1. Uncertainty in Marketing Mix
By
Shashank
Prasidha
Yuyue Jiang
Sachin

2. • Examining the Influence of Uncertainty
on Marketing Mix Strategy Elements in
Emerging Business to Business
Export-Markets
OBJECTIVE
Uncertainty in Marketing Mix

3. Marketing mix

4. WHY GLOBALISATION ?
INCREASE SALES
VOLUME
INCREASE
PROFIT MARGIN

5. UNCERTAINTY IN MARKETING MIX?
Product? Price? Place? Promotion?

6. STRATEGY
STANDARDIZATION ADAPTATION
Applying domestic target market
dedicated product standards to
foreign markets and vice versa.
Modification of domestic
market dedicated product
standards so as to make the
product suitable for foreign
environmental conditions
and vice versa
MIXED
Partial
standardisation of
domestic market
strategy on
international market

7. UNCERTAINTY
International
Entrepreneurship
Networking
REDUCING UNCERTAINTY
• Proactive
• Innovative
• Risk seeking
• Creating links
• Collecting information
• Assessing marketing
environment

8. STRUCTURE OF PRESENTATION
THEORETICAL
FOUNDATION &
HYPOTHESIS
DEVELOPMENT
DATA ANALYSIS
RESULT
(METHOD USED,
INNER AND OUTER
MODEL RESULTS)
RESULT INTERPRETATION,
MANAGERIAL IMPLICATION,
LIMITATIONS AND FUTURE
RESEARCH
YUYUE
PRASIDHA
SACHIN

9. Literature Review &Theoretical
Foundation
• Marketing Mix in Export Markets
• Project Business Markets
• Emerging Markets
• The Role of Uncertainty

10. • Co-ordinate different generic Marketing Mix
Element- Across National Boundaries
• Standardization- Homogenisation of World Market
• Adaptation – reacting to 4c's (Risks)
• What is an appropriate Marketing Mix Strategy for
B2B- in emerging export market?
Environmental Fit

11. Backhaus and Muehlfeld (2005)
Product Business
Project Business
Relation Business

12. • Idiosyncratic, complex, non continuous
• Individual customer and customised actions
• Seller:
Environmental contingencies
Resulting consequences
Secure controlling (payments and time)

13. • Increased uncertainty
• Greater risk
• Rapid growth
• Greater market potential with 75% of world
population
• Need of effective marketing Strategy

14. Situation in which cannot make specific previsions
Milliken (1987):
• Environment Uncertainty
• Effect Uncertainty
• Response Uncertainty
Sousa and Bradley (2005)- Psychic Distance on
the International Market
Standardisation
Adaptation

15. Managerial Perceptions in Decision Making
Effective Strategy – Analysing Uncertainty
Risk – When Uncertainty Prevails
Uncertainty & Marketing Mix Strategy
International Entrepreneurship
Network Capabilities

16. International
Entrepreneurship
Network
Capabilities
↓ Uncertainty
H1
H2
↑ Marketing Mix
Strategy

17. 17
↓ Marketing
Mix Strategy
Uncertainty
Environment
↑Product
Adaptation
Sales and
Distribution
System
↑ Promotion
Adaptation
↑ Price
Adaptation
H3a
H3b
H3c
H3d

18. H1. The better a firm’s international entrepreneurship abilities, the greater the likelihood of the
reduction of uncertainty and, therefore, the better the assessment of marketing mix strategy.
H2. The better a firm’s use of networks, the greater the likelihood of the reduction of uncertainty and, therefore, the better
the assessment of marketing mix strategy
H3a. The better the assessment of environment and, therefore, the lower the marketing mix strategy uncertainty,
the greater the likelihood of product adaptation by a firm
H3b. The better the assessment of environment and, therefore, the lower the marketing mix strategy uncertainty, the
greater the likelihood of price adaptation.
H3c. In the case of a project business there is a high likelihood of a firm using a uniform and standardised personal
sales system.
H3d. The better the assessment of environment and, therefore, the lower the marketing mix strategy uncertainty, the
greater the likelihood of promotional adaptation.

19. Data Set And Operationalization
SURVEY
 Random companies were selected from the database of German Chamber of Commerce (GCC)
 Included small/medium sized German Manufacturing Companies operating within Project Business
(44% < 250 Employees, 17% between 250 – 300, reaming 39% 500 – 3000 employees)
 Survey was Pretested with experts from the field, staff of GCC and select B2B companies
 Managers in top management position in 600 companies were directly contacted
 Foreign Activity of these companies mainly concentrated in ASIA,SOUTH AMERICA & MIDDLE EAST
( emerging markets)
 198 usable data returned with a Response Rate of 33%
QUESTIONNAIRE
 All items were conceptionalized using 6 POINT BIPOLAR SCALES - Strongly Disagree (1) & Strongly
Agree (6)
 To measure Degree of Adaptation or Standardization of each of the 4 Marketing Mix Elements
SINGLE ITEM SCALE was used

20. Methodology
PreviousResearchMethod
Aldrich (1979)model
was dimensions of
dynamism, complexity
and munificence.
The other research
claimed decision-
making uncertainty is
an outcome of external
environment
uncertainty.
Definition
Marketing Strategy
Uncertainty=Ability of a
company to access the
required degree of
adaption for marketing
mix element.
All items were
conceptionalized as six-
point bipolar scales
with the range
indicating strongly
disagree (1) and
strongly agree (6).
Assumption
4 items: product, price
strategy, sales structure
and promotional strategy
when entering new
market.
3 measured items:
intensity of network,
degree of support from
network and the relevant
of network establishing
long-term relationships.

21. Statistical Model Analysis
1. Structural Equation Model Software (EQS, AMOS and EPLUS).
2. PLS is a statistical model used to find the fundamental relations between two
matrices (X and Y）
3. This model is suitable as the research context of the study aims to achieve a
Predictive Relation Model. It can be use to ensure constructs are valid and reliable,
the Outer Model has to evaluated before the inner structural model.
4. R2>=0.67 is very good model, >0.33 good fit, >0.19 weak fit.
(There are other conditions for Convergent Validity , Indicator Reliability and
Construct Validity )
CONFIRMATORY FACTOR ANALYSIS (CFA)
STRUCTURAL EQUATION MODEL(SEM)
PARTIAL LEAST SQUARES ( PLS)

22. Outer Model Results
Loading
AVE ( Average Variance )
Composite Reliability
Results of Outer Structural Model
Components and Manifest Variables Loading Critical Ratio AVE ( Average Variance ) Composite Reliability
International Entrepreneur 0.552 0.6951
Innovativeness 0.5114 2.7513
Proactiveness 0.9179 14.3954
Use of Network 0.6518 0.7877
Intensity network 0.881 6.943
Support Network 0.7262 3.7612
Marketing Strategy Uncertainty 0.5656 0.8384
Assessment Place 0.7122 11.2981
Assessment Promotion 0.7565 14.0083
Assessment Price 0.823 34.3433
Assessment Product 0.7109 11.0754
Better the Model if
Loading > 0.7 to meet Indicator
Reliability
Average Variance AVE > 0.5,
Convergent Validity Exits
Composite Reliability > 0.6,
to ensure Construct
Reliability

23. Inner Model Results
Path
Critical Ratio
Results of Inner Structural Model
Predicted Variables Predictor Variables Hypothesis Path Critical Ratio
Adaptation Product Marketing Strategy Uncertainty H3a 0.03 0.3245
Adaptation Price H3b 0.21 2.8056
Adaptation Place H3c -0.3 0.4099
Adaptation Promotion H3d 0.25 3.6804
Marketing Strategy Uncertainty International Entrepreneur H1 0.32 4.4747
Use of Network H2 0.15 2.1649
H1,H2,H3b and H3d are supported as BOOTSTRAP CRITICAL RATIOS (t > 1.96, p < 0.05) and
Path coefficient > 0.1
Path Co-efficient > 0.1 Critical Ratio t > 1.96

24. Results Summary
1. H1 : Path between International Entrepreneur & Marketing
Strategy Uncertainty is significant. P<0.01,PV of 0.32, H1 is
supported.
2. H2: Path between use of Network Ability & the construct of
marketing strategy uncertainty is significant. P<0.05,PV of 0.15,H2
is supported.
3. H3b (PRICE) and H3d (PROMOTION) are significant. PV of 0.21
and 0.25 respectively.
4. H3a ( PRODUCT) is not supported, PV of 0.03
5. H3c (PLACE) is un-significant, PV of - 0.03

25. ABILITY OF A
COMPANY TO ACCESS
A GIVEN MARKET
ENVIRONMENT
ADAPTATION OF
PROMOTIONAL
ELEMENTS
ADAPTATION OF
PRICING STRATEGY
ABILITY to
REDUCE
UNCERTAINTY
NETWORKING
ABILITY OF A
COMPANY
INTERNATIONAL
ENTREPRENEURSHIP
ABILITY
1. Data Indicate +ve Relationship b/w Ability of Company to ACCESS given Market Environment
and Adaptation of Pricing Strategy and Promotional Elements
2. Data indicate +ve Relationship b/w International Entrepreneurship Ability of a Company &
its Network Ability and the Ability to REDUCE UNCERTAINTY about their MARKETING
MIX STRATEGY
3. Data indicate No Evidence for general adaptation of Products or the Sales Distribution System
Findings Of The Research

26. Other Inferences
• Not possible to derive general advice for Standardized or Adapted Marketing Mix
approach all 4 Elements Need to be considered separately1
• CULTURAL DIFFERENCES still play important role
• As results show that PRICE & PROMOTION are Highly Influenced by it
• Drift towards TRANSNATIONAL SIMILARITIES has to Critically Reviewed
2
• The Model Connected the Ability of the 2 Elements International
Entrepreneurship & Network Ability to reduce MARKETING STRATEGY
UNCERTAINTY
3
• Lesser Importance of Networking Capabilities of a Company revealed is in Line
with Previous Findings4

27. Managerial Implications
• Mangers of Firms need to do Intensive Information
Research
• Market Scanning
• Sometimes even a Later Market Entry
(1.)
ACTION UNDER
UNCERTAINTY
• LOW BUSINESS PERFORMANCE RESULT IF NO
EFFORT IS MADE TO ADAPTING ANY OF THE
MARKETING MIX ELEMENTS
(2.)
BUSINESS
PERFORMANCE

28. Managerial Implications
• Important for compensating Insufficient Market
Information and Potential Lack of Resources
• But not a Perfect Counterpart to Solve the STRATEGIC
Issue ( concerning Standardization vs. Adaptation )
(3.)
NETWORKING
ABILITY
• International Entrepreneurship Spirit should be fostered
within the Company as its better to solve the STRATEGIC
Issue.
• Help to Identify Global Business Opportunities and to
identify strategically appropriate responses.
(4.)
TO REDUCE
UNCERTAINTY

29. Managerial Implications
• Managers have to consequently ensure Adaptation of
any PROMOTIONAL tool to foreign market
environment.
(5.)
ADAPTATION
STRATEGY
The American Way The “DESI” Way !!

30. Managerial Implications
• COMPANIES NEED TO ADAPT RIGHT PRICING
STRATEGY ESPECIALLY IN UNKNOWN COMPETITION
CONSTELLATION IN FOREIGN MARKET CONDITIONS
(6.)
ADAPTATION
STRATEGY

31. Managerial Implications
• UNIFORM and STANDARDIZED Personal Sales /
Distribution System is Most Promising means of
ensuring SUCCESS within PROJECT Business
(7.)
STANDARDIZATION
STRATEGY
• Negative – Differentiation of Product Standard is
Not Practical
(8.)
STANDARDIZATION
STRATEGY

32. Limitations and Future Research
LIMITATIONS
(1.) Measurement of the construct “ UNCERTAINTY”
is already a controversial issue within the research
field of International Marketing
(2.) Model does not include “All Factors” that
influence Marketing Strategy Uncertainty.
Therefore not sufficient for explaining the
Phenomenon of the Ability to Reduce Uncertainty
(3.) Important Missing Link – Measurement of The
EFFECT ON PERFORMANCE
FUTURE RESEARCH
1.) Future research is necessary to Identify all
other possible variables.
( Low Value of R2= 0.137 < 0.19 but > 0.1
recommended value) indicate existence of
Additional Determinants of Marketing Strategy
Uncertainty Reduction
2.) Further research has to concentrate on the
Marketing Mix Strategy as a PERFORMANCE
Enhancing ONE !!

33. THANK YOU !!