International Marketing Course

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International Marketing Course

• INTERNATIONAL MARKETING RESEARCH
• LECTURE 3
• MARCH 2009

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Why research?

• From an insurance company We are a relatively
  small company in a growing but fiercely
  competitive business. We need research
  information to decide how to increase business
  from our existing customers and attract business
  from new customers.
• From a whisky manufacturer Whisky sales
  generally are in decline. We need research to
  evaluate the potential of new whisky-based drink
  products. We also need research to select the
  most effective packaging to maximize product
  sales in an increasingly self-service market.
• From an integrated communications agency Our
  clients look to us for advice on internet
  advertising strategy. How can research help in
  providing more effective online advertising?

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Why research?

• From a carpet manufacturer The floor-coverings
  market is in decline and over-supplied. We know
  that design is an important factor in the market.
  We need research to help us maintain and improve
  market share by identifying appealing designs and
  appropriate target markets for them.
• From a business-to-business IT supplier We are
  now able to develop an enhanced range of systems
  integration products. We need research to
  discover whether a viable market exists for these
  possible products, who our potential customers
  might be and whether they know our name and would
  buy from us.

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International marketing research and information
system

• Information management system (MIS) provides
  managers and other decision makers with a
  continuous flow of information. Scanning modes
• Surveillance
• browsing through newspapers, magazines, TV and
  if a story has a special relevance, the marketer
  tracks its development through monitoring.
• - analyzing internal companys data
• Search seeking out specific information.
• Marketing research Gathering, analyzing and
  presenting information related to well defined
  problem. Linked to decision making within the
  firm.

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Marketing research issues in international
markets
Macro environmental factors economy,
technology, legal, political, social
environment, competition
Micro environmental factors family, peer
groups, opinion leaders
Consumers
4 Ps

• Marketing
• Managers

Customers behaviour, satisfaction, loyalty

• Market segmentation
• Target market selection
• Marketing programmes
• Performance and control

• Marketing research support
• The nature and scope of target markets
• The forces that shape the marketing system
• Evaluate marketing mix variables
• Evaluate success and failures of marketing
  decisions

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Marketing research

• Secondary research conducted from the home base.
  Consists of secondary data gathering, which is
  defined as information that has already been
  collected for other purposes and is thus readily
  available.
• Internal data sources and external data sources
• Advantages and disadvantages
• Primary research aims at collecting primary
  data, which is defined as information collected
  first-hand, generated by original research that
  are tailor-made to answer specific research
  questions.
• Advantages and disadvantages
• Qualitative vs. quantitative research

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Primary research

• Quantitative research involve getting data from
  a large representative group of respondents. The
  objective is to quantify data and generalize the
  results from the sample to the population of
  interests. Typically these techniques apply some
  form of statistical analysis.
• Qualitative research involves getting data from
  persons that are knowledgeable about the problem.
  The objectives is to get initial and qualitative
  understandings of the underlying reasons and
  motives. Example focus groups, personal
  interviews

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Primary research process
Identifying the research problem
Developing a research plan
Collecting data
Analysing data
Presenting the research findings
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Primary research process

• Identifying the research problem What
  information do I need? Why do I need this
  information?
• Developing a research plan

Research approaches
Observation
Surveys
Experiments
Personal interviews Focus groups Surveys
quantitative research
qualitative research
Source Hollensen, 2001
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Primary research process

• Developing a research plan

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Primary research process

• Collecting data establish parameters, develop
  instructions, check that data are gathered
  correctly, efficiently and at reasonable cost.
• Analysing data need creativity and scepticism!
• Presenting the research findings support the
  presentation with graphical representations of
  key findings

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International dimension of marketing research

• The complexity of the task lies in the number of
  markets to be considered and the different levels
  of support available within them. Other
  difficulties in international marketing research
  include
• differences in the level of support for
  marketing, the marketing and market research
  infrastructure, e.g. access to key statistical
  data varies substantially from country to country
• lack of familiarity with data sources
• cost, payment and economic instability

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International dimension of marketing research

• doubts about the competence of overseas' research
  agencies, and differences in research procedures
• problems of communication between client and
  agency, and agency and respondents
• differences in the levels of market development
• differences in legislation, which affect the
  ability to carry out research and store data
• the longer time taken to complete international
  research studies
• differences in language, the use and meaning of
  words
• other cultural differences, including levels of
  technical infrastructure, religious differences,
  attitudes to privacy and information
  dissemination.

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International dimension of marketing research
COMPARISON
Local company
Chosen research company
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International dimension of marketing research
COMPARISON
The chosen research company can have a
coordinational function, but can also use its
own international research network)
International company
Research company
Regional agency/ subsidiary
Regional HQ
Local branch/ representative
Local agency
Comunication can be performed localy or through
the corporate structure.
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Marketing research in practice

• International marketing research must be used in
  practice in order to justify the high costs
  involved
• Developing the marketing mix a short preview...

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Packaging Creative solution - Slovenia
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Packaging creative solution - Ukraine
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Expensive
Too Expensive
Cheap
Too cheap
Anticipated market price
Optimal price long term market share defense
Upper bound
Lower bound
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Key factors in international marketing research

• Size
• Comparability of data
• Reliability
• Validity internal and external
• Smaller markets

Importance of marketing research in
international marketing!
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International marketing research - the Chemcorp
case

• International company. Market leader in the
  chemical sector in EU.
• Initiated an international marketing research.

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International marketing research - the Chemcorp
case

• Objective of the research gain information to
  develop a new marketing strategy on Hungarian,
  Croatian and Slovenian markets.
• Unity of analysis competitors, distributors,
  users etc.
• Time 9 business days
• Organization a Hungarian marketing research was
  recruited, which was responsible for collecting
  data also on Slovenian and Croatian markets.
• Cost was not determined in advance contingent
  upon the research method.

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Information needed for MIS - example
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Information needed for MIS - example
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Information needed for MIS - example
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• Is it possible to gain all the required
  information from secondary data?
• To what extent?

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International marketing research - the Chemcorp
case

• Financial constraints (cost benefit) secondary
  research in smaller markets (Slovenia and
  Croatia)
• Hungary both primary and secondary research
• Decision to recruit an international agency with
  headquarter in Budapest
• The Hungarian agency recruits a Croatian agency
• The Croatian agency in turn recruits a Slovenian
  agency to carry out the research in the Slovenian
  market.

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Information obtained by market

• Hungary collection of all requested data
  relation between primary and secondary data 95
  vs. 5 respectively
• Slovenia secondary research only 10 of
  required data is obtained.
• Croatia no secondary data collected report
  based on an interview with an expert.

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Information obtained by market

• Hungary the firm gained all the info needed
• Slovenia market overview, focus on competition
  analysis
• Croatia subjective overview of the market by an
  expert
• The data collected is neither comparable nor
  appropriate for MIS

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Conclusion

• What can we learn from this case study?

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Group work - Discussion

• Develop a primary marketing research process
  plan
• Pharmaceutical company
• Research in Romania, Bulgaria, ex-yu countries
• The goal is to evaluate the market potential for
  a new product/drug
• The drug is a effective solution for problems
  faced by 30 to 45 of the population. It
  influences the quality of life. It is a
  prescription drug.
• Market entry is intended (depends on the research
  results) for the 1st q of 2009
• The drug is being successfully marketed in
  western European countries