International marketing Session 4- International Marketing Research

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International marketing Session 4- International
Marketing Research

• Ana Colovic

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Marketing research

• Different types of studies
• Different classifications (typologies of
  studies)
• 1- According to objectives exploratory,
  descriptive, causal
• 2- According to techniques qualitative,
  quantitative
• 3- According to data used secondary, primary

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Secondary data

• Official and unofficial sources
• National statistics
• Private statistics
• Market studies
• Newspaper articles
• Problem The reliability of the secondary data
  sources

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Primary data

• Two types of techniques
• Qualitative (answers the question WHY)
• Group discussions and individual interviews
• Content analysis
• Quantitative (answers the questions WHO, WHEN,
  HOW MANY, HOW MUCH)
• Questionnaire
• Statistics

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Qualitative studies

• An exploratory qualitative study is conducted
  before a quantitative study - 2-stage research
• Only a qualitative study is conducted - 1-stage
  research. A decision is taken after the study.

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Qualitative studies (2)

• Interviews
• Interview guide
• Duration from 45 minutes to two hours
• Data analysis Transcription Coding Content
  analysis

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Qualitative studies (3)

• Group techniques
• Focus group
• Mini group
• Conflict group
• Commando group
• Brainstorming (Creative group)

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Quantitative studies

• Surveys
• Questionnaire
• Different techniques face to face, phone, mail,
  Internet,
• Use of software SPSS, SAS, STATA,

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International marketing research (IMR)

• As a management tool, international marketing
  research can help the firm to reduce its exposure
  to risk, avoid errors, identify opportunities and
  match the firms capabilities with foreign
  openings.
• International marketing research is necessary in
  order to decide which foreign markets to enter
  and the best mode of entry (exporting, licensing,
  joint ventures, etc.) to each country.

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IMR (2)

• A distinction might be made between international
  marketing intelligence (information about the
  overall marketing environment) and functional
  research (concerns particular aspects of the
  firms marketing activities).
• The distinction between marketing intelligence
  and functional research is rarely clear.
• They combine to create the firms international
  marketing information system, which covers market
  analysis, competitor analysis and the assessment
  of risks and potential returns.

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Secondary information

• Publications of national statistical offices
  (often available on CD ROM)
• Directories and data books issued by private
  publishing companies (ex. Euromonitors
  International Marketing Data and Statistics)
• Databases (ex. FT Profile)
• Statistics gathered by international
  organizations - OECD, UN, European Commission,
  IMF
• Chambers of commerce and trade associations,
  either in the home country or in the target
  market
• Market research reports published by market
  research companies
• Trade and technical magazines

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Primary research

• All the problems of domestic primary marketing
  research are replicated at the international
  level, and are more severe.
• The research design has to be modified in each
  country according to local cultural, economic,
  social and institutional factors.

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Primary research - Problems and issues

• A decision is needed regarding whether the
  research is to be managed at the head office or
  local level.
• It is difficult to establish an appropriate unit
  of analysis at the multi-country level.
• Qualitative data collection and analysis
  techniques are subject to cultural bias on the
  part of foreign researchers implementing them.
• Survey methods have to be varied according to
  literacy and education levels.
• Field experiments are difficult to replicate.
• It is difficult to compare research results from
  one country with those of others.

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Analysis of competitors

• Considering the high costs of IMR and the
  uncertainties involved, some companies choose to
  rely instead on close observation of the
  activities of competitors.
• Competitor analysis includes strengths and
  weaknesses of competitors products reasons for
  operating in particular markets organization
  terms of sale, credit periods, after-sales
  service financial performance, promotional
  materials product development strategies
  prices campaigns etc.

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Market analysis

• Market surveys cover
• -demographics
• -market size and structure
• -macroeconomic influences
• -consumer characteristics
• -spending patterns ( of consumer purchase made
  in supermarkets, hypermarkets, independent
  retailers, department stores, )

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Organizing research

• Firms may conduct foreign research themselves, or
  use specialist market research firms for this
  work. Specialists can be either home-based firms
  or local researchers.
• Advantages of using a domestic firm
• -can meet all research needs
• -wide-ranging experience
• -the quality of the work can be evaluated
  quickly.
• Problems with using a foreign company
• -expensive and time-consuming need to visit the
  firm
• -laws of the other country apply (in case of
  disputes)
• -the performance is difficult to assess.

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Marketing research in the Third World

• Although it is extremely difficult to conduct
  marketing research in Third World countries,
  research is perhaps the most reliable way to
  determine the essential characteristics of
  consumer environments and behavior in these
  countries.
• Problems lack of published information on market
  characteristics absence of local research
  companies lack of common language (in some
  countries) inability to identify the nature and
  size of dwelling units (people live in tents or
  other temporary accommodation, on the streets)
  pour mail and telecommunications systems, law
  literacy rates, absence of trained interviewers,
  sampling problems