Marketing research

Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002

International Marketing Research: Practices and Challenges

RAHUL JHA Roll- 15085 L.N Mishra Institute, Patna


Chapter Objectives• Define international marketing research and provide a

description of its immense scope; offer examples of each type of research conducted in international mar-keting

• Describe the steps involved in the international mar-keting research process while addressing, for each step, the international constraints involved

• Introduce the concept of decision support systems for international marketing and describe the sales fore-casting process


International Marketing Research• International marketing

managers need to con-stantly monitor the differ-ent forces affecting their international operations

• International marketing research is especially complex


International Marketing ResearchInternational marketing research is the systematic design, collection, recording, analysis, interpretation, and reporting of information pertinent to a particular marketing decision facing a company operating inter-nationally.


Research of Industry, Market Charac-teristics, and Trends• Acquisition analyses• Diversification analyses• Market-share analyses• Export research


International Buyer Behavior Re-search

• Brand preferences• Brand attitudes• Brands awareness studies• Purchase behavior studies• Consumer segmentation

studies


International Product Research• Concept development

and testing studies • Brand name generation

and testing • Product testing • Competitive product studies • Packaging design studies • Test marketing

#1


International Distribution Research• Import/export analyses• Channel performance and coverage• Plant/warehouse location studies


International Promotion Research• Studies of premiums, coupons, and deals• Advertising effectiveness research • Local media research • Studies pertaining to personal selling activities

Sales Force Compensation Quota Territory


International Pricing Research• Studies projecting demand• Currency and counter trade studies• Studies of inflation rates and pricing• Studies of negotiation tactics


The International Marketing Research Process• STEP 1 Define the international research problem

and agree on the research objectives Exploratory Research Descriptive Research Causal Research

• STEP 2 Set specific objectives


The International Marketing Research Process, continued• STEP 3 Develop the International Research Plan• STEP 4 Define Information Sources

Secondary Data- Researchers must determine if the information is available, and,

if so, how reliable it is- Internal data is useful only if company has collected similar info

from relevant respondents in a country with similar environment


Secondary Data Constraints• Conceptual Equivalence

Concepts have different meanings in different cultural envi-ronments

• Functional Equivalence Products themselves may be used for different purposes in

different country environments


Secondary Data Constraints, contin-ued• Availability, Reliability, and Validity

Accuracy of secondary data can be questionable: Published statistics may be unreliable

Sources of reliable data:- World Bank- United Nations Development Program- Organization of Economic Cooperation and Development

(OECD) - Euromonitor


Primary Data• Information collected for a specific purpose, to

address the problem at hand. The costs of collecting primary data in foreign markets

are likely to be much higher given the lack of an appro-priate marketing research infrastructure


Primary Data Research Approaches• Qualitative research has been particularly useful

as a first step in studying international marketing phenomena. Focus Groups Observation

• Constraints: Responses can be affected by culture, individuals may act differently if they know they are being observed.


Primary Data Research Approaches, continued• Quantitative research are more structured, involving

either descriptive research approaches, such as sur-vey research, or causal research approaches, such as experiments. Content Analysis Survey Research Experimental Research

• Constraints: Respondent factors, infrastructure factors


Data Collection• STEP 5 Design Data Collection Instrument

Emic instruments measure phenomena specific to each cul-ture.

Ethic instruments measure the same phenomenon in dif-ferent cultures.

• Constraints: Translation; Instrument Reliability; Reluc-tance to answer certain questions


Data Collection, continued• STEP 6 Decide on the Sampling Plan

Sample Unit Sample Size Sampling Procedure

• STEP 7 Collect, Analyze, and Interpret Data


Decision Support Systems for Global Marketing• A coordinated collection of data, systems, tools, and

techniques, complemented by supporting software and hardware designed for the gathering and interpre-tation of business and environmental data


Sales Forecasting• Sales Force Composite Estimates

Personal observations and expectations of the local sales force

• Jury of Expert Opinion Opinions of different experts about future demand

• The Delphi Method Experts to estimate market performance; findings are aggre-

gated, and experts are queried again, in light of aggregate responses


Sales Forecasting, continued• Time Series and Econometric Models

Use data of past performance to predict future market de-mand

• Analogy Methods Estimation method that relies on developments and findings

in markets - With similar levels of economic development, or- Where the product is in the same market development stage, or- In markets which share similar cultural characteristics


• Point of Sale Research Made with the help of store scanners, in markets where they

are available

Involve comprehensive store audits

Sales Forecasting, continued


Chapter Summary• Defined international marketing research• Described steps involved in the international market-

ing research process and related international constraints

• Discussed marketing decision support systems and international sales forecasting

Education

Marketing research