1 International marketing Session 4- International Marketing Research Ana Colovic

2 Marketing research Different types of studies Different classifications (typologies of studies): 1- According to objectives: exploratory, descriptive, causal 2- According to techniques: qualitative, quantitative 3- According to data used: secondary, primary

3 Secondary data Official and unofficial sources National statistics Private statistics Market studies Newspaper articles … Problem: The reliability of the secondary data sources

4 Primary data Two types of techniques: Qualitative (answers the question WHY) Group discussions and individual interviews Content analysis Quantitative (answers the questions WHO, WHEN, HOW MANY, HOW MUCH) Questionnaire Statistics

5 Qualitative studies An exploratory qualitative study is conducted before a quantitative study - 2-stage research Only a qualitative study is conducted - 1- stage research. A decision is taken after the study.

6 Qualitative studies (2) Interviews: Interview guide Duration: from 45 minutes to two hours Data analysis: Transcription; Coding; Content analysis

7 Qualitative studies (3) Group techniques: Focus group Mini group Conflict group Commando group Brainstorming (Creative group) …

8 Quantitative studies Surveys Questionnaire Different techniques: face to face, phone, mail, Internet, … Use of software: SPSS, SAS, STATA, …

9 International marketing research (IMR) As a management tool, international marketing research can help the firm to reduce its exposure to risk, avoid errors, identify opportunities and match the firm ’ s capabilities with foreign openings. International marketing research is necessary in order to decide which foreign markets to enter and the best mode of entry (exporting, licensing, joint ventures, etc.) to each country.

10 IMR (2) A distinction might be made between international marketing intelligence (information about the overall marketing environment) and functional research (concerns particular aspects of the firm ’ s marketing activities). The distinction between marketing intelligence and functional research is rarely clear. They combine to create the firm ’ s international marketing information system, which covers market analysis, competitor analysis and the assessment of risks and potential returns.

11 Secondary information Publications of national statistical offices (often available on CD ROM) Directories and data books issued by private publishing companies (ex. Euromonitor ’ s International Marketing Data and Statistics) Databases (ex. FT Profile) Statistics gathered by international organizations - OECD, UN, European Commission, IMF Chambers of commerce and trade associations, either in the home country or in the target market Market research reports published by market research companies Trade and technical magazines

12 Primary research All the problems of domestic primary marketing research are replicated at the international level, and are more severe. The research design has to be modified in each country according to local cultural, economic, social and institutional factors.

13 Primary research - Problems and issues A decision is needed regarding whether the research is to be managed at the head office or local level. It is difficult to establish an appropriate unit of analysis at the multi-country level. Qualitative data collection and analysis techniques are subject to cultural bias on the part of foreign researchers implementing them. Survey methods have to be varied according to literacy and education levels. Field experiments are difficult to replicate. It is difficult to compare research results from one country with those of others.

14 Analysis of competitors Considering the high costs of IMR and the uncertainties involved, some companies choose to rely instead on close observation of the activities of competitors. Competitor analysis includes: strengths and weaknesses of competitor ’ s products; reasons for operating in particular markets; organization; terms of sale, credit periods, after-sales service; financial performance, promotional materials; product development strategies; prices; campaigns etc.

15 Market analysis Market surveys cover: -demographics -market size and structure -macroeconomic influences -consumer characteristics -spending patterns (% of consumer purchase made in supermarkets, hypermarkets, independent retailers, department stores, … )

16 Organizing research Firms may conduct foreign research themselves, or use specialist market research firms for this work. Specialists can be either home-based firms or local researchers. Advantages of using a domestic firm: -can meet all research needs -wide-ranging experience -the quality of the work can be evaluated quickly. Problems with using a foreign company: -expensive and time-consuming need to visit the firm -laws of the other country apply (in case of disputes) -the performance is difficult to assess.

17 Marketing research in the Third World Although it is extremely difficult to conduct marketing research in Third World countries, research is perhaps the most reliable way to determine the essential characteristics of consumer environments and behavior in these countries. Problems: lack of published information on market characteristics; absence of local research companies; lack of common language (in some countries); inability to identify the nature and size of dwelling units (people live in tents or other temporary accommodation, on the streets); pour mail and telecommunications systems, law literacy rates, absence of trained interviewers, sampling problems …