Transcript Chapter 6
Global Marketing
Management
A European Perspective
Assessing
Global Marketing Opportunities
Warren J. Keegan
Bodo B. Schlegelmilch
Overview
Global Marketing Research
Definition
Relevant Dimensions of the Marketing Environment
Idiosyncrasies of Global Marketing Research
Data Compatibility and Equivalence
Secondary Data versus Primary Research
Organisation of the Global Marketing Research
Process
Summary
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Global Marketing Management: A European Perspective
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Learning Objectives
To understand the key global information needs of a
company
To appreciate the impact of globalisation on the
marketing research discipline
To learn how environmental differences impinge on
primary and secondary research
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Global Marketing Management: A European Perspective
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Marketing Research
... links the consumer, customer, and public to the
marketer through information
Information is used to ...
identify and define marketing opportunities and problems;
generate, refine, and evaluate marketing actions;
monitor marketing performance; and
improve our understanding of marketing as a process.
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Global Marketing Management: A European Perspective
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Inadequate International Marketing
Research Can Cause Costly Mistakes
Examples:
US ketchup -> Japan
US Kentucky Fried Chicken -> Brasil
US Soft Drink -> Indonesia
D Knorr soup -> USA
US cake Mix -> GB
Thus: In international marketing, information is
critical in developing effective marketing strategies!
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Global Marketing Management: A European Perspective
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Relevant Dimensions of the
Marketing Environment
Te chnol og ica l
Ec ono mic and
Com pe ti ti ve
Po li ti cal
GLOBAL
INFORMATION
NEEDS
Soc ia l and
Cultural
Reg ul ato ry
Le ga l
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Dimensions to be Examined in the
Marketing Environment (1)
Economic and competitive environment
eg GNP, income level, balance-of payment
Technological environment
eg engineering skills (for production in a specific country)
Political environment
eg government actions with respect to taxes, equity control,
and expropriation
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Dimensions to be Examined in the
Marketing Environment (2)
Regulatory environment
eg governmental and non-governmental agencies which
enforce laws and set guidelines for conducting business
(such as EU or WTO)
Legal environment
eg patents, trademarks, licensing jurisdiction and antitrust
laws
Social and cultural environments
eg conscious an unconscious values, ideas, attitudes, and
symbols
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Global Marketing Management: A European Perspective
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Idiosyncrasies of
Global Marketing Research
Complexity of factors to be considered
additional markets add complexity
Competition
more firms have to be taken into account
Lack of research infrastructure
... especially in developing countries
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Data Compatibility and Equivalence
in Global Marketing Research
National markets have unique characteristics
But: It is essential that data have the same
meaning and the same level of accuracy,
precision of measurement, and reliability
This aspect covers all stages of marketing research
from problem definition to data analysis
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Global Marketing Management: A European Perspective
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Equivalence in
Global Marketing Research
Measurement Equivalence
Testing for and
Establishing
Measurement
Equ ivalence
Configural Invariance
• Basic Factor Patterns Correspond
Metric Invariance
• Factor Loadings Correspond
Sca lar Invariance
• Relationship of Latent and Manifest Variables Correspond
Data Analysis
Data Preparation
Data Collection
Equivalence of Data in
Cross-Cultural Research
• Compa rability of Data
Equivalence of
Data Handling
• Response Translation
• Response Categories
Equivalence of
Research Methods
• Data Collection
• Stimuli
Equivalence of
Research Units
• Definition
• Selection
Equiv. ofResearch
Administration
• Timing
• Interaction
Equiva lence of Research Topics
Problem Definition
Functional Equivalence Conceptual Equivalence Category Equivalence
Source:
Salzberger T., Sinkovics
R., Schlegelmilch B.B.:
Data Equivalence in
Cross-cultural Research:
A Comparison of
Classical Test Theory
and Latent Trait Theory
Based Approaches",
Australasian Marketing
Journal, Vol. 7, No. 2,
1999, p. 3
Equival ence in Cross-Cultural Research
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Global Marketing Management: A European Perspective
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Secondary Data
Data from sources that already exist - they have
not been gathered for the specific research project
Therefore: Minimal effort and cost
Possible problems
accuracy
availability
timeliness
costs and
comparability of data
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Examples of
Secondary Data Sources
Governments
Department of Trade and Industry
International Organisations
UN, OECD, Worldbank,
Trade Associations
Tradefair International, Japan Export Trade
Organisation (JETRO)
Electronic Data Bases
Euromonitor
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Primary Research
... when secondary data are inadequate
... provides accurate data which give exact
answers to a given research problem
Possible problems
difficulties in gaining the data
cost
more time is necessary to gather the data
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Global Marketing Management: A European Perspective
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Primary Research Process
Step I: Identifying the research problem
Step 2: Developing a research plan
Step 3: Collecting data
Step 4: Analysing research data
Step 5: Presenting the findings
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Global Marketing Management: A European Perspective
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Analysing Research Data
Examples:
Demand pattern analysis
Income elasticity measurements
Market estimation by analogy
Comparative analysis
Cluster analysis
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Organising the
Global Marketing Research Process
Means:
Deciding on research responsibilities
Designing global marketing information systems
Possible scanning modes: surveillance and search
Surveillance: informal gathering of information, eg
about potential opportunities
Search: more formal activity - seeking of specific
information; marketing research is one „method“
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Honomichl Global 25:
The Largest Research Organisations
Rank
1998 1999
1
1
2
3
3
4
5
6
4
5
9
7
8
9
10
6
12
7
Organisation
Country
No. of countries
with subsidiaries
Full-time
employees
Research revenues
? (millions)
ACNielsen Corp.
IMS Health Inc.
The Kantar Group Ltd.
Research International
Millward Brown
Other Kantar
Taylor Nelson Sofres plc.
Information Resources Inc.
NFO Worldwide Inc.
NFO Worldwide Inc.
Infratest Burke AG
Nielsen Media Research
GfK Group AG
IPSOS Group S.A:
Westat Inc.
US
US
UK
UK
US
UK
UK
US
US
US
Germany
US
Germany
France
US
80
74
1
24
15
14
35
17
32
21
12
2
33
20
1
20,700
8,000
4,347
1,770
1,377
1,200
4,500
4,600
3,100
2,180
920
2,486
3,111
1,538
1,203
1,209.2
919.6
572.5
278.2
192.1
102.1
465.5
433.7
359.9
212.4
147.5
340.9
299.4
192.0
174.2
Source: ”Honomichl Global 25”, Marketing News, 16 August 1999, p.H1
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Global
Marketing Information System
A means for gathering, analysing, and reporting
relevant data to provide managers and other decision
makers with a continuous flow of information about
markets, customers, competitors, and company
operations.
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Summary
Information is one of the most important assets in
international marketing
Among the idiosyncrasies of global marketing
research are the complexity of factors to be
considered and the lack of research infrastructure
Comparability and equivalence in an international
context is essential; i.e. the data must have the
same meaning and the same level of accuracy,
precision of measurement and reliability
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