Download C. Understanding the Marketing Environment

Chapter 6
Global Marketing Information Systems & Research
I. The Scope of International Marketing Research
A. International research covers
B. Three broad areas of responsibility:
1. Market measurement studies.
2. Competitive studies
3. Environmental studies.
C. International mkg. res. is used to make both strategic & tactical decisions.
1. Strategic 2. Tactical II. The Importance of International Marketing Research
A. The complexity of the int. marketplace, extreme country differences, frequent
lack of familiarity with foreign markets make research so important.
B. Mkg. res. can guide product development for a foreign market.
III. The Comparative Analytic Approach
A. Marketing as a Function of the Environment - the study of the mkg. process in
its relationship to the environment.
B. [McDonald’s Example: In the U.S. tremendous success through an
aggressive, well-structured mkg. mix.
 Product/service design: standardized product of high & consistent
quality emphasizing speed of service & long opening hours.
 Price: low price policy
 Distribution: Placing restaurants primarily in areas where customers
live - suburbs and urban areas
 Promotion: A strong ad campaign that focuses on the cr., particularly
young people, via heavy use of TV promotion.
C. Understanding the Marketing Environment
1. Physical Variables - physical constraints with respect to the conditions
of the product’s use or the physical properties of the particular market.
[McDonald’s:
2. Social Variables - all relevant factors from the social & cultural
background of any given mkg. environment, including cultural
background (race, religion, customs, habits, & languages), educational
system, & social structure (roles, social classes, & reference groups).
[McDonald’s:
3. Economic Variables - Economic considerations affect most
consumption or buying decisions. The international marketer must
isolate the specific income & price variables to arrive at a given
combination, economic event, that affects the success of a given
product or service. [Consuming a meal at a place such as McDonald’s
4. Regulatory Variables - all actions of governments or agencies
influencing business transactions such as commercial law or codes, cr.
protection laws, product liability laws, regulatory agencies (e.g.,
FDA), local regulations, and zoning laws. Regulations do not tend to
stimulate needs or demands for products. Instead, they act in an
enabling manner (or disabling manner, depending on the point of
view) by restricting choices for the int. corporation or prescribing the
nature of its mkg. effort. [TV advertising to reach children was one of
the reasons for McDonald’s success in the U.S.
C. Analyzing Environmental Variables
1. The CA approach is different in that
2. Provides a methodology for marketers
IV. The Research Process
A. The basic approach is the same as for domestic research, but just more
complex. 4 step process:
1. Problem definition
2. Determine sources of info.
3. Collect Data
4. Analysis & presentation of results
B. Problem Definition
1. {e.g.,
C. Determination of Data Sources
1. Usually exhaust secondary data (already collected and available data)
first. (e.g., trade journals, Gov. documents (http://www.census.gov/)
International Statistic Agencies, newspaper write-ups, home pages
2. Secondary
D. Data Collection
1. For secondary sources ask yourself,
2. Other useful sources:
a. International Directory of Published Research, vol. 14
(London: Arlington Management Publications, 1994)
b. Directory of U.S. and Canadian Marketing Surveys and
Services (Kline Publishing, 1994)
c. Findex: Directory of Market Research Reports, Studies and
Surveys, 1995)
3. Particular problems with secondary data:
a.
b.
c.
d.
e.
f.
g.
h.
4. Collecting Primary Data
a. The steps in collecting primary data are the same in domestic
and multinational environments.
b. The challenges include:
c. Surveys must be translated from one language to another,
creating the opportunity for miscommunication.
 In German, a “Body by Fisher”
 Braniff translated to be seated in leather
d.
e.
f.
g.
Back translation Parallel Translation Privacy concerns being raised in EU Focus groups -
V. Research Techniques
A. Demand Analysis - demand for products can be measured at two levels:
aggregate demand, for an entire market or country (market potential), and
company demand, as represented by actual sales (sales potential). Concept by
Richard Robinson views both market & sales potential demand as a filtering
process. Market Potential and Sales Potential Filter
1. Potential Need 2. Felt Need 3. Potential Demand 4. Effective Demand 5. Market Demand 6. Sales Potential -