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8/7/2019 Lecture v-A-International Marketing Research
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Marketing Research:
Unit V-A: International Marketing
Research
Dr. Sumeet Gupta536331MarketingResearch
Shri ShankaracharyaInstitute of Management
and Technology
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Outline
Basic Issues with International Marketing Research
Aframework for International Marketing research
Survey Methods
Questionnaire
Ethics In Marketing Research
STUDY: International marketing research: Aglobalproject management perspective
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Intl. MarketingFramework
Differences in Environment
Cultural Units
Foreign Markets
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1. Problem Definition
2. Developing an Approach
3. Research Design
Formulation
4. Fieldwork/Data Collection
5. Data Preparation and
Analysis
6. Report Preparation and
Presentation
StructuralEnvironment
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Intl. Marketing FrameworkGovernment Environment
Public policy
Regulatory agencies
Government Incentives and penalties
Foreign Investment policies
Tariffs and Quotas
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Intl. Marketing FrameworkGovernment Environment
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Parameters Japan India Germany North-America
Type of
governmentCapitalism Democracy Capitalism Capitalism
Political
InstabilityStable Unstable Unstable Stable
Political Risk Low High High Low
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Intl. Marketing FrameworkGovernment Environment
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Firms needs to consider the interest of all thepeople
Failure ofEnron Power Project (Dabhol , India)
Type of
Government Indian government considering reservations in
private sector FDI permission in Retail sector
GovernmentPolicies
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Intl. Marketing FrameworkLegal Environment
Product laws: Product quality, packaging, warranty andafter sales services, patents, trademarks, copyright (e.g.,
smoking is injurious to health)
Pricing laws: Price fixing, price discrimination, variablepricing, price controls, and retail price maintenance(e.g., Max. retail price)
Distribution laws: Exclusive territory arrangements, typeof channels, cancellation of distributor or wholesalearrangements (e.g., wine distribution in US)
Promotional laws: Type of promotional methods (e.g.,Billboards in Singapore)
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Intl. Marketing FrameworkLegal Environment
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Parameters Japan India Germany North-America
Legal System Status law
system
Common law
system
Status law
system
Common law
system
Fujitsu copied the software made by the IBM against thecopyright act, for which Fujitsu was forced to pay IBM $8million a month until the year 2002. It is an example of legalconstraint for any company against international patent law..
Legal Env
In India it takes a lot of time for cases to be heard and actedupon.Legal Env
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Intl. Marketing FrameworkEconomic Environment
GDP
Level, source and distribution of income
Growth trends
Sectoral trends
Stage of economic development Size of markets
Degree of modernization of markets Standardization of markets
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Intl. Marketing FrameworkEconomic Environment
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Parameters Japan India Germany North-America
GDP 3.6% 6.5% 1.4% 2.4%
Literacy
Rate99% 52% 99% 97%
Inflation 0.3% 10.3% 1.5% 3%
Developed /
DevelopingDeveloped
Emerging
Market
Emerging
MarketDeveloped
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Intl. Marketing FrameworkEconomic Environment - Examples
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The finance department of Shell- Sekiyu, Japanese-Dutchoil refiner and distributor, lost more than $1 billion bymaking a bad bet in the futures market with thespeculation that the dollar would rise in 1993
Exchange
Rate Germans car manufacturers are coming to India and Chinawith their costly cars such as BMW. However, in India andChina people can procure better cars at a cheaper price,such as the latest Tata Nano with a sticker price of $2500
GDPEffect
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Intl. Marketing FrameworkStructural Environment
Transportation
Communication
Utilities
Infrastructure
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Intl. Marketing FrameworkInformation and Technological Environment
Information and communication systems
Computerization and use of Internet
Use of electronic equipment
Energy
Production Technology
Science
Invention
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Intl. Marketing FrameworkInformation and Technological Environment
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Parameters Japan India Germany USA
Information &communication
system
GoodDeveloping
stageGood Good
Computerization
& use of internetIncreased use
Not so
significantIncreased use
Significantly
large
Use of electronicequipment
Larger in use Less use Medium use High rate
Invention High rate Low rate High rate High rate
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Intl. Marketing FrameworkInformation and Technological Environment Examples
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Dell started its business by direct selling modelwhereby customers could purchase laptops through
Internet. However, Dells business suffered great set-back in India and China because people do not have asfrequent access to Internet as in other countries.Moreover, people in India hardly make any purchasesover Internet then what to speak of a costly product asthat of Dell.
Computerizationand use ofInternet
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Intl. Marketing FrameworkSocio-cultural Environment - Examples
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Yokohama Rubber company failed in Indonesiabecause it placed its logo which resembled
Muslim holy scripts on its tiresReligion ZIT foods in English spoken countries was sold
as Frescha Soda pop in Mexico. However, ZITfoods sales were low in Mexico because the
Frescha is a slang in Mexican language
Language
Friday is holiday in Islamic countries, whichcreates a big problem in international marketwhich is a full working day for rest of the worldsmarket
Culture
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Survey MethodsIn-Home Personal Interviews
Due to high cost, the use of in-home personal interviewshas declined in the United States and Canada, but this is
the dominant mode of collecting survey data in manyparts ofEurope (e.g., Switzerland and Portugal) and thedeveloping world.
The majority of the surveys are done door-to-door, whilesome quick sociopolitical polls are carried out in thestreet using accidental routes.
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Survey MethodsMail Interviews
Because of low cost, mail interviews continue to be used in mostdeveloped countries where literacy is high and the postal system iswell developed.
Mail interviews constitute 6.2% of the interviews in Canada and 7%in the United States. In countries where the educational level of thepopulation is extremely high (Denmark, Finland, Iceland, Norway,Sweden, and the Netherlands), mail interviews are common.
In Africa, Asia, and South America, however, the use of mail surveysand mail panels is low because of illiteracy and the large proportionof population living in rural areas.
Mail surveys are, typically, more effective in industrial internationalmarketing research, although it is difficult to identify theappropriate respondent within each firm and to personalize theaddress.
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Survey MethodsMail andScanner Panels
Mail panels are extensively used in the UK, France, West
Germany, and the Netherlands. Mail and diary panels are also
available in Finland, Sweden, Italy, Spain, and other Europeancountries.
Use of panels may increase with the advent of new
technology. For example, in Germany, two agencies (A. C.
Nielsen andG
fK-Nurnberg) have installed fully electronicscanner test markets, based on the Behavior Scan model from
the United States. Nielsen will use on-the-air television; GfK,
cable.
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Survey MethodsElectronic Surveys
In the U.S. and Canada, the use of e-mail and the Internet insurveys is growing not only with business and institutionalrespondents but also with households.
The popularity of both e-mail and Internet surveys is also growingoverseas. Both these types of surveys are increasingly being usedin Western Europe where the access to the Internet is freelyavailable.
However, in some parts of Eastern Europe and in other developingcountries, e-mail access is restricted and Internet availability is evenpoorer. Hence, these methods are not suitable for surveying thegeneral population in these countries.
Multinational firms are using both e-mail and the Internet to surveytheir employees worldwide.
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Survey Methods
Electronicsurveys
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Questionnaire DesignBack and Parallel Translation
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English Version Korean VersionR1-Korean
R2-Korean
English Version Korean VersionCommittee
ofBilinguals
BackTranslation
Parallel
Translation
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International Marketing ResearchEthics
Stakeholders Client, Researcher, Respondent, and Public
Right to information security and privacy EUs Data protection act
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Summing Up ...
Various issues in International marketing
Experience of different cultures through movie snippets
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