',e /or#ds /ea#', a$d G.7 N o& %'s "o")#a'%o$3 %s a de1e#o"%$* re*%o$. A1era*e "er +a"%'a %$+o!e ra$*ed &ro! a ,%*, o& I G3E2B %$ Ar*e$'%$a a$d ,%*, %$+o!e +o)$'ry 'o Ha%'% I 2BE o$e o& ',e #o/es' %$ ',e Aor#d. La'%$ A!er%+a ,as "o")#a'%o$ o& 71B !%##%o$ "eo"#e *rea'er ',a$ Aes' E)ro"e. I$ 9e$e0)e#a ,ad (ee$ s)&&er%$* a$d d%d $o' ,a1e e$o)*, 'o ea' :)adr)"#ed o1er 2B years o1er years. Free !ar.e's3 O"e$ e+o$o!%+s a$d de<re*)#ar%'%es ,a1e (e*a$ 'o re"#a+e ',e "o#%+%es o& ',e "as' %$ !os' +o)$'r%es. La'%$ A!er%+a %s ra"%d#y !o1%$* 'o e#%!%$a'e (arr%ers 'o 'rade a$d %$1es'!e$'. I$ !a$y +o)$'r%es3 'ar%&&s /ere red)+ed 'o 1B 'o 2BN &ro! 1BBNor !ore ,a1e (ee$ #o/ered. As $o'ed ear#%er La'%$ A!er%+a$ +o)$'r%es ,a1e a#so &o+)sed o$ de1e#o"%$* s)( re*%o$a# +o!!o$ !ar.e'. T,ese %$%'%a'%1es are see$ as "re+)rsors 'o &reer 'rade /%', U$%'ed s'a'es. Ma$y o(ser1ers e$1%s%o$ a &ree 'rade area ',ro)*,o)' ',e ,e!%s",ere. C,%#e e "or' dr%1es s)++ess !a.es %' a ro#e !ode# &or ',e res' o& La'%$ A!er%+a as /e## as Ce$'ra# a$d Eas'er$ E)ro"e. T,e /or#d +#ass /%$es "rod)+ed %$ C,%#es 1%$eyards e$>oy &a1or a!o$* "r%+e +o$s+%o)s +o$s)!ers aro)$d ',e /or#d a$d C,%#ea$ sea ,e#d 'o s%$*#e d%*%'s3 )$ e!"#oy!e$' ,o1er%$* a' a(o)' D N3 a$d !odes' ()d*e' s)r"#)s3 C,%#e %s "a$'%$* ',e /ay 'o/ard +,a$*e %$ e+o$o!%+ ',%$.%$* %$ o',er e!er*%$* !ar.e's. C,%#e a#so (oas's a$ %!"ress%1e re+ord %$ "r%1a'%0a'%o$ a$d %' "%o$eered de(' &or e:)%'y s/a"s as a /ay o& re'%r%$* "ar' o& %'s &ore%*$ de('. Lo$* 'er! &ore%*$ %$1es'!e$' (y ',e U$%'ed S'a'es3 S"a%$ a$d Ca$ada a#o$* %$ #as' de+ade 'o'a#ed a$ e$1%a(#e I 2 (%##%o$s. Bra0%# %s a$ e a!"#e o& a +o)$'ry ',a' !ade 're!e$do)s s'r%des %$ ',e /or#d a$d %'s #a$d !ass !a.es %' &%&', #ar*es' %$ 'er!s o& area. E+o$o!%+a##y %' ,as 2.D "er+e$' o& /or#ds GN-3 /,%+, e:)a'es 'o I 4GHD "er "erso$. I' %s see$ !os'#y (y G#o(a# +or"ora'%o$s are /a'+,%$* de1e#o"!e$'s +#ose#y. T,ey are e$+o)ra*ed (y %!"or' #%(era#%0a'%o$3 ',e "ros"e+'s &or #o/er 'ar%&&s /%',%$ s)( re*%o$a# 'rad%$* *ro)"s a$d "o'e$'%a# &or es'a(#%s,%$* !ore e&&%+%e$' re*%o$a# "rod)+'%o$.

MIDDLE EAST M%dd#e Eas' %$+#)des 1D Co)$'r%es. T,e re*%o$ a++o)$'ed &or 1.G No& /or#d GN- a$d ,as a 'o'a# "o")#a'%o$ o& a""ro %!a'e#y 2DB !%##%o$s /%', a$

a1era*e a$$)a# "er +a"%'a %$+o!e o& I 2H21 %$ ',ose +o)$'r%es /,ere GNda'a are a1a%#a(#e. Ba,ra%$3 Ira:3 Ira$3 K)/a%'3 O!a$3 =a'ar a$d Sa)d% Ara(%a ,o#d !ore ',a$ E7N o& ',e &ree /or#d o%# reser1es. O%# re1e$)es ,a1e /%de$ed ',e *a" (e'/ee$ r%+, a$d "oor $a'%o$s %$ ',e M%dd#e Eas'. Sa)d% Ara(%a re!a%$s ',e !os' %!"or'a$' !ar.e' %$ ',%s re*%o$. T,e +o)$'ry %s !o$ar+,y /%', 1D !%##%o$s "eo"#e. Sa)d% Ara(%a ,as 27N o& ',e /or#ds .$o/$ o%# reser1es. T,e ()s%$ess %s *e$era##y es'a(#%s,ed (y "erso$a# ra""or'3 !)')a# 'r)s' a$d res"e+' %s esse$'%a##y ',e !os' &a+'or #ead%$* 'o a s)++ess&)# ()s%$ess re#a'%o$s,%". Nor!a##y Ara( ()s%$ess "erso$s do ()s%$ess /%', %$d%1%d)a# a$d $o' /%', ',e +o!"a$y. T,e &o##o/%$* "re+a)'%o$s are 'o (e 'a.e$ +are&)##yK 1. Ne1er (r%$* )" ()s%$ess s)(>e+'s )"&ro$' (e&ore *e''%$* 'o .$o/ yo)r Ara( Hos'. T,%s %s o',er/%se +o$s%dered r)de. 2. I' %s 'a(oo 'o as. :)es'%o$s or !a.e +o!!e$'s +o$+er$%$* a !a$s /%&e or &e!a#e +,%#dre$. 5T,ey are 1ery "ossess%1e (y $a')re a$d &ee# o&&e$ded6. 2. A1o%d ")rs)%$* ',e s)(>e+' o& "o#%'%+s or re#%*%o$ 5 T,ey are 1ery se$s%'%1e o$ ',ese s)(>e+'s6. 4. A1o%d a$y d%s+)ss%o$ o& Israe#. 5Case s')dy o& *oods +a$ $o' (e #oaded o$ a$y Israe#% 1esse# %s ',e%r &%rs' +o$d%'%o$6. AFRICA I' %s %!"oss%(#e 'o 'rea' A&r%+a as a s%$*#e e+o$o!%+ )$%'. T,ey are *e$era##y d%1%ded %$'o ',ree d%s'%$+' areas. Re")(#%+ o& So)', A&r%+a3 Nor', A&r%+a a$d S)( Sa,ara$ A&r%+a #o+a'ed (e'/ee$ ',e Sa,ara Deser' %$ ',e $or', a$d Pa!(e0% R%1er %$ ',e so)',. T,e !ar.e' %s Lar*e /%', o1er E2B !%##%o$ "eo"#e. A&r%+a /%', 1.2 N o& ',e /or#ds /ea#', a$d 11.GN o& %'s "o")#a'%o$3 %s a de1e#o"%$* re*%o$ /%', a$ a1era*e "er +a"%'a a$$)a# %$+o!e o& I 72D. Re")(#%+ o& So)', A&r%+a ,as GN- o& I 127 (%##%o$s a#!os' 7BN o& ',e 'o'a# GN- OF AFRICA so)', o& ',e Sa,ara. I$+o!e "er +a"%'a %s I 2GB2. Ho/e1er ',e %$+o!e %s d%s"ro"or'%o$a'e as 24 N "o")#a'%o$ #%1e (e#o/ ',e "o1er'y #%$e. S#o/ *ro/', (%* &a!%#%es a$d #o/ %$1es'!e$'. T,e Go#d a$d o',er !%$era# !%$es *e$era'e a#!os' 47N o& So)', A&r%+as E "or's a$d are s)(>e+' 'o /or#d/%de *o#d "r%+es a$d are /%$d%$* do/$. U$e!"#oy!e$' %s a""ro %!a'e#y 2BN a$d 11 N are )$dere!"#oyed. N%*er%a %s #ar*es' $a'%o$ o& A&r%+a /%', a "o")#a'%o$ o& 12H !%##%o$s a$d a GN- o& I2H (%##%o$s. T,e !a>or s)""#%er o& o%# 'o ',e /or#d a$d "er +a"%'a %$+o!e %s o$#y I 2GG. 2BN o& N%*er%as "o")#a'%o$ %s (e#o/ "o1er'y #%$e. Say US I 2B "er "erso$. Mos' %$ +o!"e'e$'3 %$e&&%+%e$' a$d +orr)"'

Go1er$!e$' %$ ',e /or#d. I' %s !os' d%&&%+)#' 'o do ()s%$ess /%', N%*er%a as o$e ,as 'o (e e 'raord%$ar%#y +are&)#. Se1era# Co)$'r%es %$ s)( Sa,ara$ A&r%+a ,a1e s,o/$ 're!e$do)s de+#%$e %$ GN- . So!a#%a ,as a#!os' E7N o& ',e "o")#a'%o$ !a#$o)r%s,ed "eo"#e %$ ',e re*%o$. I$ Co$*o3 Mo0a!(%:)e3 Er%'rea3 a$d E',%+ o1er 7BN do $o' ,a1e e$o)*, 'o ea'. E+o$o!%+a##y S%erra Leo$e ,as de+#%$ed H N3 Co$*o de+#%$ed 12.7N a$d A$*o#a de+#%$e 'o 1BN. Nor', A&r%+a ,as EH !%##%o$s Ara(s d%&&ere$'%a'ed "o#%'%+a##y a$d e+o$o!%+a##y. T,ey are r%+,er a$d !ore de1e#o"ed (e$e&%'%$* &ro! #ar*e o%# reso)r+es.

1I66USI/+ THE/0: I$$o1a'%o$ !ea$s so!e',%$* $e/. O$+e a "rod)+' %s %$'rod)+ed a$y /,ere %$ ',e /or#d !ea$s %' %s $o #o$*er %$$o1a'%o$ (e+a)se %' %s $o #o$*er $e/ 'o ',e /or#d. Ho/e1er a$y "rod)+' a#ready %$'rod)+ed %$ o$e !ar.e' !ay (e a$ %$$o1a'%1e "rod)+' &or a$o',er (e+a)se %' %s $e/ a$d d%d $o' e %s' ear#%er %$ ',a' Co)$'ry ear#%er. O$+e rea+,%$* %'s sa')ra'%o$ "o%$' a$d a+,%e1%$* 'ar*e' %$ sa#es a$d !ar.e'%$* o& a "rod)+' %$ de!a$d ',ere %s de+#%$e. He$+e ',e Mar.e'%$* !a$a*ers !a.e ',e sa!e "rod)+' a1a%#a(#e as $e/ a$d %$$o1a'%1e e$'ra$' %$'o ',e a$o',er !ar.e' /,ere %' ,as $o' (ee$ ear#%er. THE ADO-TION -ROCESS: T,e s'a*e ',ro)*, /,%+, a$ %$d%1%d)a# "asses &ro! ',e '%!e o& ,%s or ,er &%rs' .$o/#ed*e o& %$$o1a'%o$ 'o ',e '%!e o& "rod)+' ado"'%o$ or ")r+,ase. T,e "ro+ess *oes ',ro)*, 7 s'a*es. 16 AAARENESSK A' &%rs' '%!e o& ',e "rod)+' or %$$o1a'%o$ %!"erso$a# so)r+es o& %$&or!a'%o$ 3 s)+, as !ass !ed%a ad1er'%se!e$' are !os' %!"or'a$'. A$ %!"or'a$' ear#y +o!!)$%+a'%o$ o(>e+'%1e %$ *#o(a# !ar.e'%$* %s 'o +rea'e a/are$ess o& $e/ "rod)+'s ',ro)*, *e$era# e "ose 'o ad1er'%s%$* !essa*e. E*. +ase s')dy o& DNA $e/s "a"er.

26 Co$s)!ers I$'eres'; D)r%$* ',%s s'a*e ',e +o$s)!er %s %$'eres'ed 'o .$o/ !ore a(o)' ',e "rod)+' a$d (y e 'e$d%$* ,%s C,er a''e$'%o$ !ore o$ +o!!)$%+a'%o$ re#a'%$* 'o "rod)+' a$d /o)#d e$*a*e %$ resear+, a+'%1%'%es 'o see. o)' !ore "rod)+' %$&or!a'%o$. 26 E9ALUATION; A' ',%s s'a*e %$d%1%d)a##y a +)s'o!er !a.e assess!e$' a(o)' ',e "rod)+' (e$e&%'s 'o ,%s "rese$' de!a$d a$d &)')re re:)%re!e$' a$d !a.es a de+%s%o$ 'o 'ry ',e "rod)+' or $o'. 46 TRIAL ; Nor!a##y a +o$s)!er /o)#d $o' ")r+,ase a$ e "e$s%1e "rod)+' /%',o)' a 'r%a#. I$ +ase o& A)'o!o(%#es $or!a##y a Tes' Dr%1e %s o&&ered 'o a''ra+' a C)s'o!er. A,ereas %$ +ase o& %$e "e$s%1e o& %$e "e$s%1e *oods a +o$s)!er *oods a 'r%a# o&'e$ %$1o#1es a+')a# ")r+,ase a' #eas' o$+e. Ma$y Co!"a$%es %$1o#1ed %$ Co$s)!ers

%$e "e$s%1e *oods o&&er &ree sa!"#es &or 'ra%# 'o %$d)+e a +)s'o!er. O$e '%!e ")r+,ase %s 'rea'ed as 'r%a# sa#e. 76 ADO-TION; As +o$s)!er !o1es &ro! ',e e1a#)a'%o$ ',ro)*, 'r%a# 'o ado"'%o$ "erso$a# so)r+e o& %$&or!a'%o$ (e+o!es !ore %!"or'a$'. A' ',%s s'a*e ',e sa#e re"rese$'a'%1e a$d /ord o& !o)', (e+o!es !ore "ers)as%1e &or ',e a&&e+' ()y%$*. -er,a"s ',e !os' s'r%.%$* &a+' a(o)' ',e /or#d !ar.e's a$d ()yers %s ',a' &or ',e &%rs' '%!e %$ Moder$ H%s'ory a$d ',e e$'%re /or#d %s *ro/%$* 'o/ards re&or!s. T,ere /%## (e &as'er *ro/', %$ U$der de1e#o"ed Na'%o$s ',a$ de1e#o"ed $a'%o$s Aor#d O1er %$+#)d%$* A&r%+a$ Na'%o$s. T,%s /%## *%1e $e/ o""or')$%'%es &or !ar.e'ers. A,o $eed 'o #oo. %$ +,ara+'er%s'%+ o& ea+, $e/ !ar.e' ',ey /%s, 'o e$'er a$d e "a$d 'o/ards *#o(a#%0a'%o$.

GATT
Ge$era# A*ree!e$' o& Tar%&& a$d Trade /as %$%'%a# (ody &or!a'%o$ 'o se''#e ',e d%s")'es a!o$* ',e !e!(er $a'%o$s %$ ',e &%rs' ,a#& +e$')ry o& %'s e %s'e$+e. Des"%'e o& ,a$d#%$* !ore ',a' 2BB +rores o& Trade d%s")'e !a$y $a'%o$s %$1o#1ed %$ &ood "rod)+'s. I' d%d $o' ,a1e e$&or+e!e$' "o/er a$d #oos%$* "ar'y %$ a$y d%s")'e /as e$'%'#ed 'o %*$ore ',e de+%s%o$ a$d %$ "ro+ess o& dea#%$* /%', d%s")'e /o)#d s're'+, &or years.

O$ Ma$)ary 1GG7&ro! %'s Base %$ Ge$e1a ATO +a!e %$'o e %s'e$+e. ATO s'a&& o& $e)'ra# e "er's /o)#d a#so ser1e as !ed%a'ors o& *#o(a# 'rade d%s")'es. ATO ,as a DSB G D%s")'e se''#e!e$' Body6 /,%+, e$'er'a%$s +o!"#a%$'s a(o)' )$&a%r 'rade "ra+'%+es a$d (arr%ers a$d o',er %ss)es (e'/ee$ ATO !e!(er +o)$'r%es. 3n #ase t ose #ountries ( o !iolate rules of >,2 or loose in pro#ess of dispute settlement ma" fa#e ,1'4$ ;')C,32); if t e" not abide b" t e final de#isions or do not # ange t eir trade poli#ies.

-L/7AL MA08ETI+- I+6/0MATI/+ S:STEMS A+1 0ESEA0CH In'or ation su*9ect should *e tailored to the speci'ic need and o*9ectives o' a Co pany# There are si3 Cate!ories to *e 'ollo$ed : ># Mar%ets: 1e ands esti ates, consu er *ehavior, products, distri*ution channels, Co unication edia availa*ility, cost and ar%et response# ?# Co petition: Corporate, 7usiness and 'unctional strate!ies and plans# D# 6orei!n E3chan!e: 7alance o' pay ents, Interest rates, Attractiveness o' Countries currency, e3pectation o' analysis# 4# Prescriptive in'or ation : La$s, re!ulations, rulin!s concernin! ta3es, earnin! dividends in host Country and ho e Country# @# 0esource In'or ation: Availa*ility o' Hu an, 'inancial , in'or ation and Physical 0esources#

E#

-eneral Conditions: /verall revie$ o' sociocultural, political, technolo!ical environ ents#

SU0VEILLA+CE A+1 SEA0CH: ># In !eneral ar%eters are constantly on loo%out 'or in'or ation a*out the potential opportunities and threats in various parts o' the $orld# They $ould li%e to have in'or ation a*out the Industry, the *usiness, the ar%et place and consu ers# /n re!ular *asis they !et the in'or ation *y *ro$sin! throu!h ne$s papers and a!a"ines and sur'in! the Internet to ensure e3posure to in'or ation# .atchin! TV co ercials and pro!ra s around the $orld throu!h satellite this type is %no$n as VIE.I+-#

aC An e''icient, e''ective syste that $ill scan and di!est pu*lished sources and technical 9ournal in the head &uarters Country as $ell as all Countries in $hich the co pany has operations or Custo ers# *C 1aily scannin!, translatin!, 1i!estin!, a*stractin! and electronic input o' in'or ation into a ar%et intelli!ence syste # 1espite the advances in -lo*al in'or ation, its translation and electronic input are ostly anual# This $ill continue 'or the ne3t 'e$ years particularly in developin! Countries# cC E3pandin! in'or ation covera!e to other re!ions o' the $orld# .here ever you are located you can *ene'it 'ro readin! 'orei!n pu*lications# The econo ist, the 'inancial ti es and the $all street 9ournal)s re!ional editions are !ood *road *ased sources# Also revie$ the $e*site reco endations throu!hout and at the end o' the chapter# .e*sites reco ended are www.economist.com www.ft.com www.ws:.com

S/U0CES /6 MA08ET I+6/0MATI/+; ># HUMA+ S/U0CES: I portant in'or ation sources are 'riends, ac&uaintances, pro'essional collea!ues, consultants and prospective ne$ e ployees# The later are particularly i portant i' they have $or%ed 'or co petitors# So eti es in'or ation related ethical and le!al issues arise $hen a person chan!es 9o*s# ?# The ost secured $ay o' trans ittin! in'or ation is 'ace to 'ace rather than in $ritin!# In'or ation that includes esti ates o' 'uture develop ents or even appraisals o' the si!ni'icance o' current happenin!s is o'ten considered to uncertain to co it to $ritin!# D# I' you really $ant to 'ind out a*out an area you ust see people personally# There is no co parison *et$een $ritten reports and actually sittin! do$n

$ith so eone and tal%in!# A personal reports#

eetin! is $orth a thousand $ritten

1/CUME+TA0: S/U0CES: In -lo*al ar%etin! research is the e3traordinary e3pansion in the &uantity and &uality o' docu entary sources o' in'or ation# These are t$o *road *ased docu entary in'or ation# /ne is pu*lished pu*lic in'or ation and unpu*lished private docu ent# The 'or er is availa*le on the Internet or throu!h 9ournals and pu*lications# The other is o*tainin! restricted pass$ord access net$or%s created *y or!ani"ations 'or their o$n e ployees# I+TE0+ET S/U0CES: Vast in'or ation is o*tained throu!h internet 'ro -overn ent and non -overn ent channels $ho do their investi!ation on various su*9ects and data collected# It is very uni&ue ethod o' o*tainin! any in'or ation 'ro any countries anu'acturers and their technolo!ical achieve ents and success# There are pro'essional co panies $ho provide enou!h in'or ation 'ro their data collected on various su*9ects# .e*sites provide a3i u in'or ative data $orld over and are ostly accessi*le 'ro any country to o*tain su''icient in'or ation on products, re&uire ent, consu ers *ehavior, ar%et strate!ies and ove ent and Pro otion# 1I0ECT PE0CEPTI/+: 1irect sensory perception provides a vital *ac%!round 'or the in'or ation that co es 'ro hu an and docu entary sources# 1irect perception !et all the senses involved $hich eans seein! , 'eelin!, hearin!, s ellin! or tastin! 'or onesel' to 'ind out $hat is !oin! on in particular country rather than !ettin! second hand in'or ation *y hearin! or readin! a*out a particular issue# So e in'or ation is easily availa*le 'ro other sources *ut re&uires sensory e3perience#

/ne learns 'ro scenario that never loose si!ht o' your custo er# Culture and lan!ua!e di''erences re&uire 'irst hand visits to i portant ar%ets to !et the lay o' the land# Travel should *e seen not only as a tool 'or ana!e ent control o' e3istin! operations *ut also as a vital and indispensa*le tool in in'or ation scannin!# 6/0MAL MA08ETI+- 0ESEA0CH: In'or ation is a critical in!redient in 'or ulatin! and i ple entin! a success'ul ar%etin! research# Mar%et In'or ation Syste should produce a continuous 'lo$ o' in'or ation# Mar%etin! on other hand is pro9ect speci'ic, syste atic !atherin! o' data in the search scannin! ode# There are t$o $ays to conduct ar%etin! research# /ne is to desi!n and i ple ent a study $ith in house sta''# The other is to use an outside 'ir speciali"in! in ar%etin! research# The process o' collectin! data and convertin! it into use'ul in'or ation can *e divided into 'ive *asic steps# Identi'yin! the research pro*le , developin! a research plan, collectin! data, analy"in! data and presentin! the research 'indin!s#

.e* addresses 'or several o' the www.acnielsen.com www.tyn.(eis.com

ar%et research 'ir s identi'ied as 'ollo$s2

www.research/int.com www.casro.or( www.(reenboo$.com www.imshealth.com www.sofresfsa.com

I1E+TI6:I+- THE 0ESEA0CH P0/7LEM: The research pro*le s o'ten involves assessin! the nature o' ar%et opportunity, a phase that is also %no$n as pre search# This in turn, depends in part on $hether the ar%et that is the 'ocus o' the research e''ort can *e classi'ied as e3istin! or potential# E3istin! ar%et are those in $hich client needs 'or secondary in'or ation are already *ein! served # In any countries data a*out the si"e o' e3istin! ar%ets in ter s o' dollar volu e and unit sales are readily availa*le# In any countries such data is not availa*le a co pany ust 'irst esti ate the ar%et si"e, the level o' de and ,the rate o' product purchase or consu ption## A second research in o*9ective in e3istin! ar%ets ay *e assess ent o' the co pany)s overall co petitiveness in ter s o' product appeal, prices, distri*ution and pro otional covera!e and e''ectiveness# 0esearchers ay *e a*le to pin point a $ea%ness in the co petitor)s Product o' identi'y an un served ar%et se! ent# Potential ar%ets can *e 'urther su*divided into latent and incipient ar%ets# A latent ar%et is in essence, an undiscovered se! ent# It is a ar%et in $hich de and $ould ateriali"e i' an appropriate product $ere ade availa*le# In the latent ar%et de and is "ero *e'ore the product is o''ered# In the case o' e3istin! ar%ets, the ain research challen!e is to the e3tent to $hich co petition 'ully eans custo er needs# .ith latent ar%ets, initial success is not *ased on a co pany)s co petitiveness *ut rather it depends on pri e advanta!e; a co panies a*ility to uncover the opportunity and launch a ar%etin! pro!ra that taps the latent de and#

1EVEL/PI+- A 0ESEA0CH PLA+; C/LLECTI+- P0IMA0: A+1 SEC/+1A0: 1ATA Pri ary 1ata and Suvey 0esearch2 Survey research ,Intervie$s and 'ocus !roups are so e o' the tools used to collect pri ary ar%et data# Personal intervie$s $ith individuals or !roups allo$ researchers to as% H$hyI and then e3plore ans$ers# A 'ocus !roup is a !roup intervie$ led *y a trained oderator $ho 'acilitates discussion o' a product concept, advertise ent, social trend, or other topic# In so e instances product characteristics dictate a particular country location 'or pri ary data collection# Survey research o'ten involves o*tainin! data 'ro custo ers o' so e other desi!nated !roup *y eans o' a &uestionnaire, surveys can *e desi!ned to !enerate &uantitative data# E!# Ho$ o'ten $ould you *uyJ

And &ualitative data .hy $ould you *uy J A -//1 KUESTI/+AI0E HAS TH0EE MAI+ CHA0ACTE0STICS2 >C It is si ple# ?C It is easy 'or respondent to ans$er and 'or the Intervie$ to record# DC It %eeps the Intervie$ to the point and o*tain desired in'or ation#

Secondary data Secondary data and ar%etin! research *e!ins $ith des% research# Personal 'iles, co pany o' pu*lic li*raries, on line data *ases, !overn ent records and trade associations are 9us a 'e$ o' the secondary data sources that can *e tapped $ith ini al e''orts and very o'ten at no cost#:ou can o*tain ore than >D=== reports and studies coverin! F= industries 'ro the Ca *rid!e In'or ation -roup $hich pu*lishes A 1I0ECT/0: CALLE1 6I+1EL# Sa plin! There are 'ive types o' sa plin! pro*a*ility such as 0ando , strati'ied, syste atic, cluster and ultista!e# There are 'our types o' +on Pro*a*ility sa plin! are Convenience, (ud! ental , &uota and sno$*all# The 'or ula 'or sa ple si"e is 2 +MBt?C Bs?C
Be?C

nM sa ple si"e 2 tM Con'idence li it e3pressed in standard

SM Standard 1eviation EM error li it#