International Marketing

Research- Process
Dr Abha Rishi
 The International Marketing Research
Process
• Any research starts off with a precise definition of the
research problem(s).
• In an international context, the marketing research
problem formulation is hindered by the self-reference
criterion (SRC).
• A major difficulty in formulating the research problem is
unfamiliarity with the foreign environment.
• Omnibus surveys are regularly conducted by research
agencies.
• Once the research issues have been stated, management
needs to determine the information needs.

Dr Abha Rishi IMR Term 2 2

 International Marketing Information
Systems
• Internal
– Cos. Records of exports and imports
– Trade dealings, Trend forecasting
– Customer surveys
• External
– Govt. agencies, Embassies and High Commissions
– International Orgns. – WTO, UN, ESCAP ( UN Economic and
Social Commission for the Asia And the Pacific)
– Specialized private agencies
 Determining Research
Administration
• 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
– Corporate headquarters establishes the broad thrust of
research and delegates design and implementation to the
local countries.
 Tools for comparing countries
• 1. Environmental scanning
– Systematic assessment of external conditions that
might affect a cos. operations
• 2. Grids
– Opportunity Risk Matrix
The company decides on indicators (attributes)
and weights them according to the importance to
the company
– Country Attractiveness- Company Strength Matrix
 Designing the Survey
Questionnaire
– Question format
• Structured or unstructured.
• Direct or indirect.
• Ensure data equivalence.
– Question content
• Consider interviewee’s ability and willingness to answer.
• Adapt questions to societal constraints.
– Question wording
• Use simple unambiguous words, terms and questions.
• Check for errors using translation-re-translation approach and
alternative wording for questions.
• Pretest the survey.
 Research Techniques
• Interviews
– Knowledge persons are a valuable information resource (personal bias
must be discounted).
– Goal, obtain in-depth information instead of a wide variety of
information.
• Focus groups
– Interaction within a group about a specific topic.
– Ideal size, 7-10.
• Observation
– Observation results can be influenced by presence of the observer.
• Surveys
– Gather quantitative rather than qualitative information through
personal or remote contact with the subject population.
The International Marketing Research
Process
• STEP 1 Define the international research
problem and agree on the research objectives
– Exploratory Research
– Descriptive Research
– Causal Research
• STEP 2 Set specific objectives

Dr Abha Rishi IMR Term 2 8

The International Marketing Research
Process, continued
• STEP 3 Develop the International Research
Plan
• STEP 4 Define Information Sources
– Secondary Data
• Researchers must determine if the information is
available, and, if so, how reliable it is
• Internal data is useful only if company has collected
similar info from relevant respondents in a country
with similar environment

Dr Abha Rishi IMR Term 2 9

 Secondary Global Marketing Research

• Secondary Data: Data/information which is already

available.
• Primary Data: When the information is not useful, or
simply does not exist.
• Selected Secondary Data Sources: Lexis/Nexis,
FINDEX, National Trade Data Bank, U.S. Department
of Commerce, Japan External Trade Organization
(JETRO), OECD, IMF, The Economist Intelligence Unit
(E.I.U.), ACNielsen Co, Taylor Nelsen Sofres, etc.

Dr Abha Rishi IMR Term 2 10

 Secondary Global Marketing
Research
• Problems with Secondary Data Research:
– Accuracy of Data
– Age of data
– Reliability over Time
– Comparability of Data
• Triangulate
• Functional or Conceptual Equivalence
– Lumping of Data

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 Secondary Data Constraints
• Conceptual Equivalence
– Concepts have different meanings in different
cultural environments
• Functional Equivalence
– Products themselves may be used for different
purposes in different country environments

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Secondary Data Constraints, continued
Sources of reliable data:
- World Bank
- United Nations Development Program
- Organization of Economic Cooperation and
Development (OECD)
- Euromonitor

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 Primary Data
• Information collected for a specific
purpose, to address the problem at
hand.
– The costs of collecting primary data in
foreign markets are likely to be much higher
given the lack of an appropriate marketing
research infrastructure

Dr Abha Rishi IMR Term 2 14

Primary Data Research Approaches
• Qualitative research has been particularly
useful as a first step in studying international
marketing phenomena.
– Focus Groups
– Observation
• Constraints: Responses can be affected by
culture, individuals may act differently if they
know they are being observed.

Dr Abha Rishi IMR Term 2 15

 Primary Global Marketing Research
• Survey Methods for Cross-Cultural Marketing
Research:
– Questionnaire Design
• Conceptual and Functional Equivalence
• Translation and Scalar Equivalence
• Back Translation and Parallel Translation
• Scalar Equivalence

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Primary Global Marketing Research
– Sampling: A sampling plan consists of:
• Sampling unit
• Sample size
• Sampling procedure
– Contact Method (see Exhibit 6-5)
• Mail
• Telephone
• Person-to-person interviews
• Online Survey Methods (see Exhibit 6-6):
– E-mail surveys
– Random Web site surveys
– Panel Web site surveys

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Sampling

• Sometimes it is Consider:
impossible to approach – conventions
certain respondents – tradition
directly – religion
• It is unacceptable to – appearance
pose questions to some
– household
people in certain hierarchies
circumstances

Dr Abha Rishi IMR Term 2 18

 Primary Global Marketing Research

– Collecting the Information

• Issues of nonresponse
• Courtesy bias
• Social desirability bias
• Redundancy (asking the same question in
different ways)
• Issues of ethnographic research

Dr Abha Rishi IMR Term 2 19

 Primary Data Research
Approaches, continued
• Quantitative research are more structured,
involving either descriptive research
approaches, such as survey research, or causal
research approaches, such as experiments.
– Content Analysis
– Survey Research
– Experimental Research
• Constraints: Respondent factors, infrastructure
factors

Dr Abha Rishi IMR Term 2 20

 Data Collection
• STEP 5 Design Data Collection Instrument
– Emic instruments measure phenomena specific to
each culture.
– Etic instruments measure the same phenomenon
in different cultures.
• Constraints: Translation; Instrument
Reliability; Reluctance to answer certain
questions

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 Data Collection, continued
• STEP 6 Decide on the Sampling Plan
– Sample Unit
– Sample Size
– Sampling Procedure
• STEP 7 Collect, Analyze, and Interpret Data

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 Decision Support Systems
for Global Marketing
• A coordinated collection of data, systems,
tools, and techniques, complemented by
supporting software and hardware designed
for the gathering and interpretation of
business and environmental data

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 4. Market Size Assessment

• Method of Analogy
– Longitudinal method of analogy
• Trade Audit
• Chain Ratio Method
• Cross-Sectional Regression Analysis

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 4. Market Size Assessment

• When using market size estimates, keep the

following rules in mind:
– Use several different methods.
– Don’t be misled by numbers.
– Don’t be misled by fancy methods.
– Do a sensitivity analysis by asking what-if
questions.
– Look for interval estimates with a lower and upper
limit rather than for point estimates.

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 Sales Forecasting
• Sales Force Composite Estimates
– Personal observations and expectations of the local
sales force
• Jury of Expert Opinion
– Opinions of different experts about future demand
• The Delphi Method
– Experts to estimate market performance; findings are
aggregated, and experts are queried again, in light of
aggregate responses

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 Delphi Studies
• Delphi studies are a means for aggregating
the judgements of a number of experts who
cannot come together physically.

• The Delphi technique is particularly

valuable because it uses mail, fax, or
electronic communication to bridge large
distances and therefore makes experts
accessible at a reasonable cost.

Dr Abha Rishi IMR Term 2 27

 Sales Forecasting, continued
• Time Series and Econometric Models
– Use data of past performance to predict future
market demand
• Analogy Methods
– Estimation method that relies on developments
and findings in markets
- With similar levels of economic development, or
- Where the product is in the same market development
stage, or
- In markets which share similar cultural characteristics
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 Sales Forecasting, continued
• Point of Sale Research
 Made with the help of store scanners, in markets where they are
available

 Involve comprehensive store audits

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 5. New Market Information Technologies

• Major developments/innovations:
– Point of sale (POS) store scanner data
– Consumer panel data
– Single source data
– Shift from mass to micro marketing
– Continuous monitoring of brand sales/market
share movements
– Scanning data are used by manufacturers to
support marketing decisions.
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5. New Market Information Technologies

– Scanning data are used to provide merchandising support

to retailers.
– Market research tools being developed to track the
effectiveness of newer marketing mix vehicles such as the
Internet- goal is to establish a “Nielsen rating” for websites
similar to those for TV programming.
– CATI (Computer-Assisted Telephone Interviewing)
– CAPI (Computer-Assisted Personal Interviewing)
- CATI/CAPI benefits include speed, accuracy, and the ability to
steer data collection based on the response.

Dr Abha Rishi IMR Term 2 31

 6. Management of Global Marketing Research

• Selecting a Research Agency: The following

considerations should be taken into account while
choosing agency:
– Level of expertise
– Qualifications
– Track record
– Credibility and experience
– Client record
• Coordination of Multi-Country Research:
– Emic versus Etic dilemma

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6. Management of Global Marketing Research

– The emic school focuses on the peculiarities of

each country.
– The etic approach emphasizes universal
behavioral and attitudinal traits.
– In cross-cultural market research, the need for
comparability favors the etic paradigm with an
emphasis on the cross-border similarities and
parallels.
– Several approaches may be used to balance these
conflicting demands.

Dr Abha Rishi IMR Term 2 33

 Participants in Marketing Research Activities
Information Users
• General management
• Planning
• Marketing and sales managers
• Product managers
• Lawyers
Information Suppliers: Information Suppliers:
Inside Company Outside Company
• Marketing research department • Research consultants
• Sales analysis group • Marketing research suppliers
• Accounting department • Advertising agencies
• Corporate strategic planning

Dr Abha Rishi IMR Term 2 34

 Information suppliers and services
Information
Supplier

Corporate In- External

house Supplier Supplier

Structured Unstructured (one

(Independent or more MR
Department employees)

Customized Standardized Field Branded

Services Services Services Product/Services

Syndicated Selective
Services Services

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 Factors Influencing Choice of
Information Supplier

• Internal personnel may not have skills or

experience
• Outside help may be called to boost
internal capacity in response to
urgent deadline
• Often it is cheaper to go outside

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 Factors Influencing Choice of
Information Supplier (Contd.)

• Outside suppliers may have special

facilities or competencies which would be
costly to duplicate for a single study
• Political considerations
• Increased credibility of research used in
litigation or in proceedings before
regulatory or legislative bodies

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