8/3/2019 Chap007 Strategic Marketing
1/30
I n t e r n a t i o n a l M a r k e t i n gI n t e r n a t i o n a l M a r k e t i n g
Developing a Global
Vision ThroughMarketing Research
Chapter 8
1 4 t h E d i t i o n
P h i l i p R. C a t e o r a
M a r y C. G i l l y
J o h n L . G r a h a m
McGraw-Hill/IrwinInternational Marketing 14/e Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
8/3/2019 Chap007 Strategic Marketing
2/30
8-2
What Should You Learn?What Should You Learn?
The importance of problem definition ininternational research
The problems of availability and use of
secondary data Quantitative and qualitative research methods
Multicultural sampling and its problems in lessdeveloped countries
Sources of secondary data
How to analyze and use research information
8/3/2019 Chap007 Strategic Marketing
3/30
8-3
Global PerspectiveJapan Test Market for the World
Global PerspectiveJapan Test Market for the World
Enterprises with international scope ofoperations
Need for current, accurate information magnified
Marketing research The systematic gathering, recording, and analyzing of data to
provide information useful in marketing decision making
International marketing research involves twocomplications
Information must be communicated across cultural boundaries
The environments within which the research tools are appliedare often different in foreign markets
8/3/2019 Chap007 Strategic Marketing
4/30
8-4
Breadth and Scopeof International Marketing Research
Breadth and Scopeof International Marketing Research
Unisys Corporations planning steps forcollecting and assessing the following typesof information
1. Economic2. Cultural, sociological; and political climate
3. Overview of market conditions
4. Summary of the technological environment
5. Competitive situation
8/3/2019 Chap007 Strategic Marketing
5/30
8-5
Breadth and Scopeof International Marketing Research
Breadth and Scopeof International Marketing Research
Types of information needed by research
General information about the country, area, and/or market
Information to forecast future marketing requirements
B
y anticipating social, economic, consumer, and industry trends withinspecific markets or countries
Specific market information used to make and developmarketing plans Product
Promotion
Distribution Price decisions
8/3/2019 Chap007 Strategic Marketing
6/30
8-6
Top 20 Countries for MarketingResearch Expenditures (millions of dollars)
Top 20 Countries for MarketingResearch Expenditures (millions of dollars)
Exhibit 8.1
8/3/2019 Chap007 Strategic Marketing
7/30
8-7
The Research ProcessThe Research Process
Research process steps
1. Define the research problem and establish research objectives
2. Determine the sources of information to fulfill the research
objectives3. Consider the costs and benefits of the research effort
4. Gather relevant data from secondary or primary sources, or both
5. Analyze, interpret, and summarize the results
6. Effectively communicate the results to decision makers
Research steps are similar for all countries
Variations and problems can occur in implementation
Differences in cultural and economic development
8/3/2019 Chap007 Strategic Marketing
8/30
8-8
Defining the Problemand Establishing Research Objectives
Defining the Problemand Establishing Research Objectives
The major difficulty is converting a series ofoften ambiguous business problems into tightlydrawn and achievable research objectives
The first, most crucial step in research is morecritical in foreign markets because an unfamiliarenvironment tends to could problems definition
Other difficulties in foreign research stem from
failures to establish problem limits broad enoughto include all relevant variables
8/3/2019 Chap007 Strategic Marketing
9/30
8-9
Problems of Availabilityand Use of Secondary Data
Problems of Availabilityand Use of Secondary Data
U.S. government provides comprehensivestatistics for United States
Marketing data not matched in other countries
Quality
Quantity
Exceptions are Japan and several European countries
Continuing efforts to improve data collection
United Nations
Organization for Economic Cooperation and Development(OECD)
8/3/2019 Chap007 Strategic Marketing
10/30
8-10
Availability
and Reliability of Data
Availability
and Reliability of Data Most countries simply do not have governmentalagencies that collect on a regular basis the kinds ofsecondary data readily available in the U.S.
Researchers language skills impede access to
information Requires native speaker of language
Official statistics are sometimes too optimistic, reflectingnational pride rather than practical reality, while taxstructures and fear of the tax collector often adversely
affect data Less-developed countries prone to optimism
Willful errors
Adjusted reporting
8/3/2019 Chap007 Strategic Marketing
11/30
8-11
Comparability of DataComparability of Data
Issues with data (especially in less developed,countries)
Data can be many years out of date
Data collected on an infrequent and unpredictable schedule
Too frequently, data are reported in differentcategories or in categories much too broad to beof specific value
8/3/2019 Chap007 Strategic Marketing
12/30
8-12
Validating Secondary DataValidating Secondary Data
Questions to judge the reliability of secondary datasources
Who collected the data?
Would there be any reason for purposely misrepresenting the facts?
For what purposes was the data collected? How was the data collected?
Are the data internally consistent and logical in light of known data sourcesor market factors?
Checking the consistency of one set of secondary
data with other data of known validity An effective and often-used way of judging validity
The availability and accuracy of recorded secondarydata increase with level of economic development
8/3/2019 Chap007 Strategic Marketing
13/30
8/3/2019 Chap007 Strategic Marketing
14/30
8-14
Qualitative research
If questions are asked, they are almost always open-ended or in-
depth
Seeks unstructured responses that reflect the persons thoughtsand feelings on the subject
Qualitative research interprets people in thesample
Qualitative research is helpful in revealing theimpact of sociocultural factors on behaviorpatterns and in developing research hypotheses
Gathering Primary Data Quantitative and Qualitative Research
Gathering Primary Data Quantitative and Qualitative Research
8/3/2019 Chap007 Strategic Marketing
15/30
8-15
Problemsof Gathering Primary Data
Problemsof Gathering Primary Data
Hinges on the ability of the researcher to getcorrect and truthful information that addressesresearch objectives
Problems in international marketing research
Stem from differences among countries
Range from inability or unwillingness of respondents tocommunicate their opinions
Inadequacies in questionnaire translation
8/3/2019 Chap007 Strategic Marketing
16/30
8-16
Ability to Communicate OpinionsAbility to Communicate Opinions
Formulating opinions about a product or concept
Depends on the respondents ability to recognize the usefulnessof such a product of concept
Product or concept must be understood and used in community
The more complex the concept, the moredifficult it is to design research that will help therespondent communicate meaningful opinionsand reactions
Gerber has more experience in trying to understand consumerswith limitations
Babies can neither answer questions or fill out questionnaires
8/3/2019 Chap007 Strategic Marketing
17/30
8/3/2019 Chap007 Strategic Marketing
18/30
8-18
Sampling in Field surveysSampling in Field surveys
Problems in sampling stem from the lack ofadequate demographic data and available listsfrom which to draw meaningful samples
Affected by a lack of detailed social andeconomic information
No officially recognized census information
No other listings that can serve as sampling frames
Incomplete and out-of-date telephone directories No accurate maps of population centers
8/3/2019 Chap007 Strategic Marketing
19/30
8-19
Language and ComprehensionLanguage and Comprehension
The most universal survey research problem inforeign countries is the language barrier
Literacy poses yet another problem
Marketers use three different techniques to helpferret out translation errors ahead of time
Back translation
Parallel translation
Decentering
8/3/2019 Chap007 Strategic Marketing
20/30
8/3/2019 Chap007 Strategic Marketing
21/30
8-21
Research on the Internet a Growing Opportunity
Research on the Internet a Growing Opportunity
One billion users in more than 200 countries
One-sixth in U.S.
International Internet use is growing almost twice asfast as American use
Uses for Internet in international research
Online surveys and buyer panels
Online focus groups
Web visitor tracking
Advertising measurement Customer identification systems
E-mail marketing lists
Embedded research
Observational research
8/3/2019 Chap007 Strategic Marketing
22/30
8-22
Estimating Market DemandEstimating Market Demand
To assess current product demand and forecastfuture demand Requires reliable historical data
When the desired statistics are not available, a close
approximation can be made Using local production figures plus imports, with adjustments for exports
and current inventory levels
Two methods of forecasting demand
Expert opinion The key in using expert opinion to help in forecasting demand is triangulation
Analogy
Assumes that demand for a product develops in much the same way in all countries as
comparable economic development occurs in each country
8/3/2019 Chap007 Strategic Marketing
23/30
8-23
Personal Computer and Mobile PhoneDiffusion Rate (per 1,000 people)
Personal Computer and Mobile PhoneDiffusion Rate (per 1,000 people)
Exhibit 8.2
Personal Computer Mobil Phone
8/3/2019 Chap007 Strategic Marketing
24/30
8-24
Problems in Analyzingand Interpreting Research Information
Problems in Analyzingand Interpreting Research Information
Accepting information at face value in foreignmarkets is imprudent
The foreign market researcher must posses
three talents to generate meaningful marketinginformation
1. The researcher must posses a high degree of cultural understanding of
the market in which research is being conducted
2. A creative talent for adapting research methods is necessary
3. A skeptical attitude in handling both primary and secondary data is
helpful
8/3/2019 Chap007 Strategic Marketing
25/30
8-25
Responsibility for ConductingMarketing Research
Responsibility for ConductingMarketing Research
A company in need of foreign market researchcan rely on an outside foreign-based agency ordomestic company with a branch in that country
A trend toward decentralization of the researchfunction is apparent
Local analysts appear to be able to provide information morerapidly and accurately
Control rests in hands closer to the market
Disadvantage lies in ineffective communications with home-office executives
Unwarranted dominance of large-market studies in decisions about globalstandardization
8/3/2019 Chap007 Strategic Marketing
26/30
8-26
Responsibility for ConductingMarketing Research
Responsibility for ConductingMarketing Research
A comprehensive review of the differentapproaches to multicountry research suggests
Ideal approach is to have local researchers in each country,
Close coordination between the client company and the localresearch companies
Two stages of analysis are necessary
Individual-country level
Multi-country level
8/3/2019 Chap007 Strategic Marketing
27/30
8-27
Communicatingwith Decision Makers
Communicatingwith Decision Makers
Gathered information must be given to decisionmakers in a timely manner
Decision makers should be directly involved not
only in problem definition and questionsformulation, but also in the fieldwork
Even when both managers and customersspeak the same language and are from the
same culture, communication can becomegarbled in either direction
8/3/2019 Chap007 Strategic Marketing
28/30
8-28
Managing the Cultural Barrierin International Marketing Research
Managing the Cultural Barrierin International Marketing Research
Exhibit 8.3
8/3/2019 Chap007 Strategic Marketing
29/30
8-29
SummarySummary
The basis objective of the market researchfunction is providing management withinformation for more accurate decision making
Customer attitudes about providing informationto a researcher are culturally conditioned
Foreign market information surveys must becarefully designed to elicit the desired data and
at the same time not offend the respondentssense of privacy
8/3/2019 Chap007 Strategic Marketing
30/30
Recommended