1

Chapter 6
Global Marketing
Research
 1. Globalization

Global Marketing Environment

2. Global Economic 4. Cultural issues and Buying

Environment Behavior

3. Financial Environment 5. Political/ Legal Environment

Development of Competitive Strategy

6. Global Marketing
Research

7. Global Segmentation and 8. Global Marketing Strategies

Positioning

Contd….
 9. Global Market Entry Mode

Global Marketing Strategy Development

10. Global Product Development 13. Communicating with the

11. Marketing Product and world Consumer
Services 14. Sales Management

15. Global Logistic and

12. Global Pricing Distribution
16. Export/Import Management

Managing Global Operation

17. Planning, Organization and Control of Global Marketing Operations

18. Marketing in Emerging Markets

19. Global Marketing and the Internet

 Chapter Overview
4

1. Research Problem Formulation

2. Secondary Global Marketing Research
3. Primary Global Marketing Research
4. Leveraging the Internet for Global
Market Research
5. Market Size Assessment
6. New Market Information Technologies
7. Managing Global Marketing Research
 Introduction
5

 Given the complexity of the global marketplace,

solid marketing research is critical for a host of
global marketing decisions.
 Most of the cultural blunders in global marketing
stem from inadequate marketing research.
 Six steps in conducting global market
research:
1. Define the research problem(s)
2. Develop a research design
3. Determine information needs
4. Collect the Data (secondary and primary)
5. Analyze the data and interpret the results
6. Report and present the findings of the study
What is Marketing
Research?
Marketing research is the systematic
design, collection, analysis, and
reporting of data and findings relevant to
a specific marketing situation facing the
company.
The Role of Marketing
Research Customer Groups
• Consumers
• Employees
• Shareholders
•
Suppliers Uncontrollable
Controllable Environmental
Marketing Factors
Variables
• Product
Marketing • Economy
Research • Technology
• Pricing • Laws &
• Promotion Regulations
• Distribution • Social & Cultural
Assessing Marketing Factors
Providing
Information Information Decision • Political Factors
Needs Making

Marketing Managers
• Market Segmentation
• Target Market Selection

• Marketing Programs

• Performance & Control

The Marketing Research
Process
Define the problem

Develop research plan

Collect information Make

decision
Analyze information

Present findings
 Step 1: Define the
Problem, the Decision
Alternatives, Research
Objectives
 What is to be researched (the content,
the scope)?
 Why is it to be researched (the decisions
that are to be made)?
The Problem Definition
Process Tasks Involved

Discussion Interviews Secondary Qualitative

with with Data Research
Decision Maker(s) Experts Analysis

Environmental Context of the Problem

Step I: Problem Definition

Management Decision Problem

Marketing Research Problem

Step II: Approach to the Problem

Analytical Specification
Objective/ Model: Verbal, Research Of Information
Theoretical Hypotheses
Graphical, Questions Needed
Foundations
Mathematical

Step III: Research Design

Factors to be Considered in the
Environmental Context of the Problem
PAST INFORMATION AND
FORECASTS

RESOURCES AND CONSTRAINTS

OBJECTIVES

BUYER BEHAVIOR

LEGAL ENVIROMENT

ECONOMIC ENVIROMENT

MARKETING AND TECHNOLOGICAL

SKILLS
Step 2: Develop the Research
Plan

Data Research
Sources Design

Research Sampling
Approach Plan

Research Contact
Instruments Methods
Research Design: Definition
 A research design is a framework or
blueprint for conducting the marketing
research project. It details the
procedures necessary for obtaining the
information needed to structure or solve
marketing research problems.
Data Sources
Secondary Data: Data that was collected for
another purpose, and already exists somewhere

Primary Data: Freshly gathered data for a

specific purpose
A Classification of Marketing Research
Designs

Research Design

Exploratory Conclusive
Research Design Research Design

Descriptive Causal
Research Research

Cross-Sectional Longitudinal
Design Design

Single Cross- Multiple Cross-

Sectional Design Sectional Design
Research Approaches
Observation
Observation

Ethnographic
Ethnographic

Focus
Focus Group
Group

Survey
Survey

Behavioral
Behavioral Data
Data

Experimentation
Experimentation
Research Instruments

Questionnaires
Qualitative Measures
Technological Devices
Qualitative Measures

Word
Word Association
Association

Projective
Projective Techniques
Techniques

Visualization
Visualization

Brand
Brand Personification
Personification

Laddering
Laddering
Technological Devices

Galvanometers

Tachistoscope

Eye cameras

Audiometers

GPS
Sampling Plan

 Sampling unit: Who is to be surveyed?

 Sample size: How many people should
be surveyed?
 Sampling procedure: How should the
respondents be chosen?
Types of Samples
Probability Nonprobability
Samples Samples
 Simple random  Convenience

 Stratified random  Judgment

 Cluster  Quota
Contact Methods

Mail Questionnaire

Telephone
Interview

Personal
Interview

Online
Interview
 Introduction
23

 Major challenges faced by global

marketing researchers:
1. Complexity of research design due to
environmental differences
2. Lack and inaccuracy of secondary data
3. Time and cost requirements to collect primary
data
4. Coordination of multicountry research efforts
5. Difficulty in establishing comparability across
multi-country studies
 1. Research Problem Formulation
24

 Any research starts off with a precise definition of

the research problem(s).
 In an international context, the marketing research
problem formulation is hindered by the self-
reference criterion (SRC).
 A major difficulty in formulating the research
problem is unfamiliarity with the foreign
environment.
 Omnibus surveys are regularly conducted by
research agencies.
 Once the research issues have been stated,
management needs to determine the information
needs.
 A Multicounty Marketing Research
Project at Eli Lilly
25
 AC Nielsen China Omnibus
26
 2. Secondary Global Marketing
Research
27

 Secondary Data: Data/information

which is already available.
 Primary Data: When the secondary data
are not useful, or simply does not exist.
 Selected Secondary Data Sources:
See Exhibit 6-4.
 Resources for Secondary
Data
28
 2. Secondary Global Marketing
Research
29

 Problems with Secondary Data

Research:
 Accuracy of Data
 Age of data
 Reliability over Time
 Comparability of Data
 Triangulate
 Functional or Conceptual Equivalence
 Lumping of Data
 3. Primary Global Marketing
Research
30

 Focus Groups
 Survey Methods for Cross-Cultural
Marketing Research:
 Questionnaire Design
 Conceptual and Functional
Equivalence
 Translation and Scalar Equivalence
 Back Translation and Parallel
Translation
 Scalar Equivalence
 The Funny Faces Scale
31
 3. Primary Global Marketing
Research
32
 Sampling: A sampling plan consists of:
 Sampling unit
 Sample size
 Sampling procedure
 Contact Method
 Mail
 Telephone
 Person-to-person interviews
 Online Survey Methods:
 E-mail surveys
 Random Web site surveys
 Panel Web site surveys
 Pros and Cons of the Internet as a Tool
for Global Marketing Research
33
 3. Primary Global Marketing
Research
34

 Collecting the Information

 Issues of nonresponse
 Courtesy bias
 Social desirability bias
 Redundancy (asking the same question
in different ways)
 Issues of ethnographic research
 4. Leveraging the Internet for
Global
35 Market Research
 Online surveys
 Bulletin boards and chat groups
 Web visitor tracking
 Virtual panels
 Focus groups
 Research Methodology behind the
Durex “Sexual Wellbeing” Survey
36
 4. Leveraging the Internet for
Global Market Research
37

 Advantages
 Large samples quickly assembled
 Global access
 Lower costs
 Anonymity for sensitive topics
 Direct data load for swift analysis
 Short response times
 4. Leveraging the Internet for
Global
38 Market Research
 Disadvantages
 Limited Internet access in many countries
 Samples are not representative
 Download times hinder access
 Incorrect addresses or poor connections
 Low response rates
 Multiple responses from the same person
 5. Market Size Assessment
39

 Method of Analogy
 Longitudinal method of analogy
 Trade Audit
 Chain Ratio Method
 Cross-Sectional Regression Analysis
 Market Potential Estimates for
McDonald’s
40
 5. Market Size Assessment
41

 When using market size estimates, keep

the following rules in mind:
 Use several different methods.
 Don’t be misled by numbers.
 Don’t be misled by fancy methods.
 Do a sensitivity analysis by asking what-if
questions.
 Look for interval estimates with a lower and
upper limit rather than for point estimates.
 6. New Market Information
Technologies
42

 Major developments/innovations:
 Point of sale (POS) store scanner data
 Consumer panel data
 Single source data
 Shift from mass to micro marketing
 Continuous monitoring of brand
sales/market share movements
 Scanning data are used by manufacturers
to support marketing decisions.
 6. New Market Information
Technologies
43

 Scanning data provide merchandising support to

retailers.
 Market research tools to track the effectiveness of
newer marketing mix vehicles such as the Internet
with the goal of establishing a “Nielsen rating” for
websites similar to those for TV programming.
 CATI (Computer-Assisted Telephone Interviewing)
 CAPI (Computer-Assisted Personal Interviewing)
- CATI/CAPI benefits include speed, accuracy,
and the ability to steer data collection based on
the response.
 7. Management of Global
Marketing Research
44

 Selecting a Research Agency: The

following considerations should be taken
into account while choosing agency:
 Level of expertise
 Qualifications
 Track record
 Credibility and experience
 Client record
 Coordination of Multi-Country
Research:
 Emic versus Etic dilemma
 7. Management of Global
Marketing Research
45

 The emic school focuses on the

peculiarities of each country.
 The etic approach emphasizes universal
behavioral and attitudinal traits.
 Cross-cultural market research favors the
etic paradigm, emphasizing cross-border
similarities and parallels.
 Several approaches may be used to balance
these conflicting demands.