Researching world markets

Tremendous demands for information are created by the intricacies of international operations and the complexity of the environment within which the marketer must operate. Market Research is the systematic gathering, recording and analyzing of data about marketing problems toward the end of providing information useful in marketing decision-making. Still & Cundiff. International MR and domestic MR are synonymous. The mechanical problems of implementing foreign marketing research might vary from country to country, but the overall objectives for IMR and DMR are the same. The general objectives of Market Research are to: Identify markets Study consumer behavior patterns Assess demand Study international environment

Scope of IMR There are three types of information needs: 1. General information about the country, area and the market. 2. Study of specific information regarding product, pricing, distribution, promotion. 3. Forecasting of future marketing requirements by anticipating social, economic and consumer trends in a specific market. For this purpose, it is common to distinguish between four environmental dimensions: Physical Environment Sociocultural Environment Economic environment Regulatory Environment Emanating from the above information needs, the typical MR requirements in an international market will involve collecting information in the following areas: Economic. General data on growth of the economy, inflation, business cycle, specific products and all related data, industry data. Cultural, sociological, and political climate. A general, non-economic review of conditions affecting businesses.

Overview of market conditions. A detailed analysis of market conditions that the company faces.

Summary of the technological environment. A summary of the state-of-the-art technology as it relates to the companys business. Competitive situation. A review of competitors sales revenues, market segmentation, products, and apparent strategies. The Research Process The purpose of IMR is to provide the most accurate and reliable data possible within limits imposed by time, cost, and the present state of the arts. The research program should include the following steps: Define the research problem and establish research objectives. Determine the sources of information to fulfill the research objectives. Consider the costs and benefits of the research effort. Gather the relevant data from secondary or primary sources, or both. Analyze, interpret and summarize the results. Effectively communicate the results to the decision makers.

Although the steps in a research program are similar for all countries, variations and problems occur in implementation because of differences in culture and level of economic development. Collection of Data The breadth of many foreign marketing research studies and the marketers lack of familiarity with a countrys basic socioeconomic and cultural data result in considerable demand for information. Such data may be available in some developed countries, but not all countries have similar data. Secondary sources Government publications International economic indicators Market share reports Foreign trade reports Chambers of commerce Trade, business and service organizations Foreign consulates Foreign embassies in own countries.

Problems of availability or use of secondary data Several problems are encountered: Availability of data Reliability of data Comparability of data
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 Currency of data. Validating Secondary Data The consistency of one set of secondary data should be checked with other data of known validity. It is significant to find out who collected the data and for what purpose the data was collected. Primary Sources Both quantitative and qualitative research is conducted, primarily through the Questionnaire method. Problems are encountered in the collection of primary data as well: Ability to communicate opinions Unwillingness to respond in many cultures personal information is inviolably private and is not shared. Sampling in Field Surveys lack of adequate detail of universal characteristics and lack of detailed social and economic information can hamper effectiveness of sampling techniques. Language and comprehension there are difficulties in exact translation and correct interpretation of the responses. Multicultural Research Market characteristics across diverse cultures must be compared for similarities and differences before a company proceeds with a global marketing strategy.
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Multicultural research involves dealing with countries that have different languages, economies, social structures, behavior, and attitude patterns. When designing research to be applied across diverse cultures, comparability and equivalency of results becomes significant. Adaptations may be necessary in research designs or methodology to ensure reliability of data gathered in cross-national research. Research on the Internet For many companies the Internet provides a new and increasingly important medium for conducting a variety of IMR. New product concepts and advertising copy can be tested over the Internet to provide immediate feedback. Worldwide consumer panels have been created to help testmarketing programs across international samples. Problems in analyzing and interpreting research information Both secondary and primary data collected are subject to several limitations, and this information, thus, cannot be accepted at face value. The meaning of words, the consumers attitude towards a product, the interviewers attitude or the interview situation can distort findings. To cope with these problems, the researcher must possess three capabilities:

1. Possess a high degree of cultural understanding of the market 2. Possess a creative talent in adapting research findings 3. Must be skeptical in handling both primary and secondary data. These essential traits suggest that a foreign market researcher should be a foreign national or should be advised by a foreign national who can accurately appraise the data collected in the light of local environment, thus validating secondary as well as primary data. Responsibility for conducting Market Research Responsibility for conducting research lies with the Head of International Operations or any other Executive assigned to the research function. Depending on the size and degree of involvement in foreign marketing, a company can rely on an outside foreign-based agency or on a domestic company with a branch in the subject country, to work in conjunction with the firms own research department. A trend towards decentralization of the research function is apparent in international marketing. Communicating with Decision Makers What is important is not only conducting research, but also to convey the results to the management for decision making. Decision-makers, in fact, should be directly involved in the entire process, from problem definition and question formulation, to field surveys and getting a feel of the market.

Researching Competitors Multinationals are faced with competition from domestic, as well as other foreign competitors. It is important to judge the strategic importance of the market for he competition and the strategic intent of the competitors operating there. Competitive Signaling The technique helps marketers to judge what competitors next move may be, and thereby help them to adjust their own marketing programs. Multinational Marketing Information System Increased marketing activity by domestic and multinational firms has generated not only more data but also a greater awareness of its need. As firms become more established, their information needs shift from those necessary to make initial investment decisions to those necessary for continuous operation. Multinational companies place greater emphasis on a continuous system designed to generate, store, catalog, and analyze information from sources within the firm and external to the firm for use as the basis of worldwide and country-oriented decision making.

MMIS Defined MMIS is an interacting complex of persons, machines, and procedures designed to generate an orderly flow of relevant information for corporate decision-making. An MMIS can be designed as a basic system that provides only a source of information, or as a highly sophisticated system that includes specific decision models. In short, market research function has its basic objective the task of providing management with information for more accurate decision-making. **********