Export marketing

Foreign-market opportunity analysis is the most frequent objective of
international marketing research (Czinkota and Ronkainen 2007).
The importance of foreign market opportunity assessment has been well noticed
by both marketing managers and scholars. However, a foreign market opportunity
analysis model based on theory that goes beyond aggregate demand is still lacking. This
dissertation proposes a new model by combining marketing-based Overall Market
Opportunity Index (OMOI) scheme with the economic-based gravity model of
international trade. Hypotheses were tested as well as the usefulness of OMOI/Gravity
Hybrid Model through three separate models with empirical analyses structured as
follows.
The first model extends existing screening methods by combining both OMOI
and gravity models. Unlike previous studies using ad hoc or equal weights on variables,
this study employs Confirmatory Factor Analysis (CF A) and weight derived from
regression coefficient on each factor under study and thus gives a more realistic
estimation of the potential for aggregate exports. The second model goes beyond the previous work on aggregate exports by
examining data at the sector and category level. In this study, comparisons were drawn
between the OMOI/Gravity Hybrid Model in three sectors (manufacturing goods exports,
agricultural goods exports and service exports) and 1 0 1-digit SITC categories (SITC 0 to
SITC 9).
The third model moves from the OMOI/Gravity Hybrid Model to the Industry
Market Opportunity Index (IMOI)/Gravity Hybrid Model. This model develops a
framework that analyzes market potential for specific industries classified by 2- and 3-
digit SITC.

Contrasting viewpoints have emerged regarding the selection of marketing strategies in global markets. One group of scholars recommends standardized global marketing strategies based on the premise that technological advances in telecommunication, transportation, and media are leading to similarities in customer preferences across the world. Other researchers recommend multi-domestic strategies on the premise that consumer heterogeneity continues to increase even within countries. Firms marketing products in global markets appear to adopt global marketing strategies, multi-domestic strategies, and various intermediate strategies that encompass different degrees of standardization. This research develops a theoretical framework to examine the factors that influence marketing strategies in global markets. Transaction cost analysis constructs are used to determine whether to standardize or customize marketing strategy. The basis for adopting different levels of standardization on marketing program and process variables is empirically investigated. A multinomial logit model is used to estimate the likelihood of adopting different degrees of standardization with data from American multinational corporations on 161 products marketed in different global markets. The results indicate that higher levels of asset specificity associated with patented technical knowledge favor physical attribute standardization in global markets. Volatile political environments, high degrees of ownership in affiliates, and global competitors' standardized marketing strategies encourage firms to tailor physical attributes. Brand names are standardized if the economic uncertainty is lower in foreign markets. Cultural dissimilarities between home and host countries hinder marketing control systems standardization. Operating experience in foreign countries and the need for technical service and customer interactions support standardization of marketing control systems. The need for specialized local market knowledge encourages the adoption of country-specific marketing research methods. Standardized pricing strategies are preferred over flexible country-specific strategies in volatile political environments.

Neoclassical trade theory and its extensions are presented to
provide a basis for understanding the determinants of export
performance. Past empirical studies are also utilized to aid
in the formulation of hypotheses to explain revealed comparative
advantage .in the case of Indian exports. A cross-sectoral
analysis of 57 manufacturing industries within India employs
both economic and policy explanatory variables. Ordinary least
squares and Probit methods test the potential determinants of
export performance and direction of trade.