1. 1 Chapter 4 Instructor Shan A. Garib, Winter 2013

2. 2 Overview This chapter defines the objectives of a research project and describes why it is essential to define research objectives carefully Defining Research Objectives  No clear obj lead to large cost through extend timelines or wrong decisions  Clear obj help ensure that the correct information is gathered the first time

3. 3 Defining Research Objectives  Starting with a problem or opportunity ◦ Companies commission ITR because there is a problem or opportunity ◦ Problems and opportunities start with questions eg. How can we best expand our business or should expand our business? Or should we export to this country?  Breaking Down the problem ◦ When ID the problem or opportunity and the questions that need to be answered then need to break down the problem down into a series of research objectives that state what is needed to answer the questions

4. 4 Defining Research Objectives  Breaking Down the problem ◦ Researcher should find the answers to the following questions What is the Background to this problem or opportunity? ◦ The company history, structure and strategic obj will indicate how problem arose ◦ Then can ID type of research needed How does this problem or opportunity relate to the competitive environment? ◦ The competitive environment determines how company does business and how it approaches problems or opps. Eg if want to enter the EU, see if competitors are entering the EU

5. 5 Defining Research Objectives  Breaking Down the problem Is the required research possible? ◦ Might be ethical, legal, financial or time constraints  Wording Research Objectives ◦ Should always be clear, focused, simple and specific ◦ Can be in question or statement form ◦ Use action verb, eg identify describe, measure, verify or monitor

6. 6 Defining Research Objectives  Wording Research Objectives ◦ Eg: ID three international markets for the new software Key Research Issues for Exporters  Three levels of decision making when taking advantage of marketing opportunity: ◦ Strategic – must decide whether or not to export and if it does where to? ◦ Tactical – decide which approach to take ◦ Operational – define the logistics of how to get the product to customers

7. 7 Key Research Issues for Exporters Should focus research objectives around answering: Which international opportunities meet or do not meet the companies strategic objectives? What are the characteristics, pressures, trends, and requirements in the target countries that meet strategic objectives? What are the preliminary priorities and risks associated with export trade opportunities?

8. 8 Key Research Issues for Exporters  Macroeconomic data ◦ to ID opp and unsuitable markets ◦ Macro features divided into several areas for research:  GNP – value of all final goods produced by nationals + income from overseas  GDP - value of all final goods produced by nationals - also measure of standard of living  PPP – compares purchasing power of different currencies - also measure of standard of living

9. 9 Key Research Issues for Exporters  Macroeconomic data ◦ Macro features divided into several areas for research:  Household disposable income – money after taxes  Market size – larger pop the larger potential customer base  Market Potential – how many people could realistically be expected to purchase  Market resources – eg natural resources  Market Activity – ID the major economic industries present  Infrastructure – transportation network, distribution of cities, power supply will have impact on distribution of goods and the cost involved

10. 10 Key Research Issues for Exporters  Macroeconomic data ◦ Macro features divided into several areas for research:  Urbanization – amount of urbanization is a measure of demand for certain goods and services and its income levels

11. 11 Key Research Issues for Exporters  Cultural and Lifestyle information ◦ Will make more clear whether product will be needed, luxury, unnecessary, acceptable ◦ Exporters of consumer products will be more affected by country’s culture more than one of industrial goods  Cultural and lifestyle information broken-down into several areas of research:  Material culture - technological goods, personal transport, availability of natural gas, internet  Cultural preferences – tastes differ across the globe

12. 12 Key Research Issues for Exporters  Cultural and Lifestyle information  Cultural and lifestyle information broken-down into several areas of research:  Languages – spoken have impact on marketing, brand names, collection of information through surveys and interviews  Education – indicate quality of workforce  Religion – affect role of women, rules about beverage consumption, holidays  Ethic and values  Social organization – composition of family groups, special interest groups, racial diversity, recreational lifestyle

13. 13 Key Research Issues for Exporters  Political and Legal Information  Consider the following factors:  Political Climate – stability impacts risk level  Laws and regulation – eg currency restrictions, FX, embargoes, tariffs and export and import restrictions  Product or Service Potential -preceding material tell you if market is promising or not -marketers must also determine potential for products

14. 14 Key Research Issues for Exporters  Product or Service Potential -preceding material tell you if market is promising or not -marketers must also determine potential for products  Researchers should consider the following: ◦ Adaption issues – eg product form or packaging, smog with cars ◦ Brand and trademark issues – registered and translated in some countries ◦ Labeling and Standards – adhere to national/provincial standards

15. 15 Key Research Issues for Exporters  Product or Service Potential  Researchers should consider the following: ◦ Service offering and warranties ◦ Price – pricing of competing goods, FX, transport costs, inflation ◦ Competing Companies – if competitor has large market might be hard to compete with! ◦ Legal Considerations – any that might affect profit ◦ Physical considerations – must be confident of distribution network, warehousing, access to home electricity, running water

16. 16 Key Research Issues for Exporters  Product or Service Potential  Researchers should consider the following: ◦ Cultural and religious issues – eg. no beer to middle east, or restrictions on birth control