Chapter 5 Global Marketing Research and Information Systems

Global Marketing Information System and Research objective : Present an information acquisition model for global marketing Present an outline of the global marketing research process

Overview of Global Market Information Systems One purpose of a marketing information system (MIS) is to provide managers and other decision makers with a continuous flow of information about company operation

Marketing Research Research is the only tool an organization has to keep in contact with its external operating environment. In order to be proactive and change with the environment simple questions need to be asked: How are customer needs changing? Can you meet these changing needs? What do your customers think about existing products or services? How are competitors operating within the environment? Are their strategies exceeding or influencing yours? What should you do? How are macro and micro environmental factors influencing your organization? Again how will you react?

Market Research and Marketing Research a difference. A common mistake by many students, lecturers and textbooks is that there is no understanding of the clear distinction between market research and marketing research.

Definition of Marketing Research 1.Marketing research is a form of marketing intelligence that involves specific enquiries into problems to guide marketer’s decision making. 2. Marketing Research: In essence marketing research aims to discover the root cause for a specific problem within an organization ( e.g. declining sales) and put forward solutions to that problem.

The Goal of Marketing Research To implement the marketing concept and marketing strategy, managers must make decisions. Many decisions require additional information and marketing research is needed to supply that information.

Six Subject Agenda Categories For a Global Marketing Information System Category Market Potential Competitor Information Foreign Exchange Prescriptive Information Resource Information General Conditions Coverage Demand estimates, consumer behavior, review of products, channels, communication media Corporate, business, functional strategies Balance of payments, interest rates, attractiveness of country, expectations of analysis Laws, regulations, rulings concerning taxes, earnings, dividends in both host and home countries Availability of human, financial, information, physical resources Overall review of socio cultural, political, technological environments

The Importance of Information Companies need information about their: Marketing environment Competition Customer needs Managers don’t need more information, they need better information.

What is a Marketing Information System (MIS)? A MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers. The MIS helps managers to: Assess Information Needs, Develop Needed Information, Distribute Information.

Sources of Market Information Human Sources Secondhand information from personal sources Executives abroad in company subsidiaries, affiliates, and branches. Friends, acquaintances, professional colleagues, consultants, and prospective new employees.( face-to-face communication) Direct Perception Firsthand information from sensory experience Get the lay of the land Documentary source Internet source

II. Formal market research Global Marketing Research is the project-specific, systematic gathering of data in the search scanning mode on a global basis

II. Formal market research Environmental Factors Affecting Global Marketing Research 1.The international marketing research differs from the domestic research in four specific environmental aspects p158 Researchers must be prepared for new parameters限定条件 of doing business “Cultural mega shock” 文化大冲击may occur With many markets comes many interacting factors. Research may help prevent psychological overload. Research may have to broaden view of competitors

Primary Data Collection Advantages Specificity - yours, for your purpose Confidentiality Flexibility Both quantitative and qualitative data possible Can be self-administered Disadvantages Time Money

Secondary Data Collection Advantages Cheaper May not need primary work Avoid re-inventing the wheel Starting point for generating hypothesis/defining objectives Disadvantages Specificity - not yours for your purpose Timeliness Subjects may respond with social desirability Translation may be difficult Use back and parallel translations to ensure accuracy and validity

The Marketing Research Process (Fig. 4.2) 1.Identifying the problem and research objectives 2.Developing the research plan for collecting information 3.Implementing the research plan – collecting and analyzing the data 4.Presenting the findings

Implementing the Research Plan Sampling A sample is a selected subset of a population that is representative of the entire population. p164 Probability samples Non-probability samples

Implementing the Research Plan Analyzing Data Demand Pattern Analysis需求模式分析 Income Elasticity Measurements收入弹性测量 Market Estimation by Analogy市场类推估计 Time-series displacement时间序列位移 Comparative Analysis比较分析 Cluster Analysis聚群分析

Marketing Research Process Step 1. Interpret the Findings Step 2. Draw Conclusions Step 3. Report to management

Global Issues in Marketing Research p168-169 Many country markets must be included Markets with low profit potential justifies limited research expenditures Data in developing countries may be inflated or deflated Comparability of international statistics varies greatly Limits created by cultural differences

Enhancing Comparability of Data Economic analysis Ethnographic in nature Studies culture from within Uses cultures’ own meanings and values Ethic analysis From the outside Detached perspective that is used in multi-country studies Enhances comparability but minimizes precision

THE END. Thank you!