International Marketing Research: Practices and Challenges

1
International Marketing ResearchPractices and
Challenges

• Session 5

2
Learning 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

3
International Marketing Research

• International marketing managers need to
  constantly monitor the different forces affecting
  their international operations
• International marketing research is especially
  complex

4
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.
5
Research of Industry, Market Characteristics, and
Trends

• Acquisition analyses
• Diversification analyses
• Market-share analyses
• Export research

6
International Buyer Behavior Research

• Brand preferences
• Brand attitudes
• Brands awareness studies
• Purchase behavior studies
• Consumer segmentation studies

7
International Product Research

• Concept development and testing studies
• Brand name generation and testing
• Product testing
• Competitive product studies
• Packaging design studies
• Test marketing

1
8
International Distribution Research

• Import/export analyses
• Channel performance and coverage
• Plant/warehouse location studies

9
International Promotion Research

• Studies of premiums, coupons, and deals
• Advertising effectiveness research
• Local media research
• Studies pertaining to personal selling activities
  
• Sales Force Compensation
• Quota
• Territory

10
International Pricing Research

• Studies projecting demand
• Currency and counter trade studies
• Studies of inflation rates and pricing
• Studies of negotiation tactics

11
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

12
The International Marketing Research Process,
continued

• 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

13
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

14
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

15
Primary Data

• Information collected for a specific purpose, to
  address the problem at hand.
• The costs of collecting primary data in foreign
  markets are likely to be much higher given the
  lack of an appropriate marketing research
  infrastructure

16
Primary Data Research Approaches

• Qualitative research has been particularly useful
  as a first step in studying international
  marketing phenomena.
• Focus Groups
• Observation
• Constraints Responses can be affected by
  culture, individuals may act differently if they
  know they are being observed.

17
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

18
Data Collection

• STEP 5 Design Data Collection Instrument
• Emic instruments measure phenomena specific to
  each culture.
• Etic instruments measure the same phenomenon in
  different cultures.
• Constraints Translation Instrument Reliability
  Reluctance to answer certain questions

19
Data Collection, continued

• STEP 6 Decide on the Sampling Plan
• Sample Unit
• Sample Size
• Sampling Procedure
• STEP 7 Collect, Analyze, and Interpret Data

20
Decision Support Systems for Global Marketing

• A coordinated collection of data, systems, tools,
  and techniques, complemented by supporting
  software and hardware designed for the gathering
  and interpretation of business and environmental
  data

21
Sales Forecasting

• Sales Force Composite Estimates
• Personal observations and expectations of the
  local sales force
• Jury of Expert Opinion
• Opinions of different experts about future demand
  
• The Delphi Method
• Experts to estimate market performance findings
  are aggregated, and experts are queried again, in
  light of aggregate responses

22
Sales Forecasting, continued

• Time Series and Econometric Models
• Use data of past performance to predict future
  market demand
• Analogy Methods
• Estimation method that relies on developments and
  findings in markets
• With similar levels of economic development, or
• Where the product is in the same market
  development stage, or
• In markets which share similar cultural
  characteristics

23
Sales Forecasting, continued

• Point of Sale Research
• Made with the help of store scanners, in markets
  where they are available
• Involve comprehensive store audits

24
Summary

• Defined international marketing research
• Described steps involved in the international
  marketing research process and related
  international constraints
• Discussed marketing decision support systems
  and international sales forecasting