1. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 1 Masaaki Kotabe & Kristiaan Helsen Third Edition John Wiley & Sons, Inc., 2004 Global Marketing Management

2. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 2 Chapter 6 Global Marketing Research

3. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 3 Chapter Overview 1. Research Problem Formulation 2. Secondary Global Marketing Research 3. Primary Global Marketing Research 4. Market Size Assessment 5. New Market Information Technologies 6. Managing Global Marketing Research

4. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 4 Introduction Given the complexity of the global marketplace, solid marketing research is critical for a host of global marketing decisions. 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. Most of the cultural blunders in global marketing stem from inadequate marketing research. Six steps in conducting global market 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. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 5 Introduction (contd.) 5. Analyze the data and interpret the results 6. Report and present the findings of the study Major challenges faced by global marketing researchers: 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

6. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 6 Introduction (contd.) 5. Difficulty in establishing comparability across multicountry studies

7. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 7 1. Research Problem Formulation Any research starts off with a precise definition of the research problem(s). 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). 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. A major difficulty in formulating the research problem is unfamiliarity with the foreign environment. Omnibus surveys are regularly conducted by research agencies. Omnibus surveys are regularly conducted by research agencies.

8. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 8 1. Research Problem Formulation (contd.) Once the research issues have been stated, management needs to determine the information needs. Once the research issues have been stated, management needs to determine the information needs.

9. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 9 2. Secondary Global Marketing Research Secondary Data: Data/information which is already available. Secondary Data: Data/information which is already available. Primary Data: When the information is not useful, or simply does not exist. 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. 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.

11. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 11 2. Secondary Global Marketing Research (contd.) Problems with Secondary Data 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

12. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 12 3. Primary Global Marketing Research Focus Groups Focus Groups Survey Methods for Cross-Cultural 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 –Sampling: A sampling plan consists of: »Sampling unit

13. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 13 3. Primary Global Marketing Research (contd.) »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 E-mail surveys Random Web site surveys Random Web site surveys Panel Web site surveys Panel Web site surveys

14. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 14 3. Primary Global Marketing Research (contd.) –Collecting the Information »Issues of nonresponse »Courtesy bias »Social desirability bias »Redundancy (asking the same question in different ways) »Issues of ethnographic research

15. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 15 4. Market Size Assessment Method of Analogy Method of Analogy –Longitudinal method of analogy Trade Audit Trade Audit Chain Ratio Method Chain Ratio Method Cross-Sectional Regression Analysis Cross-Sectional Regression Analysis

16. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 16 4. Market Size Assessment (contd.) When using market size estimates, keep the following rules in mind: 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.

17. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 17 5. New Market Information Technologies Major developments/innovations: 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.

18. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 18 5. New Market Information Technologies (contd.) –Scanning data are used to provide merchandising support to retailers.

19. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 19 6. Managing Global Marketing Research Selecting a Research Agency: The following considerations should be taken into account while choosing agency: 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: Coordination of Multi-Country Research: –Emic versus Etic dilemma

20. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 20 6. Managing Global Marketing Research (contd.) –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.

21. Chapter 6Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 21 Copyright © John Wiley & Sons, Inc. 2004