Developing a Global Marketing Vision Through Marketing

Research

Chapter 8

Defining the Issue

• What is marketing research?

• Traditional view– “the function that links the consumer, customer, and

public to the marketer through information”

• Redefined view– “systematic and objective identification of

information, collection, analysis and dissemination of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing”

International Marketing Research

I. Differences with Domestic Research

- New parameters

- New environments

- More factors to consider

- More competitors

Recognizing the Need for Research

• Reasons that executives may view international research as unimportant:– Lack of sensitivity to differences in consumer tastes

and preferences.– Limited appreciation for the different marketing

environments abroad.– Lack of familiarity with national and international

data sources and the inability to use them.– Actual but limited business experience in a country

or with a specific firm may be used as a substitute for organized research.

International Marketing Research

II. Why do International Marketing Research?

- Reduce Risk of Failure- Identify opportunities- Lead to more informed decisions- Reduce mistakes

III. The IMR Process- Step 1 : Problem Definition- Step 2 : Examine Secondary Data

Stage 3:Stage 3:Company Sales Potential AnalysisCompany Sales Potential Analysis

Key Question:Key Question:How Attractive is the Potential Demand for Company How Attractive is the Potential Demand for Company

Products/Services?Products/Services?

Stage 1:Stage 1:Preliminary Screening for Attractive Country MarketsPreliminary Screening for Attractive Country Markets

Key Question:Key Question:Which Foreign Markets Warrant Detailed Investigation? Which Foreign Markets Warrant Detailed Investigation?

Stage 2:Stage 2:Assessment of Industry Market PotentialAssessment of Industry Market Potential

Key Question:Key Question:What is Aggregate Demand for Each Warrant Selected?What is Aggregate Demand for Each Warrant Selected?

Researching Foreign Market Potentials

International Marketing Decisions Requiring Marketing ResearchMarketing Mix

Decision Type of ResearchProduct policy Focus groups and qualitative research to

generate ideas for new products Survey research to evaluate new product

ideas Concept testing, test marketing Product benefit and attitude research Product formulation and feature testing

Pricing Price sensitivity studiesDistribution Survey of shopping patterns and behavior

Consumer attitudes toward different storetypes

Survey of distributor attitudes and policiesAdvertising Advertising pretesting

Advertising posttesting, recall scores Surveys of media habits

SalesPromotion

Surveys of responses to alternative typesof promotion

Sales Force Tests of alternative sales presentations

The Scope of International Marketing Research

Source: Susan P. Douglas and C. Samuel Craig, International Marketing Research, Copyright 1983, p.32. Reprinted by permission of Prentice Hall, Inc., Englewood Cliffs, New Jersey.

International Marketing Research

IV. Data Sources - a wide variety are available.

V. Advantages of Secondary- Fast

- Inexpensive

- Can aid in further research

Secondary information requirements

• What do you really need to know?– Was sufficient research conducted to answer

the research question(s)?– Is macro data sufficient or will micro data be

required to complete the market assessment and selection?

– What market restraints are present ?– Is knowledge of international accords

required?– Is specific product data necessary for

marketing mix determination?

International Marketing Research

VI. Disadvantages of Secondary Data- May not be accurate

- Difficult to trace methodology

- Data becomes quickly outdated

- Not collected for specific task at hand

Sources of Data

• Governments– Departments of Commerce, Agriculture, State,

Treasury, and U.S. embassies abroad

• International organizations– United Nations’ Yearbook, World Bank’s

World Atlas, Organization for Economic Cooperation and Development (OCED) and World Trade Organization (WTO) publications

• Service organizations– Banks, accounting firms, freight forwarders,

airlines, and international trade consultants

The Research ProcessMajor Sources of Secondary Data

U.S. DEPARTMENT OF COMMERCE

Foreign Trade Report: U.S. exports by commodity and by country

Global Market Surveys: Global market research on targeted industries

INTERNATIONAL MONETARY FUND

International Financial Statistics: Monthly report on exchange rates, inflation, deflation, country liquidity, etc.

UNITED NATIONS

Statistical Yearbook: Population, production, education, trade, etc.

THE ECONOMIST

E.I.U. World Outlook: Forecasts trends for 160 Countries

Marketing in Europe: Product markets in Europe

Validating Secondary Data• Who collected the data ? Would there be

any reason for purposely misrepresenting the facts ?

• For what purpose were the data collected ?

• How were the data collected ? (Methodology)

• Are the data internally consistent and logical in light of known data sources or market factors ?

International Marketing Research

VII. - Step 3 : Consider Costs and Benefits of the Research

Effort

VIII. - Step 4 : Primary Data Collection

International Marketing ResearchPrimary data is collected for the specific research

problem at hand1) Major Types of Primary Research

i) Exploratoryii) Descriptiveiii) Causal

2) Research Techniquesi) Interviewsii) Focus Groupsiii) Observationiv) Surveys

International Marketing Research

IX. - Step 5 : Analysis and Interpretation

X. - Step 6 : Communicate Results Effectively

The Research Process

France Netherlands Sweden Switzerland U.K.Mail 4% 33% 23% 8% 9%Telephone 15 18 44 21 16Central location/ streets 52 37 -- -- --Home/work -- -- 8 44 54Groups 13 -- 5 6 11Depth interviews 12 12 2 8 --Secondary 4 -- 4 8 --

Table 6.4: Comparison of European Data Collection Methods

Source: Emanuel H. Demby, “ESOMAR Urges Changes in Reporting Demographics, Issues Worldwide Report,” Marketing News, January 8, 1990, p. 24. Reprinted by permission of the American Marketing Association.

Gathering Primary Data

Quantitative ResearchQuantitative Research

Qualitative ResearchQualitative Research

Determining the Research Technique

• Objectivity requirements for the acquired data– Standard collection techniques work best with

objective data. Subjective data collection takes more effort to collect and interpret.

• Soft data and hard data– Subjective (soft) data from dealer interviews and

objective (hard) data from shipments, inventories, and retail sales.

• Interviews– Knowledge persons are a valuable information

resource (personal bias must be discounted).

Uses of Internet inInternational Research

• On-Line Surveys

• On-Line Focus Groups

• Web Visitor Tracking

• Advertising Measurement

• Customer Identification Systems

• E-Mail Marketing ListsSOURCE: John A. Quelch and Lisa R. Klein, “The Internet and International Marketing,” Sloan Management Review: Spring 1996. Pp. 60-75

Talents Required to Analyze and Interpret Research Information

• Cultural Understanding

• Creative Talent for Adapting Research Findings

• Skeptical Attitudes when Handling Both Primary and Secondary Research