International market research This project has been funded with support from the European Commission. The author is solely responsible for this publication (communication) and the Commission accepts no responsibility for any use that may be made of the information contained therein. Project number 2016-1-LT01-KA202-023149

International Market Research In this module: What is International Market Research and why do it? Why is International Market Research so important? Objectives of International Market Research Why is international market research different? Factors to consider for international market research and marketing Understand the context and research approach Case study - 4 Mistakes resulting in international failure Activity – Product Adaptation

What is International Market Research and why do it? International market research is the systematic design, collection, recording, analysis, interpretation, and reporting of information pertinent to a particular marketing decision facing a company operating internationally. To put is simply: The purpose of international market research is to maximize your chance of success in capturing a new market.

Why is International Market Research so important? Market research aims to provide new ideas, comparisons, and control information for marketing deciders. It provides an information base for strategic decisions. Competitive information needs to be available early, quickly, and with the right filter.

Why is International Market Research so important? Reasons for international business planning During this phase you need to learn: What you hope to accomplish What not to do and how to avoid cross cultural blunders

Objectives of International Market Research Examples of different objectives Evaluation and selection of target markets examining market potentials, market attractiveness, market barriers, intensity of competition, sales channels, customer segments and others more. Preparations for new sales market entry profiling and prioritising of prospective customers, providing shortlists of target customers, shortlists of resellers, distributors, intermediaries, and logistics or other service facilities.

Objectives of International Market Research Procurement through new vendors profiling, evaluation and selection of suppliers, clarification of detail questions such as transportation, custom duties, payment procedures, and others more. Shift of production country comparison, execution of feasibility studies, latest research for manufacturers, suppliers, manufacturing facilities, personnel and others.

Why is international market research different? Different cultures respond differently to your product, your marketing, your business. Some markets may actually use your product differently than you expect. That’s why you need to know exactly how each of your markets respond to your product, your company, your marketing.

Factors to consider for international market research and marketing Cultural Factors Economic Factors Political and Legal Factors Intangibles

Factors to consider for international market research and marketing Cultural Factors Language Pay attention to translation of the name of your product when undertaking international marketing activity. Taste Sometimes is the image of your product not suitable in for the country where you want to sell it. Make over of that image is then a possible solution.

Factors to consider for international market research and marketing Regional Values Many times a country to which you would like to sell a product has extreme regional differences that must be accounted for when marketing. Consumer Habits When you want to market a product to a foreign country you need to first determine: is it an individualistic society or a collective society?

Why Internationalise? Age/Demographics Decide who are your ideal customers. What age are they, where do they live, what do they want and need.

Factors to consider for international market research and marketing Economic factors Per Capita Income How many people can afford your product in the country where you want to sell it? Relevant Class Structure What is the proportion of the upper, middle and lower class in the country where you want to sell your product?

Factors to consider for international market research and marketing Supply and Demand A company has to take a deeper look at potential markets, now more than ever before because just about anything will sell if you market it the right way and in the right place. Financial Transactions and Banking How do your consumers in another country will pay for your product? Will it be cash or a credit card they pay it with?

Factors to consider for international market research and marketing Political and Legal Factors Laws There are laws in some countries that will greatly affect your ability to do business in them or prohibit it altogether. Licensing and Permits There is a chance that the only way you can do business in a foreign country is to give out an expensive permit or license of another business in that country.

Factors to consider for international market research and marketing Taxes Taxes can, and do impact on your ability to make a profit selling goods and services in a foreign country and will shape your international marketing strategy because of that. Fees When you market your products for sale in a foreign country, you might have to pay certain fees to do that: one time deal or recurring.

Factors to consider for international market research and marketing Tariffs Tariffs are used to balance trade between countries and to protect national companies from losing business to foreign competitors. Currency risks If you have your money tied up in a foreign currency and economic events fall just right, your company could lose serious money.

Factors to consider for international market research and marketing Stability Consider wars or political unrest.

Factors to consider for international market research and marketing Intangibles Environmental What are the environmental factors like weather that can influence (the sale of) your product in a foreign country? Regional Partnerships Can another company in the foreign country where you try to sell your product, help you?

Factors to consider for international market research and marketing Product Adaptation Not in every country you can have “one size fits all” market research and marketing strategy.

Understand the context and research approach It is vital to understand the context in which the participants live their lives in order to interpret what they have told you into findings and recommendations. Also it is important to use segmentation to determine who you want to talk to within each country or market.

Understand the context and research approach Schedule more time researching prior to any launch. Continue with your international market research. Diversify your research channels. Use web marketing to stimulate international market feedback. Question everything possible. And... be methodical!!