Transcript Chapter 18
Chapter 18 Europe Regional Characteristics - 1 • More stress on quantitative data • Significant differences between data availability in Eastern Europe and that in Western Europe Regional Characteristics - 2 • Political turmoil make database maintenance a problem • Financial information not reliable European Statistical Sources • European Official Statistics: A Guide to Databases • European Official Statistics: Sources of Information • Eurostat - your partner for European Statistics: a Guide to the Statistical Office of the European Communities Europe - One Economy ? • Not possible to standardize • National identities are separate and distinct • Formation of the European Union Culture • 14 languages, 9 separate VAT tariffs, 12 currencies, and 12 national cultures • Unique culture and history that cannot be ignored • Need to show sensitivity to each culture Seasonality and Holidays The Language Issue • No “lingua franca” - English and French commonly used • German spoken by more than 100 million people • Do not cut corners on translation of questionnaires Mailing lists • Type of mailing lists affects translation decision. • Domestic list environment is different within each European country. (A country’s data protection laws significantly affect how personal data can be compiled and segmented) • Average price for a consumer list works out to US$ 95-140/m and that for a business-to-business is approximately US$ 140250 per 1000 Computerized Information and Sources • There are a number of market research resources available through electronic media: • National Trade Data bank (NTDB) : A compilation of over 100,000 trade-related documents, including U.S. Government export and import trade statistics, the complete CIA World Factbook, etc. • Country Marketing Plan (CMP): They are annual planning documents prepared by commercial officers at U.S. Embassies and Consulates in Europe. • The cost of conducting research in various European countries varies because of difference in overhead costs. France Country Characteristics • Population: 58,609,285 (July 1997 est) • Land Area: 545,630 sq. km • Languages: French • Literacy Rate: 99% • Religion: Roman Catholic (90%), Protestants (2%), Muslim (1%), unaffiliated (6%) • GDP: Purchasing power parity: $1.22 trillion (1996 est.) • GDP per capita: Purchasing power parity: $20,900 (1996) • GDP real growth rate: 1.3% (1996 est.) • Inflation rate: Consumer Price Index: 1.7 % (1996 est.) Doing Business In France • • • • • • • The French believe in status and often do not mingle between groups (there is little motivation for a person to move up the social ladder since there is a belief that on is born into a class) Most French are interested in discussions where there are no points of agreement and as the arguments grow more heated, tend to enjoy them better. It is better to direct conversations away from personal topics The strength of unions in the public sector helps ensure jobs despite of lax performance levels. French management is centralized in structure Time consciousness is important at meetings The French tend to take pride in purchasing products made locally ( second is European products and third US ones) Market Research in France • • • • • • France has a very established and updated infrastructure system that supports its direct marketing ventures. Currently it has the second largest direct mail market in Europe ( next to Germany) Telemarketing is considered a booming area that foreign firm can opt for. Although the telephone system is quite advanced, it is better to have face to face interviews rather than over the telephone. Mall intercepts is the best way of conducting personal interviews in France. The French are idealistic in their vision of current lifestyles and often skew their responses to reflect a better state than an actual state. Germany Country Characteristics • Population: 82,071,765 (July 1997 est) • Land Area: 349,520 sq. km • Languages: German • Literacy Rate: 99% • Religion: Protestants (38%), Roman Catholic (34%), Muslim (1.7%), unaffiliated or other (26.3%) • GDP: Purchasing power parity: $1.7 trillion (1996 est.) • GDP per capita: Purchasing power parity: $20,400 (1996) • GDP real growth rate: 1.4% (1996 est.) • Inflation rate: Consumer Price Index: 1.5 % (1996 est.) General Characteristics • German are considered to be precision-oriented. • Work behavior is normally meticulous and goal oriented • Germans are not spontaneous in their dealings with people, tending toward being private in their approach. • Often business dealings do not stretch beyond the office working hours. • Company dealings are based upon the etiquette demanded of a position held. Business Characteristics • Germans are generally well-versed in their fields and are knowledgeable. • It is important that the dealings are made specific either in writing or verbally. • Forms of address tend to be formal; first names should be avoided. • Although English is prevalent in most business spheres, Germans tend to resent the use of a foreign language to communicate. • Greeting is almost always a hand shake. • There is significant emphasis placed on seniority of one employee over another. Conducting Marketing Research in Germany • • • • • • The availability of good secondary research information enables a through analysis of the consumer perspectives. Germans are intensely private and tend to keep their opinions to themselves. There is a reasonable amount of resistance to responding to surveys at malls or in answering queries over the telephone. Generally, German women are aware of all media forms and reaching them is perhaps easy through the magazines and other print media. The one misnomer that marketers have in targeting consumers in Germany is in assuming that most of them live in urban areas. Homogenization of marketing strategy is not a good idea for this country. Great Britain Country Characteristics • Population: 57,591,677 (July 1997 est) • Land Area: 241,590 sq. km • Languages: English, Welsh, Scottish form of Gaelic • Literacy Rate: 99% • Religion: Anglican (27 million), Roman Catholic (9 million), Muslim (1 million), Presbyterian (800,000) Methodist( 760,000), Sikh (400,000), Hindu (350,000), Jewish (300,000) - 1991 est • GDP: Purchasing power parity: $1.19 trillion (1996 est.) • GDP per capita: Purchasing power parity: $20,400 (1996) • GDP real growth rate: 2.4% (1996 est.) • Inflation rate: Consumer Price Index: 2.6 % (1996 est.) Conducting Business in the United Kingdom • A good handshake establishes confidence in the other party. • Punctuality is valued. • Although most contracts drafted address long-term aspects, most British tend to look at the short-term benefits that the company can achieve. • Although English is spoken in England and the U.S., one should remember the differences in connotation and usage of several words in the two countries • Non-verbal communication affects the interpretation of attitudes. Conducting Marketing Research in UK • There are several detailed sources of secondary data available for conducting preliminary research in Great Britain. Sources include both governmental and non-governmental sources: • Despite its homogenous appearance, the UK is a highly diverse country. • In term of responsiveness to purchase or participate in international market research activities, the United Kingdom, lags behind several other European countries. • Telephone interviews is not a very popular survey method. • Mailing lists have grown in recent years. • One advantage of conducting research in the UK is that the distribution system is similar to the US and approachability to the consumer is equally effective. Direct marketing in United Kingdom • The UK has a more than three times the average response rate as compared to the US toward direct marketing efforts. • The society’s concept of individuality is considered as a motivating element for consumer preference for direct mail.