International Marketing Research

What is Market Research:

It is systematic design, collection, analysis and reporting of data and

findings related to a specific marketing situation / problem facing the
company.

The American Marketing Association:

The systemic gathering, recording and analyzing of data about problems

relating to the marketing of goods & services.

M R is a set of techniques and principles for systematically collecting,

recording, analyzing and interpreting data that can aid decision makers
involved in marketing of goods & services.

International Marketing Research:

It is a complete analysis of the foreign market, information regarding the

nature, size, organization, profitability, changes in the foreign market and
various factors – economic, social, political – affecting those changes.

Marketing Research System:

- It is systematic design, collection, analysis and reporting of

data and findings related to a specific marketing situation /
problem facing the company.

- All good companies have a Market Research Department.

- The spends (Budget) on Market Research is usually ranges from

0.1 to 3.5% of marketing budget.

- Market Researching is normally outsourced, as specific

information is required from the specialized agency – to have
internal researchers would be too costly, and researchers most of
the time would be idle.
 A C Nielsen, IMRB, ORG Marg, Matrix, TAM, IRS, NRS are
some of the Market Research firms and they fall within the three
categories:

- Syndicated-service Research firms: These firms keep collecting

consumer and trade information, and sell for a fee to clients.
- Custom Market Research firms; These firms are hired to carry
out specific research projects.
- Specialty-line Marketing Research firms: these provide
specialized services to other Market Research firms and
Companies. Eg. Field Interview Services
Important Research Areas – Need for International Market
Research – Applications for Marketing Research

- Advertising Research
 Copy
 Media
 Effectiveness
- Business Economies and Corporate Research
 Short / Long range forecasting
 Business trends
 Pricing

- Sales & Market Research

 Measurement of market potentiality
 Market share analysis
 Market Research
 Determination of market characteristics
 Sales analysis

- Product Research
 New product
 Competitor’s product
 Packaging
Steps to Market Research:

Step 1 Step 2 Step 3 Step 4 Step 5

Defining the Developing Collection of Analyzing Presenting

problem & the information the the
Research Research information findings
Objectives Plan

Step 1. Defining the Problem & Research Objective:

Most important role of the executive is to define the problem – for which
answers are needed and it is said “a problem well defined is half solved.”
The marketers and the researchers need to sit together and work out what is
the real factor (problem) for decision-making. They have to note down all
the possible answers they are likely to receive and the implication of each on
their basic requirement or the problem. It is only then, it can be worked how
to proceed with the research.

Step 2. Developing the Research Plan

To reach to any conclusion, the researchers need to have a starting point, ie.,
they need to have certain data, information, fact or direction to move ahead.
The data are of two types:

1. Secondary Data: It is the information that already exists and was

collected for general or for other specific purpose or second hand
information. This is normally less costly.
- Internal: sales record, profit & loss statement, earlier research
records
- External: Government publications, Census, periodicals, books,
research agencies

2. Primary Data: It is the information that is collected by the researcher

itself for the specific objective. It is more time consuming and costly.
- Research Approaches or Methods of Data Collection:

a) Observational Research: One way to gather fresh data is to

observe the relevant people and environment.
b) Survey Research: Get the information from the relevant field
by interviewing people to know about their knowledge, beliefs,
preferences, tastes, likings and to measure these magnitudes in
the population.
c) Experimental Research: This calls for selecting matched
groups of subjects, giving them different treatments, controlling
extraneous variables and checking on whether observes
differences are statistically significant.

- Research Instruments:

a) Questionnaire: It is a most common mode of

collecting primary data.
 It is very flexible – no. of ways the questions can be
asked
 It need to be carefully developed, tested and debugged,
worded and sequenced, as form of question can
influenced the response
 Open-end questions – allow the respondent to answer in
his or her words, useful at the exploratory stage.
 Close-end questions – include all possible answers and
the respondent has to just make a choice from them

b) Mechanical Instruments:

 Galvanometer –to measure interest or emotions aroused

by an exposure to something.
 Tachistoscope – flashing of a picture and then ask for
recall
 Audiometer – electronic device fitted with TV.
 Camera – secretively in shops, houses, work places
 Electronic Cash Registers
  Optical scanners - eye movement over the products,
brands, size & price

- Sampling Plan:
 How many
 Who
 Where
- Contact Methods:
 Telephone interviewing
 Mail questionnaire
 Internet
 Personal interviewing
 Group interviewing

Step 3. Collecting of Information

The data collection methods are changing under the modern

telecommunications and electronics.
 - By going in the field or homes and interviewing the respondents
through interviews
- The high profile are contacted and appointment taken over
telephone
- Some agencies have a varied panel of respondents and they are
called for interviews
- A profiled set of addresses for sending internet mail interviews
- Unseen actions & reactions recorded and noted through camera,
scanners, and other instruments
- Selection of the respondents could be through names & addresses
provided for a fee by subscription owning companies.

Problems:

- Some respondents are not found at home and need to be

recontacted
- Some respondents may refuse to cooperate
- Respondents may give biased or dishonest answers

Step 4. Analyzing the Information

Once the information is collected, to extract pertinent information, the data

is subjected to Quantitative Techniques. The data is tabulated, averages are
found and measured to the objectives. The data is analysed so as to reach to
required information.

Step 5. Presenting the Findings

After analyzing the data, the findings that are relevant are presented to the
Management. All the detailed numbers and fancy statistical details are
avoided.
Types of Research:

Types of Research

Exploratory Conclusive

Descriptive Experimental

Case Study Statistical Study

Secondary Data Primary Survey of knowledgeable

Persons

Exploratory Research seeks to discover new relationships, is investigative

on nature.
Exploratory research is a type of research conducted because a problem has
not been clearly defined.
Exploratory research helps determine the best research design, data
collection method and selection of subjects.

Conclusive Research is designed to help executives choose from among the

possible course of action (or decision)

Descriptive Research is also known as statistical research, describes data

and characteristics about the population or phenomenon being studied.
Descriptive research answers the questions who, what, where, when and
how.

Experimental Research used for the controlled testing of causal processes.

The general procedure is one or more independent variables are manipulated
to determine their effect on a dependent variable.

These designs can be used where:

1) There is time priority in a causal relationship (cause precedes effect)

2) There is consistency in a causal relationship (a cause will always lead to

the same effect)

3) The magnitude of the correlation is great.

Statistical Research is a mathematical science pertaining to the collection,

analysis, interpretation or explanation, and presentation of data

Primary Research (also called field research) involves the collection of

data that does not already exist.

This can be through numerous forms, including questionnaires and

telephone interviews amongst others.

This information may be used in such things as questionnaires, magazines,

and Interviews
Characteristics of Good Marketing Research

a) Scientific Method:
- Careful observation
- Formulation of hypotheses
- Prediction
- Testing

b) Research Creativity: Innovative ways to solve the problem.

- same test under different conditions
- different test under similar conditions

c) Multiple Methods:
- Questionnaire – close as well open ended
- Mechanical instruments – Galvanometer, audiometer, Camera,
optical Scanning, electronic cash registers
- Personal interviews or over distance (telephone, mail or internet)

d) Interdependence of models and data:

- Descriptive models
- Micro analytical models
- Micro behavioral models
- Queuing models
- Decision models
- Game models
- Verbal models
- Graphical models
- Mathematical models

e) Value over Cost of information:

- Researchers need to understand Value/Cost factor, this determines
which research projects to conduct.
Shortcomings:

1. A Narrow Conception of Market Research: Many marketing

managers believe in their own thoughts, conceptions, ideas & beliefs.
For them Market Research is only an fact finding exercise. If the
findings are not as per their thoughts, the findings are rejected.
2. Uneven Caliber of Researchers: Less or unqualified researchers are
hired to conduct the research. This is more so because, the researchers
are paid low and are not whole-time employees. Many a times
researchers do not conduct the survey and fill up the questionnaire of
their own.
3. Late Results: The report may come late and be of no use to the
Management.
4. Erroneous Findings: Because of wrong planning, wrong
respondents, faulty questionnaire, wrong statistical techniques and
models, the researchers reach to wrong conclusions.
5. Intellectual differences: Between the researchers and the
management. Researchers presentation is not in line with mental style
of management.
6. Cultural Differences: Between foreign markets
7. Expensive
8. Research Methodology suitable for one market may not be suitable
for other markets
Applications of Market Research