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Lecture Global marketing management (7th edition): Chapter 6 - Masaaki Kotabe, Kristiaan Helsen

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Chapter global marketing research. Chapter 6 provides knowledge of culture, management style, and business systems. What you should learn from chapter 5: The necessity for adapting to cultural differences, how and why management styles vary around the world, the extent and implications of gender bias in other countries, the importance of cultural differences in business ethics, the differences between relationship-oriented and information-oriented cultures.

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Chapter Overview

1 Research Problem Formulation

2 Secondary Global Marketing Research

3 Primary Global Marketing Research

4 Leveraging the Internet for Global Market

Research Studies

5 Market Size Assessment

6 New Market Information Technologies

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• Given the complexity of the global marketplace, solid

marketing research is critical for a host of global

marketing decisions and to avoid costly mistakes

• Seven steps in conducting global market research:

1 Define the decision problem(s)

2 Develop a research design

3 Determine information needs

4 Determine the sources of information

5 Collect the relevant data from secondary and primary

sources

6 Analyze the data, interpret and summarize the results

7 Communicate the findings to the key decision-makers

Chapter 6 Copyright © 2017 John Wiley & Sons,

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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

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1 Research Problem Formulation

• Any market research study starts off with a precise definition of the research problem(s) to be

addressed.

• In an international context, the marketing research problem formulation is hindered by the self-

reference criterion (SRC).

• A major difficulty in defining the 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.

Chapter 6 Copyright © 2017 John Wiley & Sons,

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Exhibit 6-2: Scope of International

Marketing Research

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Exhibit 6-3: A Multicountry Marketing

Research Project at Eli Lilly

Chapter 6 Copyright © 2017 John Wiley & Sons,

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2 Secondary Global Marketing Research

available.

useful, or simply does not exist.

6-5.

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2 Secondary Global Marketing Research

• Problems with Secondary Data Research

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3 Primary Global Marketing Research

• Funny Faces Scale

Chapter 6 Copyright © 2017 John Wiley & Sons,

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3 Primary Global Marketing Research

– Sampling—A sampling plan consists of:

• Online Survey Methods

Chapter 6 Copyright © 2017 John Wiley & Sons,

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Exhibit 6-6:

The Funny

Faces Scale

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3 Primary Global Marketing Research

– Collect the Information

• Courtesy Bias

• Yea-saying and Nay-saying

• Social Desirability Bias

• Extreme Response Style (ERS)

• Anchor Contraction Effect (ACE)

• Redundancy (asking the same question in different ways)

– Observational Research

• Ethnographic Research Approach

Chapter 6 Copyright © 2017 John Wiley & Sons,

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Exhibit 6-7: Cross-Country Comparisons

of Survey Response Biases

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Exhibit 6-8: Individualism and Extreme Response Style

Chapter 6 Copyright © 2017 John Wiley & Sons,

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4 Leveraging the Internet for Global Market Research Studies

• Advantages

– Large samples quickly assembled

– Global access

– Lower costs

– Anonymity for sensitive topics

– Direct data load for swift analysis

– Short response times

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4 Leveraging the Internet for Global Market Research Studies

• Disadvantages

– Limited Internet access in many countries

– Samples are not representative of target population– Download times hinder access

– Incorrect e-mail addresses or poor connections

– Low, dishonest, or redundant responses

– Identity validation

Chapter 6 Copyright © 2017 John Wiley & Sons,

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4 Leveraging the Internet for Global Market Research Studies

• Tools

– Online surveys

– Bulletin boards and chat groups

– Web visitor tracking

– Online (virtual) panels

– Focus groups

– Social media

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Exhibit 6-10: Research Methodology behind

the Durex “Sexual Wellbeing” Survey

Chapter 6 Copyright © 2017 John Wiley & Sons,

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5 Market Size Assessment

• Method of Analogy

– Longitudinal method of analogy

(See Exhibit 6-11.)

• Trade Audit

• Chain Ratio Method

• Cross-Sectional Regression Analysis

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5 Market Size Assessment

• 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

Chapter 6 Copyright © 2017 John Wiley & Sons,

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6 New Market Information Technologies

• Innovations in scanning technology:

– 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

• Scanning data are used to provide merchandising support to retailers.

Chapter 6 Copyright © 2017 John Wiley & Sons,

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6 New Market Information Technologies

– The full potential of scanner databases has not yet been exploited in many countries

– Advances in computer technology have also spurred new data collection techniques:

• 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.

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7 Managing Global Marketing Research

considerations should be taken into account while choosing agency:

– Level of expertise

– Qualifications

– Track record

– Clients and client references

– Willingness to be flexible and good team player

– Communication skills

– Costs for services

Chapter 6 Copyright © 2017 John Wiley & Sons,

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7 Managing Global Marketing Research

• Coordination of Multicountry Research:

– “Emic versus Etic dilemma”

– 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

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