Developing a Global Marketing Vision Through Marketing
Research
Chapter 8
Defining the Issue
• What is marketing research?
• Traditional view– “the function that links the consumer, customer, and
public to the marketer through information”
• Redefined view– “systematic and objective identification of
information, collection, analysis and dissemination of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing”
International Marketing Research
I. Differences with Domestic Research
- New parameters
- New environments
- More factors to consider
- More competitors
Recognizing the Need for Research
• Reasons that executives may view international research as unimportant:– Lack of sensitivity to differences in consumer tastes
and preferences.– Limited appreciation for the different marketing
environments abroad.– Lack of familiarity with national and international
data sources and the inability to use them.– Actual but limited business experience in a country
or with a specific firm may be used as a substitute for organized research.
International Marketing Research
II. Why do International Marketing Research?
- Reduce Risk of Failure- Identify opportunities- Lead to more informed decisions- Reduce mistakes
III. The IMR Process- Step 1 : Problem Definition- Step 2 : Examine Secondary Data
Stage 3:Stage 3:Company Sales Potential AnalysisCompany Sales Potential Analysis
Key Question:Key Question:How Attractive is the Potential Demand for Company How Attractive is the Potential Demand for Company
Products/Services?Products/Services?
Stage 1:Stage 1:Preliminary Screening for Attractive Country MarketsPreliminary Screening for Attractive Country Markets
Key Question:Key Question:Which Foreign Markets Warrant Detailed Investigation? Which Foreign Markets Warrant Detailed Investigation?
Stage 2:Stage 2:Assessment of Industry Market PotentialAssessment of Industry Market Potential
Key Question:Key Question:What is Aggregate Demand for Each Warrant Selected?What is Aggregate Demand for Each Warrant Selected?
Researching Foreign Market Potentials
International Marketing Decisions Requiring Marketing ResearchMarketing Mix
Decision Type of ResearchProduct policy Focus groups and qualitative research to
generate ideas for new products Survey research to evaluate new product
ideas Concept testing, test marketing Product benefit and attitude research Product formulation and feature testing
Pricing Price sensitivity studiesDistribution Survey of shopping patterns and behavior
Consumer attitudes toward different storetypes
Survey of distributor attitudes and policiesAdvertising Advertising pretesting
Advertising posttesting, recall scores Surveys of media habits
SalesPromotion
Surveys of responses to alternative typesof promotion
Sales Force Tests of alternative sales presentations
The Scope of International Marketing Research
Source: Susan P. Douglas and C. Samuel Craig, International Marketing Research, Copyright 1983, p.32. Reprinted by permission of Prentice Hall, Inc., Englewood Cliffs, New Jersey.
International Marketing Research
IV. Data Sources - a wide variety are available.
V. Advantages of Secondary- Fast
- Inexpensive
- Can aid in further research
Secondary information requirements
• What do you really need to know?– Was sufficient research conducted to answer
the research question(s)?– Is macro data sufficient or will micro data be
required to complete the market assessment and selection?
– What market restraints are present ?– Is knowledge of international accords
required?– Is specific product data necessary for
marketing mix determination?
International Marketing Research
VI. Disadvantages of Secondary Data- May not be accurate
- Difficult to trace methodology
- Data becomes quickly outdated
- Not collected for specific task at hand
Sources of Data
• Governments– Departments of Commerce, Agriculture, State,
Treasury, and U.S. embassies abroad
• International organizations– United Nations’ Yearbook, World Bank’s
World Atlas, Organization for Economic Cooperation and Development (OCED) and World Trade Organization (WTO) publications
• Service organizations– Banks, accounting firms, freight forwarders,
airlines, and international trade consultants
The Research ProcessMajor Sources of Secondary Data
U.S. DEPARTMENT OF COMMERCE
Foreign Trade Report: U.S. exports by commodity and by country
Global Market Surveys: Global market research on targeted industries
INTERNATIONAL MONETARY FUND
International Financial Statistics: Monthly report on exchange rates, inflation, deflation, country liquidity, etc.
UNITED NATIONS
Statistical Yearbook: Population, production, education, trade, etc.
THE ECONOMIST
E.I.U. World Outlook: Forecasts trends for 160 Countries
Marketing in Europe: Product markets in Europe
Validating Secondary Data• Who collected the data ? Would there be
any reason for purposely misrepresenting the facts ?
• For what purpose were the data collected ?
• How were the data collected ? (Methodology)
• Are the data internally consistent and logical in light of known data sources or market factors ?
International Marketing Research
VII. - Step 3 : Consider Costs and Benefits of the Research
Effort
VIII. - Step 4 : Primary Data Collection
International Marketing ResearchPrimary data is collected for the specific research
problem at hand1) Major Types of Primary Research
i) Exploratoryii) Descriptiveiii) Causal
2) Research Techniquesi) Interviewsii) Focus Groupsiii) Observationiv) Surveys
International Marketing Research
IX. - Step 5 : Analysis and Interpretation
X. - Step 6 : Communicate Results Effectively
The Research Process
France Netherlands Sweden Switzerland U.K.Mail 4% 33% 23% 8% 9%Telephone 15 18 44 21 16Central location/ streets 52 37 -- -- --Home/work -- -- 8 44 54Groups 13 -- 5 6 11Depth interviews 12 12 2 8 --Secondary 4 -- 4 8 --
Table 6.4: Comparison of European Data Collection Methods
Source: Emanuel H. Demby, “ESOMAR Urges Changes in Reporting Demographics, Issues Worldwide Report,” Marketing News, January 8, 1990, p. 24. Reprinted by permission of the American Marketing Association.
Gathering Primary Data
Quantitative ResearchQuantitative Research
Qualitative ResearchQualitative Research
Determining the Research Technique
• Objectivity requirements for the acquired data– Standard collection techniques work best with
objective data. Subjective data collection takes more effort to collect and interpret.
• Soft data and hard data– Subjective (soft) data from dealer interviews and
objective (hard) data from shipments, inventories, and retail sales.
• Interviews– Knowledge persons are a valuable information
resource (personal bias must be discounted).
Uses of Internet inInternational Research
• On-Line Surveys
• On-Line Focus Groups
• Web Visitor Tracking
• Advertising Measurement
• Customer Identification Systems
• E-Mail Marketing ListsSOURCE: John A. Quelch and Lisa R. Klein, “The Internet and International Marketing,” Sloan Management Review: Spring 1996. Pp. 60-75
Talents Required to Analyze and Interpret Research Information
• Cultural Understanding
• Creative Talent for Adapting Research Findings
• Skeptical Attitudes when Handling Both Primary and Secondary Research