Chapter 8 Developing a Global Vision through Marketing Research

Marketing research Marketing research is the systematic gathering, recording and analyzing of data to provide information useful to marketing decision making. International complication – domestic market researchers have to translate their research into questions foreign market can understand and the answers have to be put in a way the domestic managers can understand.

Scope of Research 1. Economics and demography 2. Cultural, Social, Political 3. Overview of Market conditions 4. Summary of the technological environment 5. Competitive situation

The Research Process Research process steps Define the research problem and establish research objectives Determine the sources of information to fulfill the research objectives Consider the costs and benefits of the research effort Gather relevant data from secondary or primary sources, or both Analyze, interpret, and summarize the results Effectively communicate the results to decision makers Research steps are similar for all countries Variations and problems can occur in implementation Differences in cultural and economic development

Defining the Problem and Establishing Research Objectives The major difficulty is converting a series of often ambiguous business problems into tightly drawn and achievable research objectives The first, most crucial step in research is more critical in foreign markets because an unfamiliar environment tends to cloud problems definition. Other difficulties in foreign research stem from failures to establish problem limits broad enough to include all relevant variables. Barbie Self reference criterion

Problems of Availability and Use of Secondary Data U.S. government provides comprehensive statistics for United States Marketing data not matched in other countries Quality Quantity Exceptions are Japan and several European countries Continuing efforts to improve data collection United Nations Organization for Economic Cooperation and Development (OECD)

Availability and Reliability of Data Most countries simply do not have governmental agencies that collect on a regular basis the kinds of secondary data readily available in the U.S. Researchers’ language skills impede access to information Requires native speaker of language Official statistics are sometimes too optimistic, reflecting national pride rather than practical reality, while tax structures and fear of the tax collector often adversely affect data Less-developed countries prone to optimism Willful errors “Adjusted reporting”

Comparability of Data Issues with data (especially in less developed, countries) Data can be many years out of date Data collected on an infrequent and unpredictable schedule Too frequently, data are reported in different categories or in categories much too broad to be of specific value e.g supermarket

Validating Secondary Data Questions to judge the reliability of secondary data sources Who collected the data? Would there be any reason for purposely misrepresenting the facts? For what purposes was the data collected? How was the data collected? Are the data internally consistent and logical in light of known data sources or market factors? Checking the consistency of one set of secondary data with other data of known validity An effective and often-used way of judging validity The availability and accuracy of recorded secondary data increase with level of economic development

Gathering Primary Data – Quantitative and Qualitative Research (1 of 2) Data collected specifically for the particular research project Quantitative research Usually a large number of respondents Respondents answer structured oral or written questions using a specific response format (such as yes/no) or to select a response from a set of choices Responses can be summarized in percentages, averages, or other statistics Toto – a Japanese firm with the premiers quantitative research on bathroom and toilet technology

Gathering Primary Data – Quantitative and Qualitative Research (2 of 2) If questions are asked, they are almost always open-ended or in-depth Seeks unstructured responses that reflect the person’s thoughts and feelings on the subject Qualitative research interprets people in the sample Qualitative research is helpful in revealing the impact of socio cultural factors on behavior patterns and in developing research hypotheses

Problems of Gathering Primary Data Hinges on the ability of the researcher to get correct and truthful information that addresses research objectives Problems in international marketing research Stem from differences among countries Range from inability or unwillingness of respondents to communicate their opinions Sampling in field surveys Inadequacies in questionnaire translation

Ability to Communicate Opinions Formulating opinions about a product or concept Depends on the respondent’s ability to recognize the usefulness of such a product of concept Product or concept must be understood and used in community The more complex the concept, the more difficult it is to design research that will help the respondent communicate meaningful opinions and reactions Gerber has more experience in trying to understand consumers with limitations Babies can neither answer questions or fill out questionnaires

Willingness to Respond Cultural differences provide best explanation for unwillingness or inability of many to respond to research surveys The role of the male, the suitability of personal gender-based inquiries, and other gender-related issues can affect willingness to respond Less direct measurement techniques and nontraditional data analysis methods may also be more appropriate

Sampling in Field surveys Problems in sampling stem from the lack of adequate demographic data and available lists from which to draw meaningful samples Affected by a lack of detailed social and economic information No officially recognized census information No other listings that can serve as sampling frames Incomplete and out-of-date telephone directories No accurate maps of population centers

Language and Comprehension The most universal survey research problem in foreign countries is the language barrier Literacy poses yet another problem Marketers use three different techniques to help ferret out translation errors ahead of time Back translation Parallel translation Decentering

Internet research Internet users worldwide – 60% Male, 32 years old, 60% college degree, income $60,000, usage time 2.5 hours a week. Online surveys Focus groups Web visitor tracking Advertising Measurement Customer identification systems E-mail marketing Embedded research Observational research

Estimating Market Demand Two methods of forecasting demand Expert opinion The key in using expert opinion to help in forecasting demand is triangulation Analogy Assumes that demand for a product develops in much the same way in all countries as comparable economic development occurs in each country

Analyzing Information Accept that there are limitations in the information. Have a high level of cultural understanding of the market. – necessary to consult with natives Creative talent for adapting research methods. Skeptical attitude.

Analyzing Information Best situation is to have local researchers in the market who co-ordinate closely with the client company. There are also professional marketing research firms. Decision makers should be involved in problem definition and fieldwork. Be careful of misunderstandings from language/cultural barrier.

Conclusion Market research – provide information for more accurate decision making. Challenges to International MR are: - understanding and respecting the respondents culture in surveys - Poor secondary information Key to success - Include natives - Use multiple methods and triangulation - Include decision makers occasionally

Questions What is the difference between primary and secondary data? How is international market research complicated by the environment? What are common issues when gathering primary data in an international market?

Internet tasks Complete the International Awareness survey for your country.