1. Global Marketing Management
Masaaki Kotabe & Kristiaan Helsen Third Edition
John Wiley & Sons, Inc., 2004
Chapter 6
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

2. Global Marketing Research
Chapter 6
Global Marketing Research
Chapter 6
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

3. Kotabe & Helsen's Global Marketing Management, Third Edition, 2004
Chapter Overview
1. Research Problem Formulation
2. Secondary Global Marketing Research
3. Primary Global Marketing Research
4. Market Size Assessment
5. New Market Information Technologies
6. Managing Global Marketing Research
Chapter 6
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

4. Kotabe & Helsen's Global Marketing Management, Third Edition, 2004
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)
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

5. Kotabe & Helsen's Global Marketing Management, Third Edition, 2004
Introduction (contd.)
5. Analyze the data and interpret the results
6. Report and present the findings of the study
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
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

6. Kotabe & Helsen's Global Marketing Management, Third Edition, 2004
Introduction (contd.)
5. Difficulty in establishing comparability across multicountry studies
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

7. 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.
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

8. 1. Research Problem Formulation (contd.)
Once the research issues have been stated, management needs to determine the information needs.
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

9. 2. Secondary Global Marketing Research
Secondary Data: Data/information which is already available.
Primary Data: When the information is not useful, or simply does not exist.
Selected Secondary Data Sources: Lexis/Nexis, FINDEX, National Trade Data Bank, U.S. Department of Commerce, Japan External Trade Organization (JETRO), OECD, IMF, The Economist Intelligence Unit (E.I.U.), ACNielsen Co, Taylor Nelsen Sofres, etc.
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

11. 2. Secondary Global Marketing Research (contd.)
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
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

12. 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
Sampling: A sampling plan consists of:
Sampling unit
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

13. 3. Primary Global Marketing Research (contd.)
Sample size
Sampling procedure
Contact Method (see Exhibit 6-5)
Mail
Telephone
Person-to-person interviews
Online Survey Methods (see Exhibit 6-6):
surveys
Random Web site surveys
Panel Web site surveys
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

14. 3. Primary Global Marketing Research (contd.)
Collecting the Information
Issues of nonresponse
Courtesy bias
Social desirability bias
Redundancy (asking the same question in different ways)
Issues of ethnographic research
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

15. 4. Market Size Assessment
Method of Analogy
Longitudinal method of analogy
Trade Audit
Chain Ratio Method
Cross-Sectional Regression Analysis
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

16. 4. Market Size Assessment (contd.)
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.
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

17. 5. 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.
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

18. 5. New Market Information Technologies (contd.)
Scanning data are used to provide merchandising support to retailers.
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

19. 6. Managing 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
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

20. 6. Managing Global Marketing Research (contd.)
The emic school focuses on the peculiarities of each country.
The etic approach emphasizes universal behavioral and attitudinal traits.
In cross-cultural market research, the need for comparability favors the etic paradigm with an emphasis on the cross-border similarities and parallels.
Several approaches may be used to balance these conflicting demands.
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

21. Copyright © John Wiley & Sons, Inc. 2004
Chapter 6
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004