new slides on intnl mkt research[1]2

8/7/2019 new slides on intnl mkt research[1]2

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Chapter 1

The Nature and Scope of International Marketing Research


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International Marketing Research - Is it a validConcept?

Although critics may not believe so, IMR is a valid concept

because:

It is a coordinated multi-country effort

Market surveys lead to decisions that affect morethan one country

Marketing strategies are conceived on a multi- nationalbasis, hence it is logical that market research shouldfollow suit.


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W hat is different about International

Marketing

The process of IMR is not totally different from domestic

marketing research. However, they differ in the following

ways:

IMR involves national differences between counties arising

out of political, legal, economic, social and cultural

differences

The problem of comparability of research results that arise

due to these differences


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W hat is different about International Marketing(contd)

Economic differences: L evels of wealth and taxation affectconsumer behavior in different countries. Eg: Norwegians consumevery little alcohol due to high taxation

Religious differences: Certain religions have laid down specific

behavioral patterns. Eg: Middle Eastern countries prohibit alcoholconsumption

Historical differences: Slowly evolved differences that haveprofound effects on consumer behavior. Eg; Scotch whisky is

considered prestigious and trendy in Italy but old-fashioned inScotland

Climatic difference: D ifferences in climate accounts for differencein cultures


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W hat is different about InternationalMarketing (contd)

Differences in consumption patterns: There are vastdifferences in consumption patterns between regions.For Eg:

The French prefer wine, the Germans like beer and the Spanishdrink aperitivos.

Differences in marketing conditions: For Eg: Japanese do notlike being contacted over the telephone for interviews, while in

Hong Kong interviews are conducted through the grill in frontdoor.

Differences in actual and potential target groups: Eg: It iseasier to collect national samples in countries like England andGermany than in Spain.


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W hat is different about InternationalMarketing (contd)

International Marketing may also have to

deal with:

L anguage differences

D ifferences in market research facilities

D ifferences in the criteria for assessing products or services

D ifferences in product usage


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Culture

V alues, attitudes, beliefs, artifacts and other meaningfulsymbols represented in the pattern of life adopted to help

interpret, evaluate and communicate as members of a

society.

Mistakes result when cultural differences not recognized

Examples of blunders include Pepsodent, Branff

Airlines, U.S. food manufacturers doing business in

United Kingdom


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Culture: (Contd)

Dimensions of Culture:

1. Power Distance

2. Individualism vs. Collectivism

3. Masculinity vs. Femininity

4. Uncertainty Avoidance

5. Long-term Orientation


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Culture (Contd)

Power Distance

The extent to which less powerful membersof a society accept and expect that power isdistributed unequally.

Example: Japan has a high power distanceindex and the US has low power index.


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Culture (Contd)

Individualism Vs. Collectivism

D efined as people looking after themselves andtheir immediate family only, versus peoplebelonging to in-groups that look after themin exchange for loyalty (Hofstede).

Example: Japanese are collectevistic where asthe Americans are individualistic.


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Culture (Contd)

Uncertainty Avoidance

The extent to which people feelthreatened by uncertainty and ambiguityand try to avoid these situations.

Example: High on uncertainty avoidanceare Germany and Japan, low ones areSweden and D enmark.


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Culture (Contd)

Long-term Orientation

The extent to which a society exhibits a

pragmatic future-oriented perspective thana conventional historic or short-term pointof view.

Example: Most Asian countries, China inparticular score high on this dimension.Many western countries have short-termorientation.


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Culture (Contd)

Culture Classification Model:

Assumptions regarding the use of time, the approach to talk athand, and the role of relationships in making business decisionsvary throughout the world.Countries have been classified into :

North Western/ Central European

North American

Mediterranean European

Latin American

Traditional ( developing countries, centrally planned and

former centrally planned countries)

Middle Eastern


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Alternative Types of Marketing Research

Descriptive Research

Researcher examines in-depth the attitudes and behavior of

consumers in another country or culture.

Comparative Research

Involves comparing attitudes and behaviors in two or morecountries or cultural contexts, with a view to identifying

similarities and differences between them.


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Alternative Types (cont)Theoretical Research

The researcher has a predetermined theory or model and it is possible to examine cross-cultural generalizability of those theories or models.


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Importance of Comparability

Account for differences in:

a) resources and expertise

b) working habits and corporate culturec) organizational aspects

Distinguish between

a) comparability at data collection stage

b) comparability at interpretation stage


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Classification of International

Marketing Research:

a) Single-country research

b) Multi-country research

c) Independent Multi-country research

d) Sequential Multi-country research

e) Simultaneous Multi-country research


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Challenge to Research

Too much emphasis on statistical techniques

D ata becoming unduly important

Not enough data interpretationToo much reliance on computers andscanner data

Lack of understanding among users

Researchers see themselves as datacollectors rather than data interpreters


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Marketing of the 21st Century

Requirements include:

Speed

Use of Internet

Globalization

Ability to add value to numbers and data

Documents

new slides on intnl mkt research[1]2