Introduction:
In 1996 Teacher PHILIP KOTLER USED THE WORD marketing nerve middle to describe a fresh device within marketing to assemble and process marketing information. He identified 3 types marketing information system: (5)
Marketing Intelligencies (Information that employs into the organization from the surroundings)
Internal Marketing Information (information that is gatherd within the company)
Marketing Communication (Information that moves from the organization outward to the surroundings)
He recognized your choice support intention of the nerve center make easy to make decision such as shedding a cost, revising sales territories, or increasing the adverstasing charge level. Although he didn't use the word MIS. (4)
Information systems for multinational companies (MNCs), referred to as international information systems (IIS), have been a problem area for many years, yet have failed to entice more than token attention from the academic information systems research community.
What is MMIS:
Marketing Information System is a computer structured system that works in conjuction with other useful information system to aid the firms management in solving problems that relate with marketing the organizations products.
Basic components of marketing information system the same: (4)
Internal documentary process of the firm
Marketing brains system:
The term marketing intelligence may think of vision of one company spying on another commercial espionage. A degree of such undercover work will continue in the competitive world of Business, but few have been publicized. Marketing cleverness identifies the wide range of ethical activities which may used to gather information about competition.
Formal marketing research system
Marketing research to assemble any kind of information, but most activity is aimed at customer and potential customers. (Primary and Extra Data)
Management knowledge system
Product, Place, Pricing Subsystem:
Integrated-Mix Subsystems
How Manager Use MIS: (4)
Marketing Manager use MIS to lern about consumer needs and desires, to formulate the marketing Mixture and to followup on how well the combination is received by the consumers.
Multinational Marketing
Information System
Country 1
CMIS
Country 2
CMIS
Country n
CMIS
Corporate
MMIS
Use of MMIS:
Marketing is concerned with identifying the clients for the organization's products and service, identifying what they want or want, planning and development products and services to meet their needs, and advertising and promoting the products and services. Marketing Information System support all the above activities. (1)
Order Processing System: support Enter, Process, and Trail Orders End user Operational Management Level.
Market Evaluation System: support figuring out customers and markets using data on demographics, marketplaces, consumer behavior, and fads User Knowledge Level Management System.
Pricing analysis System: support Determine prices for product and Services End user Management Level.
Sales pattern forecasting System: Support Prepare 5-year sales forecasts User Strategic Management Level
Above data demonstrates Information Systems are being used in sales and marketing in a amounts of ways.
At the proper level, sales and marketing systems screen trends impacting products and sales opportunities, support planning for new products and services and monitor the performance of the competitors.
At the management level, sales and marketing system support general market trends, advertising and promotional campaigns, and prices decisions. They analysis sales performance and the performance of the sales staff.
Knowledge-level sales and marketing systems support marketing evaluation workstations. At the functional level, sales and marketing systems help out with finding and constracting potential customers. Tracking sales, processing orders, and providing customer support support. (1)
Figure:1 It shows the result of the sales information system at the management level. The machine consolidates data about each item sold (such as product code, producy explanation, and sales amount) for even more management examination. Company managemenet examine this sales data to keep an eye on sales activity and purchasing trends.
The Canadian product of Italian eyewear manufacturer and distributor Safilo used to be always a paper manufacturer's closest friend.
Each one fourth, its IT division would print reams of sales accounts for the 30-person touring sales team. The studies were stuffed with critical sales information -- customer requests, costing information, delivery position. They were as hefty as big-city cellphone books.
The trouble for Safilo's sales reps wasn't just the logistical hassle of lugging around such thick reports. The bigger problem was effectively using these data to stay together with their accounts, manage orders and keep their clients -- 2, 500 opticians and optometrists across Canada -- educated and happy.
Today, Safilo's paper chase is a storage area thanks to an execution of Cognos business cleverness software and software from Safilo's IT spouse, Syntax. net. Today, somewhat than lugging around a solid pack of papers, Safilo sales staffers bring an IBM laptop loaded with current sales information viewable in clear, relevant, easy-to-understand platforms. "Our salesmen are actually happy with the solution. It really is fast to get the information, " says Claude Groppi, Safilo's IT manager.
Importance of MMIS:
MMIS is very important to the business to get competitive benefit in this global market. (3)
It brings overall flexibility in responding to competitors in several countries and Markets.
It gives ability to respond in a single country- or in a region of an country- to an alteration in another
It gives ability to keep abrest of market needs around the world
It gives capability to transfer knowledge between systems in several countries
It decrease the overall cost of operation
Increased efficiency and effectiveness in reaching customer needs
It gives capability to achieve to accomplish and maintain diversity in the firm's products and in the way they are produced and allocated.
It reduce the time of communicaton
Problems in Implementing MMIS: (4)
Company can face variety of problems to use MMIS. The most frequent problem is given below:
Politically Imposed Constrains
Restriction on Hardware purchase and Imports
Restriction on Data processing
Restriction on Data Communication (Transborder Data Flow TDF)
Technological Problems
Lack of Support from Subsidiary Manager
Introduction:
Concept of Franchise:
Franchising can be an advanced form of licensing where the focal firm (the franchisor) allows a business owner (the franchise) the right to use a whole business system in exchange for payment. McDonald's, Subway, Hertz, and FedEx are well-established international franchisors. Some stores, such as IKEA and Starbucks, have a strong preference for extending overseas through company-owned retailers. (1)
The Callifornia Business and Professons Code, Section 2001, defines 'franchise'' the following: (4)
Franchise means a deal or agreement, express or implied, whether dental or written, between several persons by which:
A franchisee is granted the right to engage in the business of offering, offering, or distributing goods or services under a marketing plan or system prescribed in significant part by a franchisor;
The procedure of franchisee's business pursuant compared to that plan or system as significantly associated with the franchisor's hallmark, trade name, logotype, advertising, or other commercial sign designating the franchisor or its affiliates; and
The franchisee must pay, straight or indirectly, a franchise price.
There is various kind of franchising, the most frequent agreement is Business Format Franchising also known as System Franchising. (2)
Franchisor Provides:
Trademark-protected business theory; plus
Everything necessary for its implementation (patents, know-how, training, services, products)
Franchisee compensates the franchisor via a combination of:
Lump-sum payment
Down-payment plus royalty
Other mark-ups and contributions (e. g. , financing charges, sales of related products)
Franchisor
Franchisee
Exhibit: 01 Franchising as a Foreign Market Admittance Strategy (Source: Designed from Welch (1972) and personal correspondence with Lawrence Welch)
Exibit:1 Shows the nature of the franchising arrangement. In this agreement, the franchisor exchanges a complete business method, including production and marketing techniques, sales systems, techniques, and management know how, as well as the of its name and utilization privileges for products, patents, and trademarks. (3)
McDonald's is perhaps the leading example of Business Format franchising. Its worldwide franchise network is extremely successful. The starting of the first Russian McDonald's electric outlet in Moscow in January 1990. About 80 percent of McDonald's 30, 000-plus restaurants world-wide are owned and run by franchisees These resturents provide over 50 million customers daily and make use of 1. 5 million people. (1)
A major concern for franchisors is to be familiar with foreign regulations. FOR INSTANCE: EU legislation favour franchisee, which sometimes hamper the franchisor ability to keep up control over franchisee operation.
Advantage and Downside of Franchising (The Franchisor Perspective): (1)
Advantage:
Entry into numerous foreign market segments can be achieved quickly and cost effectively
No need to get substantial capital
Established brand encourages early on and ongoing sales potential abroad
The company can leverage franchisees' knowledge to efficiently get around and develop local markets
Disadvantage:
Maintaining control over franchisee maybe difficult
Conflict with franchisee are likely, including legal disputes
Franchisse might take advantage of received knowledge and be competitors in the foreseeable future.
Advantage and Drawback of Franchising (The Franchisee Point of view): (1)
Advantage:
Gain a well-known, recognizable brand name
Acquire training and know-how; receive ongoing support from the franchisor
Operate a unbiased business
Increase probability of business success
Become part of an established international network
Disadvantage:
Initial investment and loyalty repayment maybe substantial
The franchisor contains much ability, including superior bargaining power
Franchisor may impose improper technical or managerial systems on the franchisee
How it can be used International ONLINE MARKETING STRATEGY:
Just as the frustrating attractiveness of franchising has captured the interest of the U. S. current economic climate within the last 30 yers, it has also fascinated genuine attention in the overseas markets over the past 10 yers and is likely to be a major development in the foreseeable future, at the mercy of global geographical trends and concerns. For Example United States-based franchisors are currently functioning in more than 160 countries worldwide. The reason behind foreign extension are strikingly similar to the domestic development, including a larger demand for personal services, higher levels of throw-away income, and an increased desire for specific business possession. (5)
When getting into an international growth program, franchisors should always consider: (5)
Language Barrier: The neighborhood countries requirements of humour, accepted punch or jargon, or even simple gestures may well not be the same as your companies local countries norms and could have to be adjusted accordingly.
Taste Barrier: Foreign tastes fluctuate greatly from the home counties food test. Tis factors should be carefully examined with the help of local marketing workers and product development specialists before starting any discussions with suppliers and vendors.
Marketing Barrier: These kinds of barrier most frequently go to the deepest ethnic levels. For example: Whereas many overseas markets have developed a flavor for :fast food: burgers and hot pet dogs differences in ethnicities demand.
Legal Barries: Domestic legislation may well not be conducive to the establishment of grancise. Tax laws, Customs Laws, import limitations all end up being significant stumbling blocks.
Access to raw material and RECRUITING: Not absolutely all countries provide same degrees of usage of critical recycleables and skilled labor that may be needed to operate the main franchised business.
Government Obstacles: The foreign Administration may or maynot be receptive to foreign investment on the whole or even to franchising in particular.
Choice of Territory: A place overseas may consist of a major city, an entire country. The chosen territory may well influence sales, syndication, and the ability to develop at a later point in time.
Intellectual Property and quality control concerns: safeguard of trade grades and trade labels and service makes are vital for a local franchisor's licensing of intellectual property oveseas. Distance between farnchisor's local headquaters and the overseas franchisee make screen of quality control more difficult.
Source of finance
Expatriation of profits
Taxes
Dispute Resolution
Use of a Local Liaison
Naturally, these opportunities also bring certain troubles for which appropriate strategies must be developed. For Example: McDonald's were required to build an underground heated up parking whole lot to get customers when they opened their first Franchisor in Iceland.
Developing an International Franchising Strategy: (5)
There are eight Commandments of expanding a powerful international Franchising Strategy.
Know thy Power and Weaknesses: Before Increasing overseas, be sure to have a secure domestic foundation from which the international program can be launched. Make sure that adequate capital, resources, personnel, support system, and training are in destination to assist your franchisees abroad.
Know thy target Market: Entering a new market blindly can be costly and lead to disputes. Market studies and Research should be conducted to assess market demand and competion for companies producy and services.
Know thy Partner: Ultimate success in franchising will depend on three critical things: 1. Finding the right partner 2. Discovering the right partner 3. Discovering the right partner. One of the most promising candidate will often be those with money, They should have experienced a successful business in the number country, have management resources, communication features. They must have knowledge of underlying industry. Beyond a certain point, however only careful negotiating and agreement preparation provides any degree of safeguard for a franchisor risking admittance into a new market.
Know thy Value: Many franchisors entering overseas marketplaces for the first time have grandiose ideas about the structure of the get good at Licence fee and posting the single device payment and royality. Fact and perseverance are two buzzwords here. If you overprice, you will scare away qualified prospects or leave ypur spouse with inadequate capital to develop the market. If you underprice, you will be missing the resources and incentive to provide quality training and ongoing support.
Know thy Trademark:
As an over-all matter, trademark laws and rights derive from genuine (or bona fied objective to) use within a given country. Unlike international copyright laws, your properly recorded domestic trade mark does not automically confer any trademarks right far away. Make sure to take steps to guarantee the availability and registration of your brand in all these targeted markets. Could be company have to modify their brands, designs, or slogans because of translation or pirating problem in new markets.
Know thy Product and service:
The format of products and service which have success in home country may nor maynot be successful internationally. Be sensitive to different preferences, cultures, norms, customs, trends and behaviors within a country prior to making finl decision on prices, size and packning.
Know thy Resources:
Access to the resources and experienced advise is a significant element in the success of an international franchising program. Considerable resources available at the International Franchise Relationship in Washington, D. C. (202-6028-8000), It is a excellent strating point of gathering data about marketplace.
Know thy Rationale:
Franchisors often have widely differing resons for choosing the marketplace or country. Sometimes these are pulled into market by an interested potential client who is familiar with their strategy (often consequently to be a temporary resident, tourist, or pupil in the franchisor's home country), which especially dangerous if the franchisor depends only on the assurances of the interested individuals that there is a demand for the merchandise and service.
Other fransior drive their wy into a targeted overseas market (sometimes credited to market saturation or a lack of opportunity in their domestic market) by a ranking probability of their success by calculating certain factors of oversas marketplaces. These factors include vocabulary and ethnical similarities, geographic closeness, market and economical growth trends, risk level, cooperative frame of mind, and potential profits on return.
Conclusion:
1. Cavusgil, knight, Riesenberger (International Business: Strategy, Management, and the New Sellers) 2008 Pearson International Release Pearson Educaton, Inc. ,
2. F. Burton and A. Mix, 'International Franchising; Market versus Hierarchy, '' in Internationalisation Strategies, G. Chryssochoidis, C, M, iller, and J. Clegg, eds. , 135-52 (New York: St. Martin's Press, 2001)
3. L. S. Welch, 'Internatinalization by Australian Franchisors, '' Asia Pacific Journal of Management 7 (1990): 101-21.
Erwin J. Keup 'Franchise Bible'' HOW EXACTLY TO Buy A Franchise or Franchise Your Own Business 6th Release 2007 Entreprenure press
5. Sherman Andrew J. ' Franchising & Licensing'' two powerful ways to increase your business in virtually any economy 3rd edition 2003
