Developing a Global Marketing Vision Through Marketing Research

Defining the Issue

What is marketing research? Traditional view
the function that links the consumer, customer, and public to the marketer through information

Redefined view
systematic and objective identification of information, collection, analysis and dissemination of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing

International Marketing Research

I. Differences with Domestic Research
- New parameters - New environments - More factors to consider

- More competitors

International Marketing Research

II. Why do International Marketing Research?
- Reduce Risk of Failure - Identify opportunities - Lead to more informed decisions - Reduce mistakes

International Marketing Research

III. The IMR Process

- Step 1 : Problem Definition - Step 2 : Examine Secondary Data

Top Twenty Countries for Marketing Research Expenditure (millions of dollars)

The Scope of International Marketing Research

International Marketing Decisions Requiring Marketing Research M arketing M ix T ype of R esearch D ecision P roduct policy Focus groups and qualitativ e research to generate ideas for new products S urv ey research to ev aluate new product ideas C oncept testing, test m arketing P roduct benefit and attitude research P roduct form ulation and feature testing P ricing P rice sensitiv ity studies D istribution S urv ey of shopping patterns and behav ior C onsum er attitudes toward different store types S urv ey of distributor attitudes and policies A dv ertising A dv ertising pretesting A dv ertising posttesting, recall scores S urv eys of m edia habits S ales S urv eys of responses to alternativ e types P rom otion of prom otion S ales Force Tests of alternativ e sales presentations

Source: Susan P. Douglas and C. Samuel Craig, International Marketing Research, Copyright 1983, p.32. Reprinted by permission of Prentice Hall, Inc., Englewood Cliffs, New Jersey.

International Marketing Research

IV. Data Sources - a wide variety are available.
V. Advantages of Secondary
- Fast - Inexpensive - Can aid in further research

Secondary information requirements

What do you really need to know?
Was sufficient research conducted to answer the research question(s)? Is macro data sufficient or will micro data be required to complete the market assessment and selection? What market restraints are present ? Is knowledge of international accords required? Is specific product data necessary for marketing mix determination?

International Marketing 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 Banks 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

Validating Secondary Data

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?

International Marketing Research

VII. - Step 3 : Consider Costs and Benefits of the Research Effort VIII.- Step 4 : Primary Data Collection

International Marketing Research

Primary data is collected for the specific research problem at hand
1) Major Types of Primary Research i) Exploratory ii) Descriptive iii) Causal 2) Research Techniques i) Interviews ii) Focus Groups iii) Observation iv) Surveys

International Marketing Research

IX. - Step 5 : Analysis and Interpretation

X.

- Step 6 : Communicate Results Effectively

The Research Process

Table 6.4: Comparison of European Data Collection Methods
Mail Telephone Central location/ streets Home/work Groups Depth interviews Secondary France 4% 15 52 -13 12 4 Netherlands 33% 18 37 --12 -Sweden Switzerland U.K. 23% 8% 9% 44 21 16 -8 5 2 4 -44 6 8 8 -54 11 ---

Source: Emanuel H. Demby, ESOMAR Urges Changes in Reporting Demographics, Issues Worldwide Report, Marketing News, January 8, 1990, p. 24. Reprinted by permission of the American Marketing Association.

Uses of Internet in International Research

On-Line Surveys On-Line Focus Groups

Web Visitor Tracking

Advertising Measurement

Customer Identification Systems

E-Mail Marketing Lists
SOURCE: John A. Quelch and Lisa R. Klein, The Internet and International Marketing, Sloan Management Review: Spring 1996. Pp. 60-75

Additional Concerns in IMR

Translation - (need to translate and back-translate) Sampling Error

Survey Adminstration Issues

Rules of Better Translations

Use simple sentences and phrases Avoid pronouns (repeat noun if needed) No metaphors/colloquialisms Avoid passive tense

Avoid hypothetical phrases/subjunctive moods

Basic Translation
Back-Translation Procedure Example

Start with initial instrument (V-E1)

1) Native speaker of English translates instrument to French (V-F1) 2) Native speaker of French translates instrument back to English (V-E2)

Basic Translation
Back-Translation Procedure Example

3) Compare V-E1 and V-E2 to ensure equivalence 4) Go through additional iterations as needed for items that are not equivalent

Advanced Procedures for Avoiding Equivalence Issues

Use professional teams for translation and back-translation When data are collected cross-nationally, conduct post-hoc statistical tests for scale equivalence