Global Marketing Research

Information
Information is the key component in developing

successful marketing strategies and avoiding major marketing blunders.

Information needs range from the general data

required to assess market opportunities to specific market information for decisions about the 4Ps (product, promotion, place [distribution], and price).

Information
A marketer must find the most accurate and reliable data possible within the limits imposed by time, cost, and the present state of art. The measure of a competent researcher is twofold: The ability to utilize the most sophisticated and adequate techniques and methods available within these limits, and The effective communication of insights to the decision makers in the firm.

International Marketing Research

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

Marketing Research
Marketing Research is traditionally defined as the systematic gathering, recording, and analyzing of data to provide information useful in marketing decision making. International marketing research involves two complications: Information must be communicated across cultural boundaries The environments within which the research tools are applied are often different in foreign markets.

Breadth and Scope of International Marketing Research

The basic difference between domestic and foreign market research is the broader scope needed for foreign research, necessitated by higher levels of uncertainty. In domestic operations, most emphasis is placed on the third type, gathering specific market information, because the other data are often available from secondary sources.

Three Types of Research

General information about the country, area, and/or market Information necessary to forecast future marketing requirements by anticipating social, economic, consumer, and industry trends within specific markets or countries Specific market information used to make product, promotion, distribution (place), and price decisions and to develop marketing plans.

Broader Scope of Intl Marketing Research

Economic Cultural, sociological and political climate Overview of market conditions Summary of the technological environment Competitive situation

What is different about International Marketing Research?

The process of IMR is not totally different from

domestic marketing research. However, they differ in the following ways:

IMR involves national differences between counties arising out of political, legal, economic, social and cultural differences The problem of comparability of research results that arise due to these differences

What is different about International Marketing Research? (contd.)

International researchers have to deal with a number of counties that may differ considerably in a number of important ways. Some of these differences are:
Culture differences: Culture refers to widely shared

norms or patterns of behavior within a large group of people. Cultural differences shape attitudes that consumers have towards products.
Racial differences: Differences in cultures mean

difference in physical features as well. Products must be modified to meet the needs of different races.

What is different about International Marketing Research? (contd)

Economic differences: Levels of wealth and taxation affect

consumer behavior in different countries. Eg: Norwegians consume very little alcohol due to high taxation

Religious differences: Certain religions have laid down

specific behavioral patterns. Eg: Middle Eastern countries prohibit alcohol consumption

Historical differences: Slowly evolved differences that have

profound effects on consumer behavior. Eg; Scotch whisky is considered prestigious and trendy in Italy but old-fashioned in Scotland

Climatic difference: Differences in climate accounts for

difference in cultures

What is different about International Marketing Research? (contd)

Differences in consumption patterns: There are vast differences in consumption patterns between regions. For Eg: The French prefer wine, the Germans like beer and the Spanish drink operatives. Differences in marketing conditions: For Eg: Japanese do not like being contacted over the telephone for interviews, while in Hong Kong interviews are conducted through the grill in front door. Differences in actual and potential target groups: Eg: It is easier to collect national samples in countries like England and Germany than in Spain.

What is different about International Marketing Research? (contd)

International Marketing Researchers may

also have to deal with:

Language differences Differences in market research facilities Differences in the criteria for assessing products or services

Differences in product usage

What is different about International Marketing Research? (contd)

Culture

Values, attitudes, beliefs, artifacts and other meaningful symbols represented in the pattern of life adopted to help interpret, evaluate and communicate as members of a society. Mistakes result when cultural differences not recognized Examples of blunders include Pepsodent, Branff Airlines, U.S. food manufacturers doing business in United Kingdom

What is different about International Marketing Research? (contd)

Culture: (Contd)

Dimensions of Culture:
1. Power Distance 2. Individualism vs. Collectivism 3. Masculinity vs. Femininity

4. Uncertainty Avoidance
5. Long-term Orientation

What is different about International Marketing Research? (contd)

Culture (Contd)
Power Distance

The extent to which less powerful members of a society accept and expect that power is distributed unequally.
Example: Japan has a high power distance index and the US has low power index.

What is different about International Marketing Research? (contd)

Culture (Contd)
Individualism Vs. Collectivism

Defined as people looking after themselves and

their immediate family only, versus people belonging to in-groups that look after them in exchange for loyalty (Hofstede).
Example: Japanese are collectevistic where as

the Americans are individualistic.

What is different about International Marketing Research? (contd)

Culture (Contd)
Masculinity Vs. Femininity

The dominant values in a masculine society are

achievement and success, the dominant values in a feminine society are caring for others and quality of life.
Example: Japan is masculine, while the

Scandinavian countries are feminine.

What is different about International Marketing Research? (contd)

Culture (Contd)
Uncertainty Avoidance

The extent to which people feel threatened by

uncertainty and ambiguity and try to avoid these situations.

Example: High on uncertainty avoidance are

Germany and Japan, low ones are Sweden and Denmark.

What is different about International Marketing Research? (contd)

Culture (Contd)
Long-term Orientation

The extent to which a society exhibits a pragmatic

future-oriented perspective than a conventional historic or short-term point of view.

Example: Most Asian countries, China in

particular score high on this dimension. Many western countries have short-term orientation.

What is different about International Marketing Research? (contd)

Culture (Contd)
Culture Classification Model: Assumptions regarding the use of time, the approach to talk at hand, and the role of relationships in making business decisions vary throughout the world. Countries have been classified into:

North Western/ Central European

North American Mediterranean European Latin American Traditional ( developing countries, centrally planned and former centrally planned countries) Middle Eastern

Alternative Types of Marketing Research

Descriptive Research Researcher examines in-depth the attitudes and behavior of consumers in another country or culture. Comparative Research Involves comparing attitudes and behaviors in two or more countries or cultural contexts, with a view to identifying similarities and differences between them.

Alternative Types of Marketing Research

Theoretical Research
The researcher has a predetermined theory or model and it is possible to examine cross-cultural generalizability of those theories or models.

Importance of Comparability
Account for differences in:

a) resources and expertise b) working habits and corporate culture c) organizational aspects Distinguish between a) comparability at data collection stage b) comparability at interpretation stage

Classification of International Marketing Research:

a) Single-country research b) Multi-country research c) Independent Multi-country research d) Sequential Multi-country research e) Simultaneous Multi-country research

The Research Process

1. 2. 3. 4.

5.
6.

Define the research problem and establish research objectives Determine the sources of information to fulfill the research objectives Consider the costs and benefits of the research effort Gather the relevant data from secondary or primary sources, or both. Analyze, interpret, and summarize the results Effectively communicate the results to decision makers

Differences

Although the steps in a research program are similar for all countries, variations and problems in implementation occur because of differences in cultural and economic development.

Defining the Problem and Establishing Research Objectives

The first, most crucial step in the research process It is more critical in foreign markets because an

unfamiliar environment tends to cloud problem definition. Researchers either fail to anticipate the influence of the local culture on the problem or fail to identify the self-reference criterion (SRC)

Defining the Problem and Establishing Research Objectives

The market researcher must be certain the problem

definition is sufficiently broad to cover the whole range of response possibilities and not be clouded by his or her self-reference criterion. Once the problem is adequately defined and research objectives established, the researcher must determine the availability of the information needed. If the data are available that is, if they have been collected already by some other agency the researcher should then consult these secondary data sources.

Problems of Availability and Use of Secondary Data

I. Availability

Much of the secondary data that a marketer is accustomed to having about local markets is just not available for many countries. Another problem relating to the availability of data is researchers language skills.

Problems of Availability and Use of Secondary Data

II. Reliability

Although not unique to them, less-developed countries are particular prone to being both overly optimistic and unreliable in reporting relevant economic data about their countries. For example, Chinas National Statistics Enforcement Office recently acknowledged that it had uncovered about 60,000 instances of false statistical reports since beginning a crack-down on false data reporting several months earlier.

Problems of Availability and Use of Secondary Data

Willful errors in the reporting of marketing data are not uncommon in the most industrialized countries, either. Often print media circulation figures are purposely overestimated even in OECD countries.

Problems of Availability and Use of Secondary Data

III. Comparability

Comparability of available data is the third shortcoming faced by foreign marketers. A related problem is the manner in which data are collected and reported. Too frequently, data are reported in different categories or in categories much too broad to be of specific value.

Problems of Availability and Use of Secondary Data

IV. Validating Secondary Data

The following questions should be asked to effectively judge the reliability of secondary data: Who collected the data? Would there be any reason for purposely misrepresenting the facts? For what purposes 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?

Problems of Availability and Use of Secondary Data

Checking the consistency of one set of secondary

data with other data known validity is an effective and often-used way of judging validity. The availability and accuracy of recorded secondary data increase as the level of economic development increases. Interest in collecting quality statistical data rises as countries realize the value of extensive and accurate national statistics for orderly economic growth.

Gathering Primary Data: Quantitative and Qualitative

Primary Data data collected specifically for the particular research project at hand. To get appropriate market information, the researcher questions the firms sales representatives, distributors, middlemen, and/or customers. The researcher questions the respondents to determine what they think about some topic or how they might behave under certain conditions.

Marketing research methods

Marketing research methods can be grouped into two basic types: quantitative and qualitative research. In quantitative research, usually a large number of respondents are asked to reply either verbally or in writing to structured questions using a specific response format or to select a response from a set of choices. It provides the marketer with responses that can be presented with precise estimations (in percentages, averages, etc.).

Marketing research methods

In qualitative research, if questions are asked they are almost always open-ended or in-depth, and unstructured responses that reflect the persons thoughts and feelings on the subject are sought. Direct observation of consumers in choice or product usage situations is another important qualitative approach to marketing research. The most often used form of qualitative questionnaire is the focus group interview. However, in-depth interview is used for the sake of consuming fewer resources.

Problems of Gathering Primary Data

Most problems in collecting primary data in international marketing research stem from cultural differenced among countries, and range from the inability of respondents to communicate their opinions to inadequacies in questionnaire translation.

Problems of Gathering Primary Data

Problems: Ability to Communicate Opinions Willingness to Respond Sampling Field Surveys Language and Comprehension

Multicultural Research: A Special Problem

Multicultural research involves dealing with countries that have different languages, economies, social structures, behavior, and attitude patterns. In some cases the entire research design may have to be different between countries to maximize the comparability of the results.

Research on the Internet: A Growing Opportunity

For many companies the Internet provides a new and increasingly important medium for conducting a variety of international marketing research.

Uses for the Internet in international research: Online surveys and buyer panels Online focus groups Web visitor tracking Advertising measurement Customer identification systems E-mail marketing lists Embedded research Observational research

Estimating Market Demand

In assessing current product demand and forecasting

future demand, reliable historical data are required. Despite limitations, there are approaches to demand estimation that are usable with minimum information. The success of these approaches relies on the ability of the researcher to find meaningful substitutes of approximations for the needed economic, geographic, and demographic relationships.

Estimating Market Demand

Given the greater uncertainties and data limitations associated with foreign markets, two methods of forecasting demand are particularly suitable for international markets: Expert opinion Analogy

Problems in Analyzing and Interpreting Research Information

Once data have been collected, the final steps in the research process are the analysis and interpretation of findings in light of the stated marketing problem. Both secondary and primary data collected by the market researcher are subject to the many limitations.

Problems in Analyzing and Interpreting Research Information

To cope with such disparities, the foreign market researcher must possess three talents to generate meaningful marketing information: The researcher must possess a high degree of cultural understanding of the market in which research is being conducted. A creative talent for adapting research findings is necessary. A skeptical attitude in handling both primary and secondary is helpful.

Responsibility for Conducting Marketing Research

Depending on the size and degree of involvement in foreign marketing, a company in need of foreign market research can rely on an outside foreign-based agency or on a domestic company with a branch within the country in question. It can conduct research using its own facilities or employ a combination of its own research force with the assistance of an outside agency.

Communicating with Decision Makers

Decision makers should be directly involved not only in problem definition and question formulation, but also in the field work of seeing the market and hearing the voice of the customers in the most direct ways when the occasion warrants it. Top managers should have a feel for their markets that even the best marketing reports cannot provide.

Research of Industry, Market Characteristics, and Trends

Acquisition analyses

Diversification analyses
Market-share analyses Export research

International Buyer Behavior Research

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

Challenge to Research
1. 2. 3. 4.

Too much emphasis on statistical techniques Data becoming unduly important Not enough data interpretation Too much reliance on computers and scanner data Lack of understanding among users Researchers see themselves as data collectors rather than data interpreters

5. 6.

Marketing Researcher of the 21st Century

Requirements include:

Speed Use of Internet Globalization Ability to add value to numbers and data

Ethics in Research
Researchers should consider Respondents rights Should be allowed to participate voluntarily and there should be no coercion. Sponsors rights Researcher is morally bound to conduct research in the manner that has been agreed upon with the sponsor.