UNIT IL (A) INTERNATIONAL MARKETING ENVIRONMENT NTERNATIONAL MARKETING: ENVIRONMENT: International marketing environment is one component of total business environment, It affects international marketing positively or negatively. Global marketing needs to be conducted within the scope provided by international marketing environment which is extremely flexible and delicate. International environment needs continuous monitoring by firms/companies interested in participating in global trade. This environment is the result of international events which include mainly political and economic. Changes in the international environment affect the business units particularly those using imported components, raw materials, technology and machinery. Similarly, enterprises connected with exports are also affected directly due to changes in the international environment, Factors like war, political changes in important countries and changes in the economic policies of big powers affect international marketing environment QI. FEATURES OF INTERNATIONAL MARKETING ENVIRONMENT: (1) Meaning: International marketing environment is the result of international events taking place in different countries particularly in rich and developed countries as political and economic events in such countries affect all other countries. This component of total business environment mainly affects enterprises/firms engaged in foreign i.e. export-import trade, (2) Influencing factors: Factors like changes in the economic policies of big powers, shortages in the production of export items in countries, technological developments affecting production activities, bilateral trade agreements among friendly countries, aggressive trade policies by the member countries of trading blocs and changes in the policies of international economic and financial institutions such as WTO, UNCTAD, IMF and World Bank, etc. Intemational marketing environment is influenced by various forces or events on which ‘marketing firms have practically no control. They have to adjust their marketing policies as per the changes in the global economic environment. (3) Flexible character: International marketing environment is extremely fluid and flexible. It changes suddenly due to certain major events in different countries. This flexible character is more conspicuous in international marketing environment as compared to domestic environment. (4) Effects on business enterprises: The effects of changes in the international marketing environment are mainly on enterprises concerned with importing and exporting. For example, changes in the international environment affect the enterprises using imported components, raw materials, technology, machinery, etc. Similarly, enterprises exporting goods/serviees to other countries are likely to be affected due to changes in the international marketing environment. Environment has significant and crucial impact on business’ marketing. In fact, business depends on environmental dynamics. (5) How to face marketing environment? Business units/firms engaged in international trade have no control on the international marketing environment which is the outcome of political or economic events in different countries. They have to keep watch on the changes taking place in the international marketing environment. Secondly, they have to take suitable measures to face the changing international environment boldly. If the environment is favourable, they have to take maximum benefit of the same and if it is unfavourable, they have to introduce defensive policies/strategies so that the loss is minimised but the survival is ensured. COMPONENTS OF INTERNATIONAL MARKETING ENVIRONMENT: ‘There are three main components of international marketing environment. These are: (A) Economic Environment. (B) Political and Legal Environment (C) Cultural Environment. (D) Social Environment, (E) Demographic Environment, (F) Competitive Environment, and (G) Technological Environment.(1) ECONOMIC ENVIRONMENT MEANING OF ECONOMIC ENVIRONMENT: Economic environment is the outcome of economic factors such as economic system, economic policies of the government and overall economic situation within the country. Government influences economic environment within the country through its policies and programmes... Business enterprises to economic environment as it is favourable or unfavourable, They have to adjust their plans and policies as per the prevailing economic environment. INTERNATIONAL ECONOMIC INSTITUTIONS: (J) International Bank for Reconstruction and Development (IBRD) popularly known as World Bank. (2) International Monetary Fund (IMF). (3) Intemational Development Association (IDA), (4) International Finance Corporation (IFC). Q2. FEATURES OF INTERNATIONAL ECONOMIC INSTITUTIONS: ‘ely by member countries of UN: - The economic institutions are started collectively by member of UN. The capital is contributed by member countries and the management is on democratic principles by the member countries. These institutions provide financial assistance to needy nations and also provide necessary Consultancy Services and guidance to such borrowers i.e. borrowing countries. (2) Provide financial assistance to poor and developing countries: - International economic institutions mainly provide financial assistance to poor and developing countries for the economic development. Assistance is given in the form of long term loans (with interest) repayable over a long period. 3) Industrial development: - These institutions are functioning since long and are making positive contribution in the economic and industrial development of developing and poor countries. (4) Huge organizational structure: - These intemational economic institutions have their huge organisational structure for the conduct of their operations. (5) Raise funds from ferent sources: - These institutions raise funds from different sources in order to provide liberal assistance to needy countries. They I use their own and borrowed funds for their financial operations Q3. World Bank: and IMF Establishment of World Bank: ‘The International Bank for Reconstruction and Development (IBRD), popularly known as World Bank was established in 1945 under the Bretton Woods Agreement of 1944, ‘« Itisa sister institution of IMF. ‘* The initial purpose of World Bank was to assist member countries (affected by the Second World War) in bringing about a smooth transition from a war-time to peace-time economy. ‘This objective is an old one and is already achieved, ‘* At present, the World Bank helps developing countries in their efforts to bring industriaVeconomic development and thereby providing better life and welfare to their people. «India is one of the founder members of World Bank ‘+ IMF was started for providing short term assistance to member countries to correct the balance of payments disequilibrium and World Bank was established to provide long- term assistance to member countries for the reconstruction and development of their economies (Roads and railway construction, construction of dames, production units, electricity generation, construction of ports, infrastructure facilities, etc.) «The two institutions are supplementary in character. Both are operating effectively in their respective ‘operational areas. ‘+ Both provide financial assistance to needy countries for meeting their current and long term financial needs. In addition, technical assistance and consultancy services, etc. are also provided by World Bank to needy countries.‘© World Bank is against giving financial assistance to even needy countries engaged in money laundering, terrorist financing and other related threats to integrity of the international financial system. ‘The World Bank has four affiliates. These are: (J) The International Development Association (IDA) established in 1960, (2) The Intemational Finance Corporation (IFC) established in 1956. (3) The Multilateral Investment Guarantee Agency (MIGA) established in 1988. (4) International Centre for the Settlement of Investment Disputes (ICSID). Objectives of World Bank: (1) To mobilise resources in the international markets to finance both the reconstruction of productive facilities destroyed by the war, mainly in Western Europe, and an increase in productivity and living standards, especially in the underdeveloped areas of the world. (2) To provide long-term loans to creditworthy countries and charge an interest rate which is somewhat lower than, but related to, market rates in order to encourage long-term balanced growth, (3) To provide technical assistance to help developing countries in formulating effective policies for their development, identifying and preparing projects, establishing appropriate development institutions. (4) To assist the member countries in building up the basic infrastructure transportation, electric power, communication, education, irrigation and flood control. (5) To see that the benefits of its assistance is distributed more widely, especially among the poorer sections of country’s society. (6) To provide a better, fuller and more productive life to the mass of the under privileged in poor countries. Functions/Activities of World Bank: (2) To assist in the reconstruction and development of territories of its member countries by facilitating the investment of capital for productive purpose, and the encouragement of the development of productive facilities and resources in less developed countries. (2) To promote private foreign investment by means of guarantees on participation in loans and other investments made by private investors, and when capital is not available on reasonable terms, to supplement private investment by providing finance for productive purposes out of its own resources or from borrowed (3) To promote long-range balanced growth of international trade and the maintenance of equilibrium in the balance of payments of member countries by encouraging international investment for the development of their productive resources, thereby assisting in raising productivity, the standard of living and conditions of workers in their territories. (4) To arrange the loans made or guaranteed by it in relation to international loans through other channels so that more useful and urgent small and large projects are dealt with first. Q4. International Monetary Fund (IMF): Origin of IMF (What Is IMF?): ‘The Intemational Monetary Fund (IMF) (also called the Fund) is an international monetary institution established by 44 nations under the Bretton Woods Agreement of July 1944, The establishment of IMF was a landmark development in the international monetary field. The basic purpose of IMF was to promote economic and financial co-operation among its members in order to facilitate the expansion and balanced growth of world trade. The IMF came into existence in December, 1945 and started functioning from March 1, 1947. Its original membership was of 29 countries. At present, 188 (as fon 31st March 2014) nations are members of the IMF. The IMF is the principal International Monetary Institution established to promote a co-operative and stable global monetary framework. Objectives of IMF: (J) To promote international economic and monetary co- operation among its members through consultation and mutual collaboration to facilitate the expansion and balanced growth of world trade. (2) To promote exchange rate stability and maintain orderly exchange arrangements and avoid competitive exchange depreciation. One objective of IMF is to avoid the competitive devaluation and exchange control.(3) To help members with temporary balance of payments diffic exchange restrictions. (4) To promote growth of multilateralism in trade and payments and thus expand world trade and aid. (5) To help the balanced growth of the economies of developing countries. (6) To provide technical and managerial help to member countries and also to provide training facilities to member countries. (7) To help achieve the balance of payments equilibrium, shorten the duration of disequilibrium and promote orderly international relations, (8) To facilitate the expansion of balanced growth of international trade by providing international liquidity. (9) To establish and maintain currency convertibility with stable exchange rates. § to tide over them without resort to Functions and Services of IMF: ‘The Fund performs financial, supervisory and controlling (regulatory) functions as explained below: (1) The Fund provides short-term loans to its members so that they may correct their temporary balance of payments disequilibrium without resorting to restrictive measures. The Fund also helps members to co- ordinate their national economic policies with that of the rest of the world so as to ensure a stable world financial system and sustainable economic growth. (2) The Fund has established a code of economic behaviour for its members. The member countries should co-operate with the Fund in making an orderly exchange arrangements and maintaining a stable system of exchange rates. Hence, the first regulatory function of the Fund is to act as a guardian of the code set up by its Articles. (3) The Fund is regarded as "The guardian of good conduct" in the sphere of balance of payments. It aims at reducing tariffs and other trade restrictions by the member countries. It is the function of the Fund to have a surveillance of the policies being adopted by the member countries. (4) The Fund renders technical advice to its members on monetary and fiscal policies. It provides machinery for international consultancy. (5) The Fund conduets research studies and publishes them in IMF staff papers, finance and developments, ete, (6) The Fund renders technical experts to member countries having BoP difficulties and other problems. (7) The Fund conduets short training courses on fiscal, monetary and balance of payments for personnel from member nations through its Central Banking Service Department, the Fiscal Affairs Department, the Bureau of Statistics and the IMF Institute. QS. International Finance Corporation (IFC): International Finance Corporation (IFC) was established in July, 1956 in order to provide finance to private sector in developing countries. It is an affiliate of the World Bank Group but has separate legal entity, functions and funds. Its membership was 188 as on 31st March, 2014 World Bank are eligible become the members of IFC. IFC focuses exclusively on investing in the private sector in developing countries. Objective of IFC: «IFC was established to help strengthen the private sector in less developed and developing countries, through the provision of long term loans, equity investments, guarantees, standby financing, risk management and quasi instruments like subordinated loans, preferred stock and income notes. «IFC helps to finance new ventures and assist established enterprises to expand, improve and diversify activities. + IFC also provides a variety of advisory services to public and private clients. For financing eligibility, projects must be profitable for investors and must benefit the economy of the country concerned, and finally must comply with IFC's environmental guidelines. + IFC is to help the economic development of less developed countries by promoting the growth of private sector of their economies and also by helping them to mobilise domestic and foreign capital for ‘economic growth.Purpose of Import license: Import licenses are employed: (1) To restrict the outflow of foreign currency and thereby to improve a country’s balance of trade and payments position. (2) To control entry of dangerous items such as firearms, explosives, ete. (3) To protect the domestic industry from foreign competition. (4) To restrict the inflow of foreign goods up to a specific limit Quota regulations are generally administered through licensing. Import li to quota System. The difference between quotes import licenses (as a means of controlling imports) is the greater flexibility of import licenses over quotas, Quota permits importing until the quota is filled. Licensing limits quantities on a case-to-case basis, Import licensing is useful for reducing imports to an expected limit. It also reduces the dumping, It is useful as anti-dumping measure. nsing is also used as an alternative (I) CULTURAL ENVIRONMENT Inaddition to economic, political and legal environment, cultural (also called socio-cultural) environment also affects overall international marketing environment. Marketers operating in global markets have to give special attention to cultural changes in different markets and adjust their marketing policies for large scale marketing in global markets. In order to be successful in the international marketing field, marketers must understand precisely the characteristics of cultures of various countries for easy and effective communication with customers and also for carrying out different marketing activities smoothly and effectively. The concept of culture means a set of traditional beliefs and values that are transmitted and shared in a given society for many years. Culture is a way of life and thinking pattems that are moved from generation to generation, The concept of culture is a complex one. It covers social/cultural norms, values, customs, traditions, beliefs and so on, Culture has been called "the way of life for an entire society." It includes manners, dress, language, norms of behaviour, religions and rituals, ideals, beliefs and so on. There are three levels of culture: (a) National culture (b) Business culture, and (c) Organisational culture. Every country has its culture at the three levels. It needs to be honoured for large scale global marketing. Cultural changes are extremely slow. It creates pride and prejudice among people. People reject foreign goods due to their beliefs and values. People decide what is right and what is wrong on the basis of culture. This aspect needs careful consideration while introducing new products in foreign markets. Culture is "the way of life for an entire society." It covers codes of manners, dress, language, religious faith, values, norms of behaviour, belief and so on. While marketing goods in foreign countries, proper attention needs to be given to these aspects of culture for attracting customers and making them agreeable to the products offered. DEFINITION OF CULTURE: (1) Most traditional definitions of culture centre ground the notion that culture is the sum of the values, rituals, symbols, beliefs, and thought processes that are learned, shared by a group of people, and transmitted from generation to generation. QI4. ELEMENTS OF CULTURE: The concept of culture is based on different elements. Various elements are closely related to culture. Culture includes at least three elements as mentioned below: (a) Knowledge and beliefs, (b) Ideals, and (c) Preferences,Marketers, in international marketing, have to deal with educated customers with care and caution, They need sound reasoning and convincing advertising and publicity. Education facilitates cultural changes easily and quickly. QI5. HOFSTE E'S SIX DIME) SIONS OF CU! JRE: Hofitede's cultural dimensions theory is a framework of Cross-cultural communication, developed by Geert Hofstede. (Dutch social psychologist and anthropologist). The theory describes the effects of a society's culture on the values of its members, and how these values relate to behaviour, using a structure derived from factor analysis, Six dimensions of culture as described by Geert Hofstede are as briefly given below: Geert Hofstede was a professor who researched how people from different countries and cultures interact based on six different categories of cultural dimensions. Those categories are: (1) Power Distance: This dimension expresses the degree to which the less powerful members of a society accept and expect that power is distributed unequally. (2) Individualism vs. Collectivism: This dimension focuses on the questions about whether people prefer a close knit network of people or prefer to be left alone to fend for themselves. (3) Masculinity ys. Femininity: Masculinity represents a preference in society for achievement, heroism, assertiveness and material reward for success. Its opposite, femininity, stands for a preference for cooperation, modesty, caring for the weak and quality of life. (4) Uncertainty Avoidance: This dimension expresses the degree to which the member of a society feels uncomfortable with uncertainty and ambigui (5) Long-term vs. Short-term Orientation: Long-term orientation dimension can be interpreted as dealing with society's search for virtue. Societies with a short-term orientation generally have a strong concern with establishing the absolute truth, (6) Indulgence ys. Self-restraint: This dimension has not yet been widely adopted within the inter-cultural training and management field. It is still relatively new and has less data and fewer countries than the previous dimensions. Indulgent cultures place more importance on freedom of speech and personal control while in restrained cultures, there is a greater sense of helplessness about personal destiny. This dimension is ambiguous. QI6. Cultural Values: Cultural diversity among countries are fundamental differences in cultural values. The most useful information on how cultural values influence various businesses and market behaviour is given by Geert Hofstede, After studying more than 90,000 people from 66 different countries, he noticed that the cultures of nations studied differed on four primary dimensions, Subsequently, he and hundreds of other researchers have determined that a wide variety of business and consumer behaviour patterns are associated with three of those four dimensions. The four dimensions are: (a) The Individualism/Collective Index (IDV), which focuses on self-orientation. (b) The Power Distance (PDI), which focuses on authority orientation, Two more dimensions added thereafter are: (c) The Uncertainty Index (UAD), which focuses on risk orientation, (@) The Masculinity/Femininity Index (MAS), which focuses on assertiveness and achievement. ‘The Individualism/Collectivism dimension has proved most usefull of the four dimensions, noted above. However, MAS proved least usefil. (J) Individualism/Collectivism Index (IDV): It refers to the preference for behaviour that promotes one’s self= interest. Cultures that score high in IDV reflect an "I" mentality and tend to reward and accept individual initiative. However, those with low in individualism reflect a "We" mentality and usually subjugate the individual to the group. IndividualismQI7. OBJECTIVES / PURPOSES OF INTERNATIONAL MARKETING RESEARCH: The basic objective of marketing research function is to study the marketing problems of a company in-depth and providing management with information for more accurate decision- making. This objective is the same for domestic and international marketing, In international marketing research, achieving that objective is difficult due to special problems, not encountered in the domestic marketing. ‘The objectives of international marketing research are wider in scope as compared to overall objectives of marketing research. A firm interested in exporting to other countries has to undertake such international ‘marketing research mainly for finding out the products which can be exported to promising foreign markets. International marketing research is essential due to changing global environmental factors such as: (a) Increasing global competition (b) Fast technology developments (c) Changing consumer needs and attitudes, and (@) Changing tastes and requirements of foreign buyers. ‘The objectives of international marketing research are as noted below: (1) To explore promising foreign markets where domestic goods can be exported regularly with substantial profit margin. In addition, to study marketing opportunities in foreign countries/markets. (2) To study the needs of foreign buyers from different markets and thei expectations for satis ng such needs. (3) To adjust domestic products as per the needs and expectations of foreign buyers so as to give satisfaction and pleasure to them and thereby to create promising and long term demand for such products in overseas markets, (4) To introduce new products in foreign markets and to introduce suitable modifica ions in the existing products of the company for attracting more and more buyers. (5) To adjust packaging, branding, etc. as per legal requirements of foreign markets as well as expectations of foreign buyers. (6) To study critically pricing structure, market competition and distribution network in foreign markets and to design such structure for effective and economical distribution of company's products in foreign markets. (7) To design suitable marketing mix as well as sales promotion campaign for successful entry in foreign markets. Basic objectives of international marketing research are: (a) To explore profitable and promising foreign markets, (b) To promote large scale export of company's products through suitable marketing plan, policies and strategies, and (©) To eam high profits by making domestic products attractive as well as agreeable to foreign buyers! consumers. (@) To facilitate initial entry in foreign market. Q18. NEED FOR CONDUCTING INTERNATIONAL MARKETID (G RESEARCH: International marketing research is needed and also useful for giving valuable information and guidance for success in international marketing. It is needed as it has capacity to provide reliable data/information for appropriate policy decisions on international marketing. It is rightly said that to enter a foreign market without conducting marketing research is highly risky. International marketing research is needed as: (1) It permits a marketing firm to identify and develop strategies for internationalization, (2) It facilitates the development of a marketing plan. (3) It provides to a marketing firm with foreign market intelligence to help it to anticipate possible events for suitable actions, (4) It facilitates accurate decisions on proper promising market selection for initial market entry. (8) It facilitates selection of most promising products for export marketing purpose. International marketing research is needed and useful in order to take decisions on the following aspects of international marketing:(1) Selection of target markets: International marketing research is needed in order to identify the markets which are most promising and suitable for selection as target markets for entry and long term profitable marketing. Target foreign markets are selected on the basis of market size, possible growth, market competition, market accessibility and government rules. (2) Selection of suitable products for global marketing: Marketing research information is needed for identification of suitable products for overseas markets. Products which are acceptable by overseas consumers and adaptable to their socio-cultural features are normally selected. Products with limited profit margin and highly competitive are not selected for marketing in foreign markets. (3) Appropriate market entry: Marketing research information is useful for the selection of most promising market as target market for initial entry. Such updated market information avoids initial entry in an inappropriate market and possible poor response and loss. Such information is useful for deciding direct or indirect entry (entry through agents, joint venture or opening of subsidiary units and so on. (4) Product packaging: Research findings are usefull for packaging decisions (size, colours, shape, picture, etc.,) which will be attractive and agreeable to consumers from overseas markets. Suitable packaging acts as a sales promotion technique. Small sized and durable packages are preferred by large majority of foreign consumers. Green packages are eco-friendly and easily acceptable in middle east countries. Dark colours are accepted by small children. In Bir global market, suitable product packages attract consumers and act as sales promotion measure at consumer level Marketing research is needed for updated packaging information from overseas markets, (5) Appropriate product positioning: Marketing research information helps in determining the positioning of a product. Here, information on socio-cultural factors is important. Success of product in a foreign market depends on its appropriate positioning, For this, reliable information about target consumers and their likings, psychology, social norms, etc. is useful. Product's appropriate positioning attracts consumers and promotes sales. (©) Appropriate pricing decisions: Product pricing is a decisive factor in overseas marketing, Price fixing is a delicate task for which research data are useful, For this, data collection and data analysis are required. Price determination is difficult as it involves cost and other considerations. Attractive price fixation promotes sales but high prices lead to sales reduction and consumer opposition, Marketing research is needed as it facilitates fair price fixation and avoids too high or too low pricing of products in foreign markets. (7) Promotional campaigns: Sales promotion measures are useful for attracting consumers. Here, marketing research in overseas markets is useful. Such research information suggests the extent of price discount and incentives at consumer level for large sales. Companies regularly arrange promotional campaigns in foreign markets. This facilitates sale of products to marginal consumers. Here, research information needs to be used purposefully. (8) Mise. Aspects Suggesting need of marketing research: Marketing research information is useful in many other aspects of international marketing. Such aspects are: (i) Strategies to be introduced for achieving best results in foreign markets. (ii) Introduction of suitable marketing mix (combination of four Ps) for attracting consumers and sales promotion (iii) Competitors in foreign markets, their market shares and measures for raising market share of company's products through appropriate policies and strategies. (iv) Adjustments in marketing plans and policies in overseas markets as per the changes in the overall global marketing environment.Q19. STEPS IN INTERNATIONAL MARKETING RESEARCH: International (Overseas) marketing research involves lengthy and time-consuming procedure with many steps. These steps involve important decisions to be taken by the company interested in making entry in foreign markets for exporting over a long period. The following chart shows broad steps involved in international marketing research process: Steps in International Marketing Research Process (1) Determining Research Objectives (2) Determining Areas of Study 3) Collection of Data (4) Processing, Analysis and Interpretation of Data (5) Presentation of Research Findings/Report (1) Determining Research Objective: In this first step of overseas marketing research, the company/firm has to decide clearly the research problem and research objective. This means the purpose for which research project is to be undertaken. Many steps in the research procedure are directly or indirectly related to be research objective decided which acts as the base of entire research process/procedure. Important objective of international marketing research may be any of the following objectives: i) Feasibility of introducing existing product of the company in a foreign country/market. (ii) Demand estimation of a new product in target markets selected. (ii) Product promotion in a target market for making the product popular. (Gv) Initial entry in a promising new overseas market. (v) Causes responsible for declining sales or consumer dissatisfaction or complaints in a specific foreign market. (vi) Mise. objectives such as nature of market competition in overseas markets, marketing environment in overseas markets, entry in foreign markets due to government incentives and assistance, ete. (2) Determining the areas to be studied and the depth of analysis: After deciding research objective, a researcher has to collect information for achieving such objective. Here, the researcher has to determine the sources of information to fulfil the research objective. Information can be collected for different areas connected with the research objective. Here, the researcher has to decide the areas (e.g. competition, price, consumer expectations, etc.) for the purpose of study. Information relating to specific areas can be collected because of clear decision on the areas to be studied. Information can be collected in general or in-depth. In-depth information is difficult to collect but is always reliable and can be used safely for drawing conclusions. A researcher has to decide the coverage and the depth of information required for the research project. An estimate is also made about the time and cost required for the completion of the research project. e steps noted above are important and constitute "research plan" according to which follow-up steps will be taken for the completion of research project. (3) Collection of Data: Data collection is a major and critical step in the international marketing research procedure. Here, the researcher has to gather the relevant data from secondary or primary sources, or both. Primary as well as secondary data are required to be collected from different sources as per the information needs of research project undertaken. Data sources of international marketing research are different as compared to domestic marketing research. The data sources are already noted previously. Here, the researcher has to collect required data from different sources. In international marketing research, the secondly data available should be utilised filly. The primary data sources should be used for supplementing/supporting the data collected from secondary sources, Moreover, primary data collection is difficult, costly and time-consuming in the case of international marketing research, Such data may not be fully reliable. (4) Processing, Analysis and Interpretation of Data Collected: These steps, in the international research process, relate to checking of the collected data (about accuracy, ete.), arranging the data systematically in tables and drawing conclusions by interpreting the data accurately and impartially. These steps are important and theservices of experts and knowledgeable persons are required for completing these steps. Moreover, the final conclusions of research project depend on the data collection and data interpretation, (5) Presentation of Research Findings/Research Report Presentation: After analysis and interpretation of data The researcher has to prepare a report called "Research Report" which contains details of research work completed, findings and conclusions. In addition, recommendations are given for the information and guidance of the sponsoring agency. The recommendations are useful for achieving the objectives of marketing research project. Recommendations constitute an important component of research reporting. The sponsoring company study the research report in depth and take final decision on the research problem. If the report is accepted, follow-up steps will be taken by the sponsoring company. For example, marketing research relates to introduction of company products in promising foreign market, The researcher collects data, draws conclusions and makes his recommendations in the research report. Report writing is an art which can be acquired by experience, hard work and practice. The calibre of the researcher is judged by his ability to draft the report in a simple but attractive and convincing style. Report writing and presentation is the last or concluding step in the overseas marketing research process. Here, the report is to be submitted to the top management of the company for suitable decision-making Q20. SCOPE OF INTERNATIONAL MARKETING RESEARCH: International marketing research has a broader scope than domestic research due to higher level of uncertainty involved, It covers products traded in overseas markets, Similarly, pricing, promotion, distribution are some areas covered by international marketing In addition, such research is time-consuming, costly and needs manpower available in overseas market. Important areas within the scope of international marketing research are as noted and explained below: (1) Research of Industry, Market Characteristics and Market Trends, (2) Product Research, (3) Distribution Research, (4) Pricing Research, (5) Promotion Research, and (6) Miscellaneous areas of International Marketing Research. (1) Research of Industry, Market Characteristics and Market Trends: Research in industry, market characteristics and market trends is regularly undertaken by research organisations in different countries and the information is supplied to their subscribers. Study of production trends and the position of industries are useful for supply of goods to overseas markets. Market features indicate trends in marketing. This suggests growth of marketing activities or shortfall in them, The trends towards growth or recession are suggested in the market trends, This type of information is useful to exporters in planning their future marketing activities. Reduction in demand or in production leads to market slowdown which adversely affects domestic firms engaged in large scale exporting. Here, published secondary data are usefull in research projects. Even large exporters study the position of overseas markets to plan their export marketing activities for the future period. Marketing mix adjustments, sales promotion measures and pricing policie are adjusted as per research findings relating to industrial production, market trends and market characteristics. This type of overseas research is useful to all firms interested in international marketing, (2) Product Research: Product research covers all aspects relating to manufacturing and marketing of a product. Packaging research, brand research, pricing research, promotion research, product testing a product innovation research are directly related to product research. Product research is needed at the product planning stage and thereafter for product innovation, product modification, product pricing and so on. Product research may be conducted by the marketing research department of the marketing company or the responsibility maybe given to a research or advertising agency. Product research is needed in the case of all products new or old Itacts as an insurance against risk of product failure, declining sales or obsolescence of an existing product. (8) Distribution Research: Distribution research relates to one variable in the marketing mix. Such research in useful in domestic and international marketing. It provides guidelines in making better marketing decisions. Distribution research covers distribution channels research, dealer surveys and location research, Distribution function is important in international marketing where special attention needs to be given to import-export regulations and practices. Plant and warehouse location studies are within the scope of distribution research. Distribution research is useful for the control of transport cost relating to transportation of goods to market for marketing to consumers. Market price can be made competitive by reducing transportation cost, Distribution research also deals with the testing of new channels for efficient and economical distribution of goods in foreign markets, (4) Pricing Research: Pricing research is an important component of marketing research as price is a decisive factor in marketing, Pricing is one of the 4Ps of marketing mix. Continuous study of pricing is required to fix the market price or to adjust the product price accurately to tap the maximum share of the foreign market. Pricing research involves prediction of the quantity demanded at various prices. Pricing research includes the following aspects: (i) Determining the price expectations of consumers from different market segments of a foreign market. (ii) Comparing the pricing strategies of the competitors. (ii) Testing the alternative pricing strategies. (iv) Evaluating the consumer reactions to company prices. (5) Promotion Research: Sales promotion is necessary and useful in domestic and international marketing. For this, sales promotion measures are useful. For selecting promising sales promotion measures, promotion research is usefitl, Advertising and sales promotion are supplementary activities. Companies give more stress on advertising for larger sales. Sales promotion is possible at three levels. Consumer level promotion gives quick and direct effect. Sales promotion research includes the following aspects: (i) Advertising Research/Media Research, (i) Personal Selling Research, (iii) Brand image research, (iv) Readership research. (6) Miscellancous areas of International Marketing Research: Miscellaneous areas of marketing research studies at international level include: (a) Market measurement studies which identify and estimate the current market size and the potential size of various overseas markets and the firm's share over a given period of time. (b) Competitive studies which identify the impact of competitors’ marketing strategies and practices on the firm's present sales and potential sales in various foreign markets. (c) Studies of international environment which identify the impact of various environmental factors on the firm's current and future marketing activities in different overseas markets/countries. These factors are 4Ps of marketing mix i.e, product, price, place and promotion (@) Consumer research. (e) Market trend research, (f) Marketing efficiency research. Q21. INFORMATION TECHNOLOGY (IT) IN MARKETING RESEARCH: The use of information technology and intemet service is common in all the aspects of life. There are billions of internet users in more than 200 countries. Such users are in large numbers in the USA, China, India and so on (1) Introduction of social media in marketing research: Twitter, Facebook, LinkedIn and Google have expanded the landscape in which marketing research is conducted. Social media is transforming market research in exciting new ways. It is also requiring a skill set that didn't exist before. Social media is creating an environment that yields unfiltered feedback. For creating brand awareness, market researchers can take