Marketing ResearchMarketing Research•What’s the

“same”• Customer focus• Need for an

environmental analysis

• Need for sufficient, accurate, & timely information

•What’s “different”

• Each region / country is unique

• Differing market institutions

Overarching IssuesOverarching Issues• What are the unique

characteristics of the intended market? – What characteristics are in common

with a currently penetrated market?• Can multiple markets be clustered

together for operating and or planning purposes? – What dimensions should be used to

cluster markets?• Adapt to market or standardize?

Information CategoriesInformation Categories

•Market characteristics– Size of market: rate of growth– Stage of development– Stage of product life cycle;

saturation levels– Buyer behavior characteristics– Social / cultural factors– Physical environment

Information CategoriesInformation Categories

•Marketing institutions– Distribution systems– Communication media– Marketing services (advertising &

research)

Information CategoriesInformation Categories

•Marketing institutions– Distribution systems– Communication media– Marketing services (adv. &

research)•Industry conditions

– Competition size & practices– Technical development

Information CategoriesInformation Categories

•Legal environment– Laws, regulations, codes, tariffs,

taxes

Information CategoriesInformation Categories

•Legal environment– Laws, regulations, codes, tariffs,

taxes•Resources

– Personal (availability, skill, potential & cost)

– Money (availability & cost)

Information CategoriesInformation Categories

•Political environment– Current government policies and

attitudes– Long-range political environment

Market ResearchMarket Research•Primary or secondary data?

•Cost effective?•Relevant?•Accurate?•Timely?

Obstacles to collecting Obstacles to collecting International Secondary International Secondary

DataData•Comparability

–Comparing data from one country / region to another (differences & errors)

•Lack of current data–Frequency of surveys & data collection varies

•Cost –Especially when privatized

Obstacles to collecting Obstacles to collecting International Primary International Primary

DataData•Language

–Translation / back-translation •Requires re-testing survey tool

Obstacles to collecting Obstacles to collecting International Primary International Primary

DataData•Language

–Translation / back-translation •Requires re-testing survey tool

•Infrastructure–May dictate different techniques (e.g. poor phone system or poor postal syst.)

Obstacles to collecting Obstacles to collecting International Primary International Primary

DataData•Language

–Translation / back-translation •Requires re-testing survey tool

•Infrastructure–May dictate different techniques (e.g. poor phone system or poor postal syst.)

•Cultural–Differing attitudes towards research; from avoidance to fabrication

Resolving data Resolving data challengeschallenges

•Segment the research task•Utilize resources

–USDOC offers primary data collection service•Conducted by commerce dept. employees based in U.S. foreign offices

–All local, state, and federal resources•ITA, World Trade Centers, Industry associations

Dealing with data Dealing with data problemsproblems

•Complementary product or industry substitution–“Bad” indicator / classification code

•National statistics substitution–Correlate demographic and consumption statistics

•Ratio comparisons–Use data for known areas to predict

•Timeline comparison–Level of consumption to development

Data needs & sourcesData needs & sources•Economic & demographic data

–STAT-USA <http://domino.stat-<http://domino.stat-usa.gov/>usa.gov/> Most Local and State trade assistance centers and Federal Depository Libraries offer free access•National Trade Data Bank (NTDB)•Global Business Opportunities GLOBUS

•State of the Nation

Data needs & sourcesData needs & sources•Economic & demographic data

–Country Commercial Guides (CCG)•Available for most countries•Updated annually

–CIA World Factbook•Greater detail than the CCGs•Geography, resources, population demographics, government, infrastructure, military and economic indicators

–Department of State Background Notes

Data needs & sourcesData needs & sources•Economic & demographic data

–US Foreign Commercial Service•Country Market Profiles (CMP)

–Single country, multi-industry reports•Country Trade Statistics (CTS)

–Single country over a 5 year period•Foreign Economic Trends (FET)

–Current business & economic developments

•International Market Information (IMI–Unique market situations

Data needs & sourcesData needs & sources•Economic & demographic data–U.S. Agency for International Development (USAID)•Congressional Presentations

–Trade & Development Program, Dept. of State•Congressional Presentation

–DUN’s Marketing Service•Exporter’s Encyclopedia (800) 526-0651

Data needs & sourcesData needs & sources•Economic & demographic data

–Center for International Research•World Population (demographic data)

– ITA - USDOC•International Economic Indicators

– International Monetary Fund (IMF)•International Financial Statistics

–World Bank•World Bank Atlas •World Development Report

Data needs & sourcesData needs & sources•Fax retrieval systems / web sites

–USDOC Trade Information Center•(800) USA-Trade (872-8723)•www.ita.doc.gov

•USDOC Country desk officer–Each assigned to one or more countries or markets•Get listing from TIC or Export Asst. Cntr.

•Private resources–Ernst & Young

Industry / Product Industry / Product specific Dataspecific Data

•STAT-USA– Industry Sector Analysis (ISA)

•Include local competitors, export / import statistics

– International Market Insights (IMI)•More current (limited time duration)

–Best Market Reports (BMR)•Groups markets by product classifications

–US Exports of Merchandise•Uses harmonized code

Industry / Product Industry / Product specific Dataspecific Data

•U.S. and Foreign Commercial Service

•(202) 377-2432–Export Statistics Profiles (ESP)

•Available for 35 industries, $70 ea.–Custom Statistical Service

•For products not in ESP ($50 - $1000)– International Market Research

•Single industry, one country ($50 - $200)–Country Market Surveys (CMS) ($10)

•8 - 12 page summaries of IMR by indust.

Industry / Product Industry / Product specific Dataspecific Data

•U.S. and Foreign Commercial Service

•(202) 377-2432–Annual Worldwide Industry Reviews•9-20 countries per volume ($200 / volume)

–Product Market Profiles (PMP)•Single product, multicountry ($300 - $500)

•USDOC Competitive Assessments –Over 20 industries (202) 377-4944

Industry / Product Industry / Product specific Dataspecific Data

•U.S. Govt. Printing Office–Foreign Trade Report (FT410)

$100/yr•U.S. Comercial Officers

–Comparison shopping service•Specific product, single country

•National Technical Info. Service–Market Share Reports ($6.50 ea)

Industry / Product Industry / Product specific Dataspecific Data

•U.S. Small Business Administration–Export Information System Data Reports (XIS)

•Information Clearinghouse–FINDEX: Directory of Market Research Reports, Studies and Surveys•Over 10,000 listings ($245)•(212) 354-2424

Industry / Product Industry / Product specific Dataspecific Data

•USDOC Industry desk officers–“Relationship” based

•Trade associations–Especially in international standards issues

•Publications, journals, periodicals•Foreign phone books

– <www.europages.com>•Networking

–Suppliers / non-competing companies

Competitive PositionCompetitive Position•Competitive intelligence issues–Where are they selling?–To whom are they selling–How are they selling–How much are they selling, at what price?

–What is there international strategic plan?

Key Sources of Key Sources of Competitive Info.Competitive Info.

•Databases–U.S. Exports by Commodity

•Monthly compilation (harmonized code)

–Port Import Export Reporting Service (PIERS) (expensive)•More detailed than Commodity report

–Directory of U.S. Exporters•Compilation of PIERS reports

–United Nations International Trade Statistics Yearbook•Less detailed than Commodity (Intntl.)

Key Sources of Key Sources of Competitive Info.Competitive Info.

•Company information–Company literature (and web sites)

–Company advertising– Industry associations (pooled data)

•Public information– Industry press–Newspapers

Key Sources of Key Sources of Competitive Info.Competitive Info.

•Interviews - direct contact–Press and advertising–Government–Foreign customers / distributors

–Employees from competitors–Service / fraternal organizations