Transcript ch05 Hollensen - Warsaw School of Economics

Svend Hollensen
GLOBAL MARKETING
4th Edition
Lecture by Ewa Baranowska-Prokop, Ph.D.
Global marketing research
What is this?
What term refers to a firm that from
its ‘birth’ globalizes rapidly without
any preceding long term
internationalization period?
Born global
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Characteristics of
born globals
SMEs with less than 500 employees
Annual sales under $100million
Reliance on cutting-edge technology
Managed by entrepreneurial visionaries
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Figure 3.7
‘Organic’ versus ‘born global’
External environment
Managers’
mindset
Internal environment
Decision to internationalize
Organic
pathway
Home market
Born global
pathway
Home market
Export market A
Export market A
Export market N
Export market N
Source: Adapted from Âijö et al. (2005), p. 6.
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Factors supporting
born globals
Role of niche markets
Advances in process/technology
production
Flexibility of SMEs/born globals
Global networks
Advances and speed in information
technology
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Figure 3.8 Models of
economic efficiency
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Case study – Vermont Teddy Bear
Should Vermont Teddy Bear go abroad?
What kind of difficulties would VTB meet if it were to
internationalize its business?
In what part of the world should the company start its
internationalization?
How should the company penetrate the foreign markets?
How would the communication mix in the chosen
countries differ from the US market?
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Learning objectives
Explain the importance of having a
carefully designed international information
system
Link global marketing research to the
decision-making process
Discuss the key problems in gathering and
using international market data
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Learning objectives (2)
 Distinguish between different research
approaches, data sources and data types
 Discuss opportunities and problems with
qualitative market research methods
 Understand how online surveys are carried out
 Understand the relevance of the Web as an
important data source in global marketing
research
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What is this?
Information that is collected first-hand,
generated by original research tailormade to answer specific research
questions is known as ______.
Primary data
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What is this?
Information that has already been
collected for other purposes and thus is
readily available is known as ______.
Secondary data
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Figure 5.1 Categorization of
data for assessment of
market potential
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Secondary research
Advantages
Less expensive
Less time consuming
Low level of
commitment
No constraints by
overseas customs
Speed
Disadvantages
Non-availability of
data
Reliability of data
Data classification
Comparability of data
Data privacy concerns
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Questions to ask when judging
the reliability of data sources
Who collected the data?
Would there be any reason to purposely
misrepresent the facts?
For what purpose was the data collected?
How was the data collected?
Are the data internally consistent and
logical in the light of known data sources or
market factors?
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What is this?
What term is used to refer to the
technique which uses time-series data
from one country to project sales in
other countries?
Lead-lag analysis
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What is this?
What term is used to refer to the technique for
estimating demand in another country market
based on a single-factor index with a
correlation value between a factor and demand
for a product that is obtained in one country
and applied to a target international market?
Estimation by analogy
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Figure 5.2 Lead-lag analysis
of penetration of DVDs
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Forms of Primary Research
Quantitative research is data analysis
based on questionnaires from a large
group of respondents
Qualitative research provides a holistic
view of a research problem by integrating
a larger number of variables, but asking
only a few respondents
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Figure 5.3 The ‘trade-off’
between quantitative and
qualitative research
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Research approaches
Observation
Surveys
Experiments
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Contact methods
Mail/Internet
Telephone
Personal
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Table 5.3 Comparison of
contact methods
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What is this?
What term refers to a scheme which
outlines the group to be surveyed in a
marketing research study, including how
many individuals will be chosen, and on
what basis this choice is made?
Sampling plan
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Sampling procedures
Probability
sampling
Non-probability
sampling
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Why use non-probability
samples in marketing research?
Less expensive than probability samples
Appropriate when accuracy is not critical
Faster to collect data
Can be reasonably representative
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Methods for
determining sample size
Traditional statistical techniques
Budget available
Rules of thumb
Number of sub-groups
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Guidelines for
formulating questions
The wording must be clear
Select words so as to avoid biasing the
respondent
Consider the ability of the respondent to
answer the questions
Consider the willingness of the respondent
to answer the question
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Problems with using
primary research
Limited ability to draw probability samples
Non-response (and the potential for nonresponse bias)
Language barriers
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What is this?
What term is used to refer to the
consistency of results over several
measurements?
Reliability
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What is this?
If a measurement method measures
what it is supposed to measure, it is
said to possess high _____.
Validity
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Figure 5.5 Possible reliability
and validity situations
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Online surveys
Advantages
Low financial resource
implications
Short response time
Saving time with data
collection and analysis
Visual stimuli can be
evaluated
Disadvantages
Respondents have no
physical address
Difficult to guard
respondent anonymity
Technical issues like
speed of download
may arise
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Figure 5.6 An example of
trend forecasting
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What is this?
Stories about plausible alternative
futures are called _____.
Scenarios
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Figure 5.7 Development of
scenarios A and B over time
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What is this?
Factors that drive developments in the
same direction are called ____, while
factors which drive developments apart
from each other are called _____.
Convergent forces;
Divergent forces
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International MIS
An international marketing
information system is an interacting
organization of people, systems, and
processes devised to create a regular,
continuous and orderly flow of
information essential to the marketer’s
problem- solving and decision-making
activities.
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Figure 5.8 International MIS
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For discussion
What are the dangers of translating
questionnaires which have been designed
for one country for use in a multicountry
study? How would you avoid these
dangers?
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For discussion
 A US manufacturer of shoes is interested in
estimating the potential attractiveness of China
for its products. Identify and discuss the sources
and the types of data that the company will need
in order to obtain a preliminary estimate.
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For discussion
 Would Tokyo be a good test market for a new
brand planned to be marketed worldwide? Why
or why not?
 If you had a contract to conduct market research
in Saudi Arabia, what problems would you
expect in obtaining primary data?
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For discussion
 Do demographic variables have universal
meanings? Is there a chance that they may be
interpreted differently in different cultures?
 In forecasting sales in international markets, to
what extent can the past be used to predict the
future?
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Tchibo: A case study
 Which market analysis should be made in the
United Kingdom in order to target the right
promotion campaign to the right customer group?
 How would you estimate the potential market for
coffee shops in Europe?
Requires web access
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