ch4
DESCRIPTION
TRANSCRIPT
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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INTERNATIONAL MARKETING RESEARCH AND OPPORTUNITY ANALYSIS
Session 4
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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THE RESEARCH PROCESS
• Define the problem
• Develop an approach
• Design the research
• Undertake fieldwork
• Analyse the data
• Report and present findings
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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3 FUNCTIONS OF INTERNATIONAL MARKET ANALYSIS
• Scanning international markets to identify and analyse opportunities
• Building marketing information systems to monitor environmental trends
• Carrying out primary marketing research for input into the development of marketing strategies
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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SCANNING INTERNATIONAL MARKETS
• Identification of opportunities
– accessibility– profitability– market size
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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Nature of Competition and Level of Market Development
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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RESEARCHING INCIPIENT MARKETS
• Demand pattern analysis
• Multiple factor indices
• Analogy estimation
• Regression analysis
• Macrosurvey technique
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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RESEARCHING UNDER-DEVELOPED MARKETS
• Lack of reliable secondary data
• Cultural issues
• Lack of communication infrastructure
• Lack of literacy
• No market research agencies
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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THE FOUR RISK MATRIX
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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BUSINESS PORTFOLIO MATRIX
Source: Harrell G D and Kiefer R O (1993)
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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LIMITATIONS OF COUNTRY BASED SYSTEMS
• Market selection is geographically based• Effective secondary segmentation relies on
the quality of the information base in each country
• Risk of differentiated approach across international markets
• Difficulty of applying controlled and consistent international marketing strategy
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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TRANSNATIONAL SEGMENTATION & METHODS
• Demographic:– sex, age, income level, social class and
educational achievement
• Psychographic:– lifestyle factors - activities, interests and opinions
• Behavioural:– patterns of consumption, loyalty to product
category and brand– needs benefits occasion usage
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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EURO MOSAIC
• Claims to be the first pan-European segmentation system
• Allows the classification of 500 million consumers across the European Union on the basis of the types of neighbourhood in which they live.
1. Elite suburbs2. Average areas3. Luxury flats4. Low-income inner city5. High-rise social housing6. Industrial communities7. Dynamic families8. Low-income families9. Rural agricultural10.Vacation retirement
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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HIERARCHICAL COUNTRY-CUSTOMER SEGMENTATION
STAGES # 1
1. Identify countries with the infrastructure to support the product and are accessible to the company
2. From these, select countries that meet certain qualifying criteria
3. Develop mini-segments; e.g. 1. information search behaviour2. product characteristics required
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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HIERARCHICAL COUNTRY-CUSTOMER SEGMENTATION
STAGES # 2
4. Look for similarities across segments to identify characteristics of demand for each segment. They can then be rated in terms of potential response
5. Use Cluster Analysis to identify meaningful cross-national segments which would evoke a similar response to any marketing mix strategy.
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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BUILDING MARKETING INFORMATION SYSTEMS - THE 12C FRAMEWORK
Country
Culture/consumer Behaviour
Concentration
Channels
Commitment
Choices
Caveats
Consumption Communication
Currency
Contractual Obligations
Capacity to Pay
12c
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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Market Profile Analysis
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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SOURCES OF INFORMATIONINSTITUTONS
• Business libraries• University libraries• International chambers
of commerce• International Market
Intelligence Centre (Trade Partners UK)
• Business Links• Embassies• Banks• Trade associations
• Export councils• Overseas distributors• Overseas sales
subsidiaries• Foreign brokerage
houses• Foreign trade
organisations such as JETRO – (Japanese Export Trade
and Research Organisation)
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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SOURCES OF INFORMATIONON-LINE DATABASES
• Brand data– www.brandchannel.com– www.gbrands.com– www.globalstrategies.com
• Business Week– www.businessweek.com
• The Economist– www.economist.com
• European Union– www.europa.eu.int
• UK Trade and Investment– www.uktradeinvest.gov.uk
• UK Chambers of Commerce– www.britishchambers.org.uk
• United Nations– www.un.org
• World Bank– www.worldbank.org
• World Fact Book– www.cia.gov/cia/publications/factbook
• World Trade Organisation– www.wto.org
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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PROBLEMS IN USING SECONDARY DATA
• Availability
• Accessibility
• Accuracy
• Scarcity
• Timeliness of collection
• Way data is reported / interpreted
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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CARRYING OUT PRIMARY MARKETING RESEARCHINTERNATIONAL MARKETING RESEARCH PROCESS
Source: Adapted from Malhotra et al (2006)
Problem Definition & Research Objectives- Comparability of the phenomenon/behaviour- Isolating the self-reference criterion (SRC)
Developing an Innovative Approach- Networking- Multi-country studies- Consortium
Organising the Research Study- Centralised versus de-centralised- In-house versus agency
Research Design- Redefine research problem- Reliability and validity of research data- Appropriate use of qualitative research- Questionnaire design- Sampling design
Fieldwork- Interviewee bias- Interviewer bias
Analysis & Evaluation- Data preparation- Cross-country comparability
Report Preparation & Presentation- Interpretation and presentation
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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ORGANISING THE RESEARCH STUDYQuestions for the International Manager
• Should the research be carried out by foreign local subsidiaries or should all marketing research be centralised at headquarters?
• Should the fieldwork be carried out in house or by an agency?
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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Options when choosing an Agency
• Local agency in the market under investigation• Domestic agency with offices overseas• Domestic agency with overseas associate
companies• Domestic agency which subcontracts fieldwork
to an agency in the market under investigation• Domestic agency with competent foreign staff• Global agency with offices around the world
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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MULTI-COUNTRY STUDIES
1. Project discussed at length with the client
2. Fieldwork agencies in each country selected
3. Questionnaire designed centrally
4. Translated locally, translation checked centrally
5. Piloted locally6. Finalised centrally
7. Interviewers briefed locally by executive of central company
8. Fieldwork carried out locally9. Coding and editing plan
provided for the local agencies10.Edited and coded
questionnaires returned to head office
11.Coding and editing check carried out centrally
12.Computing and analysis carried out centrally
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5Published by Cengage Learning DOOLE AND LOWE
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Comparative Evaluation of Survey Methods
Malhotra et al (1997)