International Marketing
Chapter 7
Building the Knowledge Base
International and Domestic
Research
What is Marketing research?
Use of similar tools and techniques as in
domestic research,but the environments
differ
The Primary Differences:
New parameters
New environments
Number of factors involved
Broader definition of competition
Reasons Executives View
International Research as
Unimportant:
Lack of sensitivity to differences in
consumer tastes and preferences.
Limited appreciation for the different
marketing environments abroad.
Lack of familiarity with national and
international data sources and the
inability to use them.
Limited business experience in a
country or with a specific firm may be
used as a substitute for organized
research.
The Benefits of Research
V(dr) - V(d) > C(r)
V(dr) is the value of the decision with research
V(d) is the value of decision without research
C(r) is the cost of research
Determining Research Objectives
Going International,Exporting
Going International,Importing
Market Expansion
Going International,Exporting
Foreign-Market Opportunity Analysis
A Foreign-Market Opportunity
Analysis looks at:
Total and per capita GNP,mortality
rates,and population data
Individual market data product data,
market trends,and restrictions
Governmental restrictions
Going International,Importing
Information to know for importing:
the reliability of a foreign supplier
consistency of its product or service quality
length of delivery time
government rules and regulations
Information Needs for the
Importing Decision:
Identify markets that produce desired
supplies or materials
Reliability of a foreign supplier
Product or service quality
Length of delivery time
Government rules & regulations -
foreign and domestic
Market Expansion Data Needs:
Detailed information for penetrating a
market
Designing or fine-tuning the marketing
mix
Monitoring the political climate of a
country.
Determining Secondary
Information Requirements
What do you really need to know?
A Sequential Process of Researching
Foreign Market Potential
S t a ge T hre e
C o m p a n y S a l e s P o t e n t i a l A n a l y si s
K e y Q ue s t i on,
H o w A t t r a ct i v e i s t h e P o t e n t i a l D e m a n d f o r C o m p a n y P r o d u ct s / S e r v i ce s?
S t a ge T w o
A sse ssm e n t o f I n d u st r y M a r ke t P o t e n t i a l
K e y Q ue s t i on,
W h a t i s t h e A g g r e g a t e D e m a n d o f E a ch M a r ke t S e l e ct e d?
S t a ge O ne
P r e l i m i n a r y S cr e e n i n g f o r A t t r a ct i v e C o u n t r y M a r ke t s
K e y Q ue s t i on,
W h i ch Fo r e i g n M a r ke t s W a r r a n t D e t a i l e d I n v e st i g a t i o n?
Most Critical International
Information for U.S,Firms
Government Data
Tariff information
U.S,export/import data
Nontariff measures
Foreign export/import
data
Data on government
trade policy
Corporate Data
Local laws and
regulations
Size of market
Local standards and
specifications
Distribution System
Competitive activity
Sources of Data
Governments
International organizations
Service organizations
Trade associations
Sources of Data
Directories and newsletters
Databases
Other firms
Evaluating Data
Is it appropriate to the task at hand?
What is the quality of the data source?
What is the quality of the data?
Evaluating Data
How compatible and comparable are
the data to your problem?
Are data categories comparable?
Are there any societal implications of
obtaining data?
Analyzing and Interpreting
Secondary Data
Proxy variable
Primary Research
The Primary Research Process
Determining information requirements
Industrial versus consumer research
Determining research administration
Determining the research technique
Determining Information
Requirements
Formulate research questions to
determine precisely the information that
is sought.
Industrial Versus Consumer
Research
Determining Research
Administration
Centralized?
Coordinated?
Decentralized?
Centralized
The research specifications are
designed by the home office and
forwarded to country operations for
implementation.
Coordinated
An intermediary such as an outside
research agency brings headquarters
and country operations together.
Decentralized
Headquarters established the broad
thrust of research and delegates design
and implementation to the local
countries.
Outside Research Services
Top 7 U.S,Research Firms
D&B Marketing Information Services
Information Resources Inc.
The Arbitron Company
Westat Inc.
Maritz Marketing Research
Walsh International/PMSI
The Kanter Group
Determining the Research
Technique
Soft Data or Hard Data?
Interviews?
Focus Groups?
Determining the Research
Technique
Observation?
Surveys?
Survey Questionnaire Design
Issues,International Comparative
Research
Question Format
Question Content
Question Wording
Follow-up and Review
Survey Questionnaire Design
Issues,International Comparative
Research
Developing the Sampling Plan
Data Collection
Analyzing and Interpreting Primary Data
Presenting Research Results
In the International Information
System,Data Must Be:
Relevant
Timely
Flexible
Accurate
Exhaustive
Convenient
Chapter 7
Building the Knowledge Base
International and Domestic
Research
What is Marketing research?
Use of similar tools and techniques as in
domestic research,but the environments
differ
The Primary Differences:
New parameters
New environments
Number of factors involved
Broader definition of competition
Reasons Executives View
International Research as
Unimportant:
Lack of sensitivity to differences in
consumer tastes and preferences.
Limited appreciation for the different
marketing environments abroad.
Lack of familiarity with national and
international data sources and the
inability to use them.
Limited business experience in a
country or with a specific firm may be
used as a substitute for organized
research.
The Benefits of Research
V(dr) - V(d) > C(r)
V(dr) is the value of the decision with research
V(d) is the value of decision without research
C(r) is the cost of research
Determining Research Objectives
Going International,Exporting
Going International,Importing
Market Expansion
Going International,Exporting
Foreign-Market Opportunity Analysis
A Foreign-Market Opportunity
Analysis looks at:
Total and per capita GNP,mortality
rates,and population data
Individual market data product data,
market trends,and restrictions
Governmental restrictions
Going International,Importing
Information to know for importing:
the reliability of a foreign supplier
consistency of its product or service quality
length of delivery time
government rules and regulations
Information Needs for the
Importing Decision:
Identify markets that produce desired
supplies or materials
Reliability of a foreign supplier
Product or service quality
Length of delivery time
Government rules & regulations -
foreign and domestic
Market Expansion Data Needs:
Detailed information for penetrating a
market
Designing or fine-tuning the marketing
mix
Monitoring the political climate of a
country.
Determining Secondary
Information Requirements
What do you really need to know?
A Sequential Process of Researching
Foreign Market Potential
S t a ge T hre e
C o m p a n y S a l e s P o t e n t i a l A n a l y si s
K e y Q ue s t i on,
H o w A t t r a ct i v e i s t h e P o t e n t i a l D e m a n d f o r C o m p a n y P r o d u ct s / S e r v i ce s?
S t a ge T w o
A sse ssm e n t o f I n d u st r y M a r ke t P o t e n t i a l
K e y Q ue s t i on,
W h a t i s t h e A g g r e g a t e D e m a n d o f E a ch M a r ke t S e l e ct e d?
S t a ge O ne
P r e l i m i n a r y S cr e e n i n g f o r A t t r a ct i v e C o u n t r y M a r ke t s
K e y Q ue s t i on,
W h i ch Fo r e i g n M a r ke t s W a r r a n t D e t a i l e d I n v e st i g a t i o n?
Most Critical International
Information for U.S,Firms
Government Data
Tariff information
U.S,export/import data
Nontariff measures
Foreign export/import
data
Data on government
trade policy
Corporate Data
Local laws and
regulations
Size of market
Local standards and
specifications
Distribution System
Competitive activity
Sources of Data
Governments
International organizations
Service organizations
Trade associations
Sources of Data
Directories and newsletters
Databases
Other firms
Evaluating Data
Is it appropriate to the task at hand?
What is the quality of the data source?
What is the quality of the data?
Evaluating Data
How compatible and comparable are
the data to your problem?
Are data categories comparable?
Are there any societal implications of
obtaining data?
Analyzing and Interpreting
Secondary Data
Proxy variable
Primary Research
The Primary Research Process
Determining information requirements
Industrial versus consumer research
Determining research administration
Determining the research technique
Determining Information
Requirements
Formulate research questions to
determine precisely the information that
is sought.
Industrial Versus Consumer
Research
Determining Research
Administration
Centralized?
Coordinated?
Decentralized?
Centralized
The research specifications are
designed by the home office and
forwarded to country operations for
implementation.
Coordinated
An intermediary such as an outside
research agency brings headquarters
and country operations together.
Decentralized
Headquarters established the broad
thrust of research and delegates design
and implementation to the local
countries.
Outside Research Services
Top 7 U.S,Research Firms
D&B Marketing Information Services
Information Resources Inc.
The Arbitron Company
Westat Inc.
Maritz Marketing Research
Walsh International/PMSI
The Kanter Group
Determining the Research
Technique
Soft Data or Hard Data?
Interviews?
Focus Groups?
Determining the Research
Technique
Observation?
Surveys?
Survey Questionnaire Design
Issues,International Comparative
Research
Question Format
Question Content
Question Wording
Follow-up and Review
Survey Questionnaire Design
Issues,International Comparative
Research
Developing the Sampling Plan
Data Collection
Analyzing and Interpreting Primary Data
Presenting Research Results
In the International Information
System,Data Must Be:
Relevant
Timely
Flexible
Accurate
Exhaustive
Convenient
