Marketing

13. How can a country with a per capita GNP of $100 be a potential market for consumer goods? What kinds of goods would probably be in demand? Discuss.

A country with a low GNP can have a large demand for consumer goods because of the need that exists for certain products and because there are no production facilities or very limited ones within the country. India, for example, has a per capita income of $58/year, yet its imports were about $2.4 billion in 1963. The type of goods that likely are in demand are the more basic type of consumer goods, such as clothing or basic housing needs.

Review the basic areas of advertising regulation. Are such regulations purely foreign phenomena?

a. The basic areas of advertising regulation are (1) the legal type such as Germany's Comparative Terminology and Direct Comparison Laws, and (2) taxation on advertising, prevalent in Britain, France, and Austria. b. No, these regulations are not purely foreign. Here in the United States there are certain advertising codes and standards that one must follow. These are generally enforced by the advertising industry itself—but the FCC also imposes strict standards of "truth in advert."

Self reference criterion

an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions

Domestic Uncontrollables

Home-country elements that can have a direct effect on the success of a foreign venture: political and legal forces, economic climate, and competition

Foreign Uncontrollables

The uncontrollable elements in an international marketing program

Outline some of the major problems confronting an international advertiser.

Of all the elements of the marketing mix, decisions involving advertising are the ones most often affected by cultural differences among country markets. Consumers reflect their culture, its style, feelings, value systems, attitudes, beliefs, and perceptions. Since advertising's function is to "interpret or translate the need/want satisfying qualities of product and services in terms of consumer needs, wants, desires, and aspirations," the emotional appeals, symbols, persuasive approaches and other characteristics of an advertisement must coincide with cultural norms to be effective. Reconciling international advertising and sales promotion effort with cultural uniqueness of markets is the challenge confronting the international or global marketer. The global advertiser is confronted with legal and tax considerations, language limitations, media limitation and production and cost limitations. These limitations must all be dealt if a company is to have an effective advertisement.

Innovations are described as being either functional or dysfunctional. Explain and give examples of each.

Functional innovations have a positive effect on the culture, ie. a vaccine. Dysfunctional innovations have a negative effect on the culture, ie. Uber, online travel agencies, Nestle Powdered milk in India

Differentiate between a global company and a multinational company.

A multinational company has locations in multiple countries, but each location functions in its own way. A multinational company views each country as its on entity with its own market and it adapts to each market in a different way. A global company has multiple locations but with one culture and set of processes.

Explain how and why distribution channels are affected as they are when the stage of development of an economy improves.

As an economy advances, the distribution system begins to take the form of distribution in the U.S. The apparent reason for this change in structure is due to the decentralization of the total marketing function. As an economy becomes more sophisticated it places increasingly complicated and sophisticated demands upon the marketing function. This results in modification of the existing system to be able to meet the increased demand placed upon it by the emerging economy. Consumer segments become much larger and diversified and each in turn places new demands on the distribution system which causes modification in order to administer to the requirements of that segment.

Define the country-of-origin effect and give examples.

Country of Origin Effect (COE) can be defined as any influence that country-of-manufacturer has on a consumer's positive or negative perception of a product. Today a company competing in global markets will manufacture products worldwide and, when the customer is aware of the country of origin, there is the possibility that the place of manufacture will affect product/brand image. Some examples are French wines, German beer, Swiss watches, Cuban cigars, and Irish woolens are some positive COEs. A negative COE is an automobile from Yugoslavia (the Yugo).

Discuss the three cultural change strategies a foreign marketer can pursue.

Cultural congruence: marketing products similar to ones already on the market in a manner congruent with existing cultural norms. planned change: deliberately change the aspects of a culture that are offering resistance to goals. unplanned change: introducing an innovation, then waiting for cultural change that would cause acceptance of the innovation.

Cultures are dynamic. How do they change? Are there cases where change is not resisted but actually preferred? Explain. What is the relevance to marketing?

Cultures change by innovation. In some cases, new elements are accepted immediately; in others, resistance is strong. Degree of resistance depends on how disruptive the innovation will be to presently accepted values. Those most readily accepted are those that hold the greatest need within society and are least disruptive. Marketers should plan their projects according to what will be least disruptive.

What are some of the problems created by language and the ability to comprehend in collecting primary data? How can a foreign market researcher overcome these difficulties?

Differences in idiom and difficulty of exact translation create problems in eliciting the specific info required and interpreting the respondents' answers. Also, equivalent concepts don't exist in all languages. Literacy also poses an issue as well as countries like India w several different languages. To overcome these difficulties, all marketing communications must be written perfectly. They should be reviewed by a native speaker.

3. Discuss the effect of shorter product life cycles on a company's planning process.

Global competition is placing new emphasis on some basic tenets of business. It is reducing time frames and focusing on the importance of quality, competitive prices, and innovative products. Time is becoming a precious commodity for business, and expanding technology is shortening product life cycles and creating greater opportunities for innovative products. A company no longer can introduce a new product with the expectation of dominating the market for years while the idea spreads slowly through world markets. In any given year, for example, two thirds of Hewlett-Packard's revenue comes from product introduced in the prior three years. Shorter product life cycles mean that a company must maximize sales rapidly to recover development costs and generate a profit by offering its products globally. Along with technological advances have come enhanced market expectation for innovative products at competitive prices. Today, strategic planning must include emphasis on quality, technology, and cost containment. To achieve the flexibility and speed required under such conditions, many firms are entering collaborative relationships to shore up their weaknesses whether in distribution, technology or manufacturing that will enable them to respond to the problems created by shorter life cycles.

Changing currency values have an impact on export strategies. Discuss.

In addition to the risks from exchange rate variations other risks result from changing values of a country's currency relative to other currencies. A strong dollar produces price resistance since it takes a large quantity of local currency to buy a U.S. dollar. Conversely, when the U.S. dollar is weak, demand for U.S. goods increases since fewer units of foreign currency are needed to buy a U.S. dollar. Each additional market in which a company operates adds to the problem. Currency-exchange rate swings are considered by many global companies to be a major trade barrier. For a company whose long range plans call for continued operation in foreign markets and who wants to remain price competitive, price strategies need to reflect variations in currency values. When the value of the dollar is weak relative to the buyer's currency (i.e., it takes fewer units of the foreign currency to buy a dollar), companies generally employ cost plus pricing. To remain price competitive when the dollar is strong (i.e., when it takes more units of the foreign currency to buy a dollar), companies must find ways to offset the higher price caused by currency values.

Discuss the problems of gathering secondary data in foreign markets.

In many countries there is a lack of availability of data. Even if data is available it may be difficult to understand because of language differences. Available data may not be reliable; official stats are often too optimistic. Comparability and currency of data-data can be very outdated; also no historical series to compare current info

What are intellectual property rights? Why should a company in international marketing take special steps to protect them?

Intellectual Property Rights are brand names, trademarks or other product features that symbolize quality and provide company with advantages over their competitors. A company in international marketing should take special steps to protect them because failure to do so can lead to legal loss of rights in potentially profitable markets

Controllable Elements

Internal to the company (product, price, promote, distribution, research); can be altered in the long-run and the short-run

Global Orientation

It means looking for market segments with similar demands that can be satisfied with the same product, standardizing the components of the marketing mix that can be standardized, and adapting where there are significant cultural differences.

How can the knowledge of the diffusion of innovations help a product manager plan his international investments?

Knowledge of the diffusion of innovation provides the international marketer with several important pieces of information; for example, a knowledge of the concept may provide the marketer with an estimate of the time it will take before his innovation would be accepted by a culture, and therefore help him decide whether or not to make the necessary investment. It can also give him insights into how to accelerate the rate of acceptance of his product and the steps that he as a marketer can take to eliminate some of the "newness" thereby gaining more rapid acceptance of his product. In preparing characteristics of innovations study of the new product, he or she might determine a product profile which could be extremely useful as a model for planning product strategy. By analyzing the product in terms of those attributes which contribute to its newness (or innovativeness) the marketer's attention is focused on those factors which give rise to resistance; thus, the marketer can estimate the possible rate of adoption and perhaps effect the rate of adoption of an innovation by changing its characteristics through physical modifications, advertising, and/or sales promotion efforts.

4. Explain the concept of "price escalation" and tell why it can mislead an international marketer.

Price escalation is price increases due to added costs produced by such things as tariffs, taxes, longer lines of distribution, etc. It can mislead many international marketers into thinking that exorbitant prices that are charged in foreign countries for goods that are relatively reasonable in the domestic market can increase profits in the foreign market. This is just the opposite of the real case in many situations where the effects for price escalation, not added profit, account for the high prices.

2. Define strategic planning. How is strategic planning different for international marketing than domestic marketing?

Strategic planning is a systemized way of relating to the future. It is an attempt to manage the effects of external uncontrollable factors on the firm's strengths, weaknesses, objectives, and goals to attain a desired end. Further, it is a commitment of resources to a country market to achieve specific goals. Strategic planning on an international level allows for rapid growth of the international function, changing markets, increasing competition, and the ever-varying challenges of different national markets. The plan blends the changing parameters of external country environments with corporate objectives and capabilities to develop a sound, workable marketing program.

How will entry into a developed foreign market differ from entry into a relatively untapped market?

The differences between entering a fully developed market and an untapped foreign market are many and extremely varied. Some of these differences are channels of distribution which may or may not be developed. Governmental attitudes toward business, foreigners, and industry may be very liberal in a growing economy, while an established market may be very restrictive. Communication and transportation may be highly limited in untapped markets and highly developed in successful countries. The amount of capital, banks, and exchange-rate systems will vary according to the market's development. Finally, the degree and amount of competition will vary accordingly. To this list, endless factors could be added such as cost of entering the market, social customs, laws, etc.

In what circumstances is the use of a EMC logical?

The export management company is the logical choice of middlemen for firms with relatively small international volume or for those that do not want to involve their own personnel in the international function.

Review the key variables that affect the marketer's choice of distribution channels.

The four main variables which affect the marketer's choice of distribution channels are (1) the availability of middlemen, (2) the cost of their services, (3) the functions performed (and the effectiveness with which each is performed) and (4) the extent of control which the manufacturers can exert over the middlemen's activities.

International Marketing

The performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers in more than one nation for a profit

What is the task of the international market researcher? How is it complicated by the foreign environment?

The task of the international market researcher is to answer questions with current, valid information that a marketer can use to design and implement successful marketing programs. This task is complicated by the foreign environment in the case of secondary data by a lack of collected data or data which have been poorly collected and the reliability of the secondary data available. In many countries, national pride comes before statistical accuracy, and frequently secondary data are opinions rather than fact. Another difficulty with secondary data involves the comparability and currency of available data. Oftentimes, data are not comparable from period to period, nor are they current or collected on a predictable basis.

What are the three major components of a product? Discuss their importance to product adaptation.

The three major components of a product are: (1) its core, the physical product and all its functional features; (2) the packaging component that includes the physical package in which the product is presented, as well as the brand name, trademark, styling and design features, price and quality levels; (3) the support services component, which completes the product buyers receive and from which the bundle of satisfactions received are derived. This support services component includes repair and maintenance services, installation, delivery, warranty, spare parts, training and instructions, credit, and any other services related to the use and purchase of the product. The importance of each component, as well as the perceived component attributes are functions of culture. What may be desirable in one culture may be unimportant in another. A product is, in a large part, a cultural phenomenon; that is, culture determines the individual's perception of what a product is and what satisfaction that product provides. Therefore, in developing products for international markets, adaptation of that bundle of utilities or satisfaction received may be necessary to bring the product in line with the culture's needs. Such adaptation may require changes of any one or all of the product components as defined above.

What is the "objective theory of jurisdiction?" How does it apply to a firm doing business within a foreign country?

This states that even of an act is committed outside the territorial jurisdiction of the US courts, the courts still have jurisdiction if the act produces effects within the home country. This applies to a firm doing business with a foreign country because the firm must consider at least 2 sets of laws.

Why is it so difficult to control consumer prices when selling overseas?

There are many variables which must be considered when attempting to control consumer prices overseas. Among these are: tariffs on imports, "dumping" tariffs, sales taxes, distributive channel costs, added middlemen costs, and shipping costs. It is very difficult to control consumer prices when selling overseas. Price escalation is one of the main reasons, as prices escalate differently. Some profiteering is also found in some countries, thus upsetting any consumer price control. Dumping, being defined differently, is treated differently under various laws making for more varied prices. Firms operating overseas have less ways to protect themselves from price variations and fluctuating exchange rates also tend to increase price fluctuations. In addition, many retailers overseas don't like price competition and avoid it if possible by raising or lowering their prices.

How can advertisers overcome the problems of low literacy in their market?

They can overcome low literacy by making use of ads that are self-explanatory, and extensive use of radio which doesn't have written words.

What are some particularly troublesome problems caused by language in foreign marketing? Discuss.

Translations need to be accurate to market effectively; there are idiomatic differences that need to be accounted for (one word can mean very different things in different places).

Uncontrollable Elements

environmental elements (competition, politics, laws, consumer behavior, level of technology); the outer circles surrounding the marketing decision factors that represent uncertainty

Discuss the three factors necessary to achieve global awareness.

1. Knowledge: knowledge of cultures, history, world market potential and global economic, social and political trends. A person needs to understand chafes in the world. 2. Tolerance toward cultural differences Objectivity in assessing opportunities, evaluating potential and responding to problems.

Discuss the four phases of international marketing involvement.

1. No direct foreign marketing: a company doesn't actively cultivate customers outside national boundaries; however, the company's products may reach foreign markets 2. Infrequent foreign marketing: domestic firms have temporary surpluses that may be sold abroad 3. Regular foreign marketing: firm continuously produces goods to be marketed in foreign markets 4. International marketing: companies are committed to international marketing activities

Discuss the characteristics of an innovation which can account for differential diffusion rates.

Discuss the characteristics of an innovation which can account for differential diffusion rates. The characteristics of an innovation which can account for differential diffusion rates are: (1) relative advantage, (2) compatibility, (3) complexity, (4) trialability, and (5) observability. Relative advantage is the degree to which an innovation is better than the products it replaces or with which it competes. Compatibility is concerned with how consistent a product is with existing value and behavior patterns. Complexity refers to how difficult it is to understand and use the new product. Trialability is the degree to which a product may be tried, on a limited basis, without complete commitment to the product. And, observability refers to the ease with which the results of an innovation may be communicated to others.

Differentiate among the three international marketing concepts.

Domestic Mkt Expansion Concept: international marketing is secondary to domestic operations. It will market products in foreign countries the same way it does so in its domestic country. Minimal efforts are made to adapt Multi-Domestic Mkt Concept: Country markets are vastly different and market success requires an independent program for each country. It adapts to each market separately. Also, a firm that uses this believes that international marketing is crucial to revenue generation. Global Marketing Concept: develops a standardized product to be sold to a global market. firm attempts to standardize the company on a global basis. The globe is the marketplace and market segments aren't based on borders.

2. Discuss the distinguishing features of the Japanese distribution system.

Distribution in Japan has long been considered the most effective non-tariff barrier to the Japanese market. The distribution system is different enough from its United States or European counterparts that it should be carefully studied by anyone contemplating entry. The Japanese system has four distinguishing features: 1) a structure dominated by many small wholesalers dealing with many small retailers; 2) channel control by manufacturers; 3) a business philosophy shaped by a unique culture; and 4) laws that protect the foundation of the system, the small retailer. High Density of Middlemen. There is a density of middlemen, retailers and wholesalers in the Japanese market unparalleled in any Western industrialized country. The traditional structure serves consumers who make small, frequent purchases, at small conveniently located stores. The high density of small stores with small inventories is supported by an equal density of wholesalers. It is not unusual for consumer goods to go through three or four intermediaries before reaching the consumer—producer to primary, secondary, regional, and local wholesaler, and finally to retailer to consumer. Channel Control. Manufacturers depend on wholesalers for a multitude of services to other members of the distribution network. Financing, physical distribution, warehousing, inventory, promotion and payment collection are provided to other channel members by wholesalers. The system works because wholesalers and all other middlemen downstream are tied to manufacturers by a set of practices and incentives designed to ensure strong marketing support for their products and to exclude rival competitors from the channel. Business Philosophy. Coupled with the close economic ties and dependency created by trade customs and the long structure of Japanese distribution channels is a unique business philosophy that emphasizes loyalty, harmony, and friendship. The value system supports long-term dealer/supplier relationships that are difficult to change as long as each party perceives economic advantage. The traditional partner, the insider, generally has the advantage. Large-Scale Retail Store Law. Competition from large retail stores has been almost totally controlled by Daitenho-the Large-Scale Retail Store Law. Designed to protect small retailers from large intruders into their markets, the law requires that any store larger than 5,382 square feet (500 square meters) must have approval from the prefectural government to be "built, expanded, stay open later in the evening, or change the days of the month they must remain closed." All proposals for new "large" stores are first judged by MITI (Ministry of International Trade and Industry). Then, if local retailers unanimously agree to the plan, it is swiftly approved. However, without approval at the prefecture level (all small retailers in the area must agree), the plan is returned for clarification and modification that may take several years (ten years is not unheard of) for approval. Besides the large-scale retail store law, there are myriad licensing rules. One investigation of the regulations that governed the opening of a retail store revealed 39 different licenses, each with a separate law, needed to open a full-service store.

Discuss the alternative objectives possible in setting prices for intracompany sales.

Maximizing profits for the corporation as a whole. Facilitating parent-company control. Offering management at all levels, both in the product divisions and in the international divisions, an adequate basis for maintaining, developing, and receiving credit for their own profitability. The problem of pricing is complex and awareness of the variations in local conditions should be taken into account when determining a strategy. Maintaining market initiative of the international divisions is a prerequisite of the pricing strategy.

What special media problems confront the international advertiser?

Special problems in media—availability, cost, and coverage—confront the international advertiser. Local variations and lack of market data are also great headaches. Availability of media varies from country to country due to government restrictions. Countries have either too many or too few media to adequately cover the majority of the population. As far as price goes, the United States ad man must be prepared to haggle greatly over costs. Most media costs are subject to negotiation. Agency discounts are often split with the client to bring costs down. Coverage problems generally arise when trying to reach certain sections of the population. There are many uneconomical media divisions which do not permit enough regionality. Underlying all these problems is the lack of market information which hampers a good communication mix in foreign markets and causes much waste in ad campaigns

Explain specific tariffs, ad valorem tariffs, and combination tariffs.

Specific tariffs are fees charged at a flat rate per physical unit imported. Ad valorem tariffs are duties levied as a percentage of the value of the goods. Combination tariffs include both of the above.

To what extent, and in what ways, do the functions of domestic middlemen differ from their foreign counterparts?

The functions of the domestic and foreign middlemen are quite similar in many areas, but there are certain differences. First, the domestic agent usually takes possession of the goods, whereas the foreign agent does not. In the area of setting prices, the domestic agent has the authority to do so, while his foreign counterpart does not. Both types of domestic middlemen arrange for the shipping of goods, but the foreign middlemen do not. Two other differences exist between foreign and domestic agents. The domestic agent does some promotion and selling, and occasionally extends credit. On the other hand, foreign agents usually do not participate in these activities.

2. Discuss how the shift from making "market entry" decisions to "continuous operations" decisions creates need for different types of information and data. What assistance does an MMIS provide?

The fundamental difference hinges on the type of information necessary for the two different decisions. Market entry decisions require information that may be, for all practical purposes, important only in the original decision to enter or not to enter a market. Those kinds of information that help the marketer make a decision on short-term as well as long-term demand for his product or the profitability of his product after entry are the types necessary to decide market entry. Once a decision to enter a market has been made and a beachhead established, then the marketer needs the constant monitoring of his relative position in the new market, as well as his market share, to continue his operations within that country. This kind of information requires a constant or continuous monitoring of one's market position. Thus, some continuous system designed to generate, store, catalog, and analyze information from sources within the firm and external to the firm are necessary for decision making. MMIS is designed specifically to provide this kind of continuous flow of information.

Defend either side of the proposition that advertising can be standardized for all countries.

Yes, the basic theme, objectives, and philosophy of international advertising can be standardized; but the vast mechanical problems most certainly cannot be solved through international standardization. The ad man can adapt his basic skills to all countries. If buying motives and company objectives are the same for various countries, then the advertising approach may be the same. If they vary, then customizing your approach to each country is a must.

Why do companies change their organizations when they go from being an international to a global company?

An international marketing plan should optimize the resources committed to stated company objectives. The organizational plan includes the type of organizational arrangements to be used, and the scope and location of responsibility. Many ambitious multinational plans meet with less than full success because of confused lines of authority, poor communications, and lack of cooperation between headquarters and subsidiary organizations. Companies are usually structured around one of three alternatives: global product divisions responsible for product sales throughout the world; geographical divisions responsible for all products and functions within a given geographical area; and a matrix organization consisting of either of these arrangements with centralized sales and marketing run by a centralized functional staff, or a combination of area operations and global product management. Market-oriented firms are finding greater competitiveness in world markets makes it essential to assume a global perspective in planning and organizational structure. Global competition also requires quality products designed to meet ever-changing customer needs in the face of rapidly growing competition from every corner of the world. Cost containment, escalating technology, customer satisfaction and a greater number of players mean that every opportunity to refine international business practices must be examined in light of company goals. Strategic international alliances, strategic planning and alternative market entry strategies are important avenues to global marketing that must be implemented in the planning and organization of global marketing management.

In many code law countries, ownership of intellectual property rights is established by registration rather than prior use. Comment.

In the US, ownership of IP rights is established by prior use-whoever can establish first use is the rightful owner. In most other countries, ownership is established by registration-first to register trademark is the owner. Firms should have a means of obtaining worldwide IP rights.

Formulate a general rule for deciding where international business decisions should be made.

International business decisions should reflect the culture of the country in which they will be implemented. Thus the decision should be as close to the country where it is to be implemented as possible.

Explain the popularity of joint ventures.

One important marketing reason is to gain access to markets. Nearly all of the developing countries, and many developed countries, require some degree of local participation for operating in their country. Mergers with distributor companies or companies which already have well-established local distribution may provide rapid market access and distribution to foreign companies entering a country. Sometimes companies join forces in order to broaden the line of merchandise that they have available, thereby gaining marketing efficiency and better public image. Another market reason for joining ventures is that local firms possess market information and the marketing know-how which would take years for a foreign company to acquire. Such participation minimizes the risk of market failure and speeds the marketing effort. Joint ventures may also arise for financial and manpower reasons. Financially it is sometimes desirable to merge with foreign companies because the merger provides access to local capital markets and combines the resources and fund raising capabilities the companies have. It may also give access to a higher quality and more capable managerial manpower.

Why has dumping become such an issue in recent years?

The growing importance of world trade to individual companies has combined with saturated domestic markets, overproduction and increased competition to encourage dumping in many product areas. Procedures are looking to the marginal revenue contribution which can be gained when products are sold above direct cost into markets not normally sold. In recent years the number of dumping complaints in the United States has exploded and interest in antidumping enforcement and legislation has grown apace.

What is the importance of "cultural empathy" to the foreign marketer? How do you acquire it?

The importance of "cultural empathy" to the foreign marketer is that being culturally sensitive allows him or her to objectively see, evaluate, and appreciate another culture. A marketer can obtain cultural empathy by studying the culture and living with it.

How does the international marketer determine what legal system will have jurisdiction when legal disputes arise?

The international marketer must pay attention to the laws of each country within which it operates. International commercial disputes must be settled under the laws of one of the countries concerned. The most clear cut decision can be made when the contracts include a jurisdictional clause. If nothing is in the contract, the marketer must resort to conciliation, arbitration, or litigation.

Differentiate between conciliation and arbitration.

The main difference between conciliation and arbitration is that neither side is bound to a conciliation settlement as would be the case under arbitration. Conciliation can be either formal or informal. Informal conciliation can be established by both sides agreeing on a third party to mediate. In arbitration, both sides are bound and it is a formal agreement

Discuss the conditions that have led to the development of global markets.

The rapid growth of the World Trade Org and regional free trade areas, the trend towards free market, and the impact of technology and travel have led to the development of global markets. There is a strong feeling that world mots are being driven toward a converging commonality of tasters and needs leading toward global markets. The common needs are high quality, reasonably priced, standardized products.

Discuss the various reasons purchasers impose countertrade obligations on buyers.

There are a variety of reasons purchasers impose countertrade obligations on the seller. The most important being a shortage of hard currencies. This is the most prevalent, however, when a country produces a product in large quantities in which there is a low market demand, the country may offer products in counterpurchases as a means of getting rid of excess supply. Generally speaking, goods are offered for countertrade when there is a low or minimal market for the goods. Another reason that products may be offered in countertrade is because the country does not have an established international market in which to dispose of the goods. There may be a world market for the goods but the country does not have the ability or access to the market and thus may force products in countertrade.

Discuss how the globalization of markets, especially Europe 1992, will affect retail distribution.

There are some important trends in distribution systems that will lead to their eventual globalization. That is, there is greater commonalty than disparity among middlemen in different countries. U.S. based Southland Corporation's 7-Eleven Stores are replacing many of the traditional "Mom and Pop" stores that have dominated a significant part of Japan's retail food distribution. In Spain, 7-Eleven and Campsa, the Spanish gasoline monopoly, opened 200 7-Eleven minimarkets at Campsa service stations. Hypermarkets, a retailing innovation developed in France, have expanded beyond French borders to other European countries and to the United States. Discount, home repair, self-service, and supermarkets are all mass merchandising concepts gradually spreading all over the world. In anticipation of Europe 1992, national and international retailing networks are developing throughout the world. European integration, global brands, globalized media communications, consumers that expect rational and predictable product assortments, and global companies anxious for their products to be distributed in the most efficient manner are factors driving a growing number of traditional distribution channel members to greater efficiencies and competitiveness. Many are developing into transnational, if not global, operations. Global products require integrated, efficient distribution systems to achieve maximum effectiveness.

Discuss the stages of the research process in relation to the problems encountered. Give examples.

a. Define the research problem and establish research objectives: converting ambiguous problems into research objectives, improper problem definition, failure to establish problem limits that include all relevant variables b. Determine the sources of information to fulfill the research objectives: lack of available and reliable data c. Gather the relevant data from secondary and/or primary sources: availability, reliability and comparability of secondary data; sampling procedures, lack of response and language barriers in primary data. d. Analyze, interpret, and present the results: must take into account the above problems