Uluslararası Pazarlama INFORMATION TECHNOLOGY AND BUSINESS INTELIGENCE FOR GLOBAL MARKETING lecture 4 &6. GLOBAL INFORMATIONS SYSTEMS AND MARKETING RESEARCHINFORMATION TECHNOLOGY AND BUSINESS INTELLIGENCE FOR GLOBAL MARKETING Information technology refers to an organization ’ s processes for creating, storing, exchanging, using, and managing information. Management information system provides managers and other decision makers with a continious flow of information about company operations. INFORMATION TECHNOLOGY AND BUSINESS INTELLIGENCE FOR GLOBAL MARKETING AN MIS SHOULD PROVIDE A MEANS FOR GATHERING, ANALYZING, CLASSIFYING, STORING, RETRIEVING, AND REPORTING RELEVANT DATA. INFORMATION TECHNOLOGY AND BUSINESS INTELLIGENCE FOR GLOBAL MARKETING AN MIS SHOULD ALSO COVER IMPORTANT ASPECTS OF A COMPANY ’ S EXTERNAL ENVIRONMENT, INCLUDING CUSTOMERS AND COMPETITORS. INFORMATION TECHNOLOGY AND BUSINESS INTELLIGENCE FOR GLOBAL MARKETING GLOBAL COMPETITION INTENSIFIES THE NEED FOR EFFECTIVE MIS AND BI THAT ARE ACCESSIBLE THROUGHOUT THE COMPANY. Jean-Pierre Corniou (CIO at Renault), noted recently: “ My vision is to design, build, sell, and maintain cars. Everything I do is directly linked to this, to the urgent need to increase turnover, margins, and brand image. Every single investment and expense in the IT field has to be driven by this vision of the automotive business. ” INFORMATION TECHNOLOGY AND BUSINESS INTELLIGENCE FOR GLOBAL MARKETING companies that have made significant investments in IT in recent years: SUCH INVESTMENT IS TYPICALLY DIRECTED AT UPGRADING A COMPANY ’ S COMPUTER HARDWARE AND SOFTWARE. VENDORS OF COMPLEX SOFTWARE SYSTEMS CAN FIND IT DIFFICULT TO ACHIEVE %100 CUSTOMER SATISFACTION. Thomas Siebel, founder of Siebel Systems, explains how his company met this challenge: “ Siebel Systems is a global company. Our customers – global companies like IBM, Zurich Financial Services, and Citicorp – expect the same high level of service and quality, and the same licensing policies, no matter where we do business with them around the world. Our human resources and human departments help us create policies that respect local cultures and requirements worldwide, while at the same time maintaining the highest standards. We have one brand, one image, one set of corporate colors, one set of messages, across every place on the planet.” (in 2006, Siebel merged with Oracle)INTRANET is a private network that allows authorized company personnel or outsiders to share information electronically in a secure fashion. real time enterprisessystems allows a company ’ s business units to submit orders, issue invoices, and conduct business electronically with other company units as well as outside companies. In 2002, Walmart informed vendors it was switching to an Internet-based EDI system. The switch saves both time and money; the modem based system was susceptible to transmission interruptions, and the cost was between $ 0.10 and $ 0.20 per thousand characters transmitted. Any vendor that wishes to do business with Walmart in the future must purchase and install the necessary computer software. In Japan, 7-Eleven ’ s computerized distribution system provides it with a competitive advantage in the convenience store industry. Every 7- Eleven store is linked with each other and with distribution centers. As one retail analyst noted: “ With the system they have established, whatever time you go, the shelves are never empty. If people come in at 4 A.M. and the stores don ’ t have what they want , that will have a big impact on what people think of the store.”a joint initiative by members of a supply chain to work toward improving and optimizing aspects of the supply chain to benefit customers. systems utilize electronic point of sale (EPOS) data gathered by checkout scanners to help retailers identify product sales patterns and how consumer preferences vary with geography. EPOS, ECR, and other IT tools are also helping businesses improve their ability to target customers and increase loyalty. The trend among retailers is to develop customer-focused strategies that will personalize and differentiate the business. a business model that helps companies collect, store, and analyze customer data. CRM is a philosophy that values two-way communication between company and customer. “ You can not make happy external customers with unhappy employees ” The President of Mariott CorporationEvery “touchpoint” is an opportunity to collect data. CRM TOOLS ALLOW COMPANIES SUCH AS AMERCAN EXPRESS, DELL, HSBC, SHARP, AND SONY TO DETERMINE WHICH CUSTOMERS ARE MOST VALUABLE AND TO REACT IN A TIMELY MANNER WITH CUSTOMIZED PRODUCT AND SERVICE OFFERINGS THAT CLOSELY MATCH CUSTOMER NEEDS. “ touchpoint” SOURCES OF MARKET INFORMATION Company executives overseas are the people who know best what is going on in their areas. SOURCES OF MARKET INFORMATION THESE EXECUTIVES ARE LIKELY TO HAVE ESTABLISHED COMMUNICATION WITH DISTRIBUTERS, CONSUMERS, CUSTOMERS, SUPPLIERS, AND GOVERNMENT OFFICIALS. SOURCES OF MARKET INFORMATION Direct sencory perception provides a vital background for the information that comes from human and documentary sources. Direct perception gets all the sences involved. It means seeing, feeling, smelling, hearing, or tasting for oneself to find out what is going on in a particular country rather than getting from secondhand information by hearing or reading on a particular issue. No company in the world has invested more in consumer and market research than P&G. We interact with more than five million consumers each year in nearly 60 countries around the world. We conduct over 15,000 research studies every year. We invest more than $350 million a year in consumer understanding. This results in insights that tell us where the innovation opportunities are and how to serve and communicate with consumers. http://www.pg.com/annualreport2009/letter/strength.shtmlFORMAL MARKET RESEARCH Information is a critical ingredient in formulating and implementing a successful marketing strategy. marketing research ...........................is the project-specific, systematic gathering of data. In global market research, this activity is carried out on a global scale. marketing research The challenge of global market research is to recognize and respond to the important national differences that influence the way information can be obtained. These include cultural, linguistic, economic, political, religious, historical, and market differences. marketing research There are 2 ways to conduct marketing research: To design and implement a study with in- 1. house staff. To use outside firm specializing in market 2. research. The Nielsen Company is a global information and media company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and business publications. The privately held company is active in approximately 100 countries, with headquarters in New York, USA. http://en-us.nielsen.com/content/nielsen/en_us/insights/rankings.htmlThe International Market Resource Process Information requirement, 1. Problem definition, 2. Choose unit of analysis, 3. Examine data availability, 4. Assess value of research, 5. Research design, 6. Data analysis, 7. Interpretation and presentation 8.Information requirement 1. “ Chech-borned, Swiss-educated Bata once fired a salesman who, upon returning from Africa, reported that there was no opportunity to sell shoes because everyone walked there barefoot. According to this story, Bata hired another salesman who appreciated the fact that, in fact, Africa represented a huge untapped market for shoes.” Direct observation must be linked to unbiased perception, • It can be difficult to change entrenched consumer behavior •1. Information requirement A truism of market research is that a problem well-defined is a problem half solved. 1. Information requirement “ WHAT INFORMATION DO I NEED? ” “ WHY DO I NEED THIS INFORMATION?”Table 6-1 Subject Agenda Categories for a Global Market ı ng Information System Category Market 1. potential Competitor 2. information Foreign 3. exchange Prescriptive 4. information Resource 5. information General 6. conditions Coverege Demand estimates, consumer behavior, review of products, channels, communication media; Corporate, business, and functional strategies; resources and intentions; capabilities; Balance of payments, interest rates, attractiveness of country currency, expactations of analysis; Laws, regulations, rulings concerning taxes, earnings, dividends in both host and home countries; Availability of human, financial, physical, and information resources; Overall review of sociocultural, political, and technological environments.2. Problem definition Understanding of cultural environments of global markets is a very important aspect. Values and attitudes of a particular country should be taken into account. 2. Problem definition2. Problem definition Assumptions that managers make based on home-country marketing success can turn out to be wrong when applied globally. 3. Choose unit of analysis The next step involves the need to identify in what part(s) of the world the company should be doing business and finding out as much as possible about the business environment in the area(s) identified. 3. Choose unit of analysis a single country; a region (Europe, South America); a specific city, province or state;4. Examine data availability WHAT TYPE OF DATA SHOULD BE GATHERED? 4. Examine data availability SECONDARY DATA (company files, the library, industry or trade journals, online databases) Syndicated studies published by private research companies are another source of secondary data and information. The word “ syndicated” comes from the newspaper industry and refers to the practice of selling articles, cartoons, or guest columns to a number of different organizations. http://www.marketresearch.com ................sells reports on a wide range of business sectors; the company partners with 350 reseacrh firms to offer a comprehensive set of reports. http://www.secondarydata.com/secdata/intl.as p http://www.turkstat.gov.tr4. Examine data availability Advantages of secondary data: Time savings if data have already been ? collected. Low cost, such as free or inexpensive census ? reports. Greater level of detail, especially in U.S. ? Census bureau data. 4. Examine data availability Disdvantages of secondary data: May be obsolete or out of date. ? Definitions or categories may not be quite ? right for your project. Data collected for another purpose may not ? be specific enough for your project. 4. Examine data availability PRIMARY DATA (observation, survey) 4. Examine data availability Advantages of primary data: Answer specific questions ? Current ? Known source ? Secrecy can be maintaned ?4. Examine data availability Disdvantages of primary data: Time-consuming , ? Expensive ?5. Assess value of research What will the company gain by collecting ? data? What would be the cost of not getting the ? data that would be converted into useful information?5. Assess value of research Research requires an investment of both money and managerial time, and it is necessary to perform a cost-benefit analysis before proceeding further. 6. Research design If secondary data can be used, the researcher can go directly to the data analysis step. Suppose that, data are not available through statistics or ? studies; the cost-benefit analysis has been performed, ? and that the decision has been made to carry on with the research effort. 6. Research design PRIMARY DATA 6. Research design What research methodologies should be used? 6. Research design Survey research ? Interview ? Consumer panels ? Observation ? Focus groups ? used to collect primary market datasurvey research ? Utilizes questionnaries designed to elicit quantitative data “ How much would you buy?” OR qualitative data “ Why would you buy? ” OR Both survey research ? is often conducted by means of a questionarrie distributed through The mail, o By telephone, o In person osurvey research ? A survey designed and administred in the USA may be inappropriate in non-Western cultures, even if it is carefully translated.interview ? Personal interview allows reseacrhers to ask “ WHY?” and then explore answers with respondent on a face-to-face basement basis. consumer panels ? sample of respondents whose behavior is tracked over time.consumer panels ? Tv audience measurement by studying the viewing habits of household panels. Broadcasters use audience share data to set ad rates; Advertisers such as P&G, Unilever and Coca-Cola use the data to choose programs during which to advertise. Nielsen uses an electronic device known as a peoplemeter to collect national audience data. The people meter system, which sends information from a set-top box installed in a user ’ s home about what they watch, provides advertisers and broadcasters with vital audience measurement details to stimulate the region ’ s advertising market.observation ? One or more trained observers (or a mechanical device such as a video camera) watch and record the behavior of actual or prospective buyers. The research results are used to guide marketing managers in their marketing activities. focus groups ? a trained moderator facilitates discussion of a product concept, a brand ’ s image and personality, advertisiment, social trend, and other topic with a group comprised of 6 to 10 people. http://www.ehow.co.uk/video_5112314_tips-conducting-focus- groups.html7. Data analysis THE DATA COLLECTED UP TO THIS POINT MUST BE SUBJECTED TO SOME FORM OF ANALYSIS IF IT TO BE USEFUL TO DECISION MAKER. 7. Data analysis The data must be prepared, 1. The data must be logged and stored in a 2. central location or database, Some amount of editing may be required, 3. Questionnaries must be coded, 4. Data adjustment must be required. 5. Different analyses techniques can be used in 6. testing hypothesis. 8. Interpretation and presentation THE REPORT BASED ON THE MARKET RESEARCH MUST BE USEFUL TO MANAGERS AS INPUT TO THE DECISON-MAKING PROCESS. RESEARCH RESULTS SHOULD BE CLEARLY STATED AND PROVIDE A BASIS FOR MANAGERIAL ACTION. http://www.videojug.com/interview/how-to-do- market-research-for-marketing-your-invention http://www.videojug.com/interview/small- business-market-researchHEADQUARTERS CONTROL OF MARKET RESEARCH The global company must ensure that research is designed and executed so as to yield comparable data. HEADQUARTERS CONTROL OF MARKET RESEARCH Comparability means that the results can be used to make valid comparisons between the countries covered by the research. To achieve this, the company must inject a level of control and review of marketing research at the global level. HEADQUARTERS CONTROL OF MARKET RESEARCH The director of worldwide research must be responsible for the overall research design and program. It his or her job to take inputs from the entire world and produce a coordinated research strategy that generates the information needed to achieve global sales and profit objectives. The Clicks brand is South Africa ’ s leading specialist retailer of health, beauty and lifestyle products, servicing the middle to upper income market. Clicks is a contemporary, accessible retailer that understands women and offers them great prices and more for their money. Our vision is to create an experience in pharmacy that has never been seen before in South Africa, combining the best of Clicks with the best of pharmacy, together with a one-on-one relationship between the pharmacist and the customer.UPD is the largest full-line pharmaceutical wholesaler in the country and supplies retail pharmacies, private hospitals, doctors and retail health stores. The business forms a strategic element of the New Clicks healthcare strategy as it provides the distribution capability for the group's integrated channel to the healthcare market.The Body Shop is a high-profile global brand which markets naturally-inspired beauty products, focusing primarily on the middle to upper income groups. New Clicks manages The Body Shop under a franchise arrangement in South Africa. The naturally-inspired product positioning remains core to the brand with extensive use of community traded ingredients sourced from local communities around the world. The Entertainment division, which comprises Musica, is the largest retailer of music and related entertainment merchandise in the country. The division has expanded beyond its traditional core music business to a broader range of entertainment products, including DVDs (music and movies), gaming (including computer games), lifestyle accessories (clothing, figurines, novelty goods) and online entertainment. Musica aims to be the "first choice popular entertainment experience".