International Marketing Research: Practices and Challenges
International Marketing Research System:Process, Practices and Challenges
ObjectivesDefine international marketing research and provide a description of its immense scope; offer examples of each type of research conducted in international marketingDescribe the steps involved in the international marketing research process while addressing, for each step, the international constraints involvedIntroduce the concept of decision support systems for international marketing
International Marketing ResearchInternational marketing research is the systematic design, collection, recording, analysis, interpretation, and reporting of information pertinent to a particular marketing decision facing a company operating internationally.
Research of Industry, Market Characteristics, and TrendsAcquisition analysesDiversification analysesMarket-share analysesExport research
International Buyer Behavior ResearchBrand preferencesBrand attitudesBrands awareness studiesPurchase behavior studiesConsumer segmentation studies
International Product ResearchConcept development and testing studies Brand name generation and testing Product testing Competitive product studies Packaging design studies Test marketing
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International Distribution ResearchImport/export analysesChannel performance and coveragePlant/warehouse location studies
International Promotion ResearchStudies of premiums, coupons, and dealsAdvertising effectiveness research Local media research Studies pertaining to personal selling activities Sales Force CompensationQuotaTerritory
International Pricing ResearchStudies projecting demandCurrency and counter trade studiesStudies of inflation rates and pricingStudies of negotiation tactics
The International Marketing Research ProcessSTEP 1 Define the international research problem and agree on the research objectives Exploratory ResearchDescriptive ResearchCausal ResearchSTEP 2 Set specific objectives
The International Marketing Research Process, continuedSTEP 3 Develop the International Research PlanSTEP 4 Define Information SourcesSecondary DataResearchers must determine if the information is available, and, if so, how reliable it isInternal data is useful only if company has collected similar info from relevant respondents in a country with similar environment
Secondary Data ConstraintsConceptual Equivalence Concepts have different meanings in different cultural environments Functional EquivalenceProducts themselves may be used for different purposes in different country environments
Secondary Data Constraints, continuedAvailability, Reliability, and Validity Accuracy of secondary data can be questionable: Published statistics may be unreliableSources of reliable data:World BankUnited Nations Development ProgramOrganization of Economic Cooperation and Development (OECD) Euromonitor
Primary DataInformation collected for a specific purpose, to address the problem at hand. The costs of collecting primary data in foreign markets are likely to be much higher given the lack of an appropriate marketing research infrastructure
Primary Data Research ApproachesQualitative research has been particularly useful as a first step in studying international marketing phenomena.Focus GroupsObservationConstraints: Responses can be affected by culture, individuals may act differently if they know they are being observed.
Primary Data Research Approaches, continuedQuantitative research are more structured, involving either descriptive research approaches, such as survey research, or causal research approaches, such as experiments. Content AnalysisSurvey ResearchExperimental ResearchConstraints: Respondent factors, infrastructure factors
Data CollectionSTEP 5 Design Data Collection InstrumentEmic instruments measure phenomena specific to each culture.Etic instruments measure the same phenomenon in different cultures.Constraints: Translation; Instrument Reliability; Reluctance to answer certain questions
Data Collection, continuedSTEP 6 Decide on the Sampling Plan Sample Unit Sample Size Sampling Procedure STEP 7 Collect, Analyze, and Interpret Data
Decision Support Systems for Global MarketingA coordinated collection of data, systems, tools, and techniques, complemented by supporting software and hardware designed for the gathering and interpretation of business and environmental data
Sales ForecastingSales Force Composite EstimatesPersonal observations and expectations of the local sales force Jury of Expert Opinion Opinions of different experts about future demand The Delphi MethodExperts to estimate market performance; findings are aggregated, and experts are queried again, in light of aggregate responses
Sales Forecasting, continuedTime Series and Econometric Models Use data of past performance to predict future market demand Analogy Methods Estimation method that relies on developments and findings in markets With similar levels of economic development, orWhere the product is in the same market development stage, orIn markets which share similar cultural characteristics
Point of Sale Research Made with the help of store scanners, in markets where they are available
Involve comprehensive store audits
Sales Forecasting, continued
SummaryDefined international marketing researchDescribed steps involved in the international marketing research process and related international constraints Discussed marketing decision support systems
