7Global Marketing Research

Learning Objectives

• List and describe the four steps involved in the research process.

• Differentiate between the challenges posed by secondary data collection and those posed by primary data collection. Note cultural differences in marketing research, and explain ways in which market researchers can adjust to them. Describe problems related to comparability of studies undertaken in different national markets.

• Explain the value of analysis by inference to global marketers.

• Note ways to monitor global competitors. • Explain the requirements for a global marketing

information system.

• Scope of global marketing research

• Challenges in planning international research

• Utilizing secondary data

• Analysis by inference

• Collecting primary data

• Outsourcing research

• Studying the competition

• Environmental review

• Developing a global information system

Chapter Overview

The Scope

• Global marketing research is used to make both strategic and tactical decisions– Market studies

• Market size, customer needs

– Competitive studies• Insights, domestic and foreign

– Environmental studies• Economic, political, legal, physical, cultural

The Challenges

• The global marketplace is complex– Differences from country to countries exist

at many levels– Companies frequently lack familiarity with

foreign markets

• Comparing studies across countries can be difficult

• International research is a relatively costly endeavor

The research process1. Problem definition and development of

research objectives

2. Determination of the sources of information

3. Collection and analysis of the data from primary and secondary sources

4. Analysis of the data and presentation of results

Research Techniques

Properly Developing Research Questions

 • Etic approach –Assumes that a research question in

one culture can be used in another culture. This approach allows for comparison across countries, but could miss culture differences.

 

• Emic approach –Assumes cultures are so different that each requires a separate research study to capture the local context relative to each countries frame of reference.

Sources of Information

• Primary Data – Data collected specifically for a

research assignment

• Secondary data– Refers to previously collected and

available data

• Both present challenges to global marketing research

Secondary Data

• Collection and analysis of secondary data should be done before primary data collection

• Secondary data is usually available at a fraction of the cost of obtaining primary data

Analytic Techniques

• Demand analysis

• Relative market size

• Analysis of demand patterns

• Analysis by inference– Proxy variables

Primary Data

• Necessary when secondary data is not available or is suspect

• When marketers need data tailored to meet the needs of a specific marketing decision

Developing a Research Instrument

• Focus groups help capture appropriate variables to investigate

• Creating a cross-cultural questionnaire requires– Back translation…or

– Parallel translation

• Take care with idiomatic expressions– “Computers” in Taiwanese may become

“calculators” to Singaporeans

Selection and “Sample Size”– How focus groups SHOULD be used:

• Learning how your product is used• Understanding customers’ experience with product• Acquiring descriptive consumer brand perceptions• Exploratory testing of new product, positioning, and

promotion strategies

– How focus groups SHOULD NOT be used:• Estimate size or dollar value of market• Definitively identify segments• Make go/no-go decisions on new products, brand

positioning, or promotion strategies

Focus Groups

Consumer ethnography– Trained anthropologists– Visual cues (photo, video) supported by

field notes• Capture elements of décor, design,

aesthetics, color, fashion, icons

Observation

• Personal finances can be a touchy subject in many countries– The Dutch are more willing to discuss sex than

money

• The EU Privacy Directive limits the use of telephone/Internet interviews– In particular, questions related to subjects such as

health, political beliefs, and sex habits

• The U.S Safe Harbor Framework provides a streamlined way for U.S. firms to comply with the European standards

Privacy Concerns

Studying the Competition

• Identify core competencies to predict future direction of competitors– Company statistics– Marketing operations– Future intentions– Competitive behavior