Transcript Research in global markets

Developing a Global Marketing
Vision Through Marketing
Research
Chanel: ‘satanic dress’
Camellia flower used for
Funerals in Brasil
Launched a perfume with
camellia fragrance
Overlooked customs and
Beliefs
Had to withdraw the perfume
RED or
WHITE?
7 OR 8?
• What is 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.
International Marketing Research
I.
Differences with Domestic
Research
- New parameters
- New environments
- More factors to consider
- More competitors
- Are results comparable?
Recognizing the Need for Research
• Reasons that executives may view international
research as unimportant:
– 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.
International Marketing Research
II.
Why do International Marketing
Research?
- Reduce Risk of Failure
- Identify opportunities
- Lead to more informed decisions
- Reduce mistakes
III.
The IMR Process
- Step 1 : Problem Definition
- Step 2 : Examine Secondary Data
The Scope of International Marketing Research
International Marketing Decisions Requiring Marketing Research
M arketin g M ix
T yp e o f R esearch
D ecisio n
P roduct policy

F ocus groups and qualitativ e research to
generate ideas for new products

S urv ey research to ev aluate new product
ideas

C oncept testing, test m arketing

P roduct benefit and attitude research

P roduct form ulation and feature testing
P ricing

P rice sensitiv ity studies
D istribution

S urv ey of shopping patterns and behav ior

C onsum er attitudes toward different store
types

S urv ey of distributor attitudes and policies
A dv ertising

A dv ertising pretesting

A dv ertising posttesting, recall scores

S urv eys of m edia habits
S ales

S urv eys of responses to alternativ e types
P rom otion
of prom otion
S ales F orce

T ests of alternativ e sales presentations
International Marketing
Research
IV. Data Sources - a wide
variety are available.
V.
Advantages of Secondary
- Fast
- Inexpensive
- Can aid in further research
International Marketing Research
VI. Disadvantages of
Secondary Data
- May not be accurate
- Difficult to trace methodology
- Data becomes quickly outdated
- Not collected for specific task at
hand
Sources of Data
• Governments
– Departments of Commerce, Agriculture, State,
Treasury, and U.S. embassies abroad
• International organizations
– United Nations’ Yearbook, World Bank’s
World Atlas, Organization for Economic
Cooperation and Development (OCED) and
World Trade Organization (WTO) publications
• Service organizations
– Banks, accounting firms, freight forwarders,
airlines, and international trade consultants
The Research Process
Major Sources of Secondary Data
U.S. DEPARTMENT OF COMMERCE
Foreign Trade Report: U.S. exports by commodity and by country
Global Market Surveys: Global market research on targeted industries
INTERNATIONAL MONETARY FUND
International Financial Statistics: Monthly report on exchange rates, inflation,
deflation, country liquidity, etc.
UNITED NATIONS
Statistical Yearbook: Population, production, education, trade, etc.
THE ECONOMIST
E.I.U. World Outlook: Forecasts trends for 160 Countries
Marketing in Europe: Product markets in Europe
International Marketing Research
VII. - Consider Costs and
Benefits of the Research Effort
VIII. - Primary Data Collection
International Marketing Research
Primary data is collected for the
specific research problem at
hand
1)Major Types of Primary Research
i)
ii)
iii)
Exploratory
Descriptive
Causal
i)
ii)
iii)
iv)
Interviews
Focus Groups
Observation
Surveys
2)Research Techniques
International Marketing Research
IX. Analysis and Interpretation
X. Communicate Results
Effectively
The Research Process
Table 6.4: Comparison of European Data Collection Methods
Mail
Telephone
Central location/
streets
Home/work
Groups
Depth interviews
Secondary
France
4%
15
Netherlands
33%
18
52
-13
12
4
37
--12
--
Sweden Switzerland U.K.
23%
8%
9%
44
21
16
-8
5
2
4
-44
6
8
8
-54
11
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Talents Required to Analyze and
Interpret Research Information
• Cultural Understanding
• Creative Talent for Adapting Research Findings
• Skeptical Attitudes when Handling Both Primary
and Secondary Research
Challenges:
- Language: “tabled” in US vs UK English
- postpone consideration of vs.
- present formally for discussion at a meeting
- Translation: “Chevy Nova”
- Syntax:
- Cultural norms: Ketchup? No, soy sauce!
Instant coffee in France?
Being alone for an interview with a man
in Middle-East? Discuss grooming??
- Time zones : no interviewing in Japan during work hours
- Foreign holidays: many? Less?
Sampling issues:
China has a total population of 1.2 billion, 350 million
of which live in urban areas of 622 cities and scores
of smaller towns. Of the cities, only 32 have
populations of at least one million, while 42 have
populations between 500,000 and one million, and
the remaining 548 have populations of less than
500,000.
What is a representative sample??
Technology:
In Germany, telephone penetration did not reach the 80%
level until the mid-1980s, long after that milestone had been
reached in the United States. Today, less than 10% of all
households in India have telephones, and telephone
penetration in Brazil is less than 50% in large cities.
What picture regarding the internet??
Legal issues: What is privacy, what is legal to collect?
Native speakers as interviewers: what if literacy is low?
Questionnaire length:
Of China's major cities, refusal rates are estimated at
32% in Guangzhou,22% in Beijing, and 10% in Shanghai.
in 20 minutes people get tired.
Translated into Italian, a 20 minute American
questionnaire will last only approximately 18 minutes.
Translated into French, the same questionnaire
will take 22 minutes.
Incentive to respond: expected in Brazil, insulting in other.
Currency fluctuations: talk about budget!!
• There is no substitute for trusted, on-the-ground contact sources to provide context
• Consider using a single research vendor familiar with the international
marketplace.
• Allow more time to plan and execute an international study.
• Conduct research studies in markets similar to the home country prior to
conducting research in new and unfamiliar parts of the developing world. Newcomers
to the international market research arena should take small steps in familiar markets
to provide a solid foundation prior to expanding into new, unfamiliar markets.
• Supplement custom market research insights with as much secondary information
about foreign markets as available.