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

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International Marketing Research

International marketing managers need to constantly monitor the different forces affecting their international operations International marketing research is especially complex

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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.

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Research of Industry, Market Characteristics, and Trends

Acquisition analyses Diversification analyses Market-share analyses Export research

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International Buyer Behavior Research

Brand preferences Brand attitudes Brands awareness studies Purchase behavior studies Consumer segmentation studies

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International Product Research

Concept development and testing studies Brand name generation and testing Product testing Competitive product studies Packaging design studies Test marketing

#1

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International Distribution Research

Import/export analyses Channel performance and coverage Plant/warehouse location studies

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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

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International Pricing Research

Studies projecting demand Currency and counter trade studies Studies of inflation rates and pricing Studies of negotiation tactics

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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

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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

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Secondary Data Constraints

Conceptual Equivalence


Concepts have different meanings in different cultural environments Products themselves may be used for different purposes in different country environments

Functional Equivalence


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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

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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

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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.

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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

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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

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Data Collection, continued

STEP 6 Decide on the Sampling Plan
Sample Unit  Sample Size


 Sampling Procedure

STEP 7 Collect, Analyze, and Interpret Data

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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

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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 Experts to estimate market performance; findings are aggregated, and experts are queried again, in light of aggregate responses

The Delphi Method



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Sales Forecasting, continued

Time Series and Econometric Models


Use data of past performance to predict future market demand 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

Analogy Methods


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Sales Forecasting, continued

Point of Sale Research


Made with the help of store scanners, in markets where they are available

Involve comprehensive store audits

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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