Ch 8 Steps in the Research ProcessChapter 8
Where we are…
The Economic Environment
Social / Cultural Environment
Part 2:
Assessing Opportunities
Marketing Research
Sources of Market Information
“Selling Apples in Japan”
Seasonality
Nationalism
Competition
Issues
Businesses slow to use PC’s as a means of increasing productivity
Philosophical differences
Marketing Research
Defined as the systematic gathering, recording, and analyzing of data to provide information useful in marketing decision making.
International Marketing Research Complications
Information must be communicated across cultural boundaries.
The environments within which the research tools are applied are often different in foreign markets.
8-2
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
The Scope of Global Research
How is international marketing research different?
Added complexity / diversity
Need to consider priorities and allocation of resources between countries
3 types of different information needs:
Assessment of foreign markets (general information relating to countries)
Industry information (relates to product category)
Specific Market Information (used to develop marketing plan)
International Marketing Research Occurs at Different Levels…
Assessment of a foreign market
(general information about a country)
Economic
Market size
Product
Pricing
Distribution
Promotion
Step I: Define the research problem
Step 2: Developing a research plan
Step 3: Collecting data
Irwin/McGraw-Hill
8-3
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Research Process in Detail
Critical step because of unfamiliarity with international markets
Problems can arise when researchers:
Fail to recognize or anticipate the influence of the local culture or fail to identify the SRC effect
Treats the problem as if it exists in the home country
Fail to establish problem limits broad enough to include all relevant data
Collecting Data
Primary Data
When data is not available, and must be obtained through some form of data collection.
Secondary Data
When data exists and is available through a variety of sources (i.e. internet, publications, government records, etc.)
Problems with obtaining relevant data
Secondary Data defined
Problems with obtaining relevant and accurate Secondary data
1. Availability of Data
2. Reliability of Data
3. Comparability of Data
4. Validating Secondary Data
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 ?
Irwin/McGraw-Hill
8-5
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Primary & Secondary Data
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Methods for Developing Primary Data
Data
Qualitative?
Quantitative?
Ability to Communicate Opinions
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Uses of Internet in International Research
On-Line Surveys and Buyer Panels
On-Line Focus Groups
Web Visitor Tracking
Copyright©2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Irwin/McGraw-Hill
8-8
8.psd
• Cultural Understanding
• Skeptical Attitudes when Handling Both Primary and Secondary Research
Irwin/McGraw-Hill
8-9
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Estimating Market Demand
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Five Rules of International Research
1. Apply the WHAT, WHY, WHERE and WHEN of information.
2. Use locally available information first.
3. Identify information sources abroad.
4. Know where to look.
5. Do not assume the information you get is comparable or accurate.
Problems with Multicultural Research
Differences need to be considered and used when conducting research
Comparability is difficult
Other important Points
Fastest growing method of conducting research
Although U.S. hosts 2/3 of the internet usage, international usage is growing at twice the rate over the U.S (examples)
www.stat-usa.gov , (data published by U.S. government)
www.exporthotline.com (private website that provides market research for 80 countries)
B. Estimating market demand where secondary data is inadequate or not available
1. Expert opinion
2. Analogy (demand in one country is similar to demand in another country)
Can be inaccurate and mistakes are likely to occur
Other important Points
C. Communicating with Decision Makers
Needs to be timely and top managers should be knowledgeable about all their markets and customers
D. Problems in Analyzing and Interpreting Research Information
Researcher must have the following to avoid incorrect interpretations of the research data
Be culturally adept and sensitive to differences
Be able to adapt research results appropriately
Be skeptical in handling both primary and secondary data
Other Important Points
Local analysts (decentralized)
Best approach is to have local researchers with close coordination between local research company and headquarters.
4
-