International Marketing International Market Research

1
International MarketingInternational Market
Research
2
Introduction

• Determine if buyers want a companys goods
• Difficulties with international research
• Lack of knowledge of possible markets or nature
  of competition
• Changes required to meet new market
• Should pricing be similar to domestic market?
• What advertising strategy to use?

3
Meaning of Marketing Research

• Marketing research gathering, analysing, and
  presenting information on a specific problem
• Market intelligence ongoing basis
• Differences between market research I.e. domestic
  v international
• International environment on the whole companys
  profitability
• Domestic concepts and frameworks such as
  segmentation may not be applicable due to lack of
  information
• Ethnocentric nature of marketing makes cultural
  differences a significant factor

4
Meaning of Marketing Research

• Methodological issues
• Complexity of design culture and language
• Lack of secondary data
• Cost of collecting primary data
• Co-ordinating research
• Comparability in different context
• Marketing decisions -economics

5
Framework for International Market Research

• Define the problem market structure and the
  product. Study suggested French and Germans
  consumers each more spaghetti than Italian
  consumers. Yes if branded versus total market.
• Identifying alternative information sources
  made only available using secondary data. Primary
  data through interviews.
• Data collection test interview questions
• Collect basic data
• Explore interview questions
• Cross-checking data

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Framework for International Market Research

• Analysis, interpretation, and report preparation
  
• Data sources identified confidence
• Data projection and assumption explained
• Identification of interviewees
• Alternative course of action

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Information Requirements of International
Marketers

• Market information (market research) testing,
  entering, and leaving a market
• Product information(product research) add,
  delete or change
• Promotion information(promotion research) copy
  design, media selection, sales compensation, and
  control
• Promotion information(promotion research)
  location, channels, and policies
• Price information price/demand relationship,
  profitability analysis
• Environment information PEST

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Information Requirements of International
Marketers

• General information
• Business conditions
• Community
• Lifestyles and living conditions
• General economic conditions
• Export potential
• Preliminary screening PEST
• Analysis of industry market access and product
  potential
• Analysis of company sales potential sales
  volume, export costs, cost of distribution in
  host country, and profitability cost
  (e.g.competition)
• Source Cited in Jain Cavusgil, 1985

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Gathering Secondary Data

• Primary data
• Knowledgeable individuals
• Costly in time and travel
• Subjective
• Pilot-testing
• Made specific to problem
• Secondary data
• Published sources
• Free or low cost
• Collected quickly
• Biased or incomplete
• May be out of date
• Careful analysis of limitations

10
Gathering Secondary Data

• Government trade exhibitions, economic
  statistics
• Consulting firms
• Government embassies
• Multinational banks
• Home research low costs, easier to co-ordinate,
  objectivity
• Limitation of home research time lag between
  information, gaps in research because not
  perceived important

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Gathering Secondary Data

• Problems with Foreign Secondary data
• Objectivity of the collected data government
• Age of information
• Reliability of data political considerations,
  sampling
• Classification of data broad classification
  construction equipment, machinery, and tools
  bulldozers to hand-drills. US requires all
  importers/exporters to comply to Harmonised
  System (1988)
• Comparability of data TV in Germany leisure in
  US part of furniture
• Availability of data

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Primary Data Collection

• Problems of primary data collection
• Sampling problems representative sample
• Questionnaire problems language
• Problems of nonresponse
• Resolving the problems write questionnaire in
  English then translate, knowledge of market
  research procedures and local knowledge

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International Marketing Information System
Determining Information Needs
Identifying Information Sources
Gathering Information
Analysing Information
Disseminating Information
Modifications
System Review
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International Marketing Information System

• Other functional areas IMIS serves are
• Aids decision-making for market expansion
• Monitor performance of other countries and
  products detect potential future problems
• To scan the international environment to monitor
  emerging and changing environmental trends
• Assess strategies with regard to allocation of
  corporate resources across countries