Developing a Global Vision through Marketing Research

Chapter 8
McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Where we are
Part I:
Overview and the External Environment
The Economic Environment
Social / Cultural Environment
Political, Legal and Regulatory Environment
Part 2:
Assessing Opportunities
Marketing Research
Segmentation, Targeting and Positioning
Overview
Intro and Scope of Global Marketing
Research
Sources of Market Information
Marketing Research Process
Current Issues
Summary
In Class Exercise

Illustration of the importance of
Marketing Research
Selling Apples in Japan
Washington State Apples
Why did the sales of apples decline?
Seasonality
Nationalism
Competition
Apple Computer
Issues
Businesses slow to use PCs as a means of increasing
productivity
Philosophical differences

Irwin/McGraw-Hill
Marketing Research
1. Defined as the systematic gathering, recording, and
analyzing of data to provide information useful in
marketing decision making.
International Marketing Research Complications
2. Information must be communicated across cultural
boundaries.
3. The environments within which the research tools
are applied are often different in foreign markets.
8-2
The Scope of Global Research
How is international marketing research
different?
Added complexity / diversity
Need to consider priorities and allocation of
resources between countries
3 types of different information needs:
Assessment of foreign markets (general
information relating to countries)
Industry information (relates to product category)
Specific Market Information (used to develop
marketing plan)

International Marketing Research Occurs at
Different Levels
Assessment of a
foreign market
(general
information
about a country)

Economic
Social / Cultural
Political / Legal
Technological

Industry
Information
(relates to
product
category)

Market size
Segmentation
Competition
Consumer

Specific market
information (used
to develop
marketing plans)


Product
Pricing
Distribution
Promotion

Steps in the Research Process
Step I: Define the research problem
Step 2: Developing a research plan
Step 3: Collecting data
Step 4: Analysing research data
Step 5: Presenting the findings

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8-3
Research Process in Detail
1. Define the problem and establish
objectives
Critical step because of unfamiliarity with
international markets
Problems can arise when researchers:
Fail to recognize or anticipate the influence of
the local culture or fail to identify the SRC effect
Treats the problem as if it exists in the home country
Fail to establish problem limits broad enough to
include all relevant data
Collecting Data
Primary Data
When data is not
available, and
must be obtained
through some
form of data
collection.
Secondary Data
When data exists
and is available
through a variety of
sources (i.e.
internet,
publications,
government
records, etc.)
Problems with obtaining relevant data
Secondary Data defined
Data collected by another agency or
researcher
Problems with obtaining relevant and
accurate Secondary data
1. Availability of Data
2. Reliability of Data
3. Comparability of Data
4. Validating Secondary Data

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 ?

Irwin/McGraw-Hill
8-5
Primary & Secondary Data
Secondary
Primary
Availability
Relevancy
Reliability
Comparability
Ability to communicate
Willingness
Sampling Plan
Language/Comprehension
Readily available, used
for other purposes
Generated first-hand,
tailor made research
Issues
Gathering Primary Data
Quantitative Research
Qualitative Research
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8-6
Methods for Developing Primary Data
Data
Qualitative?
Quantitative?
Focus Groups
Observation
Interviews
Panels
Surveys
Experiments
Focus Group Research
Problems of Gathering Primary Data
Ability to Communicate Opinions

Willingness to Respond

Sampling in Field Surveys

Language and Comprehension
Back Translation
Parallel Translation
Decentering

Irwin/McGraw-Hill
8-7
Uses of Internet in International
Research
o On-Line Surveys and Buyer Panels
o On-Line Focus Groups
o Web Visitor Tracking
o Advertising Measurement
o Customer Identification Systems
o E-Mail Marketing Lists
o Embedded Research


Copyright2002 by The McGraw-Hill Companies, Inc. All rights reserved. Irwin/McGraw-Hill
8-8
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
Irwin/McGraw-Hill
8-9
Estimating Market Demand
Historical Data
Local Production Plus Imports
Expert Opinion
Irwin/McGraw-Hill
Analogy
8-10
Five Rules of International Research
1. Apply the WHAT, WHY, WHERE and
WHEN of information.
2. Use locally available information first.
3. Identify information sources abroad.
4. Know where to look.
5. Do not assume the information you get is
comparable or accurate.

Problems with Multicultural
Research
Multicultural research defined:
Conducting research where countries have
difference languages, social structures,
behavior and attitudes.
Differences need to be considered and
used when conducting research
Comparability is difficult

Other important Points
A. Research on the Internet
Fastest growing method of conducting research
Although U.S. hosts 2/3 of the internet usage,
international usage is growing at twice the rate over
the U.S (examples)
www.stat-usa.gov, (data published by U.S.
government)
www.exporthotline.com (private website that
provides market research for 80 countries)
B. Estimating market demand where secondary data
is inadequate or not available
1. Expert opinion
2. Analogy (demand in one country is similar to
demand in another country)
Can be inaccurate and mistakes are likely to occur
Other important Points
C. Communicating with Decision Makers
Needs to be timely and top managers should be
knowledgeable about all their markets and customers

D. Problems in Analyzing and
Interpreting Research Information
Researcher must have the following to avoid
incorrect interpretations of the research data
Be culturally adept and sensitive to
differences
Be able to adapt research results
appropriately
Be skeptical in handling both primary and
secondary data
Other Important Points

D. Who is responsible for
conducting Marketing Research
Assigned by company (department or
division or agent)
Local analysts (decentralized)
Best approach is to have local
researchers with close coordination
between local research company and
headquarters.