GLOBAL MARKETING RESEARCH

Traditionally, Marketing research has been charged with the following three broad areas of responsibility, Environmental Studies –

Added environmental complexity of global marketing , managers need timely input on various national environments

Market Studies – Determine the size of a market and the needs of potential customers

Competitive Studies –provide insights about competitors, both domestic and foreign

Environmental variables is most useful when the company does not have a base in that country and its relevant experience is limited

Global Marketing Research also is used to make both strategic and tactical decisions. Strategies decisions include deciding what market to enter, how to enter them(exporting, licensing, Joint Venture), where to locate production facilities and how to position products via an Vs. Competitors

Marketing Research provides the information the firm needs to avoid the costly mistakes of poor strategies or lost opportunities

E.g.- Pepsi Cola in Europe , they grab youth market with Pepsi MAX ( diet Pepsi) by Researching that youth people concern about a cola that comes without Sugar

The Research Process There are 4 Steps to follow in a research (domestic or international assignments)

Problem definition and development of research objectives

Determine of the sources of information Collection and analysis of the data from

primary and secondary sources Analysis of the data

Utilizing Secondary Data

Advantages and Disadvantages of Secondary Data

Advantages Inexpensive Easily accessible Immediately available Will provide essential background and help

to clarify or refine research problem – essential for literature review

Secondary data sources will provide research method alternatives.

Will also alert the researcher to any potential difficulties.

Disadvantages

Frequently outdated – e.g. census data Potentially unreliable – not always sure

where information has come from May not be applicable – may not totally

answer your research questions Lack of availability – i.e. no data

available or very difficult to obtain

Analysis by Inference (Not in a position to run a research)

Inference can be made on the basis of Related Products, Relative Market Size and Analyze of demand patterns Related ProductsE.g.- Between Replacement tires and automobiles on the road

Relative Market Size E.g. – U.S.A and Canada (almost Same Economic System and Consumption Patterns)

Analysis of Demand Patterns E.g. - Relationship with GDP per Capita and Total Manufacturing

Primary Data

Primary research consists of a collection of original primary data collected by the researcher. It is often undertaken after the researcher has gained some

insight into the issue by reviewing secondary research or by analyzing previously collected

primary data.

Collection Methods of Primary Data

Developing a Research Across Cultures

A researcher must deal with Problems of Comparability when survey research is undertaken in more than one country to compare buyers attitudes or behaviors in different markets

Focus groups help capture appropriate variables to investigate

Creating a cross-cultural questionnaire requiresBack translation…orParallel translation

Focus GroupsA focus group is a form of qualitative research in which a group of people are asked about their perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement, idea, or packaging.

How focus groups SHOULD be used:Learning how your product is usedUnderstanding customers’ experience with productAcquiring descriptive consumer brand perceptionsExploratory testing of new product, positioning, and promotion strategies

How focus groups SHOULD NOT be used:Estimate size or dollar value of market

Definitively identify segmentsMake go/no-go decisions on new products, brand positioning,

or promotion strategies

Observation Powerful Research tool

Researchers use all of their senses to examine people in natural settings or naturally occurring situations

Data Collected Via Photographs and Videotape (When Acceptable)

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

Studying the Competition Identify core competencies to predict future direction of competitors

Monitoring Competition – Factors to be collect Overall Company Statistics • Sales , Market Share and

Profits• Balance Sheet • Number of employees • Production Capacity

Marketing Operations• Types Of Products

(Quality, Features)• Price and Price Strategy• Size and the type of Sales

Force

Future Intentions • New Product development• Current test Markets• Planned entry into new

Markets

Competitive Behavior • Pricing Behavior• Reaction of competitive

moves, past and expected

Prepared By

Keshan De SilvaPostgraduate Diploma in Marketing

Stage 03Sri Lanka Institute Of Marketing