Gllobal Market Research1

Chapter 6Chapter 6 Copyright (c) John Wiley & Sons, Inc.Copyright (c) John Wiley & Sons, Inc. 11

Global Marketing Management, 4eGlobal Marketing Management, 4e

Chapter 6

Global Marketing Research


Chapter OverviewChapter Overview

1. Research Problem Formulation1. Research Problem Formulation2. Secondary Global Marketing Research2. Secondary Global Marketing Research3. Primary Global Marketing Research3. Primary Global Marketing Research4. Market Size Assessment4. Market Size Assessment5. New Market Information Technologies5. New Market Information Technologies6. Managing Global Marketing Research6. Managing Global Marketing Research


IntroductionIntroduction Given the complexity of the global marketplace, Given the complexity of the global marketplace,

solid marketing research is critical for a host of solid marketing research is critical for a host of global marketing decisions.global marketing decisions.

Most of the cultural blunders in global marketing Most of the cultural blunders in global marketing stem from inadequate marketing research.stem from inadequate marketing research.

Six steps in conducting global market researchSix steps in conducting global market research::1. Define the research problem(s)1. Define the research problem(s)2. Develop a research design2. Develop a research design3. Determine information needs3. Determine information needs4. Collect the Data (secondary and primary)4. Collect the Data (secondary and primary)5. Analyze the data and interpret the results5. Analyze the data and interpret the results6. Report and present the findings of the study6. Report and present the findings of the study


IntroductionIntroduction

Major challenges faced by global marketing Major challenges faced by global marketing researchersresearchers::1. Complexity of research design due to environmental 1. Complexity of research design due to environmental

differencesdifferences2. Lack and inaccuracy of secondary data2. Lack and inaccuracy of secondary data3. Time and cost requirements to collect primary data3. Time and cost requirements to collect primary data4. Coordination of multicountry research efforts4. Coordination of multicountry research efforts5. Difficulty in establishing comparability across multi-5. Difficulty in establishing comparability across multi-

country studiescountry studies


1. Research Problem Formulation1. Research Problem Formulation

Any research starts off with a precise definition of the Any research starts off with a precise definition of the research problem(s).research problem(s).

In an international context, the marketing research In an international context, the marketing research problem formulation is hindered by the self-reference problem formulation is hindered by the self-reference criterion (SRC).criterion (SRC).

A major difficulty in formulating the research problem A major difficulty in formulating the research problem is unfamiliarity with the foreign environment.is unfamiliarity with the foreign environment.

Omnibus surveys are regularly conducted by research Omnibus surveys are regularly conducted by research agencies.agencies.

Once the research issues have been stated, Once the research issues have been stated, management needs to determine the information management needs to determine the information needs.needs.


2. Secondary Global Marketing 2. Secondary Global Marketing ResearchResearch

Secondary Data:Secondary Data: Data/information which is already Data/information which is already available.available.

Primary Data:Primary Data: When the information is not useful, When the information is not useful, or simply does not exist.or simply does not exist.

Selected Secondary Data Sources:Selected Secondary Data Sources: Lexis/Nexis, Lexis/Nexis, FINDEX, National Trade Data Bank, U.S. FINDEX, National Trade Data Bank, U.S. Department of Commerce, Japan External Trade Department of Commerce, Japan External Trade Organization (JETRO), OECD, IMF, The Organization (JETRO), OECD, IMF, The Economist Intelligence Unit (E.I.U.), ACNielsen Economist Intelligence Unit (E.I.U.), ACNielsen Co, Taylor Nelsen Sofres, etc.Co, Taylor Nelsen Sofres, etc.


2. Secondary Global Marketing 2. Secondary Global Marketing ResearchResearch

Problems with Secondary Data ResearchProblems with Secondary Data Research::– Accuracy of DataAccuracy of Data– Age of dataAge of data– Reliability over TimeReliability over Time– Comparability of DataComparability of Data

TriangulateTriangulate Functional or Conceptual EquivalenceFunctional or Conceptual Equivalence

– Lumping of DataLumping of Data


3. Primary Global Marketing Research3. Primary Global Marketing Research

Focus GroupsFocus Groups Survey Methods for Cross-Cultural Marketing Survey Methods for Cross-Cultural Marketing

Research:Research:– Questionnaire DesignQuestionnaire Design

Conceptual and Functional EquivalenceConceptual and Functional Equivalence Translation and Scalar EquivalenceTranslation and Scalar Equivalence Back Translation and Parallel Back Translation and Parallel

TranslationTranslation Scalar EquivalenceScalar Equivalence



– Sampling: A sampling plan consists of:Sampling: A sampling plan consists of: Sampling unitSampling unit Sample sizeSample size Sampling procedureSampling procedure

– Contact Method (see Exhibit 6-5)Contact Method (see Exhibit 6-5) MailMail TelephoneTelephone Person-to-person interviewsPerson-to-person interviews Online Survey Methods (see Exhibit 6-6):Online Survey Methods (see Exhibit 6-6):

– E-mail surveysE-mail surveys– Random Web site surveysRandom Web site surveys– Panel Web site surveysPanel Web site surveys



– Collecting the InformationCollecting the Information Issues of nonresponseIssues of nonresponse Courtesy biasCourtesy bias Social desirability biasSocial desirability bias Redundancy (asking the same question in Redundancy (asking the same question in

different ways)different ways) Issues of ethnographic researchIssues of ethnographic research


4. Market Size Assessment4. Market Size Assessment

Method of AnalogyMethod of Analogy– Longitudinal method of analogyLongitudinal method of analogy

Trade AuditTrade Audit Chain Ratio MethodChain Ratio Method Cross-Sectional Regression AnalysisCross-Sectional Regression Analysis


4. Market Size Assessment4. Market Size Assessment

When using market size estimates, keep the When using market size estimates, keep the following rules in mind:following rules in mind:– Use several different methods.Use several different methods.– Don’t be misled by numbers.Don’t be misled by numbers.– Don’t be misled by fancy methods.Don’t be misled by fancy methods.– Do a sensitivity analysis by asking what-if Do a sensitivity analysis by asking what-if

questions.questions.– Look for interval estimates with a lower and Look for interval estimates with a lower and

upper limit rather than for point estimates.upper limit rather than for point estimates.


5. New Market Information Technologies5. New Market Information Technologies

Major developments/innovations:Major developments/innovations:– Point of sale (POS) store scanner dataPoint of sale (POS) store scanner data– Consumer panel dataConsumer panel data– Single source dataSingle source data– Shift from mass to micro marketingShift from mass to micro marketing– Continuous monitoring of brand sales/market Continuous monitoring of brand sales/market

share movementsshare movements– Scanning data are used by manufacturers to Scanning data are used by manufacturers to

support marketing decisions.support marketing decisions.


5. New Market Information Technologies5. New Market Information Technologies

– Scanning data are used to provide merchandising Scanning data are used to provide merchandising support to retailers.support to retailers.

– Market research tools being developed to track the Market research tools being developed to track the effectiveness of newer marketing mix vehicles such as effectiveness of newer marketing mix vehicles such as the Internet- goal is to establish a “Nielsen rating” for the Internet- goal is to establish a “Nielsen rating” for websites similar to those for TV programming.websites similar to those for TV programming.

– CATI (Computer-Assisted Telephone Interviewing)CATI (Computer-Assisted Telephone Interviewing)– CAPI (Computer-Assisted Personal Interviewing)CAPI (Computer-Assisted Personal Interviewing)

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


6. Management of Global Marketing 6. Management of Global Marketing ResearchResearch

Selecting a Research AgencySelecting a Research Agency: The following : The following considerations should be taken into account while considerations should be taken into account while choosing agency:choosing agency:– Level of expertiseLevel of expertise– QualificationsQualifications– Track recordTrack record– Credibility and experienceCredibility and experience– Client recordClient record

Coordination of Multi-Country ResearchCoordination of Multi-Country Research::– Emic versus Etic dilemmaEmic versus Etic dilemma


6. Management of Global Marketing 6. Management of Global Marketing ResearchResearch

– The emic schoolThe emic school focuses on the peculiarities of focuses on the peculiarities of each country.each country.

– The etic approachThe etic approach emphasizes universal emphasizes universal behavioral and attitudinal traits.behavioral and attitudinal traits.

– In cross-cultural market research, the need for In cross-cultural market research, the need for comparability favors the etic paradigm with an comparability favors the etic paradigm with an emphasis on the cross-border similarities and emphasis on the cross-border similarities and parallels.parallels.

– Several approaches may be used to balance Several approaches may be used to balance these conflicting demands.these conflicting demands.

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Gllobal Market Research1