A PRESENTATION ON INTERNATIONAL MARKETING RESEARCH

Presented by : Kumar raunak Rohit Amit Santosh Rajeev

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

International Marketing Research Some Definitions

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 can be defined as marketing research conducted to aid in making decisions in more than one country

SO HOW IS IT DIFFERENT FROM DOMESTIC MARKETING?

The major differences are The national differences between countries arising out of political, legal, economic, social and cultural differences and, The comparability of research results due to these differences.

National Differences The main factors that affect the way in which people from different countries behave are:

a. Cultural Differences: Culture refers to widely shared norms or patterns of behaviour of a large group of people. It is defined as the values, attitudes, beliefs, artifacts and other meaningful symbols represented in the pattern of life adopted by people that help them interpret, evaluate and communicate as members of society.

b. Racial Differences: This would refer to the differences in physical features of people in different countries. For example, the types of hair care and cosmetic products needed in U.S would differ from those needed in South East Asia.

c. Climatic Differences: This would include the meteorological conditions like degree of rain and temperature range in the targeted foreign market. For instance, BoschSiemens had to alter their washing machines with a minimum spin cycle of 1,000 rpm and a maximum of 1,600 rpm in Scandinavia, owing to irregular sunshine. In Italy and Spain, on the other hand, it is sufficient to have a spin cycle of 500 rpm as there is abundant sunshine.

. ECONOMIC DIFFERENCES:

THE LEVEL OF ECONOMIC DEVELOPMENT IN A MARKET CAN AFFECT THE

DESIRED PROPERTIES OF A PRODUCT AND IN THIS WAY CAN INSPIRE A COMPANY TO ADAPT ITS PRODUCTS IN ORDER TO MEET THE NEEDS OF THE LOCAL MARKET. THE LEVEL OF ECONOMIC PROGRESS IN A MARKET CAN BE ASSESSED BY A SERIES OF INDICATIONS: THE LEVEL OF REVENUE AND BUYING POWER OF LOCAL CONSUMERS: THIS WILL HAVE AN INFLUENCE ON THE TECHNICAL CONCEPTION AND MARKETING OF EXPORTED PRODUCTS. IN RICHER COUNTRIES WHERE THE STATE OF ECONOMIC PROGRESS IS MORE ADVANCED, CONSUMERS GENERALLY HAVING A HIGHER PURCHASING POWER AND TEND TO PREFER PURCHASE OF MORE SOPHISTICATED PRODUCTS WITH ADVANCED FUNCTIONS, WHILE PEOPLE IN POORER MARKETS WOULD BE INTERESTED IN A SIMPLIFIED VERSION OF THE PRODUCT. THE STATE OF INFRASTRUCTURE IN THE MARKET: THE GENERAL LEVEL OF THE QUALITY OF INFRASTRUCTURE IN THE COUNTRY CONSISTING OF ELEMENTS SUCH AS TRANSPORT, ENERGY COMMUNICATION SYSTEMS, ETC. CAN AFFECT HOW THE PRODUCT IS CONSTITUTED AS IT CAN BRING ABOUT DIFFERENT CONDITIONS OF USE. FOR INSTANCE WHEN CAR MANUFACTURER SUZUKI ENTERED INDIA, IT HAD TO REINFORCE THE SUSPENSION OR THE ROAD CLEARANCE LEVEL OF THE

CARS AS THE STATE OF THE ROADS WERE POOR.

e. Religious Differences: Religion has many impacts on products, more particularly on the ingredients, that constitute them. For example, in Islamic countries, companies, exporting grocery products based on beef have to furnish a certificate declaring that the animals have been slaughtered respecting Halal methods. Alcoholic drinks are equally banned in Middle Eastern countries. Religious restrictions can therefore require product adaptation. f. Historical Differences: Historical differences help explain facts such as the playing of cricket in England, as opposed to game of boules in France. These differences have slowly evolved over time but have a profound effect on consumer behavior. For example, drinking Scotch whiskey is considered prestigious and trendy in Italy, but old-fashioned and almost boring in Scotland.

g. Language Differences: Language is an important aspect of international marketing research. Inappropriate use of language could result in loss of market apart from turning out to be a cross cultural gaffe. For instance, U.S. and British negotiators found themselves at a standstill when the American company proposed that they table particular key points. In the U.S. Tabling a motion means to not discuss it, 6 while the same phrase in Great Britain means to bring it to the table for discussion. h. Differences in Actual and Potential Target Groups: In countries like England and Germany it is possible to do national samples. Small towns and villages can be included because distances are not great. In Spain, interviews can be conducted only in cities with populations of over 100,000 people, as the cost of interviewing people in small towns and villages is prohibitively high . In addition, the international marketing researcher may also have to deal with other factors such as differences in the way that products or services are used, differences in the criteria for assessing products or services across various markets and differences in market research facilities and capabilities.

International Marketing Research Occurs at Different Levels

Assessment of a foreign market (general information about a country)
Economic Social / Cultural Political / Legal Technological

Industry Information (relates to product category)

Market size Segmentation Competition Consumer

Specific market information (used to develop marketing plans)

Product Pricing Distribution Promotion

Steps in the Research Process

Step I: Define the research problem Step 2: Developing a research plan Step 3: Collecting data Step 4: Analysing research data Step 5: Presenting the findings

Research Process in Detail

1. Step I: Define the research problem
Critical step because of unfamiliarity with international markets

Problems can arise when researchers:  Fail to recognize or anticipate the influence of the local culture or fail to identify the SRC effect  Treats the problem as if it exists in the home country  Fail to establish problem limits broad enough to include all relevant data

STEP 2: DEVELOPING A RESEARCH PLAN

A Company if going for international marketing research needs to develop a research plan. Planning means simply deciding in advance what is to be done in future.

So a company needs to plan what it is conducting a research? What will the outcome of the research? How and where it will use the research? Which method it will follow?

Step 3: Collecting data Primary Data

When

Secondary Data
When

data is not available, and must be obtained through some form of data collection.

data exists and is available through a variety of sources (i.e. internet, publications, government records, etc.)

Problems with obtaining relevant data

Secondary Data defined
Data

collected by another agency or researcher

Problems with obtaining relevant and accurate Secondary data

1.

Availability of Data 2. Reliability of Data 3. Comparability of Data 4. Validating Secondary Data

Validating Secondary Data

Who collected the data ? Would there be any reason for purposely misrepresenting the facts ?

For what purpose were the data collected ? How were the data collected ? (Methodology) Are the data internally consistent and logical in light of known data sources or market factors ?

Primary & Secondary Data

Secondary
Readily available, used for other purposes

Primary
Generated first-hand, tailor made research

Availability Relevancy Reliability Comparability

Issues

Ability to communicate Willingness Sampling Plan Language/Comprehension

Gathering Primary Data

Quantitative Research

Qualitative Research

Methods for Developing Primary Data

Focus Groups Panels Experiments

Data
Qualitative? Quantitative?

Surveys

Observation

Interviews

Uses of Internet in International Research

o On-Line Surveys and Buyer Panels o On-Line Focus Groups o Web Visitor Tracking o Advertising Measurement o Customer Identification Systems o E-Mail Marketing Lists o Embedded Research

Step 4: Analysing research data

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

STEP 5: PRESENTING THE FINDINGS

After collecting the data we need to present the findings.

Five Rules of International Research

1. Apply the WHAT, WHY, WHERE and WHEN of information. 2. Use locally available information first. 3. Identify information sources abroad. 4. Know where to look. 5. Do not assume the information you get is comparable or accurate.

THE SCOPE OF INTERNATIONAL MARKETING RESEARCH

Research of industry , market characteristics , and market trends Buyers behavior research Product research Distribution research Promotion research Pricing research

RESEARCH OF INDUSTRY , MARKET CHARACTERISTICS , AND MARKET TRENDS

BUYERS BEHAVIOR RESEARCH IT IS A RESEARCH EXAMINING BRAND PREFERENCE AND BRAND ATTITUDES
Brand awareness research Purchase behavior studies Consumer segmentation studies

PRODUCT RESEARCH
Concept development and testing studies Brand name generation and testing Product testing Competitive product studies Product packaging design studies Test marketing

DISTRIBUTION RESEARCH

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

PROMOTION RESEARCH
Studies of premiums coupons deals Advertising effectiveness research Media research Sales force compensation , quota , and territory studies

PRICING RESEARCH
International market potential studies Sales potential studies Sales forecast Cost analyses Profit analyses studies Price elasticity studies Competitive pricing analyses

SOME WAYS OF COLLECTING DATA IN INTERNATIONAL RESEARCH

Personal Interviews Mall Intercept Surveys Telephone Interviews Mail Surveys Focus Groups

DONE UNDER THE ABLE AND EFFECTIVE GUIDANCE OF PROFESSOR: MRS. CHETNA PRITI, INTERNATIONAL MARKETING FACULTY, I.I.B.M,PATNA.

Thank you friends