Chapter 8 - Developing a global vision through marketing research. After studying this chapter you will be able to understand: The importance of problem defi nition in international research, the problems of availability and use of secondary data, sources of secondary data, quantitative and qualitative research methods, multicultural sampling and its problems in less-developed countries, using international marketing research.
International Marketi ng 14th Edition P h i l i p R C a t e o r a M a r y C G i l l y John L Graham Developing a Global Vision Through Marketing Research Chapter McGrawưHill/Irwin InternationalMarketing14/e Copyrightâ2009byTheMcGrawưHillCompanies,Inc.Allrightsreserved What Should You Learn? The importance of problem definition in international research • The problems of availability and use of secondary data • Quantitative and qualitative research methods • Multicultural sampling and its problems in less developed countries • Sources of secondary data • How to analyze and use research information 8-2 Discussed questions • What is Marketing Research? • What is research problem vs managerial problem? • What are the major requirements for Marketing Research? • What are the Marketing Research Process? • What are the main factors influencing Marketing Research Quality? • What make international Marketing differ? 8-3 Team work • IU MBA Progam is now evaluating its competitors in HCMC, the progam director has several questions in mind: – – – How many MBA programs in HCMC? What are their offers (program characteristics, structure, price, professors, quality, students segments)? Among these MBA programs, who are the major competitors of IU MBA? What are the perceived quality of these programs (major competitors only? What are their strengths and weaknesses? • Design a research plan (proposal) to answer the director’s questions, including: – – – – The Director ask you to design proposal: you have only days to without any budget, you have months and 30 millions VNĐ to Type of research (qualitative or quantitative) Techniques used of each type Provide several options with different levels of confidence for the director to select • Suppose the director wants to launch the program to Cambodia, please advice what additional questions he need to consider and what challenges he need to prepare for when conducting research plan 8-4 Option 1 How many MBA programs in HCMC? What are their offers (program characteristics, structure, price, professors, quality, students segments)? Among these MBA programs, who are the major competitors of IU MBA? What are the perceived quality of these programs (major competitors only? What are their strengths and weaknesses? Methodology: • Internet: q1, MBA websites • Secret shoppers: q3 (partially), q1, q2 • Secondary data: related research (if any): 1,2,3, newspapers • Expert interviews: MBA Managers, staffs, • In depth Interviews: with MBA students (3) 8-5 Option 1 How many MBA programs in HCMC? What are their offers (program characteristics, structure, price, professors, quality, students segments)? Among these MBA programs, who are the major competitors of IU MBA? What are the perceived quality of these programs (major competitors only? What are their strengths and weaknesses? Methodology: • Internet: q1, MBA websites – MBA websites: q1 – Ranking and Accreditation – MBA Forum 8-6 Option 2: month + 20M VND • How many MBA programs in HCMC? What are their offers (program characteristics, structure, price, professors, quality, students segments)? • Among these MBA programs, who are the major competitors of IU MBA? • What are the perceived quality of these programs (major competitors only? What are their strengths and weaknesses? Methodology: 8-7 Discussion • What is high context vs low context culture? • What is M-time vs P-time system? • What is Marketing Research? • How does Marketing Research help making marketing decisions? • What is qualitative research vs quantitative research? • What are the potential problems/ issues for International Marketing Research? 8-8 Global Perspective Japan – Test Market for the World • Enterprises with international scope of operations – Need for current, accurate information magnified • Marketing research – The systematic gathering, recording, and analyzing of data to provide information useful in marketing decision making • International marketing research involves two complications – Information must be communicated across cultural boundaries – The environments within which the research tools are applied are often different in foreign markets 8-9 Breadth and Scope of International Marketing Research • Types of information needed by research – – General information about the country, area, and/or market Information to forecast future marketing requirements ► – By anticipating social, economic, consumer, and industry trends within specific markets or countries Specific market information used to make and develop marketing plans ► ► ► ► Product Promotion Distribution Price decisions 8-10 Multicultural Research – a Special Problem • As companies become global marketers and seek to standardize various parts of the marketing mix across several countries, multicultural studies become more important • Multicultural research involves dealing with countries that have different languages, economies, social structures, behavior, and attitude patterns • In some cases the entire research design may have to be different between countries to maximize the comparability of the results 8-26 Research on the Internet – a Growing Opportunity • One billion users in more than 200 countries – One-sixth in U.S • International Internet use is growing almost twice as fast as American use • Uses for 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 Observational research 8-27 Estimating Market Demand • To assess current product demand and forecast future demand – Requires reliable historical data • When the desired statistics are not available, a close approximation can be made – Using local production figures plus imports, with adjustments for exports and current inventory levels • Two methods of forecasting demand – Expert opinion ► The key in using expert opinion to help in forecasting demand is triangulation – Analogy ► Assumes that demand for a product develops in much the same way in all countries as comparable economic development occurs in each country 8-28 Personal Computer and Mobile Phone Diffusion Rate (per 1,000 people) Exhibit 8.2 Personal Computer Mobil Phone 8-29 Problems in Analyzing and Interpreting Research Information • Accepting information at face value in foreign markets is imprudent • The foreign market researcher must posses three talents to generate meaningful marketing information The researcher must posses a high degree of cultural understanding of the market in which research is being conducted A creative talent for adapting research methods is necessary A skeptical attitude in handling both primary and secondary data is helpful 8-30 Responsibility for Conducting Marketing Research • A company in need of foreign market research can rely on an outside foreign-based agency or domestic company with a branch in that country • A trend toward decentralization of the research function is apparent – Local analysts appear to be able to provide information more rapidly and accurately ► Control rests in hands closer to the market – Disadvantage lies in ineffective communications with homeoffice executives ► Unwarranted dominance of large-market studies in decisions about global standardization 8-31 Responsibility for Conducting Marketing Research • A comprehensive review of the different approaches to multicountry research suggests – Ideal approach is to have local researchers in each country, – Close coordination between the client company and the local research companies • Two stages of analysis are necessary – Individual-country level – Multi-country level 8-32 Communicating with Decision Makers • Gathered information must be given to decision makers in a timely manner • Decision makers should be directly involved not only in problem definition and questions formulation, but also in the fieldwork • Even when both managers and customers speak the same language and are from the same culture, communication can become garbled in either direction 8-33 Managing the Cultural Barrier in International Marketing Research Exhibit 8.3 8-34 Useful Web links • Country information at: – CIA World Fact Book – US State Department and US State Department Country Commercial Guides – The Economist – Eldis: Development Information – Asian country information – Central and South American country information – Eastern European country information – Middle Eastern country information – African country information: Africa Guide and Africa Online Useful Web links • Department of Commerce: – International Trade Administration – US Commercial Service – US Government Export Portal • Company information at: – Hoover's Online – The Public Register's Annual Report Service – The Annual Reports Library Report Gallery 11/27/19 Useful Web links • International Business and Exporting Links at: – – – – – – The Federation of International Trade Associations Global Business Web International Business Resource Connection Everything International The www Virtual Library: International Affairs Resource International Business Online Resource Center 11/27/19 Useful Web links Maps, geographic information at: – – – – – – – – – Geographic.org Earthweek About.com geography Geography Network UT Library Online: Perry-Castaneda Map Collection Quick Maps Omni Resources World Atlas.com Altapedia Online 11/27/19 Summary • The basis objective of the market research function is providing management with information for more accurate decision making • Customer attitudes about providing information to a researcher are culturally conditioned • Foreign market information surveys must be carefully designed to elicit the desired data and at the same time not offend the respondent’s sense of privacy 8-39 Summary • Many foreign markets have inadequate or unreliable bases of secondary information • Three keys to successful international marketing research – The inclusion of natives of the foreign culture on research teams – The use of multiple methods and triangulation – The inclusion of decision makers, even top executives, who must on occasion talk directly to or directly observe customers in foreign markets 8-40 ... Methodology: 8- 7 Discussion • What is high context vs low context culture? • What is M-time vs P-time system? • What is Marketing Research? • How does Marketing Research help making marketing decisions?... What are the potential problems/ issues for International Marketing Research? 8- 8 Global Perspective Japan – Test Market for the World • Enterprises with international scope of operations – Need... the technological environment Competitive situation 8- 1 1 Top 20 Countries for Marketing Research Expenditures (millions of dollars) Exhibit 8. 1 8- 1 2 The Research Process • Research process steps