Traditionally defined as the systematic

gathering, recording, and analyzing of data to

provide information useful in marketing
decisions.
... links the consumer, customer, and public
to the marketer through information
Information is used to ...
identify & define marketing opportunities & problems
generate, refine & evaluate marketing actions
monitor marketing performance
improve understanding of marketing as a process.

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 Market Potential
Demand estimates, consumer behavior, review
of marketing mix
Competitor Information
Corporate, business, and functional strategies
Foreign Exchange
Balance of payments, interest rates,
attractiveness of country currency

2
 Prescriptive Information
Laws, regulations, rulings concerning taxes,
earnings, dividends in both host and home
countries
Resource Information
Availability of human, financial, physical, and
information resources
General Conditions
Overall review of socio-cultural, political, and
technological environments

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 Surveillance
Informal information gathering
VIEWING general exposure to information
MONITORING paying special attention and
tracking a story as it develops
Search
Formal information gathering
INVESTIGATION seeking out secondary data
RESEARCH conducting primary research

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 Identifying the research problem
Developing a research plan
Collecting data
Analyzing data
Presenting the research findings

5
 What information do I need?
Existing Markets customer needs already being
served by one or more companies; information
may be readily available
Potential Markets
Latent market an undiscovered market; demand
would be there if product was available
Incipient market market will emerge as macro
environmental trends continue
Why do I need this information?

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 Do we need quantitative or qualitative data?
What is the information worth (versus what
will it cost to collect)?
What will it cost if we dont get the
information?
What can be gained from the information?

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 Secondary Data
Statistical Abstract of the United States
Statistical Yearbook of the United Nations
World Fact book
The Economist
The Financial Times
Syndicated studies
And much more

8
 Primary Data Collection Methods
Survey research
Interviews
Consumer panels
Observation
Focus groups

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 Demand Pattern Analysis
Income Elasticity Measurements
Market Estimation by Analogy
Time-series displacement
Comparative Analysis
Cluster Analysis

10
 Data from sources that already exist -
they have not been gathered for the
specific research project
Therefore: Minimal effort and cost
Possible problems
accuracy
availability
timeliness
costs
comparability of data

11
 Government
Department of Trade & Industry
Bangko Sentral ng Pilipinas (BSP)
National Economic Development Authority
(NEDA)
Customs authorities (BOC)
Philippine Statistics Authority (PSA)
Other departments, bureaus, and agencies
International Organizations
UN, OECD, World Bank, IMF, ADB
Trade Associations
Databases
The Economist Intelligence Unit

12
 International Trade
Yearbook of International Trade Statistics (UN)
Exporters Encyclopedia (D&B)
Philippine Foreign Trade Statistics (NSO)
Import Statistics
Export Statistics
Country Information (socio-economic &
political)
Yearbook of Industrial Statistics (UN)
Statistical Yearbook (UN; updated by monthly
Bulletin of Statistics
Europa Yearbook
OECD Economic Survey
Country Reports (The Economist Intelligence Unit
([EIU])
Demographic Yearbook (UN)
UNESCO Statistical Yearbook
World Factbook (CIA) 13
 International Marketing
European Marketing Data and Statistics (Euromonitor)
International Marketing Data and Statistics
(Euromonitor)
Consumer Europe (Euromonitor)
Advertising Age International
FINDEX: The worldwide directory of Market Research,
Studies & Surveys (Cambridge Information Groups
Directories)
Department of Trade and Industry
Export Marketing Bureau (EMB)
Bureau of International Trade Relations (BITR)
Center for International Trade Expositions and Missions
(CITEM)
Philippine Exporters Confederation (PHILEXPORT)

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 Chambers of Commerce
See http://www.worldchambers.com/chambers.html
(for global index)
Directories of Foreign Firms
D&B Europa (Dun & Bradstreet)
Directory of American Firms operating in Foreign
Countries (World Trade Academy Press)
Directory of Foreign Firms Operating in the United
States (World Trade Academy Press)
Europes 15,000 Largest Companies (ELC Publishing)
International Directory of Importers: Europe (Interdata)
Mailing Lists of Worldwide Importing Firms (Interdata)
Moodys International Manual (Moodys Investors
Service)
Principal International Businesses; the World Marketing
Directory (D&B)

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 ... when secondary data not available
... provides accurate data which give
exact answers to a given research
problem
Possible problems
difficulties in obtaining the data
cost
more time is necessary to gather the data

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Examples:
Demand pattern analysis
Income elasticity measurements

Market estimation by analogy

Comparative analysis

Cluster analysis

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 By analogy method- starts by selecting a
country that is at the same stage of
economic development as the country of
interest and for which the market size for
a product is known.
Based on the premise that the
relationship between the demand for a
product and a particular indicator, for
instance, the demand for a related
product, is similar in both countries

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 Suppose a consumer electronics co wants
to estimate the market size for DVD
players in the Ukraine.

For the base country, we choose a

neighboring country say, Poland, for
which we possess info on the sales of
DVD players. We also need to choose a
proxy variable that correlates highly with
the demand for DVD players. Let us say
this variable is the no. of TV sets in use.

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 SALES
_______________________________________
Color TV (000) DVD Players (000)
Poland 14,722.64 69.17
Ukraine 15,626.15 ?

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 So in our example, we assume that the ratio of
DVD-player sales to color TV-ownership in the
Ukraine and Poland is roughly equivalent:

DVD Player Demand Ukraine =DVD Player Demand Poland

_______________________________________ _______________________________________

Color TVs in Use Ukraine Color TVs in Use Poland

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 Since we are interested in the demand for DVD
players, we can derive an estimate based on the
following relationship:

DVD Player Demand Ukraine =

Color TVs in Use Ukraine x (DVD Player Demand Poland )
_______________________________________________________________________________

Color TVs in Use Poland

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Estimated DVD Player Demand Ukraine =

15,626.15 x (69.17/14,722.64) =
73.4 units

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Market Indicators - economic data that serve as yardsticks for the relative
market strengths of various geographic areas

1. Market Size shows the relative size of each market as a percentage

of the total world market. The percentages for each market are obtained
by averaging data on population (given double weight), urban
population, private consumption expenditures, steel consumption,
cement and electricity production, and ownership of telephones, cars,
and television sets.
The Market Size Index is a measurement of the potential market for
goods and services. It is the ratio, expressed in percent, of several
consumption and production items for each country compared to the
regional total for the same items.
Market Size 2(POP)+POPU+PCE+KWH +STL+CEM+TEL+CAR+TV X 100
= 2(POPR) +POPUR+PCER+KWHR+STLR+CEMR+TELR+CARR +TRV
Index

Where:
POP = total production
POPU = urban population
PCE = private final consumption in USS
KWH = electricity production
STH = apparent crude steel consumption
CEM = cement production
TEL = telephone lines in use
CAR = passenger cars in use
TV = television sets in use

Note: Variables ending in R are regional totals, and a 2 before a variable indicates double weighting

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2. Market Intensity measures the degree of concentrated
purchasing power the market represents compared to the
world intensity set at 0.00. This is the richness of the
market
To Produce an index of relative buying power of the
populations of various markets, each countrys share of the
variables used in the market size index is put on a per capita
basis. The countrys share is expressed as a ratio relative to
the region total of the items with the region total set equal to
zero.
Urban population is double weighted because much of the
rural population does not participate in the money
economy.

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 POP +2(POPU) +(PCE) +KWH +STL+CEM+TEL +2(CAR)+TV
POP

Market Intensity =

POPR=2(POPUR)+2(PCER)+KWHR+STLR+CEMR+TELR +2(CAPR) +TVR

POPR

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3. Market Growth is an average of the
percentage growth of the following indicators over
the past five years: population, steel consumption,
electricity production, and ownership of cars,
trucks, buses, and television sets

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Market Factors economic data that correlate highly with
market demand for a product

1. Estimation by Analogy using a similar factor that is

successful in one market to estimate demand in a similar
market
2. Regression Analysis statistical technique utilizing a linear
model to establish relationships between independent
variables and the dependent variable
3. Trend Analysis statistical technique by which successive
observations of a variable at regular time intervals are
analyzed to establish regular patterns that are used for
establishing future values

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 Must analyze many markets to recognize unique
characteristics
Devise techniques to study small markets
In developing countries, data may be
questionable
Compatibility
Consumer may be hard to reach

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