1. GLOBAL MARKETING RESEARCH CHAPTER OVERVIEW Research Problem Formulation Research Problem Formulation Secondary Global Marketing Research Secondary Global Marketing Research Primary Global Marketing Research Primary Global Marketing Research Market Size Assessment Market Size Assessment New Market Information Technologies New Market Information Technologies 1

2. 2Introduction  Given the complexity of the global marketplace, solid marketing research is critical for a host of global marketing decisions.  Most of the cultural blunders in global marketing stem from inadequate marketing research.  Six steps in conducting global market research: 1. Define the research problem(s) 2. Develop a research design 3. Determine information needs 4. Collect the Data (secondary and primary) 5. Analyze the data and interpret the results 6. Report and present the findings of the study

3. 3Introduction  Major challenges faced by global marketing researchers: 1. Complexity of research design due to environmental differences 2. Lack and inaccuracy of secondary data 3. Time and cost requirements to collect primary data 4. Coordination of multicountry research efforts 5. Difficulty in establishing comparability across multi- country studies

4. 4 1. Research Problem Formulation  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.

5. 5 2. 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.

6. 6 2. 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

7. 7 3. Primary Global Marketing Research  Focus Groups  Survey Methods for Cross-Cultural Marketing Research: –Questionnaire Design  Conceptual and Functional Equivalence  Translation and Scalar Equivalence  Back Translation and Parallel Translation  Scalar Equivalence

8. 8 3. 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): –E-mail surveys –Random Web site surveys –Panel Web site surveys

9. 9 3. 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

10. 10 4. Market Size Assessment  Method of Analogy –Longitudinal method of analogy  Trade Audit  Chain Ratio Method  Cross-Sectional Regression Analysis

11. 11 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.

12. 12 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.

13. 13 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. - CATI/CAPI benefits include speed, accuracy, and the ability to steer data collection based on the response.

14. 14 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

15. 15 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.