Marketing Research Management

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					                               MKGT 3215-001
                                    Fall 2010
                               Mrs. Tamara L. Cohen

                Global Marketing

            Global Market Research
Sept.28, 2010
Global Market Research

      Reading for this class:
      • Cateora, Gilly & Graham, ch.8:
        – pp 216-218;
        – pp 228-231;
        – pp 240-241 Appendix A
• Marketing research = systematic gathering, recording, &
  analyzing of data to provide info useful to marketing decision-making
• International marketing research = systematic
  gathering, recording and analyzing data + communication across cultural
  boundaries + research operations often different in foreign markets
• Multicultural research = inquiry, analysis & study of countries
  & cultures that takes into account differences in language, economic
  structure, behavior, & attitude patterns.

• Back translation: translation of document then back again
• Parallel translation: using 2 translators to make a Back
• Decentering: successive process of translation & retranslation
The basic objective of market research function is
  providing management with information for more
  accurate decision making.
• Importance of problem definition in international
• Problems of availability & use of secondary data
• Sources of secondary data
• Language is main problem of primary data collection
• Quantitative & qualitative research methods
• Multicultural sampling & its problems in less
  developed countries
• How to analyze & use research info
             Japan -
     test market for the world

• 100 million cell phone users represent
  most diverse and discriminating pool of
  mobile subscribers in world (Google)
• Some savvy foreign companies use Japan
  as testing ground for new concepts: “Japan
  has established a presence as a pilot
Types of research info needed
1. General info about country, area, and/or market
2. Info to forecast future marketing requirements
  •   by anticipating social, economic, consumer, & industry
      trends within specific markets / countries
3. Specific market info used to make and develop
   marketing plans
  •   product
  •   promotion
  •   place (Distribution)
  •   price decisions
The International Marketing
Top 20 Countries for Marketing
Research Expenditures ($millions)
      Research Process Steps
1. Define research PROBLEM & establish research
2. Determine SOURCES of info to fulfill research
3. Consider COSTS & BENEFITS of research effort.
4. Gather relevant DATA from secondary or primary
   sources, or both.
5. ANALYZE, interpret, summarize results.
6. COMMUNICATE results to decision makers.
Research steps are similar for all countries. Variations &
  problems can occur in implementation. Differences in cultural & economic
  development. No   short cuts!
       Availability & Reliability
         of Secondary Data
• Most countries do not have gov’t agencies that
  regularly collect kinds of secondary data readily
  available in U.S.
• Researchers’ language skills may hinder access to
   – requires native speaker of language
• Official statistics sometimes too optimistic,
  reflecting national pride rather than practical reality.
  Tax structures & fear of tax collector can adversely
  affect data.
   – less-developed countries prone to optimism
   – willful errors
   – “adjusted reporting”
Secondary Data Problems
1. Data can be many years out of date
2. Data collected on an infrequent &
    unpredictable schedule
3. Data reported in different categories or
   in categories too broad to be useful
     Gathering Primary Data –
     QUANTITATIVE Research
• Primary data = data collected specifically
  for particular research project
• Quantitative research
  – usually large number of respondents
  – respondents answer structured oral or written
    questions using specific response format (e.g.
    yes/no) or select response from set of choices
  – responses summarized in %, averages, or
    other statistics
        Gathering Primary Data –
        QUALITATIVE Research
• Questions if asked are almost always open-
  ended or in-depth
  – seek unstructured responses that reflect person’s
    thoughts & feelings on subject
• Interprets people in sample
• Reveals impact of socio-cultural factors on
  behavior patterns and in developing research
      Primary Data Problems
• Ability to COMMUNICATE opinions
• Formulating opinions about product or concept
• Difficult to design research for complex
     Gerber has more experience in trying to understand
     consumers with limitations: Babies can neither answer
     questions nor fill out questionnaires.
• Unwillingness to respond can be
  due to cultural conditioning (e.g. gender,
  unfamiliarity, modesty issues)
• Field sampling limitations (lack of
  demographic data, & lack of detailed
  social & economic info)
   Gerber’s own limitations . . .
When Gerber started selling baby food in Africa,
 they used the same packaging as in the US, with
 the smiling baby on the label. Later they learned
 that in Africa, companies routinely put pictures
 on the labels of what's inside, since many
 people can't read.
Biggest Challenge in Int’l Research

Most universal survey research problem in foreign
  countries is language barrier.
• Literacy is another problem (no written questionnaires)
• 3 techniques to hunt for translation errors
  ahead of time:
   1. Back translation
   2. Parallel translation
   3. Decentering
                         The mysterious time
                         telling secrets of the
                           pastoral Italians
• SETUP: An elderly Italian farmer is sleeping on the side of
  the road on a pile of hay. He is awakened by a wealthy
  man on a motorcycle who asks him what time it is. The
  farmer has a donkey next to him and by simply feeling the
  donkey's testicles, he tells the man on the motorcycle the
• This gentleman on his return trip spots the farmer again
  and, thinking the old man was just lucky, asks him the time
  again. To the wealthy man's surprise, the old man is
  exactly correct again about the time.
• Now watch the video ...
           Language Follies

                               Scandinavian vacuum
                               cleaner manufacturer
                               Electrolux      tested
                               its slogan for an ad
                               campaign in the USA:
BEFORE TRIANGULATION:          sucks like an
Coors translated its slogan,   Electrolux”
"Turn It Loose," into
Spanish, where it was read
as "Suffer From Diarrhea.“
         Research on the Internet
•    1 billion users in > 200 countries (1/6 in USA)
•    Int’l Internet use growing 2x as fast as USA
•    Uses for Internet in int’l research
    1.   online surveys & buyer panels
    2.   online focus groups
    3.   web visitor tracking
    4.   advertising measurement
    5.   customer ID systems
    6.   e-mail marketing lists
    7.   embedded research
    8.   observational research
•    Facebook members
  Estimating Market Demand
When desired usage statistics not available,
2 methods of forecasting demand:
  1. Expert opinion - key is triangulation
  2. Analogy - assumes demand for product develops
     similarly in all countries as comparable economic
     development occurs in each country
3 researcher talents to generate
 meaningful int’l marketing info:
1. High degree of cultural understanding of
   market in which research is being conducted.
2. Creative talent for adapting research
3. Skeptical attitude in
   handling both primary
   & secondary data.
         Keys to Success Using
         Global Market Research
Include natives on research teams in each
Use multiple methods & triangulation.
 (Triangulation compares estimates from different sources.)

Decision makers (top execs/managers) should be
 directly involved not only in problem
 definition & question formulation, but also in
Communication can be challenging. Even when
 both managers & customers speak same language & are from same
 culture, communication can become garbled in either direction.
Next class: Emerging Markets
Preparation: Read The World is Flat by Thomas Friedman: ch. 1 & 2
Homework: Summarize key concepts in The World is Flat reading.
Visitors: members of Tunisian university business departments
Where is Tunisia?
• ‫تونس‬
• tourism
• petroleum, mining, textiles,
  footwear, food processing,
  electrical & mechanical

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