Global Marketing.3

CHAPTER 3:
RESEARCHING INTERNATIONAL MARKET
704014 - Global Marketing - Chapter 3: Researc 1

hing International Market
Learning Objectives
• Identify the challenges faced in undertaking
international marketing research.
• Describe the international marketing research

process.
• Discuss the role of secondary research.
• Evaluate the use of primary research in

international marketing.

Content
Defining the issue: Marketing research.
International and domestic research.
The problems related to international research.
The primary research process.
The international nformation system.

1.1. Defining the issue:
Marketing research
• Links the consumer, customer, and public

to the marketer through information.
• Helps to improve decision making.
• Helps to solve marketing problems.

1.2. International and
domestic research
• Similar tools and techniques, but the

market environments differ
• New parameters: duties, foreign currencies
and changes in their value, different
modes of transportation, international
documentation and port facilities
domestic research
• New environments:
– test and re-evaluate firms’ assumptions
– require firms’ to research the host

country

domestic research
• Number of factors involved:

– firm entering into more than one foreign
market
– need to understand the interactions
between the dimensions

domestic research
• Broader definition of competition:

– determine the breadth of the
competition, track the competitive
activities, evaluate the actual and
potential impact on own operations.

1.3. The problem related to
international research
• Recognising the need for research
• Reluctance to research
• The benefits of research
• Determining research objectives
• Determining secondary information

requirements 704014 - Global Marketing - Chapter 3: Researc 9
Recognising the need
for research
• What do customers want?

• Why do they want it?
• How do they satisfy their needs?

Reluctance to research
• Lack of sensitivity (i.e., consumer tastes

and preferences)
• Limited appreciation for the different
marketing environments abroad

Reluctance to research
• Lack of familiarity with national and

international data sources
• Actual business experience may be used
as a substitute

The benefits of research
• The value of research is equal to:

V(dr) – V(d) > C(r)
– V(dr) is the value of the decision with the
benefit of research
– V(d) is the value of the decision without the
benefit of research
– C(r) is the cost of the research

Determining research objectives
• Views of management
• Level of international experience
• Corporate capabilities
• Current marketing situation and internal
readiness

Going international: Exporting
• Foreign-market opportunity analysis

• Cursory analysis of:
– market data
– product data
– trends
– government regulations and restrictions

WORLD’S LARGEST DIGITAL
SURVEY
Click to play video

Researching foreign market
potential

Going international: Importing
• Foreign firm evaluation: competitive standing;

reliability; quality of service/product
consistency; length of delivery time
• Domestic and foreign government rules and
legislations must be examined

Market expansion
• Detailed market information

• Designing and fine-tuning the marketing
mix
• Monitoring the political climate

Determining secondary information
requirements
• Research objectives help determine the

type of information needed
• Macro-level information:
– tariff and non-tariff data
– government trade policy data

Determining secondary information
requirements
• Micro-level information:
– local laws and regulations
– local standards and specifications
– distribution systems
– competitive activities

Sources of data
• Governments and government websites
• International organisations, for example,

the WTO, IMF, OECD, WB, APEC, ASEAN
• Service organisations, for example, banks,
accounting firms, freight forwarders,
airlines and international trade consultants
Sources of data
• Trade associations such as trade clubs,

domestic and international chambers of
commerce
• Directories and newsletters
• Electronic information services such as online
databases and search engines, news agencies
• Other firms
DOING BUSINESS REPORT 2012
Click to play video

Evaluating data
• Quality of data source

• Quality of data
• Timeliness of data
• Compatibility and comparability of data

Analysing and interpreting
secondary data
• Researchers show creativity

• A proxy variable may be used, for
example, market penetration of television
sets may be used as a proxy variable for
the potential market demand for DVD
players
Analysing and interpreting
secondary data
• Data interpretation and methods must be

consistent
• Determine any necessary modifications for
future projects

Data privacy
• Careful attention to the privacy laws and

expectations in different nations and
possible consumer reactions
• Different attitude of society towards
obtaining and using secondary and
primary data
Data privacy
• Many countries have strict privacy laws
• Adapt global privacy rules for managing

information online and to be certified by
watchdog groups

1.4. The primary research
process
• Fills specific information needs
• Used for strategic marketing plans
• Analysis of segmentation variables

Determining information
requirements
• What is the market potential for our

product?
• How much does the typical consumer
spend on our product?

Determining information
requirements
• What will happen if we raise the price of

our product?
• What effect will new packaging have on
‘green’ consumers?

Industrial versus
consumer research
• Research with consumers or with

industrial users?
• Helps to determine sample size
• Helps to determine respondent

accessibility

Determining
research administration
• Degree of research centralisation:
– centralised approach
– coordinated approach
– decentralised approach

Determining
research administration
• The use of outside research services

depends on the:
– size of a firm
– environment familiarity
– research capability of the outside
organisation
Determining
the research technique
• In-depth interviews:
– knowledgeable persons
– personal bias must be discounted

Determining
• Focus groups:
– interaction between seven and 10

participants about a specific topic
– cultural influence in the discussion
process must be taken into account

Determining
• Surveys:
– gather generalisable quantitative data
– research is detached
– beware of social and cultural constraints

Determining
• Observation:
– activity and behaviour
– results can be influenced by presence of

the observer

Designing
the survey questionnaire
• Question format:
– structured or unstructured
– direct or indirect
– cross-cultural equivalence

Designing
• Question content:
– consider interviewee’s ability and

willingness to answer questions
– adapt questions to societal constraints

Designing
• Question wording:
– simple and unambiguous words and

terms
– back translation approach
– pre-test the survey

Developing the sampling plan
• Sample must be representative

• Differentiate between segments
• Prepare sampling plans according to the
complexity of the markets

Collecting data
• Spot check the administration procedures

• Realism check of data
• Compare collected data with secondary
information and with analogous
information from a similar market

Analysing and interpreting data
• Use the best tools and methods available

• Avoid using overly sophisticated tools for
unsophisticated data
• Match quality of data with quality of the
research tools

Presenting research results
• Communicate findings to top management

and local managers
• Avoid lengthy data and analytical
demonstrations
• Show how the results relate to the original
objectives and corporate strategy
Follow-up and review
• Base new decisions on the research

Research on the Web
• Web-based research is a natural means

for gathering consumer information quickly
and cost-effectively:
– email-based surveys
– polling

Research on the Web
• Use social networks to access particular

consumer groups
• Lack of confidentiality
• Cultural differences matter

EVALUATING WEBSITES
Click to play video

1.5. The international
information system
• Marketing decision support systems:

– ‘an integrated system of data, statistical
analysis, modelling and display formats
using computer hardware and software
technology’
– basic data for ongoing decision making
information system
• Relevant
• Timely
• Flexible
• Accurate
• Exhaustive
• Convenient
information system
Environmental scanning
• Factual input
• Content analysis
• Environmental scanning groups
• Fine line between tracking and obtaining
information, and misappropriating corporate secrets

information system
Scenario building
• Scenario analysis: different configurations
of key variables
• Identification of crucial trend variables and
the degree of their variation

information system
Scenario building
• Building a wide variety of scenarios
• Recognition of the non-linearity of factors
• Possibility of joint occurrences
• Development of contingency plans

Key terms
• Back translation approach

• Content analysis
• Foreign market opportunity analysis
• International comparative research
• Qualitative data
• Quantitative data
• Realism check
• Scenario analysis
Q&A


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CHAPTER 3:

RESEARCHING INTERNATIONAL MARKET

704014 - Global Marketing - Chapter 3: Researc 1

• Describe the international marketing research

• Discuss the role of secondary research.

• Evaluate the use of primary research in

704014 - Global Marketing - Chapter 3: Researc 2

Defining the issue: Marketing research.

International and domestic research.

The problems related to international research.

The primary research process.

The international nformation system.

704014 - Global Marketing - Chapter 3: Researc 3

• Links the consumer, customer, and public

704014 - Global Marketing - Chapter 3: Researc 4

• Similar tools and techniques, but the

– test and re-evaluate firms’ assumptions

– require firms’ to research the host

704014 - Global Marketing - Chapter 3: Researc 6

• Number of factors involved:

704014 - Global Marketing - Chapter 3: Researc 7

• Broader definition of competition:

704014 - Global Marketing - Chapter 3: Researc 8

• Recognising the need for research

• The benefits of research

• Determining research objectives

• Determining secondary information

• What do customers want?

704014 - Global Marketing - Chapter 3: Researc 10

• Lack of sensitivity (i.e., consumer tastes

704014 - Global Marketing - Chapter 3: Researc 11

• Lack of familiarity with national and

704014 - Global Marketing - Chapter 3: Researc 12

• The value of research is equal to:

704014 - Global Marketing - Chapter 3: Researc 13

704014 - Global Marketing - Chapter 3: Researc 14

• Foreign-market opportunity analysis

704014 - Global Marketing - Chapter 3: Researc 15

Click to play video

704014 - Global Marketing - Chapter 3: Researc 16

704014 - Global Marketing - Chapter 3: Researc 17

• Foreign firm evaluation: competitive standing;

704014 - Global Marketing - Chapter 3: Researc 18

• Detailed market information

704014 - Global Marketing - Chapter 3: Researc 19

• Research objectives help determine the

– tariff and non-tariff data

– government trade policy data

704014 - Global Marketing - Chapter 3: Researc 20

– local laws and regulations

– local standards and specifications

704014 - Global Marketing - Chapter 3: Researc 21

• Governments and government websites

• International organisations, for example,

• Trade associations such as trade clubs,

Click to play video

704014 - Global Marketing - Chapter 3: Researc 24

• Quality of data source

704014 - Global Marketing - Chapter 3: Researc 25

• Researchers show creativity

• Data interpretation and methods must be

704014 - Global Marketing - Chapter 3: Researc 27