1. International Marketing Research- Process
Dr Abha Rishi

2. The International Marketing Research Process
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.
Once the research issues have been stated, management needs to determine the information needs.
Dr Abha Rishi IMR Term 2

3. International Marketing Information Systems
Internal
Cos. Records of exports and imports
Trade dealings, Trend forecasting
Customer surveys
External
Govt. agencies, Embassies and High Commissions
International Orgns. – WTO, UN, ESCAP ( UN Economic and Social Commission for the Asia And the Pacific)
Specialized private agencies

4. Determining Research Administration
Centralized
The research specifications are designed by the home office and forwarded to country operations for implementation.
Coordinated
An intermediary such as an outside research agency brings headquarters and country operations together.
Decentralized
Corporate headquarters establishes the broad thrust of research and delegates design and implementation to the local countries.

5. Tools for comparing countries
1. Environmental scanning
Systematic assessment of external conditions that might affect a cos. operations
2. Grids
Opportunity Risk Matrix
The company decides on indicators (attributes) and weights them according to the importance to the company
Country Attractiveness- Company Strength Matrix

6. Designing the Survey Questionnaire
Question format
Structured or unstructured.
Direct or indirect.
Ensure data equivalence.
Question content
Consider interviewee’s ability and willingness to answer.
Adapt questions to societal constraints.
Question wording
Use simple unambiguous words, terms and questions.
Check for errors using translation-re-translation approach and alternative wording for questions.
Pretest the survey.

7. Research Techniques Interviews
Knowledge persons are a valuable information resource (personal bias must be discounted).
Goal, obtain in-depth information instead of a wide variety of information.
Focus groups
Interaction within a group about a specific topic.
Ideal size, 7-10.
Observation
Observation results can be influenced by presence of the observer.
Surveys
Gather quantitative rather than qualitative information through personal or remote contact with the subject population.

8. The International Marketing Research Process
STEP 1 Define the international research problem and agree on the research objectives
Exploratory Research
Descriptive Research
Causal Research
STEP 2 Set specific objectives
Dr Abha Rishi IMR Term 2

9. The International Marketing Research Process, continued
STEP 3 Develop the International Research Plan
STEP 4 Define Information Sources
Secondary Data
Researchers must determine if the information is available, and, if so, how reliable it is
Internal data is useful only if company has collected similar info from relevant respondents in a country with similar environment
Dr Abha Rishi IMR Term 2

10. 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.
Dr Abha Rishi IMR Term 2

11. Secondary Global Marketing Research
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
Dr Abha Rishi IMR Term 2

12. Secondary Data Constraints
Conceptual Equivalence
Concepts have different meanings in different cultural environments
Functional Equivalence
Products themselves may be used for different purposes in different country environments
Dr Abha Rishi IMR Term 2

13. Secondary Data Constraints, continued
Sources of reliable data:
World Bank
United Nations Development Program
Organization of Economic Cooperation and Development (OECD)
Euromonitor
Dr Abha Rishi IMR Term 2

14. Primary Data
Information collected for a specific purpose, to address the problem at hand.
The costs of collecting primary data in foreign markets are likely to be much higher given the lack of an appropriate marketing research infrastructure
Dr Abha Rishi IMR Term 2

15. Primary Data Research Approaches
Qualitative research has been particularly useful as a first step in studying international marketing phenomena.
Focus Groups
Observation
Constraints: Responses can be affected by culture, individuals may act differently if they know they are being observed.
Dr Abha Rishi IMR Term 2

16. Primary Global Marketing Research
Survey Methods for Cross-Cultural Marketing Research:
Questionnaire Design
Conceptual and Functional Equivalence
Translation and Scalar Equivalence
Back Translation and Parallel Translation
Scalar Equivalence
Dr Abha Rishi IMR Term 2

17. Primary Global Marketing Research
Sampling: A sampling plan consists of:
Sampling unit
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
Dr Abha Rishi IMR Term 2

18. Sampling
Sometimes it is impossible to approach certain respondents directly
It is unacceptable to pose questions to some people in certain circumstances
Consider:
conventions
tradition
religion
appearance
household hierarchies
Databases for sampling purposes must accommodate naming systems in use in the nation
Dr Abha Rishi IMR Term 2

19. Primary Global Marketing Research
Collecting the Information
Issues of nonresponse
Courtesy bias
Social desirability bias
Redundancy (asking the same question in different ways)
Issues of ethnographic research
Dr Abha Rishi IMR Term 2

20. Primary Data Research Approaches, continued
Quantitative research are more structured, involving either descriptive research approaches, such as survey research, or causal research approaches, such as experiments.
Content Analysis
Survey Research
Experimental Research
Constraints: Respondent factors, infrastructure factors
Dr Abha Rishi IMR Term 2

21. Data Collection STEP 5 Design Data Collection Instrument
Emic instruments measure phenomena specific to each culture.
Etic instruments measure the same phenomenon in different cultures.
Constraints: Translation; Instrument Reliability; Reluctance to answer certain questions
Dr Abha Rishi IMR Term 2

22. Data Collection, continued
STEP 6 Decide on the Sampling Plan
Sample Unit
Sample Size
Sampling Procedure
STEP 7 Collect, Analyze, and Interpret Data
Dr Abha Rishi IMR Term 2

23. Decision Support Systems for Global Marketing
A coordinated collection of data, systems, tools, and techniques, complemented by supporting software and hardware designed for the gathering and interpretation of business and environmental data
Dr Abha Rishi IMR Term 2

24. 4. Market Size Assessment
Method of Analogy
Longitudinal method of analogy
Trade Audit
Chain Ratio Method
Cross-Sectional Regression Analysis
Dr Abha Rishi IMR Term 2

25. 4. Market Size Assessment
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.
Dr Abha Rishi IMR Term 2

26. Sales Forecasting Sales Force Composite Estimates
Personal observations and expectations of the local sales force
Jury of Expert Opinion
Opinions of different experts about future demand
The Delphi Method
Experts to estimate market performance; findings are aggregated, and experts are queried again, in light of aggregate responses
Dr Abha Rishi IMR Term 2

27. Delphi Studies
Delphi studies are a means for aggregating the judgements of a number of experts who cannot come together physically.
The Delphi technique is particularly valuable because it uses mail, fax, or electronic communication to bridge large distances and therefore makes experts accessible at a reasonable cost.
Dr Abha Rishi IMR Term 2

28. Sales Forecasting, continued
Time Series and Econometric Models
Use data of past performance to predict future market demand
Analogy Methods
Estimation method that relies on developments and findings in markets
With similar levels of economic development, or
Where the product is in the same market development stage, or
In markets which share similar cultural characteristics
Dr Abha Rishi IMR Term 2

29. Sales Forecasting, continued
Point of Sale Research
Made with the help of store scanners, in markets where they are available
Involve comprehensive store audits
Dr Abha Rishi IMR Term 2

30. 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.
Dr Abha Rishi IMR Term 2

31. 5. New Market Information Technologies
Scanning data are used to provide merchandising support to retailers.
Market research tools being developed to track the effectiveness of newer marketing mix vehicles such as the Internet- goal is to establish a “Nielsen rating” for websites similar to those for TV programming.
CATI (Computer-Assisted Telephone Interviewing)
CAPI (Computer-Assisted Personal Interviewing)
- CATI/CAPI benefits include speed, accuracy, and the ability to steer data collection based on the response.
Dr Abha Rishi IMR Term 2

32. 6. Management of 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
Dr Abha Rishi IMR Term 2

33. 6. Management of Global Marketing Research
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.
Dr Abha Rishi IMR Term 2

34. Participants in Marketing Research Activities
Information Users
General management
Planning
Marketing and sales managers
Product managers
Lawyers
Information Suppliers:
Inside Company
Information Suppliers:
Outside Company
Marketing research department
Sales analysis group
Accounting department
Corporate strategic planning
Research consultants
Marketing research suppliers
Advertising agencies
Dr Abha Rishi IMR Term 2

35. Information suppliers and services
Corporate In-house Supplier
External Supplier
Structured (Independent Department
Unstructured (one or more MR employees)
Customized Services
Standardized Services
Field Services
Branded Product/Services
Syndicated Services
Selective Services
Dr Abha Rishi IMR Term 2

36. Factors Influencing Choice of Information Supplier
Internal personnel may not have skills or experience
Outside help may be called to boost internal capacity in response to urgent deadline
Often it is cheaper to go outside
Dr Abha Rishi IMR Term 2

37. Factors Influencing Choice of Information Supplier (Contd.)
Outside suppliers may have special facilities or competencies which would be costly to duplicate for a single study
Political considerations
Increased credibility of research used in litigation or in proceedings before regulatory or legislative bodies
Dr Abha Rishi IMR Term 2