310 211 mr

Marketing Research

Mainly based on Philip cateora. s.c. jain also

American apples in Japan

• Japanese inspectors took 24 years to pass American apples for import in 1995

• In 1995 8500 tones were imported• In 1996 sales dropped to 800 tones in spite of quality being good.• An elder Japanese woman wrote to her sister in US criticised

shameless preference of younger generation to low priced and better looking American apples

????

• What you would like to know before entering a new market?

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Marketing research

• Entering any new market, adding any new product, whether in India, or abroad marketer need current and accurate information to act-

- What could be other good markets for diversification- What is satisfraction level with existing offerings- What changes, if any, are required in product- What should be price for new market- How is competition in markets- Are customers brand conscious or price conscious- What could be optimum media mix

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MR defined

• Marketing research is traditionally defined as the systematic-- gathering, - recording, - analyzing and - presenting data - Related to predefined project or problem

• MR is different than Marketing intelligence which is gathered and analysed on continuous basis, without any limitation or structure.

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International Marketing research???

• Difference between domestic and foreign market research???• Tools?• Methodologies?

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Two Complications of IMR- language and environment

1. Information must be communicated across cultural boundaries-1. like Indian research team must plan questionnaire which Chinese

consumers in Guangzhou, Shanghai and Beijing respondents could understand and

2. Findings, tabulations and interpretations should be structured in a way that Indian decision makers are able to grasp

2. The environments within which the research tools are applied are often different in foreign markets.

a. There are no special “foreign marketing research techniques” to be applied. But the researcher must be able to apply his regular techniques as deftly as possible. b. Applicability of research tools designed in a different country have environmental limitations. But real test is the ability of the researcher to provide adequate information in spite of limitations.

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Breadth and Scope of International Marketing Research

• Three types of research- based on information needs:- General information about region and country-

• trade barriers, population, Govt Policies• GDPs, economic growth, inflation

- Information related to particular industry/country -• Cultural, legal and political environments• micro environments – tariffs, Competition structure, and

industry trends

- Market specific information used for-• product, promotion, distribution, and price decisions and

to develop marketing plans.

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Model plan

• Unisys Corporation’s normally collect following information:

1.Economic- general data on economic growth, inflation, business cycle trends,

2.Cultural, sociological, and political climate- all non economic factors, ecology, safety, govt. system, stability, acceptability of foreigners/products

3.Overview of market conditions- related to product category4.Summary of the technological environment- for company

products and competitors5.Competitive situation- competition analysis, their way of

working

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The Research Process

• Research process, constrained by of time, cost and techniques should follow these steps:1. Define the research problem and establish research objectives2. Determine the sources of information to fulfill the research objectives3. Consider the costs and benefits of the research effort4. Gather the relevant data from secondary or primary sources, or both5. Analyze, interpret, and summarize the results6. Effectively communicate the results to decision makers

• Steps in a research are similar for all countries, variations and problems in implementation occur due to differences in cultural and economic development.

• Problems in Pakistan and Bangladesh could be closer to India, but different in China and Russia

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1- Defining the Problem and Establishing Research Objectives

• Main difficulty is converting ambiguous business problems into achievable research objectives.

• In initial stages researchers move with a vague grasp of problem

• For better understanding a fast exploratory research could be better- why I asked you to select a country yourself was expecting you to do a quick exploratory for data availibility.

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• This first and most critical step in research is more critical in international research

• An unfamiliar environment tend to complicate and cloud problems definition.

- Researchers fail to anticipate influence of local culture or - anticipate it based on their own culture (SRC) like-

• asking personal questions, • Men researchers asking women- in middle east • Disney believed in keeping long lines happy and doing

business. Not liked in Disneyland Paris.• Standardizations by Disney in Paris and adaptations in HK

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Assessing usage of milk

• Other difficulties in foreign research stem from failures to establish problem limits broad enough to include all relevant variables

• How you shall frame the question for Assessing usage of milk?

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• . Hot milk based drinks-- In UK are deemed sleepy taken at bed time. - In Thailand it is energy giving so taken while going on work. - In US it is associated with cold weather. - In India it is taken in morning as energiser and at bed time with

sugar as relaxing - So objectives be broad based to cover all aspects

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??

• How you shall frame questionnaire to asses rice consumption?

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• A Readers Digest survey regarding consumption of packaged and branded spaghetti instead of consumption of packaged, branded and otherwise spaghetti declared that France and Germany consume more of spaghetti than Italy

• Disney have been focusing research on queuing visitors and ways to keep them happy and sell many products- it worked in US & Japan but failed in Paris. Queues were OK with British and Germans but not acceptable to Italians and Spanish

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Problems of Availability and Use of Secondary Data

• Availability of data• Reliability of data• Comparability of data• Validating of data• Sources of secondary data sites- end of chapter 8, International

Marketing by Philip Cateora

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Top 20 Countries for Marketing Research Expenditures (millions of dollars)

• Insert Exhibit 8.1

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2- Problems of Availability and Use of Secondary Data- you are here

• Availability of data- too much or too little- Government, Chambers of business & Industry, embassies in

US, Old Europe, Japan have huge secondary data- Many countries do not have governmental agencies that collect

similar detailed data as available in U.S. etc. - Most countries have data related to population, income and

some other components of macro environment but not micro- UN organisations like world bank group, Unctad and WTO

have useful data. OECD too collect and keep quality data- Consumer goods Japanese companies are funding more than

50 research centers in east Europe- Researchers’ language skills- Japan have data but in Japanese

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Major research expenditures

• US- 38%• Europe- 39%• Japan- 7% • Canada- 5%• Australia, New Zealand- 2.5%• Latin America- Mexico, Brazil, Argentina, Benezuala,- 3.5%• China & Taiwan 4%• South Africa (including other Africans)- 0.25%• India, Pakistan, Sri Lanka- 0.30%• MR industry growth- high 15% per year• Top 25 companies spend 70% of total 13 billion

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Research agencies- Top 10

• AC Nielson Corp- US• IMS Health Inc- . US• The Kantar Group Ltd.- UK• Taylor Nelson Sofres plc- UK• Information Resources Inc- US• NFO Worldwide Inc- US• Nielson Media Research - US• GfK Group AG – Germany• IPSOS Group S.A.- France• Westat Inc- US

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3- Problems of Availability and Use of Secondary Data

• Reliability of data- data collected by companies are more accurate but official statistics are sometimes too optimistic, reflecting national pride rather than practical reality,

• print media circulation figures,• low domestic sale figures, • low income figures to save tax

and attention of authorities• higher PSU figures- to show

performance• Subsidies and cheaper

allotments of raw material cause false higher reporting in production even in developed countries

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• Hong Kong import and consumption figures for oranges when import in china was banned- about 30 kg /person /year– double to US

• In 1994 National Statistics Enforcement Office in China uncovered about 60,000 instances of false statistical reports. To hide failures, local officials, factory managers, rural enterprises and other had filed fake numbers on everything from production levels to birth rates.

• So validation of secondary data become important in case of developing countries.

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• Comparability of data- measuring a trend- In many countries, especially those less developed-

• data could be many years out of date• collected on an infrequent and unpredictable schedule.

• some countries are improving but older data is not available or inaccurate so difficult to assess a trend

• Too frequently, data are reported in different categories or in categories much too broad to be of specific value

• Different countries have different names for same activity like super markets, stores, services- refinery jobbing, travel & tourism could include aviation

• Export figures include hotel sales

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5- Problems of Availability and Use of Secondary Data (cont’d)

• Validating secondary data is essential even of developed countries.• Ask questions to judge the reliability of secondary data sources:

- Who collected the data? Government employees less serious- Would there be any reason for purposely misrepresenting the facts?- What was the purposes of data collection?- How were the data collected? Field work or official returns- Are the data internally consistent and logical in light of known data

sources or market factors?

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5- Problems of Availability and Use of Secondary Data (cont’d)

• Checking the consistency of one set of secondary data with other data of known validity is an effective and often-used way of judging validity- sale of cars could be validated with production and import of cars.

• The availability and accuracy of recorded secondary data increase as the level of economic development increases. Improving fast

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Developed nations have most data- see appendix at the end of chapter 8, IM by Philip Cateora

• www.stat-usagov • www.census.gov/foreign-trade/www• www.cia.gov• www.imf.org• www.wto.org• www.oecd.org• www.jetro.go.jp• www.euromonitor.com• Publications.worldbank.org• www.worldchambers.com

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Gathering Primary Data:Quantitative and Qualitative Research

• Primary data – Data collected specifically for the particular research project at hand.

• Expensive, time consuming so needed in latter stages or when no secondary data is available.

• Could be exploratory and conclusive or qualitative or quantitative

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• Quantitative research – Usually a large number of respondents are asked to reply-

- either verbally or in writing - to structured questions - using a specific response format (such as yes/no) or to select a

response from a set of choices.

• Also electronic wave measurement of heart and brain after giving stimulus. Toto in Japan- pioneers in bathroom technology do electronic survey

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• Qualitative research – If questions are asked, they are-- almost always open-ended or in-depth, and - unstructured responses that reflect the person’s thoughts and

feelings on the subject are sought.• Qualitative research seeks to interpret what the people in the

sample are like.• Qualitative research is helpful in revealing the impact of socio

cultural factors on behavior patterns and in developing research hypotheses

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Problems of Gathering Primary Data

• Ability to communicate opinions

- Illiterates or less literates - Babies- Gerber have

pioneered research for toys and foods

- Lack of exposure or knowledge on subject. difficult to formulate needs, attitudes, and opinions about goods not understood,

• Willingness to respond- Cultural differences- no sharing

of views with strangers- Women could share least or

husbands only share in Islamic countries

- No information on phone/mail. - No income info even in person- Personal, gender based, women

only products inquiries wont be replied.

- Japanese too private to share any info

- Status replies could be elevating

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Problems of Gathering Primary Data (cont’d)

• The kinds of problems encountered in drawing a random sample include the following:

- No officially recognized census of population- No other listings that can serve as sampling frames- Incomplete and out-of-date telephone directories- No accurate maps of population centers- Lack of access to rural populations

• Language and comprehension- most universal research problem in foreign countries is language barrier.

Spanish do not have synonym for value- Literacy levels affect survey

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Resolving problems

• Use of local agency or local office of a foreign company to resolve-

- Language, cultural and access, transportation problems

• Locals should be well educated professional marketer• Best possible representative samples be drawn with local help

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Translation techniques

• Translation techniques- three different techniques

- Back Translation-

• Original to foreign language then back to original by second translator. Then original is amended and send back to foreign translator

• A cold drink ad- baby its cold inside was translated as small mosquito, on the inside its very cold . In HK small mosquito could indicate small child

• out of sight out of mind was translated as invisible things are insane, behind the bar mean wine storage in back

- Parallel Translation- more than two sets of back translators are used

- Decentering- hybrid of back translation- successive back translations. Each time by a new team till perfection

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Multicultural Research: A Special Problem

• As companies become global- marketers seek to standardize the marketing mix across several countries, multicultural studies become more important.

• Multicultural research involves dealing with countries that have different languages, social structures, behavior, and attitude patterns. China, India, Switzerland have different cultures

• In some cases the entire research design may have to be different between countries to maximize the comparability of the results.

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Personal Computer and Mobile Phone Diffusion Rate (per 1,000 people)

• Insert Exhibit 8.2

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Research on the Internet: A Growing Opportunity

• More than one billion users (old data) in more than 200 countries.

• 60% male, 40% female, • average age 32, • college educated 60%,• usage time 2.5 hrs/week, • median income usd 60000, • activity- email and information

search, • home pages- English- 80%,

German- 3%, Japanese 4%, French 2%, Spanish 1%, others less than 1%

• International Internet use is growing almost twice as fast as American use.

• Internet and globalisation biggest influencers

• New product concepts and advertisement copies could be tested for immediate feedback on internet.

• Worldwide consumer panels to help test marketing

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Research on the Internet:A Growing Opportunity

• Eight different uses for the Internet in international research:- Online surveys and buyer panels- incentives for participants- Online focus groups- Web visitor tracking- hits and time spent on product site- Advertising measurement- track of ad visits- Customer identification systems- registered users track- E-mail marketing lists- sign ups- Embedded research- step by step monitoring of actions of visitors

making purchase. Like information search, evaluations, customisations and interactions with customer service are used for product development & modifications

- Observational research

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Estimating Market Demand

• In assessing current product demand and forecasting future demand, reliable historical data and trend analysis could help.

• When the desired statistics are not available, a close approximation can be made using local production figures plus imports, with adjustments for exports and current inventory levels.

• Two methods of forecasting demand:• Expert opinion

- The key in using expert opinion to help in forecasting demand is triangulation. compare forecasts of own managers, out side consultants and government officials

• Analogy- This assumes that demand for a

product develops in all countries in a proportion to economic development.

- Companies could use relationship of one country to forecast demand in target country

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Problems in Analyzing and InterpretingResearch Information

• Accepting information at face value in foreign markets is imprudent.

• The foreign market researcher must posses three talents to generate meaningful marketing information.

- First, the researcher must posses a high degree of cultural understanding of the market in which research is being conducted.

- Second, a creative talent for adapting research methods is necessary.- Third, a skeptical attitude in handling both primary and secondary

data is helpful.

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Responsibility for Conducting Marketing Research

• A company in need of foreign market research could use an outside foreign-based agency or on a domestic company with a branch within the country to be studied

• A comprehensive review of the different approaches to multi country research suggests that the ideal approach is to have local researchers in each country, with close coordination between the marketers of company and research companies.

• Two stages of analysis are necessary:- Individual-country level- Multi-country level

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Communicating with Decision Makers

• Gathered information must be given to decision makers in a timely manner.

• Decision makers should be directly involved not only in problem definition and questions formulation, but also in the fieldwork.

• Even when both managers and customers speak the same language and are from the same culture, communication can become garbled in either direction.

310 211 mr

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