Chapter 8

Developing a Global Vision through Marketing Research

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

Marketing Research

8-2

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.

Irwin/McGraw-Hill

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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

8-3

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

Irwin/McGraw-Hill

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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

8-5

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

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Primary & Secondary Data

Secondary

Primary

Readily available, used

for other purposes

Availability
Relevancy
Reliability
Comparability

Generated first-hand,
tailor made research

Issues

Ability to communicate
Willingness
Sampling Plan
Language/Comprehension

Gathering Primary Data

8-6

Quantitative
QuantitativeResearch
Research
Qualitative
QualitativeResearch
Research

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Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Methods for Developing Primary Data

Focus Groups
Panels
Experiments

Data
Qualitative?
Quantitative?

Observation

Surveys

Interviews

Focus Group Research

Problems of Gathering Primary Data

8-7

Ability to Communicate Opinions

Willingness to Respond

Sampling in Field Surveys

Language and Comprehension

Back Translation

Parallel Translation

Decentering

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Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Uses of Internet in International

Research
o On-Line Surveys and Buyer Panels
8-8

o On-Line Focus Groups

o Web Visitor Tracking
o Advertising Measurement
o Customer Identification Systems
o E-Mail Marketing Lists
o Embedded Research

Irwin/McGraw-Hill

Copyright2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Talents Required to Analyze and Interpret

Research Information
Cultural Understanding
8-9

Creative Talent for Adapting Research Findings

Skeptical Attitudes when Handling Both

Primary and Secondary Research

Irwin/McGraw-Hill

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Estimating Market Demand

Historical
HistoricalData
Data

8-10

Local
LocalProduction
ProductionPlus
PlusImports
Imports
Expert
ExpertOpinion
Opinion
Analogy
Analogy

Irwin/McGraw-Hill

Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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.