International Market Research : A Global Management Perspective

Submitted By:
Rishab Mehta Q3701-A 34 Pradeep Mishra Q3701-A33 Mayuri Jain Q3702- A

Topics
Introduction Importance of International Market Research Need for International Market Research International Market Research Framework

Challenges conducting International Market Research

Introduction
Marketing research is the primary mechanism through which companies understand their current as well as their potential customers
Several cross cultural factors that should be considered by marketers who engage in global market research studies are discussed Challenges that must be addressed in order to conduct effective research across national borders

Problems related to questionnaire construction and primary data collection issues

Importance of international market research

The objective of the market research is to interpret consumer behaviour and translate the perspective of key customers into actionable marketing strategies. Since mid 1990s the international research business has grown tremendously. In 1995 the top 25 global market research organisations had aggregate revenues of only $5.7 billions and 45 % of their revenues came from outside the companies home countries By 2004 revenues had grown 133 % to $ 13.3 billion while out of home country share grew to 6 7 %

Need for International Market Research

Answer to these questions can help organisation prioritise their need for international marketing research: Have international sales has been increasing as a percentage of overall revenues? Are international markets growing faster than domestic markets?

Does the organisation have the same competitive position outside the US?
Are the fundamental needs of foreign customers known? What is the interaction of the four Ps in foreign markets? Can the internet help with research design?

International Market Research Framework

Setting Market research objectives International market research begins with the clear understanding of research objectives Information may be required for decision making at different levels in the organisation like at corporate level related to strategic issues Designing research methodology In order to construct the most effective methodology researchers must have a broad perspective of the many methodological options available In international context, specific units of analysis is critical and relates to the research design stage

 Designing the primary methodology is to how the data will be collected from respondents and analysed. Data collection method will be decided ( in person, telephone, mail, internet)

Problem with Research Designing Process :

It requires adequate time and attention to address the many details that are involved in international projects. Primary research method and data analysis technique issue pose many challenges for the international market researcher due to their varying level of presence, acceptance and utilisation across world markets.

Collecting data and reporting findings

It involves analysing the findings and providing management report, along with the strategic recommendations Data availability is different in different parts of the world. Secondary information resources, tools, techniques may differ

Challenges conducting International Market Research

Marketing research projects across national boundaries involves many factors which if are not properly addressed, can negatively impact project management and project deliverables. These factors are Cultural challenges Conducting market research in international market requires a great understanding of native culture Culture elements such as social institutions, gender roles, language, religion, aesthetics, education and time orientation have major impact on the acceptability and adoption of the new products and services

 Target markets knowledge of and familiarity with product service offerings also plays a critical role in conducting market research. For example- Country may have large population but only small population is equipped with the knowledge necessary to apply research tools Language Language is the most obvious factor that makes international market research so challenging While many middle and upper management executives have some command of English language but that does not mean that English must be employed in conducting all research

Translation Questionnaire developed in one country may be difficult to translate in other countries because equivalent language concepts do not exist. For Example- Concepts of uncles and aunts are not same in US as in India Syntax It refers to word phrasing and sentence construction .Simply translating English questionnaires in to German is very problematic and vice versa Time Zones

Time zones present difficulties in conducting any type of business in foreign markets and market research is no exception

Sampling issues Conducting research in countries with large population is difficult It will be difficult to design the research framework and more problems can arise if other country is also included in research Market Research infrastructure Media availability , internet, quality control and overall market infrastructure significantly impact the success of international research projects Data collection challenges

The process of managing vendors in international market is difficult, time consuming and expensive.

International Market Research and Project Management

Companies which are looking to become global marketers must look closely at the world marketplace to identify global opportunities

Expertise in conducting global marketing research studies can effectively be translated in to competitive advantage.