Assessing Market

Potential/Globalisation
Al Marshall
ACU National
 The Role of Information
• Macro environmental information required
• Industry and market information required
• Product information required
• Decision to go international depends on
these
 The Role of Market Research
• The key provider of information
• Issue of design and interpritation across
borders
• Issue of different environments for data
collection
• Basic tools and techniques are universal
 Involvement Points at Which
Research Useful
• Initial scanning of overseas markets for
opportunities
• Formal scanning of potential in specific
markets
• Formal consideration of possible entry
strategies for selected markets
• Informal and formal research post entry for
strategic planning/operations
Degree of Research Commitment
• Depends on international marketing
intentions/commitment
• Research across/in overseas markets can be
expensive
• Costs of not doing research can be even
more costly!
• Implementing the findings may pose
problems
 Key Research Problems
Experianced
• The impact of culture and self reference
criteria on problem definition
• Secondary research which is sparse/
unreliable/ not comparable
• Operational issues with qualitative and
quantitative primary research
• Subjects may not be willing/able to provide
information
 Getting Close to Overseas
Markets
• Employing local secondary and primary
researchers may be necessary
• Local research agencies will have local
insights
• Multinational/global research agencies have
proprietary products/reach
• Understanding and flexibility required
 Issues With Cross-National
Research
• Not simply a case of single market adaption
• Need to make comparisons across markets
requires homogeneity in research approach
• Not always possible, some compromises
needed
• The Internet offers considerable secondary
and primary opportunities
 The Strategic Imperative
• Single most important reason for failure is
insufficient preparation and information
• Vital to understand all aspects of overseas
markets (and the global environment)
• Domestic market research information does
not translate!
• International marketing is about operating
in unfamilar environments
 Why Research Is Often Under
Utilised
• Lack of sensitivity to customer differences
• Lack of sensitivity to market
structure/dynamics differences
• Lack of familiarity with information
sources, inability to use
• International marketing involvement often
starts informally, indirectly
 Global Companies and Research
• Engaged in continual environmental
scanning within and across markets
• Scenario forecasting very important for
global operators
• Maintenance of a sophisticated market
information system necessary
• Research most likely to be used as an on
going decision support tool