Developing a Global Marketing Vision Through Marketing Research.

Developing a Global Marketing Vision Through Marketing

Research

Chanel: ‘satanic dress’

Camellia flower used for Funerals in Brasil

Launched a perfume with camellia fragrance

Overlooked customs and Beliefs

Had to withdraw the perfume

RED orWHITE?

7 OR 8?

• What is 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.

International Marketing Research

I. Differences with Domestic Research

- New parameters

- New environments

- More factors to consider

- More competitors

- Are results comparable?

Recognizing the Need for Research• Reasons that executives may view international

research as unimportant:– Lack of sensitivity to differences in consumer tastes

and preferences.– Limited appreciation for the different marketing

environments abroad.– Lack of familiarity with national and international

data sources and the inability to use them.– Actual but limited business experience in a country

or with a specific firm may be used as a substitute for organized research.


II. Why do International Marketing Research?

- Reduce Risk of Failure- Identify opportunities- Lead to more informed decisions- Reduce mistakes

III. The IMR Process- Step 1 : Problem Definition- Step 2 : Examine Secondary Data

International Marketing Decisions Requiring Marketing ResearchMarketing Mix

Decision Type of ResearchProduct policy Focus groups and qualitative research to

generate ideas for new products Survey research to evaluate new product

ideas Concept testing, test marketing Product benefit and attitude research Product formulation and feature testing

Pricing Price sensitivity studiesDistribution Survey of shopping patterns and behavior

Consumer attitudes toward different storetypes

Survey of distributor attitudes and policiesAdvertising Advertising pretesting

Advertising posttesting, recall scores Surveys of media habits

SalesPromotion

Surveys of responses to alternative typesof promotion

Sales Force Tests of alternative sales presentations

The Scope of International Marketing Research


IV. Data Sources - a wide variety are available.

V. Advantages of Secondary- Fast- Inexpensive- Can aid in further research


VI. Disadvantages of Secondary Data

- May not be accurate- Difficult to trace methodology- Data becomes quickly outdated- Not collected for specific task at

hand

Sources of Data• Governments

– Departments of Commerce, Agriculture, State, Treasury, and U.S. embassies abroad

• International organizations– United Nations’ Yearbook, World Bank’s World

Atlas, Organization for Economic Cooperation and Development (OCED) and World Trade Organization (WTO) publications

• Service organizations– Banks, accounting firms, freight forwarders,

airlines, and international trade consultants

The Research ProcessMajor Sources of Secondary Data

U.S. DEPARTMENT OF COMMERCE

Foreign Trade Report: U.S. exports by commodity and by country

Global Market Surveys: Global market research on targeted industries

INTERNATIONAL MONETARY FUND

International Financial Statistics: Monthly report on exchange rates, inflation, deflation, country liquidity, etc.

UNITED NATIONS

Statistical Yearbook: Population, production, education, trade, etc.

THE ECONOMIST

E.I.U. World Outlook: Forecasts trends for 160 Countries

Marketing in Europe: Product markets in Europe


VII. - Consider Costs and Benefits of the Research Effort

VIII. - Primary Data Collection


Primary data is collected for the specific research problem at hand

1)Major Types of Primary Research

i) Exploratoryii) Descriptiveiii) Causal

2)Research Techniquesi) Interviewsii) Focus Groupsiii) Observationiv) Surveys


IX. Analysis and Interpretation

X. Communicate Results Effectively

The Research Process

France Netherlands Sweden Switzerland U.K.Mail 4% 33% 23% 8% 9%Telephone 15 18 44 21 16Central location/ streets 52 37 -- -- --Home/work -- -- 8 44 54Groups 13 -- 5 6 11Depth interviews 12 12 2 8 --Secondary 4 -- 4 8 --

Table 6.4: Comparison of European Data Collection Methods

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

Challenges:-Language: “tabled” in US vs UK English

- postpone consideration of vs. - present formally for discussion at a meeting

-Translation: “Chevy Nova”-Syntax: -Cultural norms: Ketchup? No, soy sauce!

Instant coffee in France? Being alone for an interview with a man

in Middle-East? Discuss grooming??-Time zones : no interviewing in Japan during work hours-Foreign holidays: many? Less?

Sampling issues:

China has a total population of 1.2 billion, 350 million of which live in urban areas of 622 cities and scores of smaller towns. Of the cities, only 32 have populations of at least one million, while 42 have populations between 500,000 and one million, and the remaining 548 have populations of less than 500,000.

What is a representative sample??

Technology:In Germany, telephone penetration did not reach the 80% level until the mid-1980s, long after that milestone had been reached in the United States. Today, less than 10% of allhouseholds in India have telephones, and telephonepenetration in Brazil is less than 50% in large cities.

What picture regarding the internet??

Legal issues: What is privacy, what is legal to collect?

Native speakers as interviewers: what if literacy is low?

Questionnaire length:Of China's major cities, refusal rates are estimated at 32% in Guangzhou,22% in Beijing, and 10% in Shanghai.

in 20 minutes people get tired.Translated into Italian, a 20 minute American

questionnaire will last only approximately 18 minutes. Translated into French, the same questionnaire will take 22 minutes.

Incentive to respond: expected in Brazil, insulting in other.Currency fluctuations: talk about budget!!

• There is no substitute for trusted, on-the-ground contact sources to provide context

• Consider using a single research vendor familiar with the international marketplace.

• Allow more time to plan and execute an international study.

• Conduct research studies in markets similar to the home country prior to conducting research in new and unfamiliar parts of the developing world. Newcomers to the international market research arena should take small steps in familiar markets to provide a solid foundation prior to expanding into new, unfamiliar markets.

• Supplement custom market research insights with as much secondary information about foreign markets as available.

Developing a Global Marketing Vision Through Marketing Research.

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