1. Chapter 6 Global Information Systems and Market Research
Power Point by
Kristopher Blanchard
North Central University
© 2005 Prentice Hall

2. Introduction
Understand the importance of information technology and marketing information systems
Utilize a framework for information scanning and opportunity identification
Understand the formal market research process
Know how to manage the marketing information collection system and market research effort
Given the variety of languages spoken around the world, along with the cultural differences it could be difficult to conduct global market research. It is the marketer’s good fortune that a veritable cornucopia of market information is available on the Internet. A few keystrokes can yield literally hundreds of articles, research findings, and Web sites that offer a wealth of information about particular country markets. Even so, marketers need to study several important topics to make the most of modern information technology.
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3. Information Technology for Global Marketing
Information Technology refers to an organization’s processes for creating, storing, exchanging, using, and managing information.
Management Information Systems provide managers and other decision makers with a continuous flow of information about company operations
An MIS should provide a means for gathering, analyzing, classifying, storing, retrieving, and reporting relevant data. The MIS should also cover important aspects of a company’s external environment, including customers and competitors. Global competition intensifies the need for an effective MIS that is accessible throughout the company.
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4. Tools of MIS Intranet Electronic Data Interchange (EDI)
Efficient Consumer Response (ECR)
Electronic Point of Sale (EPOS)
Data Warehouses
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5. Customer Relationship Management
New business model
Philosophy that values two-way communication between company and customer
Every point of contact with a consumer is an opportunity to collect data
Can make employees more productive and enhance corporate profitability
CRM tools allow companies such as Credit Suisse, AT&T, and Hewlett-Packard to determine which customers are most valuable and to react in a timely manner with customized product and service offerings that closely match customer needs. If implemented correctly, CRM can make employees more productive and enhance corporate profitability; it also benefits customers by providing value-added products and services. A company’s use of CRM can manifest itself in various ways. Some are visible to consumers, others are not; some make extensive use of leading-edge information technology, others do not.
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6. Customer Relationship Management
The major thing is, ‘One size fits all’ is not true. CRM is designed to support the sales process, and if I develop a system that works in the U.S., it might not work in Europe.”
- Jim Dickie, Insight Technology Group
One challenge is to integrate data into a complete picture of the customer and his or her relationship to the company and its products or services. This is sometimes referred to as a “360-degree view of the customer.” The challenge is compounded for global marketers. Subsidiaries in different parts of the world may use different customer data formats, and commercial CRM products may not support all the target languages. In view of such issues, industry experts recommend implementing global CRM programs in phases.
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7. Privacy
Safe Harbor Agreement establishes principles for privacy protection for companies that transfer data to the US from Europe
Purposes of the information collected and used
An ‘opt out’ option to prevent disclosure of personal information
Can only transfer information to 3rd parties that are in compliance with Safe Harbor
Individuals must have access to information
Privacy issues vary from country to country. In the European Union, for example, a Directive on Data Collection has been in effect since Companies that use CRM to collect data about individual consumers must satisfy the regulations in each of the EU’s 25 member countries.
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8. Information Subject Agenda
The starting point for global marketing information system is identifying a list of subjects for which information is desired
Should be tailored to the needs and objectives of the company
Two essential criteria
Is all the information subject areas relevant to a company with global operations
Categories should be mutually exclusive
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9. Information Subject Agenda
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10. Scanning Modes: Surveillance and Search
Informal information gathering
VIEWING – general exposure to information
MONITORING – paying special attention and tracking a story as it develops
Search
Formal information gathering
INVESTIGATION – seeking out secondary data
RESEARCH – conducting primary research
After the subject agenda has been determined, the next step is the actual collection of information. This is accomplished by using either the surveillance or search mode.
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11. Avoiding Information Overload
Global organizations need
Efficient, effective system to scan and digest published sources of information in all countries in which it conducts business
Daily scanning, translating, digesting, abstracting, and electronic input of information into MIS
Of all the changes in recent years that have affected the availability of information, perhaps none is more apparent than the explosion of documentary and electronic information. An overabundance of information has created a major problem for anyone attempting to stay abreast of key developments in multiple national markets. too few companies employ a formal system for coordinating scanning activities. This situation results in considerable duplication of effort. The best way to identify unnecessary duplication is to carry out an audit of reading activity by asking each person involved to list the publications he or she reads regularly. A consolidation of the lists will reveal the surveillance coverage. Often, the scope of the group will be limited to a handful of publications to the exclusion of other worthwhile ones
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12. Sources of Market Information
Human sources
Executives based abroad are likely to have established communication with distributors, consumers, customers, suppliers, and government officials
Friends acquaintances, professional colleagues, consultants, and prospective employees
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13. Sources of Market Information
Direct perception provides a vital background for the information that comes from human and documentary sources
Gets all the senses involved
Some information requires sensory experience to interpret it correctly
Can be important when the domestic market is dominated by a global player
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14. Formal Market Research
Global Marketing Research is the project-specific, systematic gathering of data in the search scanning mode on a global basis
Challenge is to recognize and respond to national differences that influence the way information is obtained
Information is a critical ingredient in formulating and implementing a successful marketing strategy. As described earlier, a marketing information system should produce a continuous flow of information. Market research, by contrast, is the project-specific, systematic gathering of data in the search scanning mode. The American Marketing Association defines marketing research as “the activity that links the consumer, customer, and public to the marketer through information.”
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15. Steps in the Research Process
Identifying the research problem
Developing a research plan
Collecting data
Analyzing data
Presenting the research findings
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16. Identifying the Information Requirement
What information do I need?
Existing Markets – customer needs already being served by one or more companies; information may be readily available
Potential Markets
Latent market – an undiscovered market; demand would be there if product was there
Incipient market – market will emerge as macro environmental trends continue
Why do I need this information?
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17. Overcoming the SRC
Self-Reference Criterion occurs when a person’s values and beliefs intrude on the assessment of a foreign culture
Must be aware of SRC’s
Enhances management’s willingness to conduct market research
Ensures that research design has minimal home-country bias
Increases management’s receptiveness to findings
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18. Developing A Research Plan
Do we need quantitative or qualitative data?
What is the information worth (versus what will it cost to collect)?
What will it cost if we don’t get the information?
What can be gained from the information?
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19. Collecting Data Secondary Data
Statistical Abstract of the United States
Statistical Yearbook of the United Nations
World Factbook
The Economist
The Financial Times
Syndicated studies
And much more
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20. Collecting Data (cont.)
Primary Data Collection Methods
Survey research
Interviews
Consumer panels
Observation
Focus groups
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21. Special Considerations for Surveys
Benefits:
Data collection from a large sample
Both quantitative and qualitative data possible
Can be self-administered
Issues
Subjects may respond with social desirability
Translation may be difficult
Use back and parallel translations to ensure accuracy and validity
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22. Sampling
A sample is a selected subset of a population that is representative of the entire population.
Probability samples
Non-probability samples
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23. Analyzing Data Demand Pattern Analysis Income Elasticity Measurements
Market Estimation by Analogy
Time-series displacement
Comparative Analysis
Cluster Analysis
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24. Presenting the Findings
Report must clearly address problem identified in Step 1
Include a memo or executive summary of the key findings along with main report
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25. Global Issues in Marketing Research
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
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26. Enhancing Comparability of Data
Emic analysis
Ethnographic in nature
Studies culture from within
Uses cultures’ own meanings and values
Etic analysis
From the outside
Detached perspective that is used in multi-country studies
Enhances comparability but minimizes precision
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27. Looking Ahead Chapter 7 Segmentation, Targeting, and Positioning
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28. Intranet A Private network
Allows authorized company personnel (or outsiders) to share information electronically
24-Hour Nerve Center
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29. Electronic Data Interchange
Allows business units to:
Submit orders
Issue invoices
Conduct business electronically
Transaction formats are universal
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30. Efficient Consumer Response (ECR)
This is in addition to EDI
An effort for retailers and vendors to work closely on sock replenishment
ECR can be defined as a joint initiative by members of a supply chain to work toward improving and optimizing aspects of the supply chain to benefit customers.
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31. Electronic Point of Sale
Gathers data at checkout scanners
Identifies product sales trends
Identifies how consumer preferences vary geographically
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32. Data Warehouses
Can help fine-tune product assortments for multiple locations
Enhances the ability of management to respond to changing business conditions
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