Transcript International Marketing

International
Marketing
International Marketing Research
Dr. Bikramjit Rishi
Defining the Issue

What is marketing research?
 Traditional

“the function that links the consumer, customer, and
public to the marketer through information.”
 Redefined

view
view
“systematic
and
objective
identification
of
information, collection, analysis and dissemination of
information for the purpose of improving decision
making related to the identification and solution of
problems and opportunities in marketing.”
International versus Domestic
Research
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Similar but different
 International research involves the use of similar
tools and techniques as in domestic research, but
the market environments differ.
The primary differences
 New parameters
 New environments
 Number of factors involved
 Broader definition of competition
The Need for Research

Reasons that firms may be reluctant to view international
research as important:
 Lack of sensitivity to differences in consumer tastes
and preferences.
 Limited appreciation for the different marketing
environments abroad.
 Lack of familiarity with national and international data
sources and the inability to use them.
 Actual but limited business experience in a country or
with a specific firm may be used as a substitute for
organized research.
Research Objectives
Research objectives vary from firm to firm
because of the views of management, the
corporate mission, and the marketing
situation.
 Information needs are linked closely to the
level of international expertise in the firm.

Opportunity Analysis

Foreign-market opportunity analysis
 Broad-brush
approach to narrow down market
possibilities.
 Cursory analysis of general market variablestotal and per capita GDP, mortality rates, and
population data.
 Individual market data, product data,market
trends, and restrictions.
 Consideration of governmental restrictions.
International MR Perspective
INTERNATIONAL MARKETING RESEARCH
PROCESS
Define the problem and research objectives
Developing the research plan
Collect the information
Analyze the information
Present the findings
DEVELOPING THE RESEARCH PLAN
Calls for decisions on :

Type of Research Design (Exploratory or
Descriptive) and Research Approach
(which specific method)

Data Required (Primary data and
Secondary Data)

Data Sources ?

Data Collection Methods– Observation,
Survey
Experimentation
(Contd.)
Research

Primary research
 Conducted
to fill specific information
needs.
 Essential to strategic marketing plan
formation.
 Useful in international market
segmentation.

Determining information requirements
 Formulate
research questions to determine
precisely the information that is sought.
Secondary Data Sources

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Governments
International
organizations
Service
organizations
Directories and
Newsletters
Electronic
Information Services
Other firms
Research Techniques

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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.
Designing the Survey Questionnaire


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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.
DEVELOPING THE RESEARCH PLAN
Specific Research Instruments –
Observation Method –
Camera,
Voice recorder,
Tally sheets
Survey Method Questionnaire
(Structured/Unstructured)
(Disguised/Non-disguised)
(Open ended/Closed ended)
Experimentation - Lab/Field
(Mechanical Instruments)
DEVELOPING THE RESEARCH
PLAN
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Sampling Plan
Sampling Unit (Who is to survey…?)
Sampling Size (How many to survey…?)
Sampling Procedure (How to select…?)
Probability or Non-probability Method
(which specific method …?)
Sampling Media (How to reach to your
respondents…?)
Telephone/Mail/Personally
Likert Scale
The Likert scale requires the respondents to indicate a degree of
agreement or disagreement with each of a series of statements about
the stimulus objects.
Strongly
Disagree
Neither
Agree
Strongly
disagree
agree nor
agree
disagree
1. Sears sells high quality merchandise.
1
2
3
4
5
2. Sears has poor in-store service.
1
2
3
4
5
3. I like to shop at Sears.
1
2
3
4
5
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The analysis can be conducted on an item-by-item basis (profile
analysis), or a total (summated) score can be calculated.

When arriving at a total score, the categories assigned to the negative
statements by the respondents should be scored by reversing the
scale.
Semantic Differential Scale
The semantic differential is a seven-point rating scale with end
points associated with bipolar labels that have semantic meaning.
SEARS IS:
Powerful
Unreliable
Modern
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--:--:--:--:-X-:--:--: Weak
--:--:--:--:--:-X-:--: Reliable
--:--:--:--:--:--:-X-: Old-fashioned
The negative adjective or phrase sometimes appears at the left side of
the scale and sometimes at the right.
This controls the tendency of some respondents, particularly those with
very positive or very negative attitudes, to mark the right- or left-hand
sides without reading the labels.
Individual items on a semantic differential scale may be scored on either
a -3 to +3 or a 1 to 7 scale.
A Semantic Differential Scale for Measuring Self- Concepts,
Person Concepts, and Product Concepts
1) Rugged
2) Excitable
3) Uncomfortable
:---:---:---:---:---:---:---: Delicate
:---:---:---:---:---:---:---: Calm
:---:---:---:---:---:---:---: Comfortable
4) Dominating
5) Thrifty
6) Pleasant
7) Contemporary
:---:---:---:---:---:---:---: Submissive
:---:---:---:---:---:---:---: Indulgent
:---:---:---:---:---:---:---: Unpleasant
:---:---:---:---:---:---:---: Obsolete
8) Organized
9) Rational
10) Youthful
11) Formal
12) Orthodox
:---:---:---:---:---:---:---: Unorganized
:---:---:---:---:---:---:---: Emotional
:---:---:---:---:---:---:---: Mature
:---:---:---:---:---:---:---: Informal
:---:---:---:---:---:---:---: Liberal
13) Complex
14) Colorless
15) Modest
:---:---:---:---:---:---:---: Simple
:---:---:---:---:---:---:---: Colorful
:---:---:---:---:---:---:---: Vain
Table: Basic Research Issues in Cross-Cultural Analysis
FACTORS
EXAMPLES
Differences in language and meaning
Words or concepts may not mean the same in two
different countries.
Differences in market segmentation opportunities
The income, social class, age, and sex of target
customers may differ dramatically in two different
countries.
Differences in consumption patterns
Two countries may differ substantially in the level
of consumption or use of products or services.
Differences in the perceived benefits of products
and services
Two nations may use or consume the same product
in very different ways.
Table: continued
FACTORS
EXAMPLES
Differences in the criteria for evaluating products
and services
The benefits sought from a service may differ
from country to country.
Differences in economic and social conditions
and family structure
The “style” of family decision making may vary
significantly from country to country.
Differences in marketing research and conditions
The types and quality of retail outlets and directmail lists may vary greatly among countries.
Differences in marketing research possibilities
The availability of professional consumer
researchers may vary considerably from country
to country.
Product Adaptation
Product Variables
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The Core Product
 a product or services that is essentially the same
as that of competitors.
The Tangible Product
 a product or service that is differentiated
composition, origin, or tangible features from
competing products.
The Augmented Product
 a product or service which is serviced after the
sale and carries a warrantee from the producer,
producing a continuing relationship with the seller.
Standardization versus
Adaptation
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The fundamental international product decision after
the decision to internationalize.
International market approach alternatives to
adaptation.
 Sell the product as it is internationally.
 Modify product for different countries or regions.
 Design new products for foreign markets.
 Incorporate all differences into one product and
introduce it globally.
Standardization versus
Adaptation
FACTORS ENCOURAGING
STANDARDIZATION
 Economies of scale in
production
 Economies in product R&D
 Economies in marketing
 “Shrinking” of the world
marketplace/economic
integration
 Global competitions
FACTORS ENCOURAGING
ADAPTATION
 Differing use conditions
 Government and regulatory
influences
 Differing consumer behavior
patterns
 Local competition
 True to the marketing
concept
Strategic Adaptation to Foreign
Markets
High
Need for
Adaptation
Degree of
Cultural
Grounding
Low
Industrial/ Technology Intensive
Consumer
Nature of Product
Source: Adapted from W. Chan Kim and R. A. Mauborgne, “Cross-Cultural Strategies,” Journal of Business Strategy 7 (Spring 1987): 31; and John A. Quelch and
Edward J. Hoff, “Customizing Global Marketing,” Harvard Business Review 64 (May-June 1986): 92-101.
Factors Affecting Adaptation
Decision to Alter
Domestic
Product
SOURCE: Adapted from V.Yorio, Adapting Products for Export (New York; Conference Board, 1983), 7. Reprinted with permission
The Market Environment
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Government Regulations
 Political and social agendas often dictate regulatory
requirements.
Nontariff Barriers
 Product standards, testing, subsidized local products.
Customer Characteristics, Expectations, and Preferences
 Physical size, local behaviors, tastes, attitudes, and
traditions.
 Consumption patterns, psychosocial characteristics, and
general cultural criteria.
The Market Environment
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Economic Development
 The stage of economic development affects the market size
and demand characteristics. Backward innovation of the
product may be required to meet local requirements.
Competitive offerings
 Monitoring competing local products is critical in adjusting
the product for competitive advantage.
Climate and geography
 Local climatic conditions and terrain features can make
products vulnerable to damage.
Product Characteristics
Product Constituents
 Branding
 Packaging
 Appearance
 Method of Operation or
Usage
 Quality
 Service
 Country-of-Origin
Effects
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Product Constituents and
Branding
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Product ingredients must not violate local legal regulations and
social or religious customs.
Care must be taken that the brand in name, symbol, sign, or design
does not offend the local customer. Trademarks are especially
vulnerable to counterfeiters.
Selecting the global brand name
 Translation
 Transliteration
 Transparency
 Transculture
Packaging and Appearance
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Packaging serves three major functions:
 Protection
 Improper handling and pilferage
 Promotion
 Language and symbols
 User convenience
 Packaging aesthetics- color and shape, overall size, and
purchase quantity
Adaptations in styling, color, size, and other appearance
features play an importance role in how a consumer perceives a
product.
Method of Operation or Usage
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The product that is operable in in the domestic market may not
be operable in the foreign market.
Electrical voltages and connectors vary around the world.
English and metric standards are not comparable.
Software may have to be translated into the local language.
Quality and Service
Quality is essential to marketing
products internationally, especially in
markets where price is an important
competitive factor.
 ISO compliance may be required by
buyers.
 Servicing products in international
markets requires producers to develop
local repair staffs.
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Country-of-Origin Effects
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The origin of a product may have a strong effect on consumer
perceptions and biases about foreign products.
Swiss
France
“Mad Cow”
Company Considerations
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Organizational capabilities?
Is it worth it?
Can we afford not to do it?
Can a specific return-on-investment (ROI) be
attained?
Quality, price, and user perceptions?
Warranties?
Managerial talent?
Product Counterfeiting
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Costs U.S. firms over $60 billion a year
In 2001, losses to software piracy were more than 11 billion dollars.
Counterfeiting is estimated at 2% to 5% of total world trade annually.
The largest number of counterfeit goods come from:
 China
 Brazil
 Taiwan
 Korea
 India
Product Counterfeiting
FIGHTING PRODUCT COUNTERFEITING
 Secure valuable intellectual property rights
 patent applications
 registration of trademarks
 mask works
 Act to enforce
 legislative action
 bilateral and multilateral negotiations
 joint private sector action
 individual company measures