Transcript Chapter 6
International Marketing Research: Practices and Challenges Dana-Nicoleta Lascu Chapter 6 Copyright Atomic Dog Publishing, 2002 Chapter Objectives • Define international marketing research and provide a description of its immense scope; offer examples of each type of research conducted in international marketing • Describe the steps involved in the international marketing research process while addressing, for each step, the international constraints involved • Introduce the concept of decision support systems for international marketing and describe the sales forecasting process Copyright Atomic Dog Publishing, 2002 International Marketing Research • International marketing managers need to constantly monitor the different forces affecting their international operations • International marketing research is especially complex Copyright Atomic Dog Publishing, 2002 International Marketing Research International marketing research is the systematic design, collection, recording, analysis, interpretation, and reporting of information pertinent to a particular marketing decision facing a company operating internationally. Copyright Atomic Dog Publishing, 2002 Research of Industry, Market Characteristics, and Trends • • • • Acquisition analyses Diversification analyses Market-share analyses Export research Copyright Atomic Dog Publishing, 2002 International Buyer Behavior Research • Brand preferences • Brand attitudes • Brands awareness studies • Purchase behavior studies • Consumer segmentation studies Copyright Atomic Dog Publishing, 2002 International Product Research • Concept development and testing studies • Brand name generation and testing • Product testing • Competitive product studies • Packaging design studies • Test marketing Copyright Atomic Dog Publishing, 2002 #1 International Distribution Research • Import/export analyses • Channel performance and coverage • Plant/warehouse location studies Copyright Atomic Dog Publishing, 2002 International Promotion Research • • • • Studies of premiums, coupons, and deals Advertising effectiveness research Local media research Studies pertaining to personal selling activities Sales Force Compensation Quota Territory Copyright Atomic Dog Publishing, 2002 International Pricing Research • • • • Studies projecting demand Currency and counter trade studies Studies of inflation rates and pricing Studies of negotiation tactics Copyright Atomic Dog Publishing, 2002 The International Marketing Research Process • STEP 1 Define the international research problem and agree on the research objectives Exploratory Research Descriptive Research Causal Research • STEP 2 Set specific objectives Copyright Atomic Dog Publishing, 2002 The International Marketing Research Process, continued • STEP 3 Develop the International Research Plan • STEP 4 Define Information Sources Secondary Data - Researchers must determine if the information is available, and, if so, how reliable it is - Internal data is useful only if company has collected similar info from relevant respondents in a country with similar environment Copyright Atomic Dog Publishing, 2002 Secondary Data Constraints • Conceptual Equivalence Concepts have different meanings in different cultural environments • Functional Equivalence Products themselves may be used for different purposes in different country environments Copyright Atomic Dog Publishing, 2002 Secondary Data Constraints, continued • Availability, Reliability, and Validity Accuracy of secondary data can be questionable: Published statistics may be unreliable Sources of reliable data: - World Bank - United Nations Development Program - Organization of Economic Cooperation and Development (OECD) - Euromonitor Copyright Atomic Dog Publishing, 2002 Primary Data • Information collected for a specific purpose, to address the problem at hand. The costs of collecting primary data in foreign markets are likely to be much higher given the lack of an appropriate marketing research infrastructure Copyright Atomic Dog Publishing, 2002 Primary Data Research Approaches • Qualitative research has been particularly useful as a first step in studying international marketing phenomena. Focus Groups Observation • Constraints: Responses can be affected by culture, individuals may act differently if they know they are being observed. Copyright Atomic Dog Publishing, 2002 Primary Data Research Approaches, continued • Quantitative research are more structured, involving either descriptive research approaches, such as survey research, or causal research approaches, such as experiments. Content Analysis Survey Research Experimental Research • Constraints: Respondent factors, infrastructure factors Copyright Atomic Dog Publishing, 2002 Data Collection • STEP 5 Design Data Collection Instrument Emic instruments measure phenomena specific to each culture. Etic instruments measure the same phenomenon in different cultures. • Constraints: Translation; Instrument Reliability; Reluctance to answer certain questions Copyright Atomic Dog Publishing, 2002 Data Collection, continued • STEP 6 Decide on the Sampling Plan Sample Unit Sample Size Sampling Procedure • STEP 7 Collect, Analyze, and Interpret Data Copyright Atomic Dog Publishing, 2002 Decision Support Systems for Global Marketing • A coordinated collection of data, systems, tools, and techniques, complemented by supporting software and hardware designed for the gathering and interpretation of business and environmental data Copyright Atomic Dog Publishing, 2002 Sales Forecasting • Sales Force Composite Estimates Personal observations and expectations of the local sales force • Jury of Expert Opinion Opinions of different experts about future demand • The Delphi Method Experts to estimate market performance; findings are aggregated, and experts are queried again, in light of aggregate responses Copyright Atomic Dog Publishing, 2002 Sales Forecasting, continued • Time Series and Econometric Models Use data of past performance to predict future market demand • Analogy Methods Estimation method that relies on developments and findings in markets - With similar levels of economic development, or - Where the product is in the same market development stage, or - In markets which share similar cultural characteristics Copyright Atomic Dog Publishing, 2002 Sales Forecasting, continued • Point of Sale Research Made with the help of store scanners, in markets where they are available Involve comprehensive store audits Copyright Atomic Dog Publishing, 2002 Chapter Summary • Defined international marketing research • Described steps involved in the international marketing research process and related international constraints • Discussed marketing decision support systems and international sales forecasting Copyright Atomic Dog Publishing, 2002