international marketing jnvu papers

8/22/2019 international marketing jnvu papers

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ATERM PAPER

ON

INTERNATIONAL MARKETING RESEARCH: A KEY TO

SUCCESS IN INTERNATIONAL MARKETS

SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE

DEGREEOf

MASTERS OF BUSINESS ADMINISTRATION

Department of Management Studies,

Jai Narain Vyas University,Jodhpur (Raj.)

2012-2014

Supervised by: Submitted By:

Dr. (Mrs.) Meeta Nihalani sidddharth sharma

(M.B.A., Ph.D.) (M.B.A. 2nd

Sem.)


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ACKNOWLEGDEMENT

I believe that behind the ascend of each and every student lie not onlythe relentless urge to work hard but also the guidance and inspiration of

their guide, co-guide and other helpful people.

With a deep sense of gratitude I would like to thank each and every

person who has contributed towards the successful completion of the

Term Paper.

I owe a special thank to my Term Paper guide Dr. Meeta Nihalani

(M.B.A., Ph.D.) for providing me with the valuable insights in to the

Term Paper. She elucidated me the minute intricacies how the Banks

carry out Risk Management and Measurement of various risks that they

are exposed to.

Sincere thanks to the workforce of D.M.S., Jai Narain Vyas University,

Jodhpur, for their kind and timely support & cooperation.

Sidddharth Sharma

(M.B.A., 2nd Semester)


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CERTIFICATE

Department of Management Studies,

Jai Narain Vyas University,

Jodhpur (Raj.)

2012-2014

This is to certify that term paper entitled INTERNATIONAL

MARKETING RESEARCH: A KEY TO SECCESS IN

INTERNATIONAL MARKET is submitted by Mr. Siddharth

Sharma of second semester in partial fulfillment of M.B.A. degreecourse. The student has sincerely completed the Term paper in our

institute. This work was prepared under my guidance and supervision.

Place: Jodhpur Dr. Meeta Nihalani

Date: (M.B.A., Ph. D.)

DMS, JNVU, Jodhpur


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CONTENTS

TOPIC PAGE NO.

1. INTRODUCTION TO INTERNATIONAL 1

MARKETTING RESEARCH

RESEARCH IN 21ST

CENTURY 1

CENTRALIZED V/S DECENTRALIZED RESEARCH 3

TYPES OF RESEARCH 4

2. HISTORY OF INTERNATIONAL

MARKETING RESEARCH 6

3. STEPS TO DO INTERNATIONAL

MARKETING RESEARCH 15

4. DIFFERENCE BETWEEN NATIONAL

AND INTERNATIONAL RESEARCH 25

5. OBJECTIVES OF THE STUDY 29

6. RESEARCH METHODOLOY 29

7. LIMITATION OF STUDY 34

8. SUGGESTIONS 35

9. BIBLIOGRAPHY 36


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INTERNATIONAL MARKETING RESEARCH

As businesses expand further and further in international markets, the role of timely and accurate

marketing research to guide decision-making becomes increasingly critical. Research to support

international marketing decisions has evolved over the past four decades and must change even

more to support firms in the 21st century. There are four key areas where progress must be made.

First, international marketing research efforts need to be more closely aligned with market

growth opportunities outside the industrialized nations. Second, researchers must develop the

capability to conduct and coordinate research that spans diverse research environments. Third,

international marketing researchers need to develop new creative approaches to probe the

cultural underpinnings of behavior. Finally, technological advances need to be incorporated into

the research process in order to facilitate and expedite research conducted across the globe.

What is International Marketing Research?

International Marketing Research (IMR) can be defined as market research conducted either

simultaneously or sequentially to facilitate marketing decisions in more than one country. The

process calls for studying the various market characteristics for facilitating marketing decisions

that can be taken across countries. The studies deal with tracing the various components that are

responsible for the marketing the product.

International Marketing Research in the 21st Century:

Businesses preparing to compete in the 21st century are increasingly confronted with the task of

crafting strategies that anticipate and respond to the rapid pace of change in global markets. As a

result, theirinformation needs are changing and becoming ever more complex and diverse.

Timely, relevant information is essential to provide an adequate basis for day-to-day decision-

making as well to chart the firms path in an increasingly fast paced, turbulent and competitive

environment. Information needs are changing in both developed and developing countries.

Established markets in industrialized countries are becoming more geographically integrated as

direct vertical links and information flows are established between customers, retailers and

suppliers. As a result, there is a growing need to conduct research spanning country boundaries,

in order to identify regional or global market segments, or to examine opportunities for


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integrating and better coordinating strategies across national boundaries. At the same time, speed

in collection and interpretation of results from multiple and geographically diverse sources

become imperative in order to anticipate market change and devise an effective response

strategy.As firms push the geographic frontiers of their operations to take advantage of growing

opportunities, they need to collect information from a broader and more diverse range of

markets. Increasingly, this entails conducting research in unfamiliar and distant markets in the

Far East, the Middle East, Latin America and Africa. This in turn poses a number of challenges,

not only in collecting accurate and reliable information on existing behavior patterns in an

expeditious and cost effective fashion, but also in predicting response to new and unfamiliar

stimuli, and interpreting the implications for marketing strategy. Advances in technology both

facilitate and at the same time render more complex, the collection of data on a global basis. The

growth and increasing technological sophistication of the communication infrastructure enables

data collection on a much broader and diverse geographic scale and with rapidity previously

unthinkable.

Yet, at the same time, management has to master these tools and understand their inherent

limitations and implicit biases. The purpose of this paper is to explore these changes in

information needs and technology and suggest the implications for conducting marketing

research in the global environment. Specifically, the paper examines the capabilities and skills

international researchers will need to acquire in order to conduct research in the increasingly

diverse and rapidly changing marketplace of the 21st century.


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Centralized vs. Decentralized Research:

Centralized research is done when the researcher conducts research in two or more countries

from the headquarters. Centralization of the project can add to the complexity of problems with

hierarchy and authority since such a study can involve staff at the headquarters, staff at foreign

offices of the company, foreign survey conductors and possibly an overall survey coordinator.

This can result in dispute, delay and inefficiency. Decentralized research is done when the

researcher has the company office in each country conduct the research based on the guidelines

from the headquarters.

In a decentralized research, the researcher in the foreign country should be able to conduct

Research in the language specified by the headquarters or should be able to translate the

information gathered correctly into the language at the headquarters. Consider the example of

Parker Pens. They had a decentralized marketing department with ad agencies in more than 40

countries developing ads for them. A new team of executives were hired and all their marketing

decisions were centralized in the companys headquarters in Janesville, Wisconsin. They wanted

to standardize the promotion, packaging, pricing, promotional materials, and advertising. They

believed the difference in the cultures were less important than the similarities. They wanted to

use one ad agency to develop one ad to be used around the world. Subsidiaries complained that

the pens may be similar, but the markets were not. When the same ad was used in all countries,

the ads tried to say something to everyone but ended up saying nothing to anyone. The

companys campaign floundered following which the CEO was forced to resign and the rest of

the team either quit or were fired. The company then returned to a decentralized marketing

system. Thus, from the above example it is clear that due to a centralized research approach,

Parker Pens ended up with a centralized marketing strategy overlooking cross cultural values and

norms. This marketing research blunder could have been avoided had there been a decentralizedresearch which would have recognized the various country specific issues that determined the

way of functioning of each market.


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How Is Research Done Across Countries?

International Marketing Research includes a range from Single country research to the more

elaborate Multi-country research. A brief description of each mode is discussed below.

Single-country Research

This type of research is done when there arises a need for organizations to conduct research in a

single foreign country market. Typically, this need arises when a researcher based in country A

wants to know whether the marketing strategies that work well in its domestic environment can

be translated to a country market B. The single country research is useful in bringing out the

unique characteristics of the foreign market that would require adapting the product to serve the

needs of the local consumers better.

Multi-country Research:

Multi-country research, as the name indicates, involves research conducted in more than one

country market. Multi-country researchcan be further classified into three broad categories:

a. Independent Multi-country Research: This is perhaps, the most common form of international

marketing research that can be seen in the industry today. Independent multi-country research

studies occur when subsidiaries of the companies independently conduct research on the same

products in a number of countries. Examples of this type of research are brand

awareness/perception of international products or test marketing of new products. The major

disadvantages of this type of research are that it often leads to duplication of effort (such as

questionnaires, etc.) and since such studies are conducted in isolation, comparisons of results

across countries are made difficult.

b. Sequential Multi-country Research: Sequential Multi-country Research is a way to research a

range of geographical markets. It is attractive as the lessons can be learned in the first one or two

markets to be researched and then can be applied to the other countries subsequently involved in

the research program. The sequential approach is typically used when a product or service is the

subject of rolling launch across countries.


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c. Simultaneous Multi-country Research: This type of research involves conducting marketing

research in multiple country markets simultaneously, and is, perhaps, the purest form of

international marketing research. It is a test for the researcher capabilities and also creates in its

most acute form, the question of comparability.


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The Changing Global Environment: Evolution of international marketing

research:

To understand the research needs of the 21st century it is important to consider how they have

changed over the past four decades. In the 60s and 70s, many U.S. firms, faced by slackeningrates of growth in their domestic markets, began to venture into international markets. Japanese

and European firms with smaller domestic markets also expanded internationally in order to

broaden the geographic scope of their operations and take advantage of potential economies of

scale or to respond to foreign competition entering their domestic markets (Douglas and Craig,

1989). In this initial phase of international market entry, firms were mostly concerned with

collecting information to identify and assess market opportunities in other countries to determine

which markets to enter, how to position products in these markets and how far to adapt different

elements of the marketing mix to local market conditions.

At this phase of the firms expansion, the country was typically used as the unit of analysis for

the research design, for developing the sampling frame, as well as for data collection. Due to

economic, political, linguistic and cultural barriers, the country was the focal point of entry

decisions. Equally, the firms international operations were often organized on a country-by-

country basis. Marketing research agencies were also typically national organizations, with

relatively few having the capability to conduct research on a multi-country basis. Most secondary

data as well as sampling lists were available on a national basis.

As, however, firms have expanded internationally and product markets are becoming

increasingly integrated worldwide, the key decision issues facing the firm in the 90s have

changed dramatically. As a result, research and information needs have changed and broadened.

In industrialized nations such as North America, Europe and Japan, regional market integration

and the removal of barriers between countries, the growth of a regional and global market

infrastructure as well as increased mobility of consumers have created pressures to consolidate

and integrate marketing strategy across countries. Consequently, increased attention is focused

on conducting studies which cover multiple countries examining differences and similarities in

behavior and response patterns across countries.


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At the same time, as growth in these markets slows, future market potential lies in emerging

market economies, with countries such as China and India accounting for over one-third of the

worlds population. The explosive population growth in these countries, together with the

opening up of markets in the former Soviet Union makes entry into these markets mandatory for

firms aspiring to be global leaders in the future. In entering these markets, as in initially entering

international markets, firms need to collect information to assess potential opportunities, to

determine how to position, price, promote and distribute their products and brands, whether to

develop local variants, etc.

How Is It different from Domestic Marketing?

The process of international marketing research though involves the samedisciplines as domestic

research, has some differences compared to its domestic version.The major differences arethe

national differences between countries arising out of political, legal, economic,social and cultural

differences and, The comparability of research results due to these differences.

National Differences :

The main factors that affect the way in which people from different culturesbehave are:

(A). Cultural Differences: Culture refers to widely shared norms or patterns of behaviorof a

large group of people. It is defined as the values, attitudes, beliefs, artifacts andother meaningful

symbols represented in the pattern of life adopted by people thathelp them interpret, evaluate and

communicate as members of society. The need forgreater cross cultural awareness is heightened

in our global economies. Cross culturaldifferences in matters such as language, etiquette, non-

verbal communication, normsand values can lead to cross cultural blunders as illustrated by the

followingmarketing mix: Product: A soft drink was introduced into Arab countries with an attractive labelthat had

six-pointed stars on it. The Arabs interpreted this as pro-Israeli and refusedto buy it.

Another label was printed in ten languages, one of which was in Hebrew againthe Arabs

did not buy it (Payne, website).


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Price: An American firm was trying to get an acceptable price for their productfrom a

Japanese buyer. The Americans presented a very detailed presentation andoffered what

they felt was a reasonable price. After a few moments of silence, theAmericans thought

the Japanese were going to reject the offer so they lowered theprice. There was more

silence by the Japanese. The Americans then said they wouldlower their price one last

time and that this was the lowest they could go. TheJapanese accepted this offer after a

brief silence. The Japanese later said the firstprice was within an acceptable range, but it

was their custom to consider theproposal silentlybefore giving their decision. The

Americans lost a lot of profit byjumping the gun and believing that Japanese respond just

like the Americans do(International Business Communication.

Place: A well-known drinks company tried to introduce a two liter drinks bottleinto

Spain, but found it hard to enter the market - they soon discovered this wasbecause few

Spaniards had fridge doors large enough to accommodate the large sizebottle (Payne,

website).

Promotion: When Pepsico advertised Pepsi in Taiwan with the ad Come AliveWith

Pepsi they had no idea that it would be translated into Chinese as Pepsibrings your

ancestors back from the dead.

(B).Racial Differences: This would refer to the differences in physical features of peoplein

different countries. For example, the types of hair care and cosmetic productsneeded in U.S

would differ from those needed in South East Asia.

(C). Climatic Di ff erences: This would include the meteorological conditions like degreeof rain

and temperature range in the targeted foreign market. For instance, Bosch-Siemens had to alter

their washing machines with a minimum spin cycle of 1,000 rpmand a maximum of 1,600 rpm in

Scandinavia, owing to irregular sunshine. In Italyand Spain, on the other hand, it is sufficient to

have a spin cycle of 500 rpm as thereis abundant sunshine.

(d). Economic Differences: The level of economic development in a market can affect

thedesired properties of a product and in this way can inspire a company to adapt itsproducts in


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order to meet the needs of the local market. The level of economicprogress in a market can be

assessed by a series of indications:

The level of revenue and buying power of local consumers: This will have aninfluence on

the technical conception and marketing of exported products. In richercountries where the

state of economic progress is more advanced, consumersgenerally having a higher

purchasing power and tend to prefer purchase of moresophisticated products with

advanced functions, while people in poorer marketswould be interested in a simplified

version of the product.

The state of infrastructure in the market: The general level of the quality ofinfrastructure

in the country consisting of elements such as transport, energycommunication systems,

etc. can affect how the product is constituted as it canbring about different conditions of

use. For instance when car manufacturer Suzukientered India, it had to reinforce the

suspension or the road clearance level of thecars as the state of the roads were poor.

(E). Reli gious Dif ferences: Religion has many impacts on products, more particularly onthe

ingredients, that constitute them. For example, in Islamic countries, companies,exporting grocery

products based on beef have to furnish a certificate declaring thatthe animals have been

slaughtered respecting Halal methods. Alcoholic drinks areequally banned in Middle Eastern

countries. Religious restrictions can thereforerequire product adaptation.

f. Historical D if ferences: Historical differences help explain facts such as the playingof cricket

in England, as opposed to game of boules in France. These differences haveslowly evolved over

time but have a profound effect on consumer behavior. Forexample, drinking Scotch whiskey is

considered prestigious and trendy in Italy, butold-fashioned and almost boring in Scotland.

g. Language Di f ferences: Language is an important aspect of international marketingresearch.

Inappropriate use of language could result in loss of market apart fromturning out to be a cross

cultural gaffe. For instance, U.S. and British negotiatorsfound themselves at a standstill when the

American company proposed that theytable particular key points. In the U.S. Tabling a


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motion means to not discuss it, while the same phrase in Great Britain means to bring it to the

table for discussion.

h. Di ff erences in Actual and Potenti al Target Groups: In countries like England andGermany it

is possible to do national samples. Small towns and villages can beincluded because distances

are not great. In Spain, interviews can be conducted onlyin cities with populations of over

100,000 people, as the cost of interviewing peoplein small towns and villages is prohibitively

high.In addition, the international marketing researcher may also have to deal withother factors

such as differences in the way that products or services are used, differencesin the criteria for

assessing products or services across various markets and differences inmarket research facilities

and capabilities.

Comparability of Tasks:

The concept of comparability refers to the problem faced by a researcher incomparing the results

and interpreting the implications when dealing with two or morecountries, is referred to as the

comparability of tasks. This is absolutely essential to anyresearch that has been set up to provide

as basis for an international marketing decision.As firms push the geographic frontiers of their

operations to take advantage ofgrowing opportunities, they need to collect information from abroader and more diverserange of markets. Increasingly, this entails conducting research in

unfamiliar and distantmarkets in the Far East, the Middle East, Latin America and Africa. This in

turn poses anumber of challenges, not only in collecting accurate and reliable information

onbehavior patterns in an expeditious and cost-effective fashion, but also in predicting, response

to new and unfamiliar stimuli, and interpreting the implications thereof formarketing strategy.

How to Conduct M arket Research wi th a Small Sample Size?

When conducting cross-country marketing research, researchers may deal with asmaller sample

size, thereby putting a check on the research exercise. This may alsoaffect the subsequent

analyses that follow the sampling stage. In such a scenario, it isadvisable to go in for country

pooling technique. That is, similarcountries can be pooledto get a sufficiently large sample to

carry on with a normal research process. The keyhere, is to identify similar countries that can


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be pooled together for, the otherwise maylead to highly skewed and unusable research results.

The pooling can be done accordingto three factors. They are:

a.Economic status Countries can be clubbed on the basis of economic conditions.This type of

similar pooling would give the researcher a larger sample to work with,apart from keeping the

research results from being skewed. Factors such as economicwealth, market potential index,

Gross National Product (GNP), population, inflation,price levels, unemployment rate and interest

rates are some of the factors can beconsidered for pooling countries according to economic

similarity. This type ofpooling would be suited for studies involving effects of prices on sales

and marketingmix models.

b.Cultural settingThe cultural setting is probably the most challenging among thethreeactors

to international marketers. The cultural factors that can be considered forpooling are measure of

high/low context culture, attitudes of people, differences inlifestyle, religion, language, literacy,

values, work ethics, role of family and genderroles among others. For this type of pooling,

Hofstedes classification of countries onthe basis of Individualism Vs. Collectivism, Power

Distance, Uncertainty Avoidance,Masculinity Vs. Femininity and Strategic Orientation (short

term vs. long term) maybe utilized. The challenging part of getting this pooling right is that, the

marketermust be aware of the frame of reference used in their decision to pool any set

ofcountries. Once a frame of reference is established, it becomes an important factor

indetermining or modifying a marketers reaction to situation, especially if experienceor

knowledge of accustomed behavior is lacking. Consider Belgium, which is neatlydivided neatly

in half, between Flanders in the north and Wallonia in the south(Sager, 1997). While the Flemish

people use margarine, Walloons use butter. Thus,cultures could vary within a single country and

this factor should be considered whileadopting a culture pooling technique. This type of pooling

would be suited forproduct positioning and product acceptance studies.

c.Geographical proximity Under this type of pooling, countries within closeproximity can be

considered. Factors that can be considered for this type of poolingcan be size of the country, its

close neighbors, common climatic conditions anddemographic indicators among others. This

type of pooling would be helpful forsegmentation studies. However, caution must be exercised

while pooling countriesthat are geographically closer. For instance, even though Canadian

market may feelsimilar to the United States market due to their geographical proximity, both


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Countriesshould beaddressed as two distinct cultures.Thus clubbing of countries into similar

pools would help researcher in solving thesmall sample size problem. The key here is to,

consider the nature of the study and thenuse appropriate pooling technique to achieve significant

research results that can be betterused for developing effective strategies.

Internationalization of Business Operations:

More companies are taking to operations on a global or regional scale than a national scale. The

complexity and sophistication of the operations changes as the company steps into international

markets. The guidelines to these issues can be found in the EPRG framework (Wind, Douglas, &

Perl mutter, 1973). This framework identifies four types of orientations towards

internationalization as the company expands into international markets.

They are:

Ethnocentrismorientation towards home country

Polycentrismorientation towards host country

Regiocentrismregional orientation and,

Geocentrismworld orientation

These attitudes reflect the goals and philosophies of the company and help in developing

management strategies and planning procedures with regard to its international operations. In the

ethnocentric stage, the top management views domestic techniques and personnel as superior to

foreign and as the most effective in overseas markets. The company sees its domestic business as

its priority and views foreign sales as a profitable extension of its domestic sales. A company

with this domestic market extension concept typically identifies markets where demand is similar

to the home market and where its domestic product will be acceptable. Meter-Man Inc. could be

said to follow this orientation.

A polycentric attitude emerges once the company begins to recognize the importance of the

inherent differences in offshore markets. A company guided by this concept is of the view that


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country markets are vastly different and that, market requires an almost independent program for

each country. The company also believes in using local personnel and techniques to suit the local

market conditions. The company with such a multi-domestic market concept adapts its products

without coordination with other country markets; its advertising campaigns, pricing and

distribution decisions being localized. Fedder, according to its plans, fits this orientation. In the

regiocentric and geocentric stages, the company recognizes the regional commonalities and

undertakes regional strategies by considering the region or the entire world as a potential market,

ignoring national boundaries. The firm develops policies and organizes activities on a regional or

worldwide basis. Firms using this global marketing concept design product lines, pricing

decisions, promotions and the channels of distribution for regional or worldwide markets. Coca-

Cola, Ford Motor Company, General Motors and several other companies follow this orientation

and can be described as global companies.

Companies contemplating taking the leap into the global marketplace may feel there is too much

information to digest on this topic and feeling overwhelmed, they may decide to keep their

business planted firmly in their domestic market. However, the information below is easy-to-

read, tailored to companies contemplating venturing beyond their own borders, and will provide

potential for numerous benefits as you enter the global marketplace. If you are considering

taking your product or service global but cant decide if the benefits are worth the risks, then

keep reading. Globaltrade and international business holds numerous opportunities for your

company if you are willing to take the time to learn how to adequately prepare for and then enter

foreign markets. This is especially true considering the fact that many of the barriers to these

opportunities have been decreasing in recent years, as evidenced by the number of major

companies that have their roots in Europe or Asia, but also have successful North American

branches, including Sony, Samsung, Reebok, and Volkswagen. All of these companies have

proved extremely successful in their international endeavors. Further, more and more people

around the world are making online purchases from companies that arent even located in their

own country.4 Going Global: How to Succeed in International Markets But what does going

global really entail .If you make the decision to enter foreign markets, you should be aware

that it will probably involve changes to your business strategy and goals, including how your

company conducts its marketing and interacts with customers. In extending your business reach


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into international markets, your company may simply take your current product or service and

sell them in additional countries where English is also spoken. In this case, it is probable that

only a few changes would have to be made to your marketing strategies and production. If there

is a demand for your product or service in countries where English is not spoken, however, such

as in many emerging markets throughout the developing world, then you must be prepared to

make certain changes so that your product will be accepted in a market where there is numerous

language, cultural, businesses, political, and legal differences. If you carefully consider these

differences, then you have a much better chance of avoiding marketing mistakes that other

companies have made, many of which caused them significant embarrassment and loss of sales.

For example, Nike made a costly error in the late 1990s when they used flames to depict the

word Air as the logo on their Nike Air running shoes. Unfortunately for Nike, this symbol

looked very similar to the Arabic word for Allah. Due to the offense this caused to many

Muslims, Nike had to remove thousands of pairs of shoes from the marketplace, as well as work

hard to repair the damaged relationship with their alienated customers. This leads to one of the

most important rules when entering international markers. If you remember nothing else, simply

remember this: Pay attention to the culture and local customs of your customers. This

philosophy will help you to seize international business opportunities and increase sales rather

than offending potential customers and damaging your international reputation.


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STEPS TO DO INTERNATIONAL MARKETING RESEARCH

Part 1Entering the Global Marketplace:

Exporting your product and servicetaking your business globalcan be challenging due to the

variety of potential differences in culture, political and economic environments, and regulations

between your domestic market & your overseas target markets. When done properly, however,

taking your business global can carry with it numerous benefits including new opportunities and

increased sales. The following outlines helpful tips, information, and advice to successfully

expand into international markets and to make your efforts at globalization more effective,

affordable, and timely.

Before you Go Global

Make sure you understand the markets you are planning to enter before you spend the

money for new websites and localized content. If you plan on entering the Japanese

market, then it would serve you well to visit Japan, meet with businesses and potential

clients, and familiarize yourself (at least a little bit) with the language and culture.

Conduct extensive research in order to find the best market for your product or service.

Does your target market already have what you are selling, or is there a need for your

product or service that you can fill? What about the culture, regulations, and business

requirements of your target market? This research will help you minimize any possible

risks and will ultimately save you time, money, and energy in the long-run.

The two main types of research include:

Secondary market research gather information from public sources including books,

newspapers, market reports and studies, and the Internet. For market and industry

information related to exporting, please see the Exporters section of the Canadian Border

Services Agency website

Primary market research communicate directly with experts, customers, and other

important sources of information in order to fill in any gaps after you have conducted

secondary research. Market research is critical to the decis ion-making process in a


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marketing plan. Research reveals the market or markets that offer the best opportunities

for investment. It reveals the political, legaland regulatory, financial, cultural,

competitive, consumer and marketing challenges that a business may face as it

considers exporting to a particular destination. Cook.

After completing extensive research, choose an environment (i.e. culture, country, or

sector) that is friendly to entrepreneurs and small businesses looking to expand.

Identify potential areas that may create risks or impact your efforts in entering and

succeeding overseas, including the local legal practices of your target market, any

restrictive trade policies, the political environment, and the time and distance it will take

you to ship your products.

After assessing possible risks, access government agencies and/or companies that offer

tools and resources to help you mitigate those risks.

Attend trade shows and visit online trade sites relevant to your industry and use these

events and resources as an opportunity to network, make contacts, and begin to develop

relationships with potential overseas partners and clients.

Carefully produce a well-researched export plan that includes:

Description of your company and its market and industry; your business goals and

objectives; product and services information and description; analysis of the target

market you desire to enter, along with future trends and predictions; comparison of your

companys strengths and weaknesses in relation to your competition; strategies for

international marketing; and financial information and budgets (Team Canada).

Prepare a financial plan and look into the financing optionsavailable to assist you with

the initial costs associated with exporting.

Before you export your products or services to other countries, contact your countrys

consulate or embassy in the market that you would like to enter in order to access

valuable market data and directories of potential buyers for particular industries.

Take an on-line course, workshop, or college course on international marketing, cross-

cultural communication, global management, or some other area related to international

business that would help you meet your particular business goals and aspirations.

In the Beginning


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Hire a professional translator. This will ensure that you achieve linguistic and conceptual

equivalence in your web content and advertising, thereby avoiding costly mistakes that

have the potential to offend or alienate your customers in other countries.

Start small dont feel that you have to translate your entire website into numerous

languages all at once at the beginning of your efforts to go global.

Consider starting with one or two languages that have the greatest potential for success

for your company (based on market research) and possibly only translating parts of your

website that your customers have frequent interaction with, including the home page,

product information, customer service, and FAQs.

Investigate potential suppliers, first online and then meet with them for a face-to-face

meeting and a tour of their factory.

Focus on building and maintaining long-term relationship through patience, persistence,

sensitivity, courtesy, regular contact, and respectfor their culture and business norms.

Try to approach new situations with questions and an open mind rather than assumptions

and judgments.

Develop a global mindset in order to be able to tap into lucrative opportunities many

other domestic-focused businesses miss and be able to better understand both your

competitors and customers. Some of these tips include:

1. Increase your global awareness knowledge, and competency Travel, watch

international news, and read international blogs and articles.

2. Increase your global network of contacts - Get to know foreigners and ex-pats in your

community, eat at foreign food restaurants, and join online networking sites where you

can connect with people overseas.

3. Develop Global Skills - Learn a new language, join an international club or group, and

travel overseas.

Part IIAdvertising and Marketing in the Global Marketplace :

One of the most important aspects of taking your business global is effectively advertising to

potential customers in your target market. Unless they know what sets your product or service

apart from competitors and how they can benefit from purchasing from you, then they wont


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buy. The following section discusses numerous ways to conduct effective advertising and

marketing campaigns.

Advertising and Brand Consistency: Why are Some Brands so Hard to Resist?

According to Izabela Lundberg of Global Entrepreneurs, effective and eyecatching branding is

determined by more than how much you spend on your advertising budget and your business

brand is more than your logo, brand name, or colourful ads. The implicit promise that you make

to your customers through your advertising is also hugely important in building a successful

brand and faithful following. It is therefore imperative that you are consistent and clear with your

advertising. Some tips on creating an irresistible, consistent, and eye-catching brand

include:Determine your target market.

Focus on connecting with potential customers in your target market and providing them

with the best products and services possible.

Rather than trying to be all things to all people it is important that younarrow down

your target market and determine specifically who you want to reach through asking yourself

questions such as Where does my ideal customer live?; What do they do in their spare time?;

What is their income?; What is their style?; What is their age range?; and What is

important to them?

Use this exercise to determine the characteristics, wants, and needs of your ideal

customer.

Once you know your ideal customer, you will be better able to focus your time and

money on sales and marketing strategies designed specifically to reach those people.Keep the

focus on your customers.

Highlight your business and what you offer, while at the same time clearly show your

customers what they will gain and the benefits they will receive if they buy your product or

service. This also shows you understand their unique needs and value the time and money they

spend.Example: When you buy dresses from us, you will receive benefits including lower costs,

helpful sales staff, high-quality merchandise, and less hassle and time spent searching for that


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perfect outfit for your big night. Always keep your promises. If you cant follow through, then

dont make the promise.

As noted above, your brand is your promise to your customers. If youlet down your

customers after you have made a promise, then your business and brand will suffer.

Focus on maximizing your existing strengths, show your customers what makes you

different from the competition, and then deliver on any promises you make. Put simply, in order

to ensure your branding efforts and advertising strategies are successful in the long-run you must

be consistently providing excellent products and services for your customers. Create a strong

brand strategy.

It is important that you create your brand strategy before hiring designers and writers,

building your websites, or crafting your marketing campaign. If you develop a strong brand

strategy first, then you will be able to make all of your other important decisions with this

strategy in mind (thereby saving money) and you will be able to fully articulate what you want

your designers, writers, websites, and marketing to communicate and to whom. Success is in the

details.

All visual, verbal, and experiential customer touch points should accurately and

consistently convey your brand. Quality Design

First impressions matter. The colors, shapes, and fonts that you use communicate

something about your company and brand.

If you do not have the necessary skills and tools, be sure to hire a designer who is able to

create content that will stand out among your competitors while also keeping in mind your target

audience and the personality and message you want to communicate.


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Successful International Marketing all Starts with a Plan:

Your plan for entering foreign target markets must be different from your domestic marketing

strategy due to the variations in the culture, customs, language, and needs of your customers and

potential customers. It is important that you determine your business unique reasons for wantingto export and be able to clearly articulate your objectives. This will help determine the level of

influence that your exporting endeavors will impact the direction of your business and

strategies.To formulate an effective international marketing plan, it is important that you begin

with detailed market research regarding demographics, as well as the need and level of demand

for your product or service in a particular area. It is also important to recognize and appreciate

cultural differences and nuances in your website and content localization efforts, as well as your

advertising and marketing strategies. Further, to increase the chances that your international

marketing plan will be successful, it is important that you place someone in charge of its

implementation. This person should be closely involved in all stages of the process of developing

the international marketing plan, have the authority to make decisions, and possess sufficient

resources to take the plan from paper to reality.

Part IIIIncreasing Web Traffic, Visibilityand Online Success in the Global Marketplace

This final section will focus more specifically on increasing your online visibility and traffic,

thereby attracting more potential customers to your website and ultimately leading to increasedsales and a larger customer base in more countries: Search Engine Optimization

Whether or not people can easily find your website through search engines can make all

the difference in the success or failure of any online business venture. Be aware, however, that

achieving a high ranking on Google is usually going to take a lot of time and effort. You cannot

buy a top spot from Google or any other major search engine; you must work for your ranking.

Since many business owners and managers do not have the necessary time to devote to

this process, Search Engine Optimization (SEO) consultants are often hired. Advertise with

Search Engines through Pay-PerClick Marketing, such as Googles AdWords.

Create your own ads and choose keywords or phrases related to your business.


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When people use one of your keywords for a Google search, your ad might show up next

to the search results. This means that your ad is reaching a more targeted audience that is already

searching for something you sell.

People then have the option of clicking on your ad to make a purchase or learn more

about your companyeither way you have attracted new visitors to your site.

The great part about AdWords is that you only pay if people click on your ads (not when

your ad is displayed) and there is no minimum amount of time to commit or money to spend.

Google also provides information about keywords traffic so that you can make well-

informed decisions about the keywords you select for your ads.Exchange Links with other

(Relevant) Websites.

In this way, you will profit from the other companys efforts to generate traffic and they

will benefit from yours. It is a mutually beneficial arrangement.

Keywords :Before writing content for your site, conduct research into the keywordsand

phrases that potential customers are using since the choice of terms will make a huge difference

in whether or not people find your ad or website.

Example: choosing the correct terminology for a laptop based on the desired target

market. In Portuguese, a portable computer is called computadorporttil. This term can be

translated into English as a notebook computer or a portable computer. According to

HuipingIler, owner and President of wintranslation, there were over 800,000 searches on Yahoo

in one month for notebook computer. Conversely, the term portable computer failed to yield

even 3,000 searches.

Choose terms that generate high traffic and have as little competition as possible.

A great site to analyze the web traffic and key words for your company and compare it to

competitors is www.alexa.com.

Technical Issues:Create and use different websites for each country you plan on entering.

For each of these websites, use the top-level domains in that country. For example, a .ca domain


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will result in the highest rankings for your Canadian website, while in China a .cn domain will be

best.

If the country you are entering has more than one dominant language spoken, then it is

best to use subdomains so that visitors do not have to switch back and forth between languages.

Invest in software or programs where you can track and analyze your website statistics

before you begin revamping your website for new markets. Use these resources to determine the

country of origin and the internet service providers being used to access your website. This

information can help you make well-informed decisions when it comesto taking your business

global and determine which markets you should enter, the languages you should translate your

website, and even the amount of localization necessary for your business at this time.

Web Content and Structure :

Regularly provide unique, relevant, interesting, and updated content. This will

demonstrate to potential customers that you take an active interest in the market they are in, as

well as their unique needs.

Develop and operate a high-quality, localized website.

Your website should be easy to navigate, functional, and convenient to use. Frustration

and an inability to find desired content will chase potential customers away quite quickly.

Take the time necessary to research and create original, creative, and well-written online

content and ads.

Develop your website and public relations materials with your target audience in mind,

so that you are providing specific and pertinent information and resources to the people you

desire to reach. Think quality rather than quantity.

Incorporating technological advances into research design and methodology :

At the same time, international marketing researchers will need to incorporate the latest

technological developments in data collection and dissemination into the research design. These

enable researchers to dramatically reduce the time required to collect data across geographic


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distances as well as substantially enhancing and enriching the type of stimuli that can be used in

collecting data from international markets. It is, however, important to recognize that use of

sophisticated technological techniques is subject to certain limitations in international markets,

due either to the development of the technological infrastructure or the

technologicalSophisticationofrespondents.Advances in computer technology such as scanners,

CATI (Computer Assisted Telephone Interviewing), and CAPI (Computer Assisted Personal

Interviewing) are well established in the developed countries and are beginning to be used

elsewhere. They provide faster, more accurate methods of data collection providing direct input

of response and facilitating steering of data collection based on response. Techniques such as

CATI and CAPI can also be used to centrally administer and organize data collection from

international samples, subject to telephone and computer penetration in different countries as

well as use of a common language or availability of software to automatically translate

questionnaires.

As these technologies evolve and advance, they also provide new innovative ways to present

stimuli and collect data particularly suited to international research issues. Multimedia CAPI

makes possible the presentation of highly complex stimuli and facilitates obtaining consumer

reactions to video and audio stimuli (Thomae, 1995). Developments in virtual reality CAPI will

heighten the realism in stimulus portrayal and expand the range of topics on which marketing

research can meaningfully be conducted (Needel, 1995).

Equally, as the Internet evolves, it offers the potential to dramatically change the way in which

much international marketing research is conducted, both in providing ready access to secondary

data, and in providing a new means of collecting primary data. Rather than visiting a traditional

research library, the marketer can have virtually instant access to data from traditional sources as

well as sources that are only available on the Internet. The Internet can also be used to collect

primary data, either by tracking visitors to a Web site, or through administering electronic

questionnaires over the Internet. To the extent that web sites are increasingly likely to be

accessed by users worldwide, information on an international sample can be gathered. Behavior

at the site can be tracked revealing interest relating to the products and services or information

offered, as well as response to promotional material or offers.

The Internet can also be used to collect data in a more systematic fashion that is closer in


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character to more traditional marketing research practice. Subject to the availability of suitable

Internet sampling frames, questionnaires can be administered directly over the Internet.

Questionnaires are sent via e-mail to respondents and the responses are returned via e-mail. This

represents a very quick and totally automated means to conduct a survey over a broad geographic

scope. The results are available almost instantaneously as the responses can be checked and

analyzed in real-time as they are received. Questionnaires administered via the World Wide Web

also have the advantage that product details, picture of products, brands and the shopping

environment can be portrayed with integrated graphics and sound.

This approach is most suited to surveys among respondent populations that are technology

literate, and at present for certain types of products such as computers, computer software or

business-to-business research (Frost, 1998). However, as use of the Internet becomes more

common place, e-mail surveys will begin to replace mail and phone surveys. Progress will occur

most rapidly in the US and Europe and will progress more slowly in other parts of the world

(Worldwide Internet Conference, 1999). An important limiting factor is the extent to which

Internet sampling frames correspond to respondent populations that are of interest to marketers.

Versions of Web software available in different countries may not be compatible. Technical

issues may daunt respondents, resulting in non-response bias. Factors such as overall response

rate and item non-response will also continue to be important. Consequently, a large number of

surveys need to be sent out to obtain a large enough sample to analyze. However, the fact that

results will be obtained so rapidly will allow additional sampling, with enhanced incentives, to

compensate for short fall. While lower costs and rapidity of response make this mode attractive

for international research, potential bias problems suggest that at least in the short run, and

particularly where part of the target market is likely to exist in countries with low internet access,

this approach will need to be used with some caution.

Conclusion: Next Steps

Though it is true that successfully entering the global marketplace can be challenging, complex,

and time-consuming, there are also numerous benefits attached to going global. These benefits

include increased sales, additional customers from countries all over the world, the improvement

of your international image, and accessing opportunities that many businesses miss because they

stubbornly refuse to consider the international market due to a perception that it is too risky.


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However, entering the global marketplace is no more risky than expanding your business

domestically; the risks are just different and they require the necessary research, preparation, and

commitment.

Who Do We Need: Specialists or Generalists?

A company can be a global company if it achieves efficiencies of scale by developing a

standardized product of dependable quality, and sells it in the global marketat a reasonable price

throughout the world. The global marketing concept is aboutviewing an entire set of country

markets as one unit, identifying groups of prospectivebuyers and developing a marketing plan

through cost standardization.When evaluating foreign markets, several other factors need to be

considered forstandardizing the products across markets. These factors can be grouped into

foreign uncontrollables which includes economics forces, cultural issues, political/legal forcesand levelof technology among others. So, while the marketing plan can be standardized,a

researcher will have to take into consideration the uncontrollable factors that will have an effect

on business in the respective foreign market. This process of considering theuncontrollable

factors particular to a market into the overall marketing plan is known asthe specialist approach

in international marketing research.While the generalists consider the world markets as a whole,

specialists take in allthe country and region specific factors that would govern the marketability

of the productin those markets. The effect of uncontrollable on a product can be seen in the case

ofNike. The logo on a new line of shoes represented flames or heat rising off a

blacktop.Unfortunately, the logo inadvertently resembled the Arabic script for the word

Allah,the Arabic word for God. After receiving complaints from Muslim leaders regarding

theuse of this word on the shoes, Nike recalled the offending shoes (Associated Press, 1997).This

case shows how easy it is to offend when the uncontrollable are not properlyaccounted for, as in

the case of religion as explained here.Hence global research calls for specialists and not

generalists, since it is importantto address the country specific issues in the marketing process

while researching new markets.

What Is Cross Cultural Response Bias?

Cross-cultural researchers conducting studies across different cultural groups need to consider

whether the scores obtained are comparable. In order to achieve meaningfulcross-cultural

comparisons, the issues of equivalence and response bias has to beaddressed. Response bias is


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the systematic tendency to distort responses to rating scalesso that observed scores are unrelated

to the true score of the individual by either selectingextreme or modest answers (extreme or

modesty response bias) or a shifting of responsesto either end of the scale (acquiescence

response bias) (Byrne & Campbell, 1999; Cheung&Rensvold, 2000). The cultural tendencies

belonging to different cultural groups, arelikely to change the responses of participants and make

them incomparable acrosscultural groups and therefore resulting in a bias (Fischer, 2004).

Hofstede (1980) wasamong the first to advocate the use of standardization as an adjustment of

raw scores incross-cultural research to correct for such response tendencies.Techniques such as

Structural Equation Modeling (Cheung &Rensvold, 2000;Little, 1997, 2000) and Item Response

Theory (Butcher, Lim, &Nezami, 1998; Huang,Church, &Katigbak, 1997) can be used to

identify whether different response strategieswere used by participants in different samples.

Researchers can then decide whether theywant to standardize their data or not. There are four

major groups of standardizationprocedures. These four groups are (a) adjustment of means, (b)

adjustment for dispersion(e.g., using standard deviation), (c) adjustments using means and

dispersions, and (d)covariate analysis. These groups can be classified into within-subject, within-

group, andwithin-culture categories, based on the statistical information they use

forstandardization.The within-subject standardization procedure refers to the adjustments of

scoresfor each individual using the mean for that individual across all variables (Hofstede,1980).

The average of a subset or all variables for that particular individual is subtractedfrom each

individuals raw score. Hence, the resulting score is the relative position of theindividual on a

variable in relation to the other scores. The mean across variables for thisindividual will average

to zero. This procedure is also called Ipsatization (Hicks, 1970).The within-subject

standardization procedure has several variants. The mostcommon form is the computation ofz

scores whereby the group mean is subtracted fromthe variable raw score and then divided by the

standard deviation (Howell, 1997). Hence,the resulting score is the relative position of one

specific individual on one variablerelative to the position of other individuals in that group. The

mean across individuals iszero and, assuming a normal distribution of responses, the resulting

standard deviationwill be 1. An adjustment procedure, commonly referred to as Centering (Aiken

&West,1991) is also available wherein, only the mean across individuals is used.In the within-

culture standardization (Bond, 1988; Leung & Bond, 1989), insteadof using the group mean

across one item (as done in ztransformation), the mean acrossall items and all individuals (the


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grand mean) is used. It is possible to adjust thisdeviation score by dividing it by the standard

deviation across items and individuals.A combination of within-subject and within-culture,

called DoubleStandardization can also be used (Leung & Bond, 1989). Initially, the scores are

adjustedwithin the individual (within-subject standardization), and then the resulting scores

areadjusted within the group (within-culture standardization). Thus, the means for each

individual across variables and the mean for each variable across individuals will be

zero.Assuming normality of the raw data, the adjustment using the standard deviation

shouldyield standard deviations for both individuals across variables and variables

acrossindividuals.It is important to note that these standard procedures can be done both at

itemlevel and at construct level. One may standardize individual items using the relevantmean

across either items or individuals or one may standardize the mean for one specificconstruct

using the relevant mean across either items, constructs, or individuals.

The Need to Adjust for Cultural Effects :

Companies with a worldwide presence must conduct research across all theirglobal markets,

present a combined corporate view, and contrast these markets to identifyhot spots for special

initiatives or new ventures. They need methods to minimize culturaleffects and adjust results to

differentiate response pattern differences due to language orcultural norms affecting surveys

from real differences in performance or perceptions dueto products, services, or marketconditions. Hence, it becomes essential on the part of theresearchers to address cross-culture

calibration of measurements. In this context,harmonizing languages as part of questionnaire

design and implementing the challengesthat data collection poses, poses a challenge to the

researchers (Devlin & Nicholas,2004).So how does one get good translations? Though there are

online translationresources available, it may not be sufficient considering the cultural, regional

andlanguage disparities within the foreign market. It is always advisable to take professionalhelp

as it is critical to relate to the native speakers and the online resources may not beadequate in that

regard. To illustrate the need for a professional help, here is an exampleof how incorrect

translation would lead to a product failure.A U.S. toothpaste manufacturer promised its

customers that they would be moreinteresting if they used the firms toothpaste. What the

advertising coordinators did notrealize, however, was that in Latin American Countries

interesting is anothereuphemism for pregnant.


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To find a trustworthy and reliable translation service would be the next step. Inthe age of

electronic communications, the researcher need not be limited to a local search.Translations can

be easily delivered by e-mail, and under most circumstances, the projectdetails can be discussed

over phone. However for other logistical reasons, the researchermay find it more convenient to

work with a provider in the home country. The followingfactors may be considered while

appointing a translation service:

a.Native Speakers: It is important to find out if the provider works with translators whoare native

speakers of the languages. This is so because only native speakers have aperfect feel for their

language. Working with native speakers will ensure that thetranslations sound natural to the

audiences of various countries, and not like atranslation from a foreigner. For example, a blonde

womanis called a rubia byCubans, a gera by Mexicans and a mona by Colombians.

b.Specialist Knowledge: It may not be enough to just speak the language. The peoplewho

translate the material must know the industry and the market in particular.

c.Location: The best translators are those who work from their native countries. As theyare up-

to-date with current developments and changes in the languages, it would bevery helpful as the

translations will be linguistically and culturally appropriate.

d.File Formats: To avoid extra work and costs, the researcher can choose a translationfirm that

can work with the same file formats as the researcher would use.Once the translation provider

has been decided upon, the researcher can worktogether with them closely in order to maximize

the quality of the translations. While theresearcher must allow sufficient time for the translation,

it should also be made sure thatthe source material is written well. Providing as much

background material as possiblewould help the translators understand the product-specific needs

and hence result in amuch closer translation.


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OBJECTIVES

1. To investigate the stages of international marketing Research

2. To find the key to success in international market research

RESEARCH METHODOLOGY

Research Objective:

To investigate the stages of international marketing Research

To find the key to success in international market research

Data collection :

SECONDARY SOURCES

A number of secondary sources of country information are available. One of the most

convenient sources is an almanac, containing a great deal of country information.

The U.S government also publishes a guide to each country, and the hand book

international Business Information: How to Find It, How to Use It. Several Experts may be

available. Anthropologist and economists in universities may have built up a great deal of

knowledge and may be available for consulting. Consultants specializing in various regions or

industries are typically considerably more expensive. One should be careful about

relying on the opinions of expatriates (whose views may be biased or outdated) or

ones own experience which may relate to only part of a country or a certain sub

segment.


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SECONDARY DATA

National Market Research Trade Associations and National Research Societies:

For many years, estimates have been provided of the size of national researchmarkets. Theseestimates have been based on data collected by national market researchtrade associations and

national research societies, along with the work of a fewindividuals and earlier ESOMAR

studies. It has been estimated that in terms of researchexpenditure, the top three countries are the

United States, the United Kingdom andGermany (Kobayashi & Draper, 1990). Research in

Europe is primarily conducted inGermany, the United Kingdom, France, Italy and Spain

(Demby, 1990).The top 25 global research organizations earned $11.6 billion in revenue in

2003,up by 1.4 percent over 2002 (Table 30.2). Of the top 25 global firms, 12 are based in

theUnited States and 67.3 percent of the revenue came from international operationsHonomichl,

2004). The worldwide marketing and opinion research industry nowaccounts for about $17

billion of revenue and employs more than 650,000 people. About1000 top clients countries are

accountable for about 80% of the global turnover; 65% oftheir MR budgets goes to 25 research

providers. Ten countries account for over 80 % ofthe global turnover (ESOMAR,

http://www.esomar.org/esomar).

Idiosyncrasies ofCollecting Data in International Settings

In this section, we highlight the idiosyncrasies of countries and regions as far asdata collection is

concerned. We do not provide a description of the techniques Personal Interviews tend to be the

dominant mode of data collection outside theUnited States and Canada (Monk, 1987). Lower

wage costs imply that personalprocedures are cheaper than in the United States. In Latin

countries, and particularlyin the Middle East, interviewers are regarded with considerable

suspicion. In Latincountries, where tax evasion is more prevalent, interviewers are often

suspected ofbeing tax inspectors. In the Middle East, where interviewers are invariably male,

interviews with housewives often have to be conducted in the evenings whenhusbands are at

home.

Mall Intercept Surveys are very popular in the United States and Canada, thoughnot commonly

used either in the European countries or in developing countries.


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Telephone Interviews are not as advantageous in international marketingresearch as low levels

of telephone ownership and poor communications in certaincountries limit the coverage provided

by telephone surveys. In countries such asIndia, which is predominantly rural, the telephone

penetration is only 1 percent, andhence telephone surveys may not be the ideal method to adopt

Sopariwala, 1987).Even in relatively affluent societies such as Great Britain, telephone

penetration isonly 80 percent, and telephone interviewing is not widely used because

manypractitionersare still skeptical about it. In Britainand France, there are substantial

declines in telephone response rates in large cities. The Eastern European countriesand countries

in the newly formed Commonwealth of Independent States have a poortelecommunication

system. In such countries, conducting telephone surveys may notbe a good idea.However, with

the decline of international telephone costs, multi-country studiescan be conducted from a single

location. This significantly reduces the time and costsassociated with negotiating and organizing

a research project in each country,establishing quality controls, and so on. Although the

additional costs of makinginternational telephone calls are incurred, these may not be highly

significant when acentralized location is used. International calls also obtain a higher response

rate.Results obtained using this technique has been found to be highly stable. Interviewerand

client control is considerably greater.

Mail Surveys in international settings can have limitations because of the absenceof mailing

lists, poor mail services, and high levels of illiteracy. For example, mailsurveys are ineffective in

countries such as Brazil, where it has been reckoned that 30percent of the domestic mail is never

delivered; or Nicaragua, where all the mail hasto be delivered to the post office. Even in

countries where literacy levels and mailservices make the use of mail surveys feasible, a

tendency to regard surveys as aninvasion of privacy may limit their effectiveness. Thus, while

mail surveys may beused effectively in industrial marketing research, in consumer research they

may beappropriate only in industrialized countries where levels of literacy are high andmailinglists are generally available.

Focus Groups in the international setting, can be effective as long as it is realizedthat it is

important for the moderators to be conversant with the language and also thepatterns of social


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interaction and the nonverbal cues used by people in that part of theworld. Here are some points

to take note of:

Women inthe Middle East do not have as much freedom as women in theWestern world.

In some Asian countries, the moderator must take special interest inintroductions if the

discussion is to be truly open and candid.

The French have been proven to resist innovations of any kind.

The Japanese hesitate to criticize new product ideas.

There is a very strong group mentality in Asian culture while mostAmericans tend to be

individualistic (Greenbaum,1996).

Timeframe: Many companies in the United States and Canada are used tocompleting the

research project in a relatively short period of time. This isnot possible with international

research. Lead times tend to be muchlonger, more so in the Far East. A good estimate would be

to calculatethetime required for the research in the United States and double it for Europe.

It would be longer for Asia.

Structure: In most of other countries, focus group panels consist of four tosix people, versus

eight to ten in the United States. The focus groupinterviews themselves last for almost four

hours.

Recruiting and Re-screening: Panelists for focus groups in the UnitedStates are screened and

recruited in a rigid manner. These processes mustbe monitored very carefully in foreigncountries.

Approach: Foreign moderators are not as structured and as authoritative asU.S moderators.

This can result in long periods of silence and digression.This is because foreign moderators feel

it necessary to allow the group tosettle down and establish trust to build up the necessary

comfort. Foreignfocus groups tend to use fewer external stimuli, such as photos and visualaids.

What Are the Biases in Qualitative Methods?

Much empirical research involves comparison of two or more groups and thedetermination of

differences between these groups with regard to a single factor ofinterest. The results of a study

undergo statistical analysis based on the assumption thatthe groups are representative of the

defined population and that the measurements takenon the sample were true reflections on what

the researcher was actually trying tomeasure. In reality, however, a number of biases can


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complicate the analysis andinterpretation of data.Bias may be defined as any factor that tends to

produce results or conclusions thatdiffer systematically from the truth (Health.gov,

http://www.health.gov.au/nhmrc). Thisincludes errors in analytical methodology and errors of

interpretation. Research is open tobias from many sources, including errors in statistical analysis.

Most errors related tostatistical analysis relate to failure to use appropriate statistical methods.

Some exampleswould be failure to distinguish between independent and dependent observations,

failureto adjust for confounding variables, or failure to appreciate the assumptions of

normalityand equality of variance underlying parametric significance tests.Avoiding biases in

international marketing research requires a lot of effort fromthe researcher. The first step would

be to try and understand the research problem fromthe perspective of the foreign country. This is

easier said than done because the root ofthe problem may be the researchers lack of sensitivity

and understanding to such culturalnuances. A feasible alternative would be to include researchers

from different culturalbackgrounds in the research team so that the team as a whole can consider

all of thedifferent facets of the research problem. At every stage of the research process,

theresearcher who is familiar with the specific culture takes the lead in conducting the studyand

the results are then compared across countries.As with quantitative research, much of the

potential for bias can be minimizedthrough rigorous study design and the employment of various

techniques. These includerecognition by researchers that observers are also research instruments;

disciplinedsubjectivity; explicit incorporation of the subjective aspects of interaction

betweenresearcher and participant into the study design; and 'triangulation', whereby

informationobtained is considered tentative until corroboration by information collected by

othermeans.


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LIMITATIONS OF THE STUDY

International market research entails a range of complex activities. Gathering accurate and reliable

information is complicated by cross-nationaldifferences in language, culture, laws andregulations, and income levelsand other socioeconomic conditions. In addition, desired information isoften

unavailable, unreliable, or expressed in abstract measurement units.For example, in Asia, Citibank markets its

credit cards across a range of countries such as China, India, Indonesia, Japan, Malaysia, and Singapore. Each of

these countries has a distinctive banking infrastructure,commercial practices, attitudes toward money

and credit. In its efforts to market food products worldwide, Nestl must acquirea thorough understanding of what

consumers regard as tasty food, wherethey shop for it, and how far they are willing to travel to obtain

it. They must consider buyer preferences regarding package design, serving size,and ease of

preparation, as well as the constellation of values, attitudes,and beliefs that lead consumers to choose

one food product over another. They must acquire knowledge about how best to design marketingvariables

product features, pricing, communications, and distributionchannelsand how these variables

interact. All of these factors must beconsidered in light of their effect on the marketing and

perceptions of existing Nestl and competing products. Research must also attempt toforecast trends and shifts

in market segments for the long term.International market research is a necessary yet substantial

undertaking. Much of the data must be meticulously and thoroughly acquiredin the field, as broad-based

information gathered from public sourcessuch as libraries and the Internet are insufficient for

providing the in-depth knowledge that the firm needs to succeed. The firm faces a trade-off between doing

research correctly and the resources (especially timeand money) needed to perform the research. Management

must find theright balance between its need for comprehensive and relevant information and the

costs involved in conducting the research. In the new millennium, exploring and developing new

market opportunities abroad isone of the most demanding, yet the most rewarding, economic

activities.Pursuit of international opportunities can be possible only through ready access to,

and sophisticated interpretation of, information about foreignmarkets. The remaining chapters

of this book are devoted to making thistype of understanding possible.


39/40

SUGGESTIONS

1. Quality product should be produced.

2. Cost of productions should be under control.

3. People should vote for political stability.

4. Simple rules and regulations for import & export business are necessary.

5. E-commerce & E-banking should be used.

6. Research & development using should be proper.


40/40

BIBLIOGRAPHY

1. www.business-standard.com/

2. timesofindia.indiatimes.com Business/

3. en.wikipedia.org/wiki/Marketing_research

4. www.b2binternational.com

5. https://www.google.co.in/search?client=opera&q=INTERNATIONA

L+MARKETING+RESEARCH
http://www.business-standard.com/http://www.business-standard.com/https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&ved=0CEoQ6QUoADAC&url=http%3A%2F%2Ftimesofindia.indiatimes.com%2Fbusiness%2Fbizarticlelist%2F1898055.cms&ei=xW0YUoL1CY2nrAexuYHIBA&usg=AFQjCNFkhuKdHPcCB0_MYtbKd43ZZ5PYdw&sig2=HWqBLljRJGCb_x-CB9rjvghttps://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&ved=0CEoQ6QUoADAC&url=http%3A%2F%2Ftimesofindia.indiatimes.com%2Fbusiness%2Fbizarticlelist%2F1898055.cms&ei=xW0YUoL1CY2nrAexuYHIBA&usg=AFQjCNFkhuKdHPcCB0_MYtbKd43ZZ5PYdw&sig2=HWqBLljRJGCb_x-CB9rjvghttps://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&ved=0CEoQ6QUoADAC&url=http%3A%2F%2Ftimesofindia.indiatimes.com%2Fbusiness%2Fbizarticlelist%2F1898055.cms&ei=xW0YUoL1CY2nrAexuYHIBA&usg=AFQjCNFkhuKdHPcCB0_MYtbKd43ZZ5PYdw&sig2=HWqBLljRJGCb_x-CB9rjvghttp://www.business-standard.com/

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