1. international marketing decisions
Information for
international marketing decisions
Types of market information
Issues in international market research
Role of networks
International market intelligence
© 2018 Taylor & Francis
BI/C.A.Solberg 2012

2. International marketing decisions
Entry
mode
Where to?
Profile
Product
adaptation
Primary &
secondary
markets
Positioning
Budget
Service
level
Target
customers
Distribution
channel
Credit
policy
Advertising
adaptation
Ethical
issues
Partner
selection
Partner
governance
Advertising
media
Logistics
Trade fair
participation
Roll out
sequencing
Pricing
policy
BI/C.A.Solberg 2012
© 2018 Taylor & Francis

3. What information do we need to make these decisions?
How should we go about getting this information?
What resources should we spend to get hold of it?
And how much time?
BI/C.A.Solberg 2012
© 2018 Taylor & Francis

4. information gathering
Ad hoc
As input to
business decisions
Continuous
market intelligence
Informal
information gathering
Formal
Market
research
investigation
intelligence
experience
Different types of market information
BI/C.A.Solberg 2012
© 2018 Taylor & Francis

5. Customer visits, some research
Information
from market
Information
about market
Customer visits, some research
Mostly personal information
and informal exchange
Customer visits and networks
Information
from partner
Information
about partner
Sales reports, meetings
Market information flows in exports
(arrows designate the importance of info flow)
BI/C.A.Solberg 2012; based on Gripsrud et al. 1999
© 2018 Taylor & Francis

6. Information behaviour in international markets
Results from a survey among 112 Norwegian exporters 2012
Mean
Std.
Information
orientation
Impacting factors
Info from
- networks
- internet
- consultants
- representatives
Info processing
Dissemination
5.4
4.1
2.8
4.0
3.6
5.0
1.3
1.4
1.5
# of years + sales in market
info orientation
Competition +market volatility info orientation
Information
outcome/usage
Sales in market some more planning and responsiveness
Market insight
Responsiveness
Marketing plan
5.4
5.3
4.3
1.0
0.9
1.7
Competition + volatility some more planning and responsiveness
Performance
4.3
1.3
Info problems
Emerging strategies
3.2
3.3
1.3
1.4
© 2018 Taylor & Francis

7. How critical really is market research in international markets?
Results from a survey in the Norwegian fishing sector (N=114)
.35***
.02
.32***
.19*
-.32***
Adj. R2: .392***
Short relations
Information
from representative
about market
.25**
.23**
.19*
-.06
.08
Adj R2: .280***
Long relations
.28**
.17
.24*
.13
-.31***
Adj. R2: .273***
Information
from others
about market
Export performance
Information
from representative
about rep.
Information
from others about
representative
Market research
* P-value .10
** P-value .05
*** P-value .01
BI/C.A.Solberg 2012
Source: Solberg, Informasjonsadferd og internasjonalisering, BI 2003.
© 2018 Taylor & Francis

8. Things aren’t straightforward I
Data equivalence
Construct equivalence
Do products, concepts, constructs etc have the same meaning across cultures?
Measure equivalence
Different nations have different systems: what
is 34 kg/cm2 in lbs/inch2?
Scales have different meanings in different cultures
Translation
Data collection equivalence
Different compositions, distribution and sample
frames yield incomparable samples across countries.
Different response rates in different countries
BI/C.A.Solberg 2012; based on Craig and Douglas 2000
© 2018 Taylor & Francis

9. Things aren’t straightforward II
Interpretation of answers
in two different cultures
Italy UK
“Religion plays an important role in my life”
“I go to church regularly”
55%
30%
75%
10%
Source: Williams 1991
BI/C.A.Solberg 2012
© 2018 Taylor & Francis

10. Things aren’t straightforward III
Poor translation or cultural differences?
% Partly or
entirely agree
Great Britain
France
“There are times when it
is right to disobey the law”
“Il y a des fois où désobéir
aux lois est une bonne chose” 6 40
Source: Williams 1991
© 2018 Taylor & Francis
BI/C.A.Solberg 2012

11. Things aren’t straightforward IV
Translation and backtranslation
From Norwegian to English to Norwegian
Følelse
Sensibility:
Følsomhet
Sentiment:
Følelse
Mening
Oppfattelse
Tanke
Sentens
Skjønn
Instinct:
Instinkt
Drift
Naturdrift
Emotion:
Sinnsbevegelse
Rørelse
Feeling:
Følelse
Kjensle
Hunch:
Pukkel
Kul
Krøke
BI/C.A.Solberg 2012
© 2018 Taylor & Francis

12. Personal interviews – focus groups
Costs
Quality SA Ar Ch Br Mx It Ge Th Ma In SK Cn Tw Ja UK Fr
High
Low
Telephone interviews
Costs
Quality SA Ar Ch Br Mx It Ge Th Ma In SK Cn Tw Ja UK Fr
High
Low Ru
Personal interviews – focus groups
Ar=Argentina
Br=Brasil
Ch=Chile
Cn=China
Fr=France
In=Indonsia
It=Italy
Ja=Japan
Ma=Malaysia
Mx=Mexico
Ru=Russia
SA=Saudi Arabia
SK=South Korea
Th=Thailand
Tw=Taiwan
Ge=Germany
UK=United Kingdom
Costs and quality of market research in different countries
Source: Zimmerman and Szenberg 1996
BI/C.A.Solberg 2012
© 2018 Taylor & Francis

13. Different types of firms adopt different information behaviours
“Objective” market research
Extensive
use
Limited
Nationally oriented, often larger
firms that need information for
their export ventures. They risk
doing “good” research” on
irrelevant issues.
The analytical firm
Large internationally oriented
firms with well-developed market intelligence systems. Active use of both market research and network partners
The international firm
No experience and no network.
Risk making bad decisions based
on intuition and hearsay. The most
competent ones take advantage
of structural coincidences.
The intuitive firm
Ethnic trade and special industries
(fx. shipping, fish). Firms make
their decisions from information
from network partners based
on trust
The network-oriented firm
Information through network partners
Undeveloped
Well developed
Different types of firms adopt different information behaviours
BI/C.A.Solberg 2012
© 2018 Taylor & Francis

14. And, indeed, they are different
The analytical firm
Number of firms 63
Sales 653 mill
Export share 54%
Performance 3.7
The international firm
Number of firms 94
Sales 226 mill
Export share 59%
Performance 4.1
Extensive
use
“Objective” market research
The intuitive firm
Number of firms 34
Sales 271 mill
Export share 34%
Performance 3.4
The network oriented firm
Number of firms 46
Sales 130 mill
Export share 62%
Performance 4.0
Limited
use
Undeveloped
Well developed
Information through network partners
And, indeed, they are different
Results from a survey of Norwegian firms in the fishing sector
(performance figures 1–5, where 5 is best)
BI/C.A.Solberg 2012
© 2018 Taylor & Francis

15. There is a lot of information out there!
Contact with
trade councils
and embassies
Sales reports
Discussions with
customers
Trade
journals
Sales
statistics
Do we have
mechanisms to
receive and process
all the information
that we have
access to?
Newspapers
Economic/
financial
reports
Discussions with
competitors
Discussions with
representatives
Internet
Trade fair
visits
Service
reports
Reports from
trade councils
Dedicated
market
research
Import
statistics
There is a lot of information out there!
BI/C.A.Solberg 2012
© 2018 Taylor & Francis

16. Evaluation of the system
Statistics (int/ext)
Report from reps
Journals/newspapers
Trade fairs/seminars
Newsletters
Dedicated surveys
Databases/internet,
etc.
Do we get reasonable
information
from the right sources
is it being embedded in
the organisation
so that we can make
the right decisions?
Selection of
information
sources
Evaluation of the system
Establishment of
routines for
data retrieval
Yearly/monthly/weekly?
Role of representative?
Comparability?
Dedicated forms?
Organisational “home”?
How much analysis
is needed?
Information
processing
Market selection
Modes of operation
Partner selection
Products and
product development
Marketing effort
Decisions
Setting up and evaluating the
international marketing intelligence system
BI/C.A.Solberg 2012
© 2018 Taylor & Francis