Intl Marketing Research Define the research problem Gather data Secondary data sources Primary data collection Draw conclusions Example: estimating market demand

Int’l Marketing Research Gathering information – on which to base decisions – to answer questions regarding foreign markets Assess: What type of information do you need? What issues/problems might you confront?

Gathering data Secondary data sources Data available in some published form, either for free or for a fee Examples: STAT-USA – U.S. Department of Commerce International Trade Administration – ibid Baby Food: Key World Players - $10,425 MarketResearch.com Doing Business in ______. Price Waterhouse (tax & accounting issues)

Sources of secondary data Country Commercial Guides Industry Sector Analysis Reports Access at Hamersly Library: Journal Articles & Other Databases: STAT-USA Example: Brazil U.S. Sporting goods well accepted; Brazilians like to emulate U.S. lifestyle. 30% of sporting goods are imported.

Issues/Problems with Primary Data Collection… Language Sampling SRC

Language Back translations can help resolve direct translation errors: Back translation = a minimum of two steps: English native translates to Spanish Spanish native backtranslates to English Work out inconsistencies and translate again Another language problem: Multiple languages

Sampling issues Availability of Research Participants Telephone surveys: only 21% of population in Central America owns a phone those who do tend to have higher incomes but nearly everyone watches TV – so how do you find out if they saw your TV commercial? Personal (home-to-home) interviews: remember to bring a translator for native tongues

Estimating market demand… Use marketing research to estimate foreign market potential for a product. How? published forecasts expert opinion

Estimating Market Demand existing vs. potential markets existing: old product, new market (cameras/film ~ China) potential: new product category (wireless web) traditional forecasting methods Multiply this year’s sales by change from last year’s: $55M (year 2001) - $49.5M (year 2000) = + 11.1% ; $55M x 1.11 = $61.05 (year 2002) $49.5M (year 2000)

Secondary sources of information are helpful in the following areas: Overall industry/market characteristics Buyer behavior & preferences Product familiarity Promotion regulations & availability Factors affecting the pricing of goods Distribution regulations & availability

Marketing Plan tips Overall market: Product: Information to seek for your report: Overall market: Studies of industry, market characteristics, and market trends. Import/export statistics Product: Brand and product preferences; products may be used/viewed differently than we view them.

Marketing Plan tips Promotion: Legality of contests, premiums, coupons. Media availability – what extent to people use and have access to tv, radio, internet, etc. What types of communications are Illegal? Is advertising accepted where you think it is? (some countries allow no TV advertising) Salesforce compensation, territory and quota regulations

Marketing Plan tips Pricing: Currency exchange rate, Price increases due to tariffs, etc.. Typical markup on sporting goods Competitive pricing Price sensitivity and/or price elasticity

Marketing Plan tips Distribution: Transportation issues: Infrastructure, common & uncommon modes of moving freight Warehousing location & availability Availability of logistics expertise or local distributors Protectionist policies by a country’s government or among its industry participants