Lecture international marketing (16th edition) chapter 8: developing a global vision through marketing research

Developing a Global Vision through Marketing Research Chapter McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc All rights reserved Learning Objectives LO1 The importance of problem definition in international research LO2 The problems of availability and use of secondary data LO3 Sources of secondary data LO4 Quantitative and qualitative research methods LO5 Multicultural sampling and its problems in less-developed countries LO6 Using international marketing research 8-2 International Marketing Research      Cross-cultural communications are difficult  Marketing research is traditionally defined as the systematic gathering, recording, and analyzing of data to provide information useful to marketing decision making  International marketing research involves two additional complications: Environments are different Important to recognize cross-country similarities and differences Important to recognize and overcome SRC Research processes and methods are same whether applied in Columbus, Ohio, or Colombo, Sri Lanka Information must be communicated across cultural boundaries The environments in which research tools are applied are often different in foreign markets 8-3 Breadth & Scope of International Marketing Research   Foreign market research is broader in scope than domestic research Research can be divided into three types based on information needs: general information about the country, area, and/or market; information necessary to forecast future marketing requirements by anticipating social, economic, consumer, and industry trends within specific markets or countries; and specific market information used to make product, promotion, distribution, and price decisions and to develop marketing plans 8-4 8-5 Determine the sources of information to fulfill the research objectives • Consider the costs and benefits of the research effort • Gather the relevant data from secondary or primary sources, or both • Analyze, interpret, and summarize the results • Effectively communicate the results to decision makers • • The Research Process for All Countries Define the research problem and establish research objectives Defining the Problem and Establishing Research Objectives  Begin with a definition of the research problem and the establishment of specific research objectives • • The market researcher must be certain the problem definition is sufficiently broad to cover the whole range of response possibilities and not be clouded by his or her SRC Once the problem is adequately defined and research objectives established, the researcher must determine the availability of the information needed 8-6 Problems with Secondary Data Availability Comparability Reliability Validation 8-7 Checking the Accuracy of Secondary Data  Secondary data from any source, including the United States, must be checked and interpreted carefully  The following questions should be asked to effectively judge the reliability of secondary data sources: Who collected the data? Would there be any reason for purposely misrepresenting the facts? For what purposes were the data collected? How (by what methodology) were the data collected? Are the data internally consistent and logical in light of known data sources or market factors? 8-8 Sources of Secondary Data: Websites for International Marketing www.stat-usa.gov (National Trade Data Bank) www.ita.doc.gov www.usatradeonline.gov www.census.gov/foreign-trade/www/ https://www.cia.gov/library/publications/the-world-factbook/ http://www.cbp.gov/ www.opic.gov www.exim.gov www.imf.org 10 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.com 16 www.ipl.org/ref/RR/static/bus4700.html 17 http://iserve.wtca.org 18 www.worldtrademag.com 19 MSU-CIBER- Globaledge 20 World Bank 21 IMF 22 OECD 23 U.N 24 Syndicated data sets: A.C Nielsen and Information Resources Inc 8-9 Gathering Primary Data: Quantitative & Qualitative Research  Begin with a definition of the research problem and the establishment of specific research objectives • • The market researcher must be certain the problem definition is sufficiently broad to cover the whole range of response possibilities and not be clouded by his or her SRC Marketing research methods can be grouped into two basic types: • • qualitative quantitative 8-10 Problems with Qualitative Research  Focus group interviews are difficult to conduct in Confucian societies   Personal referrals are needed to contact consumers People are often hesitant to criticize new product ideas when companies seek candid opinions 8-11 Problems with Primary Research     Ability to communicate opinions: • • • context meaning cultural habits Willingness to respond Sampling in Field Surveys: • • • • • • • • • reliability of lists poor postal service Problems with Quantitative Research  Different types of biases: • • • • • non-response bias courtesy bias yea or saying social desirability bias income and gender-related questions may be taboo availability of data census and socioeconomic data SS# data street maps telephones postal unit sample size & sampling procedure Language and comprehension • • • Back Translation Parallel Translation Decentering 8-12 Research on the Internet: A Growing Opportunity   For many companies the Internet provides a new and increasingly important medium for conducting a variety of international marketing research There are at least seven different uses for the Internet in international research: • • • • • • • Online surveys and buyer panels Online focus groups Web visitor tracking Advertising measurement Customer identification systems E-mail marketing lists Embedded research 8-13 Estimating Market Demand   Expert opinion • • experts are polled for their opinions about market size and growth rates the key in using expert opinion to help forecast demand is triangulation , that is, comparing estimates produced by different sources Analogy • assumes that demand for a product develops in much the same way in all countries, as comparable economic development occurs in each country 8-14 Problems in Analyzing & Interpreting Research Information  Both secondary and primary data collected by the market researcher are subject to many limitations   Accepting information at face value in foreign markets is imprudent The meanings of words, the consumer’s attitude toward a product, the interviewer’s attitude, or the interview situation can distort research findings 8-15 8-16 ... Quantitative and qualitative research methods LO5 Multicultural sampling and its problems in less-developed countries LO6 Using international marketing research 8-2 International Marketing Research ... which research tools are applied are often different in foreign markets 8-3 Breadth & Scope of International Marketing Research   Foreign market research is broader in scope than domestic research. .. Cross-cultural communications are difficult  Marketing research is traditionally defined as the systematic gathering, recording, and analyzing of data to provide information useful to marketing