Slide 1Breadth and Scope of International Marketing ResearchTop 20 Countries for Marketing Research Expenditures (millions of dollars)The Research ProcessProblems of Availability and Use of Secondary DataProblems of Gathering Primary DataSlide 13Slide 14Problems of Gathering Primary Data (cont’d)Research on the Internet: A Growing OpportunityPersonal Computer Diffusion Rate (per 1,000 people)Personal Mobile Phone Diffusion Rate (per 1,000 people)Problems in Analyzing and Interpreting Research InformationResponsibility for Conducting Marketing ResearchSlide 23Managing the Cultural Barrier in International Marketing ResearchDeveloping A Global Vision Through Marketing Research8 - 4Breadth and Scope of International Marketing Research•Research can be divided into three types based on information needs:-General information about the country, area, and/or market-Information necessary to forecast future marketing requirements by anticipating social, economic, consumer, and industry trends within specific markets or countries.-Specific market information used to make product, promotion, distribution, and price decisions and to develop marketing plans.•Unisys Corporation’s planning steps for collecting and assessing the following types of information:1. Economic2. Cultural, sociologist, and political climate3. Overview of market conditions4. Summary of the technological environment5. Competitive situation8 - 5Top 20 Countries for Marketing Research Expenditures (millions of dollars)•Insert Exhibit 8.18 - 6The Research ProcessCareful Planning is Required to Avoid Colliding with Mountains8 - 9Problems of Availability and Use of Secondary Data•Availability of data-Most countries simply do not have governmental agencies that collect on a regular basis the kinds of secondary data readily available in the U.S.-Researchers’ language skills•Reliability of data-Official statistics are sometimes too optimistic, reflecting national pride rather than practical reality, while tax structures and fear of the tax collector often adversely affect data.•Comparability of data-In other countries, especially those less developed, data can be many years out of date as well as having been collected on an infrequent and unpredictable schedule.-Too frequently, data are reported in different categories or in categories much too broad to be of specific value.8 - 12Problems of Gathering Primary Data•Ability to communicate opinions-It is difficult for a person to formulate needs, attitudes, and opinions about goods whose use may not be understood, that are not in common use within the community.•Gerber•Willingness to respond-Cultural differences-The role of the male, the suitability of personal gender-based inquiries, and other gender-related issues can affect willingness to respond.•Sampling in field surveys-The greatest problem in sampling stems from the lack of adequate demographic data and available lists from which to draw meaningful samples.8 - 13Problems of Gathering Primary DataLanguage Complexities – Indian 20-Rupee Note (13 languages + English)8 - 14Problems of Gathering Primary DataJapanese Students learning one of the 15,000 kanji characters8 - 15Problems 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•Language and comprehension-The most universal survey research problem in foreign countries is the language barrier.-Literacy poses yet another problem-Marketers use three different techniques to help ferret out translation errors ahead of time.•Back Translation•Parallel Translation•Decentering8 - 17Research on the Internet:A Growing Opportunity•One billion users in more than 200 countries•International Internet use is growing almost twice as fast as American use.•Eight different uses for the Internet in international research:-Online surveys and buyer panels-Online focus groups-Web visitor tracking-Advertising measurement-Customer identification systems-E-mail marketing lists-Embedded research-Observational research8 - 19Personal Computer Diffusion Rate (per 1,000 people)8 - 20Personal Mobile Phone Diffusion Rate (per 1,000 people)8 - 21Problems 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.8 - 22Responsibility for Conducting Marketing Research•A company in need of foreign market research can rely on an outside foreign-based agency or on a domestic company with a branch within the country in question.•A trend toward decentralization of the research function is apparent.•A comprehensive review of the different approaches to multicountry research suggests that the ideal approach is to have local researchers in each country, with close coordination between the client company and the local research companies.•Two stages of analysis are necessary:-Individual-country level-Multi-country level8 - 23Responsibility for Conducting Marketing ResearchIndependent Foreign Firms, Branches of a Domestic Company or Internal Resources8 - 25Managing the Cultural Barrier in International Marketing Research•Insert Exhibit