INTERNATIONAL MARKETING RESEARCH

Introduction: A firm entering an International market is required to carry out the International Marketing research before venturing into overseas markets. Ex. Coca-Colas new Coke formula. Unilevers launch of ice tea in India. Krafts unsuccessful launch of Tang (through Dabur) perceived to be high priced.

INTERNATIONAL MARKETING RESEARCH

DEFINTION: Market Research involves the systematic gathering, recording, and analyzing of data about problems related to marketing of goods and services. International Marketing Research can be defined as research that crosses national borders and involves respondents and researchers from different countries and cultures.

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Major Objectives of International Marketing Research: To carry out country screening and selection. To evaluate a countrys market potential. To identify problems that would not require a countrys listing for further consideration. To identify aspects of countrys environment that needs further study. To evaluate the components of marketing mix for possible adoption. To facilitate in developing a strategic marketing plan.

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Major Challenges to Successful International Marketing Research: Overlooking cross-cultural market behavior. Employing standardized research methodologies across the international markets. Using English as a standard language for market communication. Inappropriate sample selection. Mis-interpretation of cross-country data. Failures to use locals to conduct field surveys.

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Cross-Cultural Marketing Behavior and Research: The consumer behavior is greatly influenced by culture, which varies widely among countries. Ex. Most Indian find it difficult to understand how people in the West eat cows which gives milk and is considered as an integral part of the farming system. Culture is shared among members of a group, organization, or society and passed from one generation to the other.

INTERNATIONAL MARKETING RESEARCH

Religion: Generally, the consumption patterns are considerably influenced by religious beliefs. Ex. As most Indians do not eat beef and India has the second largest Muslim (who do not consume fork) population in the world, McDonalds serves neither beef nor pork in India. Ex. The Islamic cultures greatly affect the behavior of women consumers and emphasize separation of male and female persons in public place. Hence, in order to conduct the survey, it is better to engage women during interaction with women respondents.

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Value System :

Values are the shared assumptions of a group about how things ought to be or abstract ideas about what a group believe to be good or desirable or right. The consumer behavior in international markets is considerably affected by their value systems.

Norms:

Norms are guidelines or social rules that prescribe appropriate behavior in a given situation. Ex. Aggressive selling in Japan is not taken in positive spirit. Ex. Use of spoons in India, chopsticks in China and Japan, Knives and form in Europe and America while eating.

INTERNATIONAL MARKETING RESEARCH

Aesthetics: Ideas and perceptions that a cultural group upholds in terms of beauty and good taste is referred to as aesthetics. It includes colors, music, dance, painting, drama, architecture, etc. An international marketer should be guided aesthetic issues while making product and communication decisions.

INTERNATIONAL MARKETING RESEARCH

Language: Language is a systematic means of communicating ideas or feelings by the use of conventional signs, gestures, marks, or especially articulate vocal sounds. There have been several instances worldwide of resistance towards communicating in foreign languages, often viewed as cultural imperialism. Ex. Creation of Bangladesh out of Pakistan due to differences in languages and natives love for their mother tongue Bangla. Quebec, Canada declaring French as the official language, resistance among Germans to learn French.

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Comparison of Cross-Cultural Behavior: The most widely used tool to study the cross-cultural behavior is Hofstedes classification. It identifies cross-cultural differences based on a massive survey of 1,16,000 respondents from 70 countries working in IBM subsidiaries. Hofstedes classification involves the following:
Power Distance the degree of inequality. Individualism vs. Collectivism. Masculinity vs. Femininity. Uncertainty avoidance. Culture Context. Cultural Homogeneity.

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Process of International Marketing Research: Problem identification. Deciding research methodology. Workout information requirement. Identify sources of information (both primary and secondary) Prepare research design. Collect primary information. Analyze information, and Evaluation and Interpretation.

INTERNATIONAL MARKETING RESEARCH

Problem Identification : Whether to remain in domestic market or enter into international markets. Product identification for international products. Deciding international markets for entry. Deciding upon mode of entry into international markets. Decisions related to international marketing mix. Decisions for implementing and controlling the strategic international marketing plans.

INTERNATIONAL MARKETING RESEARCH

Problem Identification: contd. The problem identification in international markets is influenced by marketers self reference criteria (SRC), which is an unconscious reference to ones own cultural values, experiences, and knowledge as a basis for decision-making. Ex. It is difficult for a Japanese consumer to say no; rather Japanese consumers use more subtle expressions for indicating their disagreement. Therefore, research conducted in Japanese market can be misleading at times.

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Deciding Research Methodology:

Marketing Mix Decision
Product Policy

Type of Research
Focus groups & qualitative research for new product ideas. Survey research to evaluate new product ideas. Concept testing, test marketing. Product benefit and attitude research. Product formulation and feature testing.

Pricing Distribution

Pricing sensitivity studies.

Survey of shopping patterns and behavior. Consumer attitude towards different store types. Survey of distributor attitudes and policies.

Advertising Advertising post- testing, recall scores Sales promotion sales force

Advertising pre-testing. Survey of media habits.

Survey of response to alternative types of promotion. Tests of alternative sales presentations.

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Working out Information Requirement: Whether to operate in domestic market or enter international market. Estimating market size. Assessing market access. Market selection tariff, non-tariff barriers, political risks, logistics, etc. International Marketing Mix decisions. Decisions for implementing and controlling the strategic international marketing plans.

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Identifying Sources of Information:Issues Cost and time involved. There are various sources of information for desk research like reports and publications from : UN, OECD, trade associations, embassies, banks, press reports, encyclopedias, chamber of commerce, trade directories / journals etc. Limitations of Secondary Data: Availability, Reliability, Comparability, and Validity. Generally, the availability and accuracy of secondary data increases with the increase in the level of countrys economic development.

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Preparing Research Design: Research design is the specification of methods and procedures for acquiring the information needed to structure or solve problems. It constitutes the blueprint for the collection, measurement, and analysis of data. Types of Research Design: Exploratory Research. Descriptive Research. Causative Research.

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Collecting Primary Information: The information collected by a researcher for the first time is termed as primary information. The need for primary information is guided by specific purpose in view of cost and complexity. Also, it depends on secondary information collected and gap identified, if any. It is essential to monitor the firms marketing strategies. Methods used : Field surveys, observations, or experiments. Field surveys include telephone interviews, mail surveys, electronic surveys, and personal surveys.

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Analysis of Information: Analysis techniques are similar to domestic market. They depend to a large extent on the nature of the problem and the type of data collected. While analyzing data for various countries, the analyst should consider the aspect of equivalence.

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Evaluation and Interpretation: Based on data analysis, the research results should be evaluated in view of the equivalences and constraints in obtaining cross-country information. Equivalence in international marketing research refer to whether a particular concept being studied is understood and interpreted in the same manner by the people in various cultures e.g. advertising for Saudi Arabia and Europe. Construct equivalence refers to whether the marketing constructs (i.e, product functionality, interpretation of marketing stimuli and classification of schemes) under the study have the same meaning across countries.

INTERNATIONAL MARKETING RESEARCH

Functional equivalence refers to whether the function or purpose served or performed by a given concept or behavior is the same across the national markets. Ex. A car may be a necessity in developed country, but is considered status symbol / luxury in developing country. Conceptual equivalence refers to the extent of variation in individual interpretation of objects, stimuli, or behavior across the culture. Ex. In eastern societies, acceptance by group, unwillingness to express explicit disagreements, and giving others a chance to save face are important cultural traits, which is hardly the case in the Western culture.

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Classification or category equivalence refers to the category in which the relevant objects or other stimuli are placed. The definition of product class may vary from country to country. Ex. Beer is considered as a soft drink in many Mediterranean countries, but other countries consider it as alcoholic beverage. Also, urban. Measurement equivalences refers to establishing equivalences in terms of procedures used to measure concepts or attitudes. Calibration equivalence e.g. monetary nits, measures of weight, distance, volume, number of categories in a scale etc. Translation equivalence to help respondent understand an equivalent meaning e.g. Family has different meaning for Indians and Americans.

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A questionnaire used for international market research needs to be written perfectly and reviewed by a native of that particular country. Sampling equivalence considers the aspects of comparability of samples and sample representative ness to the population. Equivalence of data analysis hints that the country-culture biases need to be taken into account while carrying out data analysis.

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EMIC VS. ETIC Dilemma in International Marketing Research: The Emic School holds that attitudes, interests, and behavior are unique to a culture and best understood in their own contexts. As motive to buy differs substantially across cultures, the multicountry research may call for an emic approach. The etic school emphasizes identifying and assessing universal attitudinal and behavioral concepts and developing pan-cultural measures. An international marketing firm focuses on identifying similarities across national markets as it offers opportunities to transfer the product and services for integration of marketing strategies across the borders. Therefore, an international marketing firm generally prefers etic strategy.

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International Marketing Research and Human Judgement : Marketing research is not a substitute for human intellect in decision-making. How did Akio Morita respond to problems of his colleague Ibuka over use of portable stereo tape recorder with a pair of standard size head phones. In Akio Moritas words, Instead of doing a lot of market research, we refine our thinking on a product and its use, and try to create a market for it by educating and communicating with public. I do not believe that any amount of market research could have told us that the Sony Walkman would be successful, not to say a sensational hit that would spawn many imitators.