Global Marketing
Management
A European Perspective
Assessing
Global Marketing Opportunities
Warren J. Keegan
Bodo B. Schlegelmilch
Overview
Global Marketing Research
Definition
Relevant Dimensions of the Marketing Environment
Idiosyncrasies of Global Marketing Research
Data Compatibility and Equivalence
Secondary Data versus Primary Research
Organisation of the Global Marketing Research
Process
Summary
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 2
Learning Objectives
To understand the key global information needs of a
company
To appreciate the impact of globalisation on the
marketing research discipline
To learn how environmental differences impinge on
primary and secondary research
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 3
Marketing Research
... links the consumer, customer, and public to the
marketer through information
Information is used to ...
identify and define marketing opportunities and problems;
generate, refine, and evaluate marketing actions;
monitor marketing performance; and
improve our understanding of marketing as a process.
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 4
Inadequate International Marketing
Research Can Cause Costly Mistakes
Examples:
US ketchup -> Japan
US Kentucky Fried Chicken -> Brasil
US Soft Drink -> Indonesia
D Knorr soup -> USA
US cake Mix -> GB
Thus: In international marketing, information is
critical in developing effective marketing strategies!
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 5
Relevant Dimensions of the
Marketing Environment
Te chnol og ica l
Ec ono mic and
Com pe ti ti ve
Po li ti cal
GLOBAL
INFORMATION
NEEDS
Soc ia l and
Cultural
Reg ul ato ry
Le ga l
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 6
Dimensions to be Examined in the
Marketing Environment (1)
Economic and competitive environment
eg GNP, income level, balance-of payment
Technological environment
eg engineering skills (for production in a specific country)
Political environment
eg government actions with respect to taxes, equity control,
and expropriation
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 7
Dimensions to be Examined in the
Marketing Environment (2)
Regulatory environment
eg governmental and non-governmental agencies which
enforce laws and set guidelines for conducting business
(such as EU or WTO)
Legal environment
eg patents, trademarks, licensing jurisdiction and antitrust
laws
Social and cultural environments
eg conscious an unconscious values, ideas, attitudes, and
symbols
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 8
Idiosyncrasies of
Global Marketing Research
Complexity of factors to be considered
additional markets add complexity
Competition
more firms have to be taken into account
Lack of research infrastructure
... especially in developing countries
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 9
Data Compatibility and Equivalence
in Global Marketing Research
National markets have unique characteristics
But: It is essential that data have the same
meaning and the same level of accuracy,
precision of measurement, and reliability
This aspect covers all stages of marketing research
from problem definition to data analysis
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 10
Equivalence in
Global Marketing Research
Measurement Equivalence
Testing for and
Establishing
Measurement
Equ ivalence
Configural Invariance
• Basic Factor Patterns Correspond
Metric Invariance
• Factor Loadings Correspond
Sca lar Invariance
• Relationship of Latent and Manifest Variables Correspond
Data Analysis
Data Preparation
Data Collection
Equivalence of Data in
Cross-Cultural Research
• Compa rability of Data
Equivalence of
Data Handling
• Response Translation
• Response Categories
Equivalence of
Research Methods
• Data Collection
• Stimuli
Equivalence of
Research Units
• Definition
• Selection
Equiv. ofResearch
Administration
• Timing
• Interaction
Equiva lence of Research Topics
Problem Definition
 Functional Equivalence  Conceptual Equivalence Category Equivalence
Source:
Salzberger T., Sinkovics
R., Schlegelmilch B.B.:
Data Equivalence in
Cross-cultural Research:
A Comparison of
Classical Test Theory
and Latent Trait Theory
Based Approaches",
Australasian Marketing
Journal, Vol. 7, No. 2,
1999, p. 3
Equival ence in Cross-Cultural Research
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 11
Secondary Data
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 and
comparability of data
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 12
Examples of
Secondary Data Sources
Governments
Department of Trade and Industry
International Organisations
UN, OECD, Worldbank,
Trade Associations
Tradefair International, Japan Export Trade
Organisation (JETRO)
Electronic Data Bases
Euromonitor
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 13
Primary Research
... when secondary data are inadequate
... provides accurate data which give exact
answers to a given research problem
Possible problems
difficulties in gaining the data
cost
more time is necessary to gather the data
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 14
Primary Research Process
Step I: Identifying the research problem
Step 2: Developing a research plan
Step 3: Collecting data
Step 4: Analysing research data
Step 5: Presenting the findings
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 15
Analysing Research Data
Examples:
Demand pattern analysis
Income elasticity measurements
Market estimation by analogy
Comparative analysis
Cluster analysis
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 16
Organising the
Global Marketing Research Process
Means:
Deciding on research responsibilities
Designing global marketing information systems
Possible scanning modes: surveillance and search
Surveillance: informal gathering of information, eg
about potential opportunities
Search: more formal activity - seeking of specific
information; marketing research is one „method“
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 17
Honomichl Global 25:
The Largest Research Organisations
Rank
1998 1999
1
1
2
3
3
4
5
6
4
5
9
7
8
9
10
6
12
7
Organisation
Country
No. of countries
with subsidiaries
Full-time
employees
Research revenues
? (millions)
ACNielsen Corp.
IMS Health Inc.
The Kantar Group Ltd.
Research International
Millward Brown
Other Kantar
Taylor Nelson Sofres plc.
Information Resources Inc.
NFO Worldwide Inc.
NFO Worldwide Inc.
Infratest Burke AG
Nielsen Media Research
GfK Group AG
IPSOS Group S.A:
Westat Inc.
US
US
UK
UK
US
UK
UK
US
US
US
Germany
US
Germany
France
US
80
74
1
24
15
14
35
17
32
21
12
2
33
20
1
20,700
8,000
4,347
1,770
1,377
1,200
4,500
4,600
3,100
2,180
920
2,486
3,111
1,538
1,203
1,209.2
919.6
572.5
278.2
192.1
102.1
465.5
433.7
359.9
212.4
147.5
340.9
299.4
192.0
174.2
Source: ”Honomichl Global 25”, Marketing News, 16 August 1999, p.H1
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 18
Global
Marketing Information System
A means for gathering, analysing, and reporting
relevant data to provide managers and other decision
makers with a continuous flow of information about
markets, customers, competitors, and company
operations.
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 19
Summary
Information is one of the most important assets in
international marketing
Among the idiosyncrasies of global marketing
research are the complexity of factors to be
considered and the lack of research infrastructure
Comparability and equivalence in an international
context is essential; i.e. the data must have the
same meaning and the same level of accuracy,
precision of measurement and reliability
Keegan/Schlegelmilch
Global Marketing Management: A European Perspective
Chapter 6 / 20