Chapter 8 Developing a Global Vision through Marketing Research McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Where we are… Part I: – Overview and the External Environment The Economic Environment Social / Cultural Environment Political, Legal and Regulatory Environment Part 2: – Assessing Opportunities Marketing Research Segmentation, Targeting and Positioning Overview Intro and Scope of Global Marketing Research Sources of Market Information Marketing Research Process Current Issues Summary In Class Exercise Illustration of the importance of Marketing Research “Selling Apples in Japan” – Washington State Apples Why did the sales of apples decline? – Seasonality – Nationalism – Competition – Apple Computer Issues – Businesses slow to use PC’s as a means of increasing productivity – Philosophical differences Marketing Research 8-2 1. Defined as the systematic gathering, recording, and analyzing of data to provide information useful in marketing decision making. International Marketing Research Complications 2. Information must be communicated across cultural boundaries. 3. The environments within which the research tools are applied are often different in foreign markets. Irwin/McGraw-Hill The Scope of Global Research How is international marketing research different? – Added complexity / diversity – Need to consider priorities and allocation of resources between countries – 3 types of different information needs: Assessment of foreign markets (general information relating to countries) Industry information (relates to product category) Specific Market Information (used to develop marketing plan) International Marketing Research Occurs at Different Levels… Assessment of a foreign market (general information about a country) • Economic • Social / Cultural • Political / Legal • Technological Industry Information (relates to product category) • Market size • Segmentation • Competition • Consumer Specific market information (used to develop marketing plans) • Product • Pricing • Distribution • Promotion Steps in the Research Process ● 8-3 ● ● ● ● Step I: Define the research problem Step 2: Developing a research plan Step 3: Collecting data Step 4: Analysing research data Step 5: Presenting the findings Irwin/McGraw-Hill Research Process in Detail 1. Define the problem and establish objectives – Critical step because of unfamiliarity with international markets – Problems can arise when researchers: Fail to recognize or anticipate the influence of the local culture or fail to identify the SRC effect – Treats the problem as if it exists in the home country Fail to establish problem limits broad enough to include all relevant data Collecting Data Primary Data – When data is not available, and must be obtained through some form of data collection. Secondary Data – When data exists and is available through a variety of sources (i.e. internet, publications, government records, etc.) Problems with obtaining relevant data Secondary Data defined – Data collected by another agency or researcher Problems with obtaining relevant and accurate Secondary data – 1. Availability of Data – 2. Reliability of Data – 3. Comparability of Data – 4. Validating Secondary Data Validating Secondary Data 8-5 • Who collected the data ? Would there be any reason for purposely misrepresenting the facts ? • For what purpose were the data collected ? • How were the data collected ? (Methodology) • Are the data internally consistent and logical in light of known data sources or market factors ? Irwin/McGraw-Hill Primary & Secondary Data Secondary Primary Readily available, used for other purposes Availability Relevancy Reliability Comparability Generated first-hand, tailor made research Issues Ability to communicate Willingness Sampling Plan Language/Comprehension Gathering Primary Data 8-6 Quantitative Research Qualitative Research Irwin/McGraw-Hill Methods for Developing Primary Data Focus Groups Panels Experiments Data Qualitative? Quantitative? Observation Surveys Interviews Focus Group Research Problems of Gathering Primary Data 8-7 Ability to Communicate Opinions Willingness to Respond Sampling in Field Surveys Language and Comprehension Back Translation Parallel Translation Decentering Irwin/McGraw-Hill Uses of Internet in International Research o On-Line Surveys and Buyer Panels 8-8 o On-Line Focus Groups o Web Visitor Tracking o Advertising Measurement o Customer Identification Systems o E-Mail Marketing Lists o Embedded Research Irwin/McGraw-Hill Copyright©2002 by The McGraw-Hill Companies, Inc. All rights reserved. Talents Required to Analyze and Interpret Research Information • Cultural Understanding 8-9 • Creative Talent for Adapting Research Findings • Skeptical Attitudes when Handling Both Primary and Secondary Research Irwin/McGraw-Hill Estimating Market Demand Historical Data 8-10 Local Production Plus Imports Expert Opinion Analogy Irwin/McGraw-Hill Five Rules of International Research 1. Apply the WHAT, WHY, WHERE and WHEN of information. 2. Use locally available information first. 3. Identify information sources abroad. 4. Know where to look. 5. Do not assume the information you get is comparable or accurate. Problems with Multicultural Research Multicultural research defined: – Conducting research where countries have difference languages, social structures, behavior and attitudes. – Differences need to be considered and used when conducting research – Comparability is difficult Other important Points – A. Research on the Internet Fastest growing method of conducting research Although U.S. hosts 2/3 of the internet usage, international usage is growing at twice the rate over the U.S (examples) – www.stat-usa.gov, (data published by U.S. government) – www.exporthotline.com (private website that provides market research for 80 countries) – B. Estimating market demand where secondary data is inadequate or not available 1. Expert opinion 2. Analogy (demand in one country is similar to demand in another country) – Can be inaccurate and mistakes are likely to occur Other important Points – C. Communicating with Decision Makers Needs to be timely and top managers should be knowledgeable about all their markets and customers – D. Problems in Analyzing and Interpreting Research Information Researcher must have the following to avoid incorrect interpretations of the research data –Be culturally adept and sensitive to differences –Be able to adapt research results appropriately –Be skeptical in handling both primary and secondary data Other Important Points – D. Who is responsible for conducting Marketing Research Assigned by company (department or division or agent) Local analysts (decentralized) Best approach is to have local researchers with close coordination between local research company and headquarters.