Part A.Multinational Marketing Information SystemsIntroductionMultinational Marketing Information Systems (MMIS) is one of the newest entrances in the field of marketing which is believed to be able to provide solution to international marketing. MMIS is intended to gather disparate items of data into a coherent body of information which would be used by a company’s management to analyze raw data available to them and make appropriate decisions[1].
This paper will discuss the use and importance of MMIS with reference to management marketing. It will also examine the business concept of franchising as a strategy entry to international markets According to Kotler 1988 , MMIS can be defined as “ an international continuing and interacting structure of people, equipment and procedures to gather, sort, analyze, evaluate, and distribute pertinent, timely and accurate information for use by marketing decision makers to improve their marketing planning, implementation, and control”. In most cases, managers would prefer odd sources of information such as gossip in brief, speculation, current or hearsay in their quest for search of market information. They would want to look at current, ad hoc or specific information that relates or touches their company’s marketing strategy.
On the hand, uncertain information, historical or regular information receive less attention from the managers. Because of the nature of their work, managers heavily rely on collected and collated information that is verbal, timely and available to them. This information is usually assimilated easily by the organisational management despite the fact that it is less accurate and misleading. This means that information systems are important for businesses and whichever from it is collected and presented affects the way the business will be conducted and how it develops.
Importance of MMISMultinational marketing information systems are tailored to support management systems and decision making processes within a business. Usually, there are five distinct functions that MMIS intend to achieve while trying to support marketing management issues in a company[2]. Information systems in particular are designed to meet the challenges marketing managers have in their day to day duties today. Previous research have shown that managers have a variety of tasks including control, planning, decision making, organizing, controlling and coordination of all the activities regarding the marketing assignments of the organization.
Internal reporting systemMMIS plays a crucial role in the reporting system within an organization. Although an organization is a nave of information in itself, such kind information is usually under utilized due to the fact that it has been compartmented. In a multinational setting for example, information is usually categorized according to its nature so that it can be analyzed accordingly. This is where the MMIS comes in with an intention of sorting out the gravity of issues arising as a result of this collated information.
The figure below illustrates the major components that typical marketing information can look like. It can be applicable to both domestic and multinational companies. Figure 1. The marketing information systems and its subsystems Source; Kotler, P.
(1988): Marketing Management: Analysis Planning and Control, Prentice-Hall p. 90-103 Market research systemsMarket research is a proactive means of searching information from consumers and a target site. It is usually done to solve a perceived marketing problem that may unblock the marketing opportunities of a company. It may involve consumers, distributors, government agents, professionals in the sector and other stakeholders to provide the management of the organization with information on what needs to be done to meet the needs of the consumers.
Assists in management functionsPlanningThis is the process of developing the company’s mission, vision, goals and objectives and defining specific methods of accomplishing them. It can be on a broader or narrow perspective depending on the scope of the goal. Planning comes in a number of ways since all sectors in the business require some form of planning in order to stick to what has been planned. Computer information systems have been sued in the recent past to conduct the planning processes within the company[3].
First, there is financial planning which entails the budgeting allocations for all the programs being undertaken within the company. It also includes the setting and monitoring the financial spending of the company in view of auditing any misappropriation of funds. Provision of benefits, compensations and salaries are also taken care of at this stage. Another section of the company that need planning is the policy formulation section.
This is critical in that as a profit making company, strategies must be placed correctly to counter marketing issues such as competition from companies which manufacture the same product and the production of counterfeit products which affects the company’s reputation. Local policy development, creation and implementation come hand in hand with policy planning. Decision making processesDecision making is usually seen as the main obligation of a marketing manager and this goes inline with their role in the company. MMIS has sought to provide solutions to this major issue that affects the way a company will be fairing on in this world of competition.
There are usually three forms of decision making within an organization that can be effectively addressed by MMIS. The first is strategic decision making which is concerned with deciding the how policies, objectives or resources of the organization will be distributed. A success in this area will translate to overall success of the company and this can only be possible if the information systems are accurate. Secondly, it is the management control decisions which concerns how effective resources are utilized within the company and how operational units are performing in the organization.
It entails the close interaction of the people carrying out the tasks and collecting information that would help the management makes proper decisions[4]. The final one is the operational control decisions which involve making decisions on the way specific tasks will be performed within the organization such as selling techniques. OrganizingMarketing information systems plays a big role in the organizational structure and day to day operations regarding organizations in a company. Organizing is how the internal structure of the company is set.
It generally focuses on the division, coordination of activities and how tasks are controlled within the company. General company procedure demand good organization from the leaders and managers. Proper organization within a company enables it to achieve its marketing objectives and other future marketing forecasts LeadingLeadership is also described as directing people to do specific duties by influencing their personal behaviours through incentives and motivation, teamwork, individual dynamics and discipline. Proper leadership can only be achieved through proper marketing information systems.
Sales people should be pushed to work properly through motivational packages, benefits and other gifts. Marketing managers should also lead by example and set the path leverage for other marketing executives to do so. The core purpose of leadership is to channel all the employees’ behaviour towards attaining the company’s objectives. Leadership is thus essential in creating and maintaining a healthy organizational culture within the company.
Leading does not necessarily come from that in power but from any individual who provides information and suggestions on the way forward. ControllingControlling is a sequential process that considers the establishment of performance standards that are in line with the company’s marketing goals and objectives. It deals with the measurement, monitoring and reporting the actual performance level of the company and finally recommends the necessary actions that should be taken on board to rectify any misconception. For any company to achieve its best, properly instituted control measures should be put in place in order to have thing done the way it is suppose to.
This can only be achieved if effective marketing information systems are available to the management of the company. PART B.International market entry strategyFranchisingFranchising involves one partner called franchisor licensing trademarks and established methods of entry to a party called a franchisee in swap for a recurring compensation. A good example that illustrates this method is that of the Coca-Cola Company selling its syrup together with the rights to use its trademark and name to other independent bottlers.
Franchising is one of the modern methods of market entry modes that enables a new company to market its products or services into a new market. It in French, the word franchising means freedom or honest.[5] In business terms it is the method of business with a with a different party through the licensing of trademarks from a ‘franchisee’ to a third party the ‘franchisor’ who in exchange for a recurring payment-a percentage of gross sales- trades on behave of the company. There are various types’ tangibles/intangibles that are usually made available to the franchisor such as training facilities, advertising opportunities etc.
Franchising offers a turnkey business to the company when it moves into an international market. It offers lease negotiation, troubleshooting, mentoring, site selection, ongoing support or training to the company while it enters an international market. It is possible that a new company which would want to enter into a foreign market will encounter very many challenges which in one way or another affect the take-off of the business. Such challenges include; competition, brand development, distribution, marketing, custom duties etc.
this can be easily be handled via the use of this technique. Franchising is a business strategy that is intended to get and keep customers. This method of market entry is used to create an image in the minds of current and future consumers of the company’s services and products. This network of business relationship allows a number of parties to share;i.
A proven marketing and distribution startingii. A successful method of doing businessiii. Brand identities Benefits of franchisingExpansionOnce a company has set up its products in a new market area, it is easier for franchisors to enable quick expansion of the company in that new market. Since these people have the experience and are professional in this subject area[6], it will be possible for the new company to rapidly conquer new markets within that base especially countries and continents which are close to it.
It will be also easier for the franchisor to commensurate the profits being achieved and the necessary investments that must be factored into the business in order, to achieve certain targets. It provides a quick start for the companyFranchising offers the company an opportunity to launch the business very fast in the new market. Based on a proven trademark, the company can be able to establish quick roots for the business and start gaining the market share potential which other competitors have. Since the franchisor has a market entry formula and a different way of doing business, it will be easy for the company to strategically place itself in the market.
As opposed to having to start new brand and huge investments in the new market, franchising will make a quick start for the company. TrainingFranchising helps the company to get up to date training on business strategies and especially suitable marketing strategies for the company. It is usually hard for a company get started immediately especially due to poor knowledge of the market[7]. This is usually provided by the franchisor.
Individuals starting their own businesses pay for training of their staff and management alike in order to get the skills to operate in the new market as per the new conditions to be adopted. ConsistencyWhen entering a new market it usually becomes difficult to know what to expect but given a franchised establishment, it becomes easier to make supportive forecasts. This is a case referred to as franchise validation. Consumers under this arrangement get franchises that offer consistent services and products.
Disadvantages of franchisingLegal issuesSince franchising falls under the jurisdiction of federal laws and a number of state regulations, it is possible to become a source of legal tussles. Specific requirements should be met before the franchised agreement is settled. If any of these requirements are broken, it will lead to legal implications which may benefit one of the two parties.ConflictsSometimes the relationship between the franchisor and the franchisee can become soar and it may lead to conflicts.
If either side is not acting in good faith or even incompetent, the relationship may get on poorly leading to production of brands, losses or any other negative implication such as bad publicity.CostFranchising as from of international entry strategy is very expensive to the franchisee. In some cases, the franchisor sets standards that the franchisee has no choice on. Other factors that make this strategy costly are[8]; added costs for advertising, franchising fee, ongoing loyalties, upgrading, contributions etcLoss controlThe main disadvantage that this mode of international entry is lack of control of the business.
Despite the fact that the franchisee gains most of the access to the rights of the business including profits, it is only with the approval of the franchisor that the franchisee is able to make any changes. This will make it difficult for the franchisee to exercise his or her rights over the business. ConclusionThe first part of this assignment recognizes the importance of multinational marketing information systems which include; decision making, internal report system development, planning, control, organizing and coordination of duties. It also outlines how this importance can aid in marketing management.
The second part discuses the concept of franchising as a form of international market strategy. It indicates advantages such as possibility of expansion, quick start and training. The main disadvantages are lack of control, high costs of carrying out business and conflicts. ReferencesCinchona, M.
R., Ronkainen, I.A, (2005), International Marketing, 7th Edition, Thomson, p. 78-99 Dole, I.
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(2005): International marketing: Franchising perspective, 3rd edition, Pearson prentice hall, Frenchs Forest p. 109-122 Kamm, J.B., Frederick, R.
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45-56 Lee, K and Carter, S., (2005), Global Marketing: Changes, New Challenges and Strategies. 1st Edition, Oxford Press, p. 120-130 Rochester, B.
(1996): Tools for Knowledge Workers. Using Computers in Information: Que Education and Training, Indianapolis, IN. p. 190-211 Stair, M.
(1999): Principles of Information Systems and Managerial Approach, 2nd ed.: Boyd & Fraser, Cincinnati, OH p. 24-39 Kotler, P. (1988): Marketing Management: Analysis Planning and Control, Prentice-Hall p.
90-103[1] Dole, I. and Lowe, R, (2003): International Marketing Information Systems; Development and Implementation. 4th. Edition, Thomson Learning p.
455-367[2] Lee, K and Carter, S., (2005), Global Marketing: Changes, New Challenges and Strategies. 1st Edition, Oxford Press, p. 120-130[3] Kotler, P.
(1988): Marketing Management: Analysis Planning and Control, Prentice-Hall p. 90-103[4] Kotler, P. (1988): Marketing Management: Analysis Planning and Control, Prentice-Hall p. 90-103[5] Kamm, J.
B., Frederick, R.E. and Petri, E.
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109-122[7] Fletcher, R & Brown, L. (2005): International marketing: Franchising perspective, 3rd edition, Pearson prentice hall, Frenchs Forest p. 109-122[8] Cinchona, M.R.
, Ronkainen, I.A, (2005), International Marketing, 7th Edition, Thomson, p. 78-99
