1. MKTG 376 ENVIRONMENTAL SCANNING Lars Perner, Instructor 1 ECONOMIC ENVIRONMENTAL SCANNING AND MARKETING RESEARCH Economic institutions Levels of trade integration Marketing Research

2. MKTG 376 ENVIRONMENTAL SCANNING Lars Perner, Instructor 2 Economic Institutions World Trade Organization (WTO) World Bank International Monetary Fund (IMF)

3. MKTG 376 ENVIRONMENTAL SCANNING Lars Perner, Instructor 3 Levels of International Economic IntegrationPreferential Trading Agreement (Tariff concessions on select items) Political Union Economic Union Common Market Free Trade Area (Free trade among members) (Common External Trading Policy) (Harmonization of economic policies) (Complete political and economic integration) Text, p. 158 IncreasingIntegration

4. MKTG 376 ENVIRONMENTAL SCANNING Lars Perner, Instructor 4 Levels Preferential Trading Agreement Free Trade Area Customs Union Common Market Economic Union Political Union

5. MKTG 376 ENVIRONMENTAL SCANNING Lars Perner, Instructor 5 MARKETING RESEARCH: COUNTRY AND CONSUMER Country research Primary vs. secondary marketing research Issues in secondary marketing research –Sources –“Hard” vs. “soft” data –Reliability currency credibility comparability –Cost Primary research methods

6. MKTG 376 ENVIRONMENTAL SCANNING Lars Perner, Instructor 6 Country Research Issues Political –Stability –Terrorism Physical Environment –Climate –Infrastructure Sociocultural environment Economic environment Regulatory environment

7. MKTG 376 ENVIRONMENTAL SCANNING Lars Perner, Instructor 7 Some Sources of Information -- Books and Indices World almanacs Statistical Abstracts of the United States Government publications Country-specific books

8. MKTG 376 ENVIRONMENTAL SCANNING Lars Perner, Instructor 8 Useful Periodicals Heavily internationally focused –Economist –Journal of Commerce –Forbes –Business America (U.S. Dept. of Commerce) –World Press Review Some international coverage –Wall Street Journal, New York Times, Washington Post –Business Week, Fortune –Time, Newsweek

9. MKTG 376 ENVIRONMENTAL SCANNING Lars Perner, Instructor 9 Other Academic country specialists (e.g., anthropologists, economists) Consultants Expatriates Own experience

10. MKTG 376 ENVIRONMENTAL SCANNING Lars Perner, Instructor 10 “Hard” vs. “Soft” Data “Hard” data--usually quantitative--examples : –Gross national product –Per capita expenditure on food –Average number of years of school completed by population –Product penetration levels (e.g., percentage of households having microwave ovens) “Soft” data –Country history –Laws and enforcement-- theoretical vs. reality –Culture and tradition “ How things are done” Meaning of behaviors-- why are people late? –Attitudes toward products/motivations for usage

11. MKTG 376 ENVIRONMENTAL SCANNING Lars Perner, Instructor 11 Data Availability and Reliability Availability/ ability to collect data Motivations for releasing data –Wishful thinking vs. reality –The Web--accessible to any fool or group Comparability of data/Arbitrary differences in measurements Recency --is the data up-to-date?

12. MKTG 376 ENVIRONMENTAL SCANNING Lars Perner, Instructor 12 Cost of Data Much “raw” data is free from –U.S. Gvt. –United Nations –Research institutions Commercial directories Consulting services

13. MKTG 376 ENVIRONMENTAL SCANNING Lars Perner, Instructor 13 Some Cultural Variables Among Countries Religion Value system Norms Aesthetics Language

14. MKTG 376 ENVIRONMENTAL SCANNING Lars Perner, Instructor 14 International Marketing Research ProcessProblemIdentification Selection of Research Method(s) Info Source Identification (Primary and Secondary) Determination of Information Requirements Preparation of Research Design Primary Data Collection Evaluation and Interpretation Analysis Text, p. 200

15. MKTG 376 ENVIRONMENTAL SCANNING Lars Perner, Instructor 15 Equivalences in International Market Research Construct –Functional—how product is used –Conceptual— interpretation of objects –Classification/ categorization Measurement –Calibration (e.g., number of scale points) –Translation (e.g., specificity of family relationship terms) –Sampling Comparability Representativeness of population –Data analysis

16. MKTG 376 ENVIRONMENTAL SCANNING Lars Perner, Instructor 16 Issues in Primary Research Social desirability/ willingness to “stand out” ---> need to adjust data Willingness to criticize products Familiarity with being surveyed Language/translation New technologies (e.g., scanner data) --usually less well developed than in the U.S. Reachability of respondents Selection of appropriate respondent