Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 1 Global Marketing Management, 5e Chapter 6 Global Marketing Research

Chapter Overview 1. Research Problem Formulation 2. Secondary Global Marketing Research 3. Primary Global Marketing Research 4. Leveraging the Internet for Global Market Research 5. Market Size Assessment 6. New Market Information Technologies 7. Managing Global Marketing Research Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 2

Introduction  Given the complexity of the global marketplace, solid marketing research is critical for a host of global marketing decisions.  Most of the cultural blunders in global marketing stem from inadequate marketing research.  Six steps in conducting global market research: 1. Define the research problem(s) 2. Develop a research design 3. Determine information needs 4. Collect the Data (secondary and primary) 5. Analyze the data and interpret the results 6. Report and present the findings of the study Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 3

Introduction  Major challenges faced by global marketing researchers: 1. Complexity of research design due to environmental differences 2. Lack and inaccuracy of secondary data 3. Time and cost requirements to collect primary data 4. Coordination of multicountry research efforts 5. Difficulty in establishing comparability across multi- country studies Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 4

1. Research Problem Formulation  Any research starts off with a precise definition of the research problem(s).  In an international context, the marketing research problem formulation is hindered by the self-reference criterion (SRC).  A major difficulty in formulating the research problem is unfamiliarity with the foreign environment.  Omnibus surveys are regularly conducted by research agencies.  Once the research issues have been stated, management needs to determine the information needs. Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 5

Chapter 6Copyright (c) John Wiley & Sons, Inc. 6 Exhibit 6-2: A Multicountry Marketing Research Project at Eli Lilly

Chapter 6Copyright (c) John Wiley & Sons, Inc. 7 Exhibit 6-3: AC Nielsen China Omnibus

2. Secondary Global Marketing Research  Secondary Data: Data/information which is already available.  Primary Data: When the secondary data are not useful, or simply does not exist.  Selected Secondary Data Sources: See Exhibit 6-4. Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 8

Chapter 6Copyright (c) John Wiley & Sons, Inc. 9 Exhibit 6-4: Resources for Secondary Data

2. Secondary Global Marketing Research  Problems with Secondary Data Research:  Accuracy of Data  Age of data  Reliability over Time  Comparability of Data Triangulate Functional or Conceptual Equivalence  Lumping of Data Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 10

3. Primary Global Marketing Research  Focus Groups  Survey Methods for Cross-Cultural Marketing Research:  Questionnaire Design Conceptual and Functional Equivalence Translation and Scalar Equivalence Back Translation and Parallel Translation Scalar Equivalence Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 11

Chapter 6Copyright (c) John Wiley & Sons, Inc. 12 Exhibit 6-5: The Funny Faces Scale

3. Primary Global Marketing Research  Sampling: A sampling plan consists of: Sampling unit Sample size Sampling procedure  Contact Method Mail Telephone Person-to-person interviews Online Survey Methods (Exhibit 6-7): surveys Random Web site surveys Panel Web site surveys Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 13

Chapter 6Copyright (c) John Wiley & Sons, Inc. 14 Exhibit 6-6: ESOMAR 2007 Market Research Price Study

Chapter 6Copyright (c) John Wiley & Sons, Inc. 15 Exhibit 6-7: Pros and Cons of the Internet as a Tool for Global Marketing Research

3. Primary Global Marketing Research  Collecting the Information Issues of nonresponse Courtesy bias Social desirability bias Redundancy (asking the same question in different ways) Issues of ethnographic research Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 16

4. Leveraging the Internet for Global Market Research  Online surveys  Bulletin boards and chat groups  Web visitor tracking  Virtual panels  Focus groups Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 17

Exhibit 6-8: Research Methodology behind the Durex “Sexual Wellbeing” Survey Chapter 6Copyright (c) John Wiley & Sons, Inc. 18

4. Leveraging the Internet for Global Market Research  Advantages  Large samples quickly assembled  Global access  Lower costs  Anonymity for sensitive topics  Direct data load for swift analysis  Short response times Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 19

4. Leveraging the Internet for Global Market Research  Disadvantages  Limited Internet access in many countries  Samples are not representative  Download times hinder access  Incorrect addresses or poor connections  Low response rates  Multiple responses from the same person Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 20

5. Market Size Assessment  Method of Analogy  Longitudinal method of analogy (See Exhibit 6-9.)  Trade Audit  Chain Ratio Method  Cross-Sectional Regression Analysis Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 21

Exhibit 6-9: Market Potential Estimates for McDonald’s Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 22

5. Market Size Assessment  When using market size estimates, keep the following rules in mind:  Use several different methods.  Don’t be misled by numbers.  Don’t be misled by fancy methods.  Do a sensitivity analysis by asking what-if questions.  Look for interval estimates with a lower and upper limit rather than for point estimates. Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 23

6. New Market Information Technologies  Major developments/innovations:  Point of sale (POS) store scanner data  Consumer panel data  Single source data  Shift from mass to micro marketing  Continuous monitoring of brand sales/market share movements  Scanning data are used by manufacturers to support marketing decisions. Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 24

6. New Market Information Technologies  Scanning data provide merchandising support to retailers.  Market research tools to track the effectiveness of newer marketing mix vehicles such as the Internet with the goal of establishing a “Nielsen rating” for websites similar to those for TV programming.  CATI (Computer-Assisted Telephone Interviewing)  CAPI (Computer-Assisted Personal Interviewing) - CATI/CAPI benefits include speed, accuracy, and the ability to steer data collection based on the response. Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 25

7. Management of Global Marketing Research  Selecting a Research Agency: The following considerations should be taken into account while choosing agency:  Level of expertise  Qualifications  Track record  Credibility and experience  Client record  Coordination of Multi-Country Research:  Emic versus Etic dilemma Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 26

7. Management of Global Marketing Research  The emic school focuses on the peculiarities of each country.  The etic approach emphasizes universal behavioral and attitudinal traits.  Cross-cultural market research favors the etic paradigm, emphasizing cross-border similarities and parallels.  Several approaches may be used to balance these conflicting demands. Chapter 6Copyright (c) 2009 John Wiley & Sons, Inc. 27