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Global MarketingWarren J. Keegan Mark C. GreenGlobal MarketingWarren J. Keegan Mark C. Green

Global Information Systems and Market ResearchChapter 6Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

Global MarketingWarren J. Keegan Mark C. Green

Global Information Systems and Market ResearchChapter 66-2Learning ObjectivesUnderstand the importance of information technology and marketing information systemsUtilize a framework for information scanning and opportunity identificationUnderstand the formal market research processKnow how to manage the marketing information collection system and market research effort

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6-3Information Technology for Global MarketingInformation Technology refers to an organizations processes for creating, storing, exchanging, using, and managing informationManagement Information Systems provide managers and other decision makers with a continuous flow of information about company operationsCopyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

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6-4Tools of MISIntranetElectronic Data Interchange (EDI)Efficient Consumer Response System (ECR)Electronic point of sale

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6-5IntranetA private network Allows authorized company personnel (or outsiders) to share information electronically24-Hour Nerve CenterAllows companies like Amazon.com and Dell to operate as real time enterprises

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Kate Stephenson (KS) - In the notes, is it clear what the "RTE model" is and how it relates to this slide?6-6Electronic Data InterchangeAllows business units to:Submit ordersIssue invoicesConduct business electronicallyTransaction formats are universalAllows computers from different companies to speak the same languageCopyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

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6-7Efficient Consumer Response (ECR)A joint initiative by members of a supply chain to work toward improving and optimizing aspects of the supply chain to benefit customersThis is in addition to EDIAn effort for retailers and vendors to work closely on stock replenishmentUtilizes electronic point of sale

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Kate Stephenson (KS) - In the notes, is it clear what "EPOS" is and how it relates to this slide?6-8Customer Relationship ManagementNew business modelPhilosophy that values two-way communication between company and customerEvery point of contact with a consumer is an opportunity to collect dataCan make employees more productive and enhance corporate profitabilityCopyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

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6-9CRM and Privacy IssuesEUs Directive on Data Collection, 1998, ensures regulations of all 27 membersThe U.S./EU Safe Harbor agreement, 2000, protects individuals rights among nations Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

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6-10Privacy Safe Harbor Agreement establishes principles for privacy protection for companies that transfer data to the U.S. from EuropePurposes of the information collected and usedAn opt out option to prevent disclosure of personal informationCan only transfer information to third parties that are in compliance with Safe HarborIndividuals must have access to information Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

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6-11Data WarehousesIntegral part of CRMHelp fine-tune product assortments for multiple locationsEnhance the ability of management to respond to changing business conditions

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6-12Organizational IT NecessitiesAn efficient, effective system that will scan and digest published sources and technical journalsDaily scanning, translating, digesting, abstracting, and electronic input of information into a market intelligence systemExpanding information coverage to other regions of the worldCopyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

6-13Sources of Market InformationPersonal sourcesCompany executives based abroad who have contact with distributors, consumers, suppliers, and government officialsFriends, acquaintances, professional colleagues, consultants, and prospective employeesDirect sensory perceptionUsing the senses to find out firsthand what is going on in a particular country

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6-14Formal Market ResearchGlobal Marketing Research is the project-specific, systematic gathering of data in the search scanning mode on a global basisChallenge is to recognize and respond to national differences that influence the way information is obtainedCopyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

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6-15Agendas for a Global MIS

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6-16Steps in the Research ProcessIdentify the information requirementDefine the problemChoose a unit of analysisExamine data availabilityAssess value of researchDesign the researchAnalyze the dataPresent the findings

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6-17Step 1: Identifying the Information RequirementWhat information do I need?Existing Marketscustomer needs already being served by one or more companies; information may be readily availablePotential MarketsLatent marketan undiscovered market; demand would be there if product was thereIncipient marketmarket will emerge as macro environmental trends continueWhy do I need this information?Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

6-18Step 2: Problem Definition and Overcoming the SRCSelf-Reference Criterion occurs when a persons values and beliefs intrude on the assessment of a foreign cultureMust be aware of SRCsEnhances managements willingness to conduct market researchEnsures that research design has minimal home-country biasIncreases managements receptiveness to findingsCopyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

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6-19Step 3: Choose a Unit of AnalysisWill the market be:

GlobalA regionA countryA provinceA stateA cityCopyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

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6-20Step 4: Examine Data AvailabilitySources may be:Companys recordsSecondary sourcesTrade journalsGovernment sources like National Trade Data Base, Bureau of Economic Analysis, Eurostat (EU), Foreign Commercial Service, Virtual Trade Commissioner (Canada)Commercial sources like The Economist and Financial Times, Marketresearch.com

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6-21Step 5: Assess Value of Research What is the information worth vs. what it will cost to collect?What will it cost if the data are not collected?What will the company gain with this information?Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

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6-22Step 6: Research DesignData CollectionUse multiple indicatorsDevelop customized indicators specific to the industry, product market, or business modelDo not assess a market in isolationObservation of purchasing patterns/behavior are more important than reports of purchase intention or price sensitivityCopyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

6-23Step 6: Research DesignResearch MethodologiesPrimary Data Collection MethodsSurvey researchInterviewsConsumer panelsObservationFocus groupsCopyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

6-24Special Considerations for SurveysBenefitsData collection from a large sampleBoth quantitative and qualitative data possibleCan be self-administeredIssuesSubjects may not want to answer or intentionally give inaccurate responseTranslation may be difficultUse back and parallel translations to ensure accuracy and validityCopyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

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6-25Research MethodologiesPersonal interviewsConsumer panelsNielsenTV viewingObservationUsing people or camerasFocus groups

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6-26SamplingA sample is a selected subset of a population that is representative of the entire population.Probability samplesNon-probability samplesCopyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

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6-27Step 7: Analyzing DataClean the dataTabulate the data using statistical techniquesANOVA, regression, factor analysis, cluster analysisPerceptual mapping, conjoint analysis

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6-28Presenting the FindingsReport must clearly address problem identified in Step 1Include a memo or executive summary of the key findings along with main report

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6-29Enhancing Comparability of DataEmic analysisEthnographic in natureStudies culture from withinUses cultures own meanings and valuesEtic analysisFrom the outsideDetached perspective that is used in multi-country studiesEnhances comparability but minimizes precisionCopyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

6-30Looking Ahead to Chapter 7Segmentation, Targeting, and PositioningCopyright 2013, Pearson Education Inc., Publishing as Prentice-Hall