Chap007 Strategic Marketing

8/3/2019 Chap007 Strategic Marketing

1/30

I n t e r n a t i o n a l M a r k e t i n gI n t e r n a t i o n a l M a r k e t i n g

Developing a Global

Vision ThroughMarketing Research

Chapter 8

1 4 t h E d i t i o n

P h i l i p R. C a t e o r a

M a r y C. G i l l y

J o h n L . G r a h a m

McGraw-Hill/IrwinInternational Marketing 14/e Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.


2/30

8-2

What Should You Learn?What Should You Learn?

The importance of problem definition ininternational research

The problems of availability and use of

secondary data Quantitative and qualitative research methods

Multicultural sampling and its problems in lessdeveloped countries

Sources of secondary data

How to analyze and use research information


3/30

8-3

Global PerspectiveJapan Test Market for the World

Global PerspectiveJapan Test Market for the World

Enterprises with international scope ofoperations

Need for current, accurate information magnified

Marketing research The systematic gathering, recording, and analyzing of data to

provide information useful in marketing decision making

International marketing research involves twocomplications

Information must be communicated across cultural boundaries

The environments within which the research tools are appliedare often different in foreign markets


4/30

8-4

Breadth and Scopeof International Marketing Research


Unisys Corporations planning steps forcollecting and assessing the following typesof information

1. Economic2. Cultural, sociological; and political climate

3. Overview of market conditions

4. Summary of the technological environment

5. Competitive situation


5/30

8-5



Types of information needed by research

General information about the country, area, and/or market

Information to forecast future marketing requirements

B

y anticipating social, economic, consumer, and industry trends withinspecific markets or countries

Specific market information used to make and developmarketing plans Product

Promotion

Distribution Price decisions


6/30

8-6

Top 20 Countries for MarketingResearch Expenditures (millions of dollars)

Top 20 Countries for MarketingResearch Expenditures (millions of dollars)

Exhibit 8.1


7/30

8-7

The Research ProcessThe Research Process

Research process steps

1. Define the research problem and establish research objectives

2. Determine the sources of information to fulfill the research

objectives3. Consider the costs and benefits of the research effort

4. Gather relevant data from secondary or primary sources, or both

5. Analyze, interpret, and summarize the results

6. Effectively communicate the results to decision makers

Research steps are similar for all countries

Variations and problems can occur in implementation

Differences in cultural and economic development


8/30

8-8

Defining the Problemand Establishing Research Objectives

Defining the Problemand Establishing Research Objectives

The major difficulty is converting a series ofoften ambiguous business problems into tightlydrawn and achievable research objectives

The first, most crucial step in research is morecritical in foreign markets because an unfamiliarenvironment tends to could problems definition

Other difficulties in foreign research stem from

failures to establish problem limits broad enoughto include all relevant variables


9/30

8-9

Problems of Availabilityand Use of Secondary Data

Problems of Availabilityand Use of Secondary Data

U.S. government provides comprehensivestatistics for United States

Marketing data not matched in other countries

Quality

Quantity

Exceptions are Japan and several European countries

Continuing efforts to improve data collection

United Nations

Organization for Economic Cooperation and Development(OECD)


10/30

8-10

Availability

and Reliability of Data

Availability

and Reliability of Data Most countries simply do not have governmentalagencies that collect on a regular basis the kinds ofsecondary data readily available in the U.S.

Researchers language skills impede access to

information Requires native speaker of language

Official statistics are sometimes too optimistic, reflectingnational pride rather than practical reality, while taxstructures and fear of the tax collector often adversely

affect data Less-developed countries prone to optimism

Willful errors

Adjusted reporting


11/30

8-11

Comparability of DataComparability of Data

Issues with data (especially in less developed,countries)

Data can be many years out of date

Data collected on an infrequent and unpredictable schedule

Too frequently, data are reported in differentcategories or in categories much too broad to beof specific value


12/30

8-12

Validating Secondary DataValidating Secondary Data

Questions to judge the reliability of secondary datasources

Who collected the data?

Would there be any reason for purposely misrepresenting the facts?

For what purposes was the data collected? How was the data collected?

Are the data internally consistent and logical in light of known data sourcesor market factors?

Checking the consistency of one set of secondary

data with other data of known validity An effective and often-used way of judging validity

The availability and accuracy of recorded secondarydata increase with level of economic development


13/30


14/30

8-14

Qualitative research

If questions are asked, they are almost always open-ended or in-

depth

Seeks unstructured responses that reflect the persons thoughtsand feelings on the subject

Qualitative research interprets people in thesample

Qualitative research is helpful in revealing theimpact of sociocultural factors on behaviorpatterns and in developing research hypotheses

Gathering Primary Data Quantitative and Qualitative Research

Gathering Primary Data Quantitative and Qualitative Research


15/30

8-15

Problemsof Gathering Primary Data

Problemsof Gathering Primary Data

Hinges on the ability of the researcher to getcorrect and truthful information that addressesresearch objectives

Problems in international marketing research

Stem from differences among countries

Range from inability or unwillingness of respondents tocommunicate their opinions

Inadequacies in questionnaire translation


16/30

8-16

Ability to Communicate OpinionsAbility to Communicate Opinions

Formulating opinions about a product or concept

Depends on the respondents ability to recognize the usefulnessof such a product of concept

Product or concept must be understood and used in community

The more complex the concept, the moredifficult it is to design research that will help therespondent communicate meaningful opinionsand reactions

Gerber has more experience in trying to understand consumerswith limitations

Babies can neither answer questions or fill out questionnaires


17/30


18/30

8-18

Sampling in Field surveysSampling in Field surveys

Problems in sampling stem from the lack ofadequate demographic data and available listsfrom which to draw meaningful samples

Affected by a lack of detailed social andeconomic information

No officially recognized census information

No other listings that can serve as sampling frames

Incomplete and out-of-date telephone directories No accurate maps of population centers


19/30

8-19

Language and ComprehensionLanguage and Comprehension

The most universal survey research problem inforeign countries is the language barrier

Literacy poses yet another problem

Marketers use three different techniques to helpferret out translation errors ahead of time

Back translation

Parallel translation

Decentering


20/30


21/30

8-21

Research on the Internet a Growing Opportunity

Research on the Internet a Growing Opportunity

One billion users in more than 200 countries

One-sixth in U.S.

International Internet use is growing almost twice asfast as American use

Uses for Internet in international research

Online surveys and buyer panels

Online focus groups

Web visitor tracking

Advertising measurement Customer identification systems

E-mail marketing lists

Embedded research

Observational research


22/30

8-22

Estimating Market DemandEstimating Market Demand

To assess current product demand and forecastfuture demand Requires reliable historical data

When the desired statistics are not available, a close

approximation can be made Using local production figures plus imports, with adjustments for exports

and current inventory levels

Two methods of forecasting demand

Expert opinion The key in using expert opinion to help in forecasting demand is triangulation

Analogy

Assumes that demand for a product develops in much the same way in all countries as

comparable economic development occurs in each country


23/30

8-23

Personal Computer and Mobile PhoneDiffusion Rate (per 1,000 people)

Personal Computer and Mobile PhoneDiffusion Rate (per 1,000 people)

Exhibit 8.2

Personal Computer Mobil Phone


24/30

8-24

Problems in Analyzingand Interpreting Research Information

Problems in Analyzingand Interpreting Research Information

Accepting information at face value in foreignmarkets is imprudent

The foreign market researcher must posses

three talents to generate meaningful marketinginformation

1. The researcher must posses a high degree of cultural understanding of

the market in which research is being conducted

2. A creative talent for adapting research methods is necessary

3. A skeptical attitude in handling both primary and secondary data is

helpful


25/30

8-25

Responsibility for ConductingMarketing Research


A company in need of foreign market researchcan rely on an outside foreign-based agency ordomestic company with a branch in that country

A trend toward decentralization of the researchfunction is apparent

Local analysts appear to be able to provide information morerapidly and accurately

Control rests in hands closer to the market

Disadvantage lies in ineffective communications with home-office executives

Unwarranted dominance of large-market studies in decisions about globalstandardization


26/30

8-26



A comprehensive review of the differentapproaches to multicountry research suggests

Ideal approach is to have local researchers in each country,

Close coordination between the client company and the localresearch companies

Two stages of analysis are necessary

Individual-country level

Multi-country level


27/30

8-27

Communicatingwith Decision Makers

Communicatingwith Decision Makers

Gathered information must be given to decisionmakers in a timely manner

Decision makers should be directly involved not

only in problem definition and questionsformulation, but also in the fieldwork

Even when both managers and customersspeak the same language and are from the

same culture, communication can becomegarbled in either direction


28/30

8-28

Managing the Cultural Barrierin International Marketing Research

Managing the Cultural Barrierin International Marketing Research

Exhibit 8.3


29/30

8-29

SummarySummary

The basis objective of the market researchfunction is providing management withinformation for more accurate decision making

Customer attitudes about providing informationto a researcher are culturally conditioned

Foreign market information surveys must becarefully designed to elicit the desired data and

at the same time not offend the respondentssense of privacy


30/30

Documents

Chap007 Strategic Marketing