Chapter 8
Developing a Global Marketing
Vision Through Marketing
Research
Defining the Issue
• What is marketing research?
• Traditional view
– “the function that links the consumer, customer, and
public to the marketer through information”
• Redefined view
– “systematic and objective identification of
information, collection, analysis and dissemination of
information for the purpose of improving decision
making related to the identification and solution of
problems and opportunities in marketing”
International Marketing Research
I.
Differences with Domestic
Research
- New parameters
- New environments
- More factors to consider
- More competitors
Recognizing the Need for Research
• Reasons that executives may view international
research as unimportant:
– Lack of sensitivity to differences in consumer tastes
and preferences.
– Limited appreciation for the different marketing
environments abroad.
– Lack of familiarity with national and international
data sources and the inability to use them.
– Actual but limited business experience in a country
or with a specific firm may be used as a substitute
for organized research.
International Marketing Research
II.
Why do International Marketing
Research?
- Reduce Risk of Failure
- Identify opportunities
- Lead to more informed decisions
- Reduce mistakes
III. The IMR Process
- Step 1 : Problem Definition
- Step 2 : Examine Secondary Data
Researching Foreign Market Potentials
Stage 1:
Preliminary Screening for Attractive Country Markets
Key Question:
Which Foreign Markets Warrant Detailed Investigation?
Stage 2:
Assessment of Industry Market Potential
Key Question:
What is Aggregate Demand for Each Warrant Selected?
Stage 3:
Company Sales Potential Analysis
Key Question:
How Attractive is the Potential Demand for Company
Products/Services?
The Scope of International Marketing Research
International Marketing Decisions Requiring Marketing Research
M arketin g M ix
T yp e o f R esearch
D ecisio n
P roduct policy

F ocus groups and qualitativ e research to
generate ideas for new products

S urv ey research to ev aluate new product
ideas

C oncept testing, test m arketing

P roduct benefit and attitude research

P roduct form ulation and feature testing
P ricing

P rice sensitiv ity studies
D istribution

S urv ey of shopping patterns and behav ior

C onsum er attitudes toward different store
types

S urv ey of distributor attitudes and policies
A dv ertising

A dv ertising pretesting

A dv ertising posttesting, recall scores

S urv eys of m edia habits
S ales

S urv eys of responses to alternativ e types
P rom otion
of prom otion
S ales F orce

T ests of alternativ e sales presentations
Source: Susan P. Douglas and C. Samuel Craig, International Marketing Research, Copyright 1983, p.32. Reprinted by permission
of Prentice Hall, Inc., Englewood Cliffs, New Jersey.
International Marketing Research
IV. Data Sources - a wide variety are
available.
V.
Advantages of Secondary
- Fast
- Inexpensive
- Can aid in further research
Secondary information requirements
• What do you really need to know?
– Was sufficient research conducted to answer
the research question(s)?
– Is macro data sufficient or will micro data be
required to complete the market assessment
and selection?
– What market restraints are present ?
– Is knowledge of international accords
required?
– Is specific product data necessary for
marketing mix determination?
International Marketing Research
VI. Disadvantages of Secondary Data
- May not be accurate
- Difficult to trace methodology
- Data becomes quickly outdated
- Not collected for specific task at hand
Sources of Data
• Governments
– Departments of Commerce, Agriculture, State,
Treasury, and U.S. embassies abroad
• International organizations
– United Nations’ Yearbook, World Bank’s
World Atlas, Organization for Economic
Cooperation and Development (OCED) and
World Trade Organization (WTO) publications
• Service organizations
– Banks, accounting firms, freight forwarders,
airlines, and international trade consultants
The Research Process
Major Sources of Secondary Data
U.S. DEPARTMENT OF COMMERCE
Foreign Trade Report: U.S. exports by commodity and by country
Global Market Surveys: Global market research on targeted industries
INTERNATIONAL MONETARY FUND
International Financial Statistics: Monthly report on exchange rates, inflation,
deflation, country liquidity, etc.
UNITED NATIONS
Statistical Yearbook: Population, production, education, trade, etc.
THE ECONOMIST
E.I.U. World Outlook: Forecasts trends for 160 Countries
Marketing in Europe: Product markets in Europe
Validating Secondary Data
• Who collected the data ? Would there be
any reason for purposely misrepresenting
the facts ?
• For what purpose 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 ?
International Marketing Research
VII. - Step 3 : Consider Costs and
Benefits of the Research Effort
VIII.- Step 4 : Primary Data Collection
International Marketing Research
Primary data is collected for the
specific research problem at hand
1)
Major Types of Primary Research
i)
ii)
iii)
2)
Exploratory
Descriptive
Causal
Research Techniques
i)
ii)
iii)
iv)
Interviews
Focus Groups
Observation
Surveys
International Marketing Research
IX. - Step 5 : Analysis and Interpretation
X.
- Step 6 : Communicate Results
Effectively
The Research Process
Table 6.4: Comparison of European Data Collection Methods
Mail
Telephone
Central location/
streets
Home/work
Groups
Depth interviews
Secondary
France
4%
15
Netherlands
33%
18
52
-13
12
4
37
--12
--
Sweden Switzerland U.K.
23%
8%
9%
44
21
16
-8
5
2
4
-44
6
8
8
Source: Emanuel H. Demby, “ESOMAR Urges Changes in Reporting Demographics, Issues
Worldwide Report,” Marketing News, January 8, 1990, p. 24. Reprinted by permission of the
American Marketing Association.
-54
11
---
Gathering Primary Data
Quantitative Research
Qualitative Research
Determining the Research Technique
• Objectivity requirements for the acquired data
– Standard collection techniques work best with
objective data. Subjective data collection takes more
effort to collect and interpret.
• Soft data and hard data
– Subjective (soft) data from dealer interviews and
objective (hard) data from shipments, inventories, and
retail sales.
• Interviews
– Knowledge persons are a valuable information
resource (personal bias must be discounted).
Uses of Internet in
International Research
• On-Line Surveys
• On-Line Focus Groups
• Web Visitor Tracking
• Advertising Measurement
• Customer Identification Systems
• E-Mail Marketing Lists
SOURCE: John A. Quelch and Lisa R. Klein, “The Internet and International Marketing,”
Sloan Management Review: Spring 1996. Pp. 60-75
Talents Required to Analyze and
Interpret Research Information
• Cultural Understanding
• Creative Talent for Adapting
Research Findings
• Skeptical Attitudes when
Handling Both Primary and
Secondary Research