International Marketing

Research

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 Learning Objectives
To gain an understanding of the need for research.
To explore the differences between domestic
and international research.
To learn where to find and how to use sources of
secondary information.
To gain insight into the gathering of primary data.
To examine the need for international
management information systems.

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International Marketing Research

International marketing research is the systematic

design, collection, recording, analysis, interpretation,
and reporting of information related to a particular
marketing decision facing a company operating
internationally.
Example : Proctor & Gamble-
(A Multinational)
How to connect to consumer?

Connecting trivial, day to day products

with consumers.

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 International and
Domestic Research
The tools and techniques
of international research
are the same as those of
domestic research.
The difference is in the
environment to which
the tools are applied.

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International and Domestic
Research cont.)
The three primary reasons for the differences
between international and domestic research
are:

New Parameters

New Environmental
Factors

A Broader
International Definition
Research of Competition
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 New Parameters
In crossing international borders, a firm
encounters parameters/constraints not
found in domestic business.
Examples include:
Duties
Foreign currencies and changes in their value
Different modes of transportation
International documentation
Differing modes of operating internationally

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New Environmental Factors
Many of the domestic assumptions on
which the firm and its activities were
founded may not hold true
internationally.
Management needs to:
Learn the culture of the host country
Understand its political systems and level of
stability
Comprehend the existing differences in societal
structures and language
Understand pertinent legal issues

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 Broader Definition of
Competition
The international market
exposes the firm to much
greater variety of competition
than that found in the home
market.
Firms must:
Determine the breadth of the competition,
Track competitive activities,
Evaluate their actual and potential impact
on company operations on an ongoing
basis.
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 Lack of International
Research
International research is often less rigorous,
less formal, and less quantitative than
domestic research.
The four reasons why managers are reluctant
to engage in international research are:
Their lack of sensitivity to differences in culture,
consumer tastes, and market demands.
Limited appreciation for different environments abroad.
Lack of familiarity with national and international data
sources.
Firms build international business activities gradually,
frequently based on unsolicited orders.
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 The Importance of
International Research
Firms must learn where the opportunities are,
what customers want, why they want it, and
how they satisfy their needs and wants.
Research allows management to identify and
develop international strategies.
Firms must identify, evaluate, and compare
potential foreign business opportunities and
the subsequent target market selection.
Research is necessary for the development of a
business plan.

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Domain of International
Marketing Research

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Research of Industry and
Market Trends
(Usually Strategic in Nature)

Acquisition analyses

Diversification analyses

Market-share analyses

Export research
International Buyer Behavior
Research
Brand preferences
Brands awareness
studies
Purchase behavior
studies
Consumer
segmentation studies
International Promotion
Research
Studies of premiums, coupons, and deals
Advertising effectiveness research
Local media research
Studies pertaining to personal selling activities

e.g Sales Force Compensation

International Pricing Research
Currency studies

Studies of inflation rates and pricing

International Distribution
Research
Import/export analyses
Channel performance and coverage
Plant/warehouse location studies
 Determining Research
Objectives
As a starting point, research
objectives must be
determined for a firm.
These objectives will depend
on the views of
management, the corporate
mission of the firm, the firm’s
level of internationalization,
and its competitive situation.

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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
The International Marketing
Research Process
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
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 e.g WD 40 etc.
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
Other Sources of Secondary
Data
Other Firms
Directories

Governments

International
Institutions

Trade Associations Service

Organizations
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Conducting Primary Research
Primary data are obtained by a
firm to fill specific information
needs.
The researcher must decide
whether research is to be
conducted in the consumer or
the industrial product are
Cost can be quite high
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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
Interviews
Constraints: Responses can be affected by culture and
interpretation. individuals may act differently if they know they are
being observed.
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
Data Collection
STEP 5 Design Data Collection
Instrument
Constraints: Translation; Instrument
Reliability; Reluctance to answer certain
questions
Data Collection, continued
STEP 6 Decide on the Sampling Plan
Sample Size
Sampling Procedure
STEP 7 Collect, Analyze, and Interpret
Data
 The International
Information System
An information system is the systematic and
continuous gathering, analysis, and reporting of
data for decision-making purposes. (aslo called
,Decision Support System, D.S.S
To be useful, the information system must be:
Relevant
Timely
Flexible
Accurate
Exhaustive
Consistent
Convenient
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Export and Import Issues

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 Going International-
Exporting
A frequent objective of international
research is that of foreign market
opportunity analysis. The aim is to utilize a
broad-brush approach.
Steps to this approach include:
A cursory analysis of general variables of a country.
A preliminary evaluation of each individual country.
Selection of appropriate markets for in-depth
evaluation.
Finally, a competitive assessment must be made.
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Process of Researching Foreign
Market Potentials
Stage One
Preliminary Screening for Attractive Country Markets
Key Question to be answered:
Which foreign markets permit detailed information?

Stage Two
Assessment of Industry Market Potential
Key Question to be answered:
What is the aggregate demand in each of the selected markets?

Stage Three
Company Sales and Promotion Analysis
Key Question to be answered:
How attractive is the potential demand for our products and services?

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 Going International-
Importing
When importing, the major focus shifts
from supplying to sourcing.
Management must identify markets that
produce suppliers or materials desired.
The importer needs to know:
The reliability of a foreign supplier,
The consistency of its product or service quality,
The length of delivery time,
Government rules and restrictions of the exporting
country
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Export Complaint Systems
An export complaint system allows
customers to contact the original
supplier of a product in order to inquire
about products, make suggestions, or to
present complaints.
A firm must be able to aggregate and
analyze complaints and to make use of
them internally.
Increasingly, the Internet enables
customers to provide feedback on their
experiences with a firm.
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 The Mechanisms of Export
Complaint Systems
Environmental
Scanning

Delphi Studies Scenario Building

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 Environmental Scanning
Environmental scanning activities
provide continuous information on:
Political, social, and economic affairs
internationally
Changes of attitudes of public institutions and
private citizens
Possible upcoming alterations
Two significant methods of
environmental scanning are obtaining
factual input and content analysis.

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 Delphi Studies
Delphi studies are a means for
aggregating the judgements of a
number of experts who cannot
come together physically.

The Delphi technique is particularly

valuable because it uses mail, fax,
or electronic communication to
bridge large distances and therefore
makes experts accessible at a
reasonable cost.

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 Scenario Building
Scenario building involves the identification of
crucial variables and the degree of variation.
The possibility of joint occurrences must be
recognized.
For scenarios to be useful, managers must
analyze and respond to them by formulating
contingency plans.
Through the anticipation of possible problems,
managers hone their response capability and
in turn shorten response times to actual
problems.
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