International Marketing Intellegence

Chapter 4

INTERNATIONAL MARKETING INTELLIGENCE

International Marketing Chapter-4 International Marketing

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Objectives

What are the areas of information requirementWhat are the sources of informationWhat is marketing research and what are the objectives, limitations, scopes types and phases of marketing research


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Objectives

What are the method of data collectionWho are research agencies and what are their drawbacksHow to select research agenciesWhat are the problems of international research


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Introduction

Proper business intelligence is essential in following area

1. International marketing decision2. Market selection decision3. Entry and operating decision4. Marketing mix decision 5. Organization decision


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Information Requirement

International marketing related informationMarket selection related informationProduct related informationPrice related informationPromotion related informationDistribution related informationCompetition related information


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Sources of Information-Organizations Within India

They are important sources of information pertaining to foreign marketsThey have brought out publication intended to provide general guidance and education to exportsThey carry out market potential studies and other relevant studiesThe consulates of foreign governments provide a lot of information about the countries.


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Sources of Information-Organizations outside India

The international trade centre, Geneva, is a very important source of information and assistance to exporters.Offices of the Indian embassies of the foreign government may be approached for certain type of information.There are certain international organizations related to specific products.


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Sources of Information-Publications

Information can be obtained from publications like journals and research publication – national, foreign and internationalGeneral and specialized publications carrying useful information for the exporters.Foreign and international publication, general and product specific


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International Marketing Information system and Marketing Research

IM involves the creation of an information system, which should be a part of the company’s overall information system for international business.


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Objectives of Marketing Research1. Identify the deficiencies

a. Products b. Pricingc. Distribution d. Promotion

2. Identify existing and emerging marketing opportunities

3. Identify the relative weaknesses and strength of the company

4. Monitor the environmental changesInternational Marketing

Chapter-4 International Marketing Intelligence

Limitations of Marketing Research

1. Research findings are not always dependable. The performance of many products have been in contradiction to the research indications.

2. It involves costs.3. In underdeveloped countries, marketing

research has its own limitations arising from non-availability of adequate and reliable data, problems in collecting data and so on.

4. It is a time consuming process.International Marketing


Scope of Marketing Research1. Product research2. Pricing research3. Distribution research4. Promotion research5. Consumer research6. Marketing environment research7. Market trend research8. Marketing efficiency researchInternational Marketing


Types of Research

1. Exploratory research2. Conclusive research


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Exploratory Research

It seeks to discover now relationshipsIt is investigative in natureIt may be conducted by1. Study of secondary data2. Survey of knowledgeable person3. Analysis of selected cases i.e. intensive study of a relatively small number of situations. International Marketing


Conclusive Research

1. Descriptive researchmay be conducted by

1. case study2. Statistical study

2. Experimental researchIt may be done in the

laboratory situation or in the field.International Marketing


Phases of a Research project

1. Definition of the problem2. Conducting of a situational analysis3. Conducting o an informal study 4. Formulation of the research design5. Collection of information6. Analysis and interpretation of data7. Presentation of research findings


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Secondary And Primary DataSecondary data are data which have already been gathered by somebody else and are available to others for use. Such data may be available in published or unpublished form.Primary data, are first-hand data collected by the researcher. It may be noted that even some of the primary data may be unreliable.International Marketing


Observational Research

This is the method of collecting data by observing the behavior of people in a given situationIt may be in a natural or simulated situationIt may be made openly, through hidden cameras, one way mirrors or by disguised observers


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Merits of Observational Research

1. It provides information about the actual behavior of consumers

2. Chances of bias are limited3. It helps to obtain information which

consumers are unwilling or unable to provide


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Limitations of Observational Research1. It is helpful in getting information only

about certain aspects of consumer behavior.

2. It provides information only about how consumers behave: it does not provide any information as to why consumers behave so.

3. It is helpful only as a supplement of other methods.International Marketing


Survey research

1. Personal interviewing2. Telephone interviewing3. Mail questionnaires


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Personal interviewing

a) Individual interviewing : it is more suited than group interviewing for collecting information that is too personal

b) Group interviewing : It is less costly. Certain information may be forthcoming from group interviewing


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Merits of Personal Interviewing1. It is the most direct way of eliciting

information from the respondents.2. It enables the researcher to take the

respondent into confidence so as to get his full cooperation.

3. It enables clarification of points.


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Merits of Personal Interviewing4. It enables the cross-checking of the

information provided.5. It provides flexibility needed for data

collection.6. It enables the investigator to observe

the environment of the respondent.


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Limitations of Personal Interviewing

1. It is time consuming and costly, if the respondents are large in number and widely scattered.

2. Some respondents may be hesitant to reveal certain information in a face-to-face interview.

3. This method needs trained people who are tactful in collecting information.


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Merits of Telephone Interviewing

1. Easy and quick method.2. This method enables taking the respondent

into confidence, clarification of points, cross-checking of information to some extent

3. As it avoids face-to-face situation, it is better for very personal or sensitive information

4. It saves time and cost compared to personal interviewing.


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Merits of Mail Questionnaire1. When the respondents are large in

number and scattered over distant places this is a preferable method.

2. It is also a very economical method3. Respondents can fill in the questionnaire

at their leisure and hence they may be in a position to do justice to the requirements.

4. It avoids embarrassment of talking in person about certain sensitive matters.


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Limitations of Mail Questionnaire

1. It can not be used to collect information from the illiterate.

2. It does not provide scope for clarification.

3. It does not provide as much scope for cross-checking.


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Limitations of Mail Questionnaire

4. There are chances of the respondents leaving some parts of the questionnaire blank

5. Many respondents may have to be reminded over and again to send back the questionnaire.

6. The response set is normally very low.International Marketing


Sampling

A survey of a few hundred consumers selected in such a way as to possess the representative character of the relevant population will serve the purpose of marketing research.


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Reasons for Sampling1. When the population size is very large, it

is not possible to collect information about all the units within a limited time.

2. When the population is very large, collection of information from all the units would be prohibitively expensive.

3. Besides the two problems, there could be other practical difficulties like getting sufficient number of qualified investigators, locating all the units etc.


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Reasons for Sampling

4. A representative sample would provide reasonably adequate and accurate information and accuracy of information is not going to be justifiably enhanced by studying the entire population.

5. In certain situations, sampling is the only justifiable method.


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Sample Characteristics1. It should be representative of the

population so that the information collected from the sample will be dependable

2. The sample should be of adequate size to ensure reasonable accuracy of information.

3. Sampling is justifiable in terms of time and other resources.


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Non-Probability Sampling

1. Convenience sampling2. Quota control sampling3. Judgment sampling


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Probability Sampling

1. Simple random sampling2. Stratified random sampling3. Systematic sampling 4. Cluster sampling


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Research Agencies

Advantage of research agency1. Expertise2. Objectivity3. Knowledge and familiarity4. Cost effectiveness


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Selection Of Agency

Selection of right agency involve a careful process.The first step is collection of information about the research agencies.A small number should be selected by a preliminary screening.


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Selection Of Agency

From that two or three are selected and a detailed discussion about the research proposal is held.One best is selected after that and the terms and conditions should be clearly laid down in a contractor letter of agreement.


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Problems in International research

1. The cultural differences make foreign market research a difficult task.

2. It is often very expensive3. The research methodology suitable for

one market may not be suitable for another market.


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SummaryThe areas of information requirement for IM includes

1. IM decision related information2. Market selection related information3. Product related information4. Promotion related information5. Distribution related information 6. Competition related information.

Marketing research forms a part of marketing information.


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Exploratory and conclusive research are the two types of research.Observation and survey are the two methods of primary data collection.Expertise, objectivity, knowledge and familiarity and cost effectiveness are the advantages of a good research firm.


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Education

International Marketing Intellegence