International Marketing
Research- Process
Dr Abha Rishi
The International Marketing Research
Process
• Any research starts off with a precise definition of the
research problem(s).
• In an international context, the marketing research
problem formulation is hindered by the self-reference
criterion (SRC).
• A major difficulty in formulating the research problem is
unfamiliarity with the foreign environment.
• Omnibus surveys are regularly conducted by research
agencies.
• Once the research issues have been stated, management
needs to determine the information needs.
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International Marketing Information
Systems
• Internal
– Cos. Records of exports and imports
– Trade dealings, Trend forecasting
– Customer surveys
• External
– Govt. agencies, Embassies and High Commissions
– International Orgns. – WTO, UN, ESCAP ( UN Economic and
Social Commission for the Asia And the Pacific)
– Specialized private agencies
Determining Research
Administration
• Centralized
– The research specifications are designed by the home
office and forwarded to country operations for
implementation.
• Coordinated
– An intermediary such as an outside research agency brings
headquarters and country operations together.
• Decentralized
– Corporate headquarters establishes the broad thrust of
research and delegates design and implementation to the
local countries.
Tools for comparing countries
• 1. Environmental scanning
– Systematic assessment of external conditions that
might affect a cos. operations
• 2. Grids
– Opportunity Risk Matrix
The company decides on indicators (attributes)
and weights them according to the importance to
the company
– Country Attractiveness- Company Strength Matrix
Designing the Survey
Questionnaire
– Question format
• Structured or unstructured.
• Direct or indirect.
• Ensure data equivalence.
– Question content
• Consider interviewee’s ability and willingness to answer.
• Adapt questions to societal constraints.
– Question wording
• Use simple unambiguous words, terms and questions.
• Check for errors using translation-re-translation approach and
alternative wording for questions.
• Pretest the survey.
Research Techniques
• Interviews
– Knowledge persons are a valuable information resource (personal bias
must be discounted).
– Goal, obtain in-depth information instead of a wide variety of
information.
• Focus groups
– Interaction within a group about a specific topic.
– Ideal size, 7-10.
• Observation
– Observation results can be influenced by presence of the observer.
• Surveys
– Gather quantitative rather than qualitative information through
personal or remote contact with the subject population.
The International Marketing Research
Process
• STEP 1 Define the international research
problem and agree on the research objectives
– Exploratory Research
– Descriptive Research
– Causal Research
• STEP 2 Set specific objectives
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The International Marketing Research
Process, continued
• STEP 3 Develop the International Research
Plan
• STEP 4 Define Information Sources
– Secondary Data
• Researchers must determine if the information is
available, and, if so, how reliable it is
• Internal data is useful only if company has collected
similar info from relevant respondents in a country
with similar environment
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Secondary Global Marketing Research
• Secondary Data: Data/information which is already
available.
• Primary Data: When the information is not useful, or
simply does not exist.
• Selected Secondary Data Sources: Lexis/Nexis,
FINDEX, National Trade Data Bank, U.S. Department
of Commerce, Japan External Trade Organization
(JETRO), OECD, IMF, The Economist Intelligence Unit
(E.I.U.), ACNielsen Co, Taylor Nelsen Sofres, etc.
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Secondary Global Marketing
Research
• Problems with Secondary Data Research:
– Accuracy of Data
– Age of data
– Reliability over Time
– Comparability of Data
• Triangulate
• Functional or Conceptual Equivalence
– Lumping of Data
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Secondary Data Constraints
• Conceptual Equivalence
– Concepts have different meanings in different
cultural environments
• Functional Equivalence
– Products themselves may be used for different
purposes in different country environments
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Secondary Data Constraints, continued
Sources of reliable data:
- World Bank
- United Nations Development Program
- Organization of Economic Cooperation and
Development (OECD)
- Euromonitor
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Primary Data
• Information collected for a specific
purpose, to address the problem at
hand.
– The costs of collecting primary data in
foreign markets are likely to be much higher
given the lack of an appropriate marketing
research infrastructure
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Primary Data Research Approaches
• Qualitative research has been particularly
useful as a first step in studying international
marketing phenomena.
– Focus Groups
– Observation
• Constraints: Responses can be affected by
culture, individuals may act differently if they
know they are being observed.
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Primary Global Marketing Research
• Survey Methods for Cross-Cultural Marketing
Research:
– Questionnaire Design
• Conceptual and Functional Equivalence
• Translation and Scalar Equivalence
• Back Translation and Parallel Translation
• Scalar Equivalence
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Primary Global Marketing Research
– Sampling: A sampling plan consists of:
• Sampling unit
• Sample size
• Sampling procedure
– Contact Method (see Exhibit 6-5)
• Mail
• Telephone
• Person-to-person interviews
• Online Survey Methods (see Exhibit 6-6):
– E-mail surveys
– Random Web site surveys
– Panel Web site surveys
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Sampling
• Sometimes it is
impossible to approach
certain respondents
directly
• It is unacceptable to
pose questions to some
people in certain
circumstances
Consider:
– conventions
– tradition
– religion
– appearance
– household
hierarchies
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Primary Global Marketing Research
– Collecting the Information
• Issues of nonresponse
• Courtesy bias
• Social desirability bias
• Redundancy (asking the same question in
different ways)
• Issues of ethnographic research
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Primary Data Research
Approaches, continued
• Quantitative research are more structured,
involving either descriptive research
approaches, such as survey research, or causal
research approaches, such as experiments.
– Content Analysis
– Survey Research
– Experimental Research
• Constraints: Respondent factors, infrastructure
factors
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Data Collection
• STEP 5 Design Data Collection Instrument
– Emic instruments measure phenomena specific to
each culture.
– Etic instruments measure the same phenomenon
in different cultures.
• Constraints: Translation; Instrument
Reliability; Reluctance to answer certain
questions
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Data Collection, continued
• STEP 6 Decide on the Sampling Plan
– Sample Unit
– Sample Size
– Sampling Procedure
• STEP 7 Collect, Analyze, and Interpret Data
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Decision Support Systems
for Global Marketing
• A coordinated collection of data, systems,
tools, and techniques, complemented by
supporting software and hardware designed
for the gathering and interpretation of
business and environmental data
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4. Market Size Assessment
• Method of Analogy
– Longitudinal method of analogy
• Trade Audit
• Chain Ratio Method
• Cross-Sectional Regression Analysis
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4. Market Size Assessment
• When using market size estimates, keep the
following rules in mind:
– Use several different methods.
– Don’t be misled by numbers.
– Don’t be misled by fancy methods.
– Do a sensitivity analysis by asking what-if
questions.
– Look for interval estimates with a lower and upper
limit rather than for point estimates.
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Sales Forecasting
• Sales Force Composite Estimates
– Personal observations and expectations of the local
sales force
• Jury of Expert Opinion
– Opinions of different experts about future demand
• The Delphi Method
– Experts to estimate market performance; findings are
aggregated, and experts are queried again, in light of
aggregate responses
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Delphi Studies
• Delphi studies are a means for aggregating
the judgements of a number of experts who
cannot come together physically.
• The Delphi technique is particularly
valuable because it uses mail, fax, or
electronic communication to bridge large
distances and therefore makes experts
accessible at a reasonable cost.
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Sales Forecasting, continued
• Time Series and Econometric Models
– Use data of past performance to predict future
market demand
• Analogy Methods
– Estimation method that relies on developments
and findings in markets
- With similar levels of economic development, or
- Where the product is in the same market development
stage, or
- In markets which share similar cultural characteristics
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Sales Forecasting, continued
• Point of Sale Research

Made with the help of store scanners, in markets where they are
available

Involve comprehensive store audits
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5. New Market Information Technologies
• Major developments/innovations:
– Point of sale (POS) store scanner data
– Consumer panel data
– Single source data
– Shift from mass to micro marketing
– Continuous monitoring of brand sales/market
share movements
– Scanning data are used by manufacturers to
support marketing decisions.
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5. New Market Information Technologies
– Scanning data are used to provide merchandising support
to retailers.
– Market research tools being developed to track the
effectiveness of newer marketing mix vehicles such as the
Internet- goal is to establish a “Nielsen rating” for websites
similar to those for TV programming.
– CATI (Computer-Assisted Telephone Interviewing)
– CAPI (Computer-Assisted Personal Interviewing)
- CATI/CAPI benefits include speed, accuracy, and the ability to
steer data collection based on the response.
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6. Management of Global Marketing Research
• Selecting a Research Agency: The following
considerations should be taken into account while
choosing agency:
– Level of expertise
– Qualifications
– Track record
– Credibility and experience
– Client record
• Coordination of Multi-Country Research:
– Emic versus Etic dilemma
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6. Management of Global Marketing Research
– The emic school focuses on the peculiarities of
each country.
– The etic approach emphasizes universal
behavioral and attitudinal traits.
– In cross-cultural market research, the need for
comparability favors the etic paradigm with an
emphasis on the cross-border similarities and
parallels.
– Several approaches may be used to balance these
conflicting demands.
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Participants in Marketing Research Activities
Information Users
• General management
• Planning
• Marketing and sales managers
• Product managers
• Lawyers
Information Suppliers:
Inside Company
Information Suppliers:
Outside Company
• Marketing research department
• Research consultants
• Sales analysis group
• Marketing research suppliers
• Accounting department
• Advertising agencies
• Corporate strategic planning
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Information suppliers and services
Information
Supplier
Corporate Inhouse Supplier
Structured
(Independent
Department
Customized
Services
External
Supplier
Unstructured (one
or more MR
employees)
Standardized
Services
Syndicated
Services
Field
Services
Branded
Product/Services
Selective
Services
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Factors Influencing Choice of
Information Supplier
• Internal personnel may not have skills or
experience
• Outside help may be called to boost
internal
capacity in response to
urgent deadline
• Often it is cheaper to go outside
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Factors Influencing Choice of
Information Supplier (Contd.)
• Outside suppliers may have special
facilities or competencies which would be
costly to duplicate for a single study
• Political considerations
• Increased credibility of research used in
litigation or in proceedings before
regulatory or legislative bodies
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