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

2. 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?

3. 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)

4. 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.

5. Issues/Problems with Primary Data Collection…
Language
Sampling
SRC

6. 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

7. 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

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

9. 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)
= % ;
$55M x 1.11
= $61.05 (year 2002)
$49.5M (year 2000)

10. 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

11. 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.

12. 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

13. 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

14. 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