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. Textbook, pp. 215-220 Excellent resources including these examples: United Nations: www.intracen.orgwww.intracen.org EU: europa.eu.int/comm/eurostat Chamber of Commerce of the United States: www.uschamber.com/international

6. …and don’t forget traditional article databases. Business Source Premier: U.S. brands work to build Brazilian business. By: Slaughter, Powell. Furniture/Today, 4/8/2002, Vol. 26 Issue 31, p33, 2p. U.S. brands work to build Brazilian business. Lexis/Nexis: Archbold, Ohio-Based Furniture Maker Sauder to Expand to Brazilian Market

7. Information to seek for your marketing plan: Overall market: –Studies of industry, market characteristics, and market trends. –Import/export statistics Buyer behavior & preferences Product familiarity Promotion regulations & availability Factors affecting the pricing of goods Distribution regulations & availability

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

9. Estimating Market Demand published forecasts your own forecast based on: – Percentage of population likely to use/buy – Rate of adoption of a similar product – Rate of adoption of the same product in similar markets – Project future revenues from past revenues – Observe growth rate among competitors in your industry, or among companies who market similar products

10. Worldwide annual film consumption would jump 50% From 2.5 billion to 3.75 billion rolls Potential Market Consumption Per Person: (Rolls) China US Japan 0.1 3.2 If China consumers used as much film per person as their Taiwan compatriots...

11. 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) $49.5M (year 2000) = + 11.1% ; $55M x 1.11 = $61.05 (year 2002)

12. Beware the pitfalls of SRC Self Reference Criterion Referring to one’s own cultural experience, knowledge, etc. as the basis for decisions about foreign markets.