im chapter 8pp_1

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Developing a Global Vision through Marketing Research

Chapter 8 By Professor Riaz Khan

d.


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Chapter Learning Objectives

1. The importance of problem definition ininternational research

2. The problems of availability and use ofsecondary data

3. Quantitative and qualitative research methods


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Chapter Learning Objectives

5. Sources of secondary data

4. Multicultural sampling and its problems inless developed countries

6. How to analyze and use research information


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Information is the key component in developing successfulmarketing strategies.

Information needed on marketinformation for decisions about product,

promotion, distribution, and price.

A marketer must find the most accuand reliable data possible within thelimits imposed by time, cost, and th

present state of the art.


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Marketing Research

Marketing research is traditionallydefined as the systematic gathering,

recording, and analyzing of data toprovide information useful inmarketing decision making.

Research processes and methods aresame whether applied in New York

City or in Karachi.

International marketing researchinvolves two additionalcomplications:

First, information must becommunicated across culturalboundaries.

Second, the environments in whichresearch tools are applied are often

different in foreign markets.


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Breadth and Scope of International Marketing Research

Foreign market research is the broader scope thandomestic

Research can be divided into three types based oninformation needs:

(1) general information about the country, area, and/ormarket;

(2) information necessary to forecast future marketingrequirements by anticipating social, economic, consumer,and industry trends within specific markets or countries;and

(3) specific market information used to make product,promotion, distribution, and price decisions and todevelop marketing plans


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Collecting Information: Unisys Corporations Way1. Economic: data on growth of the economy, inflation,

business cycle trends, and the like; profitability analysis forthe divisions products; specific industry economic studies;

2. Cultural, sociological, and political climate. A general non-economic review of conditions affecting the divisionsbusiness.

3. Overview of market conditions. A detailed analysis of market

conditions that the division faces, by market segment,including international.

4. Summary of the technological environment. State-of-the-arttechnology as it relates to the divisions business, carefullybroken down by product segments.

5. Competitive situation. A review of competitors salesrevenues, methods of market segmentation, products, andapparent strategies on an international scope.


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The Research Process

The marketing research process for all countries should follow thesesteps:

1. Define the research problem and establish research objectives.

2. Determine the sources of information to fulfill the researchobjectives.

3. Consider the costs and benefits of the research effort.4. Gather the relevant data from secondary or primary sources, or

both.

5. Analyze, interpret, and summarize the results.6. Effectively communicate the results to decision makers.


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Defining the Problem and Establishing Research

Objectives

Begin with a definition of the research problem and the

establishment of specific research objectives.

Problems of availability and use of secondary dataAvailability of data on foreign markets may bedifficult to find.

Once the problem is adequately defined andresearch objectives established, the researcher mustdetermine the availability of the information needed.

The market researcher must be certain the problemdefinition is sufficiently broad to cover the wholerange of response possibilities and not be clouded by

his or her self-reference criterion.

Problems with the reliability and comparability of data.


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Lessening Political Vulnerability

Although data may be available, the following questions shouldbe asked to effectively judge the reliability of secondary data

sources:

1. Who collected the data? Would there be anyreason for purposely misrepresenting the facts?

2. For what purposes were the data collected?

3. How were the data collected? (methodology)

4. Are the data internally consistent and logical inlight of known data sources or market factors?


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Gathering Primary Data: Quantitative and

Qualitative Research

Often the market researcher must collect primary data

that is,data collected specifically for the particular research project athand

Marketing research methods can begrouped into two basic types:

(1) quantitative, and

(2) qualitative research


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Usually a large number of respondents are asked to reply eitherverbally or in writing to structured questions using a specific response

format (such as yes/no) or to select a response from a set of choices

It is also used where interest is centered on gaining an understandingof a market, rather than quantifying relevant aspects

Quantitative and Qualitative Research


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Problems of Gathering Primary Data

Most problems in collecting primary data in internationalmarketing research stem from cultural differences among

countries. Inability of respondents to communicate their opinions to

inadequacies in questionnaire translation

Other problems of gathering primary data include:

(1) Ability to Communicate Opinions: It is difficult for a person toformulate needs, attitudes, and opinions about goods whose usemay not be understood, that are not in common use within thecommunity, or that have never been available

(2) Willingness to Respond: Cultural differences offer the best

explanation for the unwillingness or the inability of many torespond to research surveys


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Sampling in Field Surveys

The greatest problem in sampling stems from the lack ofadequate demographic data and available lists from which todraw meaningful samples

The kinds of problems encountered in drawing a

random sample include the following:(1) No officially recognized census of population.

(2) No other listings that can serve as samplingframes.

(3) Incomplete and out-of-date telephone

directories.(4) No accurate maps of population centers. Thus,

no cluster (area) samples can be developed.


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Language and ComprehensionThe most universal survey research problem in foreign countries is the

language barrier

The two English versions are compared and where there are differences, theoriginal English version is modified and the process is repeated

Marketers use three different techniques to help ferretout translation errors ahead of time.

(1) Back Translation. In back translation thequestionnaire is translated from one languageto another, and then a second party translates itback into the original.

(2) Parallel Translation. In this process, morethan two translators are used for the backtranslation; the results are compared,differences discussed, and the most appropriatetranslation selected.

(3) Decentering. A hybrid of back translation,this is a successive process of translation and

retranslation of a questionnaire, each time by adifferent translator.


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Multicultural research involves dealingwith countries that have differentlanguages, economies, social structures,

behavior, and attitude patterns

An important point to keep in mind when

designing research to be applied acrosscultures is to ensure comparability andequivalency of results

Such differences may mean that different

research methods should be applied inindividual countries

Multicultural Research: A Special Problem


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Research on the Internet: A Growing

Opportunity

For many companies the Internet provides a new and increasingly

important medium for conducting a variety of internationalmarketing research

There are at least seven different uses for theInternet in international research:

(1) Online surveys and buyer panels

(2) Online focus groups

(3) Web visitor tracking

(4) Advertising measurement

(5) Customer identification systems(6) E-mail marketing lists

(7) Embedded research


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Estimating Market Demand

In assessing current product demand and forecasting future

demand, reliable historical data are required

Given the greater uncertainties and data limitations associated withforeign markets, two methods of forecasting demand are particularly

suitable:

(1) Expert Opinion: In this method, experts such as sales managers oroutside consultants and government officials are polled for theiropinions about market size and growth rates

(2) Analogy: This assumes that demand for a product develops inmuch the same way in all countries as comparable economicdevelopment occurs in each country


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Sources of Secondary Data: Websites for

International Marketing

1. www.stat-usa.gov

2. www.ita.doc.gov

3. www.usatradeonline.gov4. www.census.gov/foreign-trade/www/

5. www.odci.gov/cia/publications/pubs.html

6. www.customs.ustreas.gov

7. www.opic.gov

8. www.exim.gov

9. www.imf.org10. www.wto.org

11. www.oecd.org

12. www.jetro.go.jp

13. www.euromonitor.com

14. University-based websites, e.g.,www.lib.berkeley.edu/BUSI/bbg18.html

15. www.worldchambers.com16. www.ipl.org/ref/RR/static/bus4700.html

17. http://iserve.wtca.org

18. www.worldtrademag.com

19. www.webofculture.com

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