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Global
Information
Systems and
Market Research
Global Marketing
Chapter 6
Introduction
• Understand the importance of information
technology and marketing information
systems
• Utilize a framework for information scanning
and opportunity identification
• Understand the formal market research
process
• Know how to manage the marketing
information collection system and market
research effort
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Information Technology for
Global Marketing
• Information Technology refers to an
organization’s processes for creating, storing,
exchanging, using, and managing information
• Management Information Systems provide
managers and other decision makers with a
continuous flow of information about company
operations.
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• An MIS should provide a means for
gathering, analyzing, classifying, storing,
retrieving, and reporting relevant data. The
MIS should also cover important aspects of
a company's external environment,
including customers and competitors.
• Global competition intensifies the need for
an effective MIS that is accessible
throughout the company.
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Tools of MIS
• Intranet
• Electronic Data Interchange (EDI)
• Efficient Consumer Response System
(ECR)
• Electronic point of sale
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Intranet
• An intranet is a private network that
allows authorized company personnel or
outsiders to share information
electronically in a secure fashion.
• 24-Hour Nerve Center
• Allows companies like Amazon.com and
Dell to operate as real time
enterprises
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Electronic Data Interchange
• Allows business units to:
– Submit orders
– Issue invoices
– Conduct business electronically
• Transaction formats are universal
• Allows computers from different
companies to speak the same language
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Efficient 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 customers
• This is in addition to EDI
• An effort for retailers and vendors to work closely
on stock replenishment
• ECR systems utilize electronic point of sale
(EPOS) data gathered by checkout scanners.
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Customer Relationship
Management
• A new business model that helps companies
collect, store, and analyze customer data is
customer relationship management (CRM).
• CRM is a philosophy that values two-way
communication between company and customer.
• Every point of contact with a consumer is an
opportunity to collect data
• Can make employees more productive and
enhance corporate profitability
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• CRM tools allow companies such as Credit Suisse,
AT&T, and Hewlett-Packard to determine which
customers are most valuable and to react in a
timely manner with customized product and
service offerings that closely match customer
needs.
• If implemented correctly, CRM can make
employees more productive and enhance
corporate profitability; it also benefits customers
by providing value-added products and services.
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• A visitor to Amazon.com who buys a U2 CD
encounters CRM when he or she is prompted by
the message "Customers who bought this title
also bought “Bruce Springsteen’s “Working on a
Dream.”
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Data Warehouses
• Integral part of CRM
• Help fine-tune product
assortments for
multiple locations
• Enhance the ability of
management to
respond to changing
business conditions
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Organizational IT Necessities
• An efficient, effective system that will scan
and digest published sources and technical
journals
• Daily scanning, translating, digesting,
abstracting, and electronic input of
information into a market intelligence system
• Expanding information coverage to other
regions of the world
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Sources of Market
Information
• Personal sources
– Company executives based abroad who have
contact with distributors, consumers, suppliers,
and government officials
– Friends, acquaintances, professional colleagues,
consultants, and prospective employees
• Direct sensory perception
– Using the senses to find out firsthand what is
going on in a particular country
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Formal Market Research
• Global Marketing Research is the
project-specific, systematic gathering of
data in the search scanning mode on a
global basis
– Challenge is to recognize and respond to
national differences that influence the way
information is obtained
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• Marketing Research is defined as “the activity
that links the consumer, customer, and public to
the marketer through information
• Global market research is the marketing research
activity carried out on a global scale.
• The challenge of global marketing research is to
recognize and respond to the important national
differences that influence the way information
can be obtained. These challenges include:
cultural, linguistic, economic, political, religious,
historical, and market differences.
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Leading Global Market
Research Companies
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Steps in the Research Process
1.
2.
3.
4.
5.
6.
7.
8.
Identify the information requirement
Define the problem
Choose a unit of analysis
Examine data availability
Assess value of research
Design the research
Analyze the data
Present the findings
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Step 1: Identifying the
Information Requirement
• Formal research is often undertaken after a
problem or opportunity has been identified.
• The first two questions a marketer should
ask are:
• “What information do I need?”
• “Why do I need this information?”
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Step 2: Problem Definition and
Overcoming the SRC
• Self-Reference Criterion occurs when a
person’s values and beliefs intrude on the
assessment of a foreign culture
• Must be aware of SRC’s
– Enhances management’s willingness to conduct
market research
– Ensures that research design has minimal homecountry bias
– Increases management’s receptiveness to findings
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• When approaching global markets, it is best to
have “eyes wide open.” In other words,
marketers must be aware of the impact that SRC
and other cross-cultural assumptions can have.
• Such awareness can have several positive effects.
• First, it can enhance management’s willingness
to conduct market research in the first place.
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• Second, an awareness of SRC can help ensure that the
research effort is designed with minimal homecountry or second-country bias.
• Third, it can enhance management’s receptiveness to
accepting research findings—even if they contradict
“tried and true” marketing experience in other
markets.
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• When the Walt Disney Company opened
Disneyland Paris, park employees were
expected to comply with a detailed written
code regarding personal appearance.
• The goal was to ensure that guests receive
the kind of experience associated with the
Disney name. However, the French
considered the code to be an insult to
French culture, individualism, and privacy.
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Step 3: Choose a Unit
of Analysis
• Will the market be:
– Global
– A region
– A country
– A province
– A state
– A city
Lisbon
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• The next step involves the need to identify what
part(s) of the world the company should be doing
business and finding out as much as possible
about the business environment in the area(s)
identified.
• The unit of analysis may be a single country; it
may be a region such as Europe or South America,
or it may be global (see Table 6-2).
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• Are countrywide data required for all market
entry decisions?
• Countrywide data are not required for all market
entry decisions. Rather, a specific city, state, or
province may be the relevant unit of analysis.
• For example, a company that is considering entering China
may focus initially on Shanghai. Located in the Jiangsu
province, Shanghai is China’s largest city and main
seaport. Because Shanghai is a manufacturing center, has
a well-developed infrastructure, and is home to a
population with relatively high per capita income, it is the
logical focus of a market research effort.
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Step 4: Examine
Data Availability
• Sources may be:
– Company’s records
– Secondary sources
• Trade journals
• Government sources like CIA World Factbook,
Statistical Yearbook of the UN, World Bank
• Commercial sources like The Economist and
Financial Times, Marketresearch.com
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• The first task at this stage is to answer several
questions regarding the availability of data. What
type of data should be gathered?
• Can secondary data – for example data available
in company files, a library, industry or trade
journals, or online be used??
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Step 5: Assess Value
of Research
• Research requires investment of both money and
managerial time, and it is necessary to perform a
cost-benefit analysis before proceeding further.
• 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?
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Step 6: Research Design—
Research Methodologies
• Primary Data
Collection
Methods
– Survey research
– Interviews
– Consumer panels
– Observation
– Focus groups
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• Research requires investment of both money and
managerial time, and it is necessary to perform a
cost-benefit analysis before proceeding further.
• Next, the decision must be made to use
quantitative techniques (numerical data that can
be subjected to statistical analysis) or qualitative
techniques (non-numerical data).
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What is the difference between Existing
Markets and Potential Markets?
• Existing markets are those in which customer
needs are already being served by one or more
companies.
• Potential markets are those where no market
currently exists and can be subdivided into latent
and incipient markets.
• A latent market is in essence, an undiscovered
segment.
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• In latent markets, initial success is not based on a
company’s competitiveness. Success depends on
the prime mover advantage – a company’s ability
to uncover the opportunity and launch a
marketing program that taps the latent demand.
• An incipient market is a market that will emerge
if a particular economic, demographic, political,
or sociocultural trend continues.
• A company is not likely to succeed if it offers a
product in an incipient market before the trends
have taken root.
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Special Considerations for Surveys
• Benefits
– Data collection from a large sample
– Both quantitative and qualitative data possible
– Can be self-administered
• Issues
– Subjects may not want to answer or intentionally
give inaccurate response
– Translation may be difficult
• Use back and parallel translations to ensure accuracy
and validity
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• A technique known as back translation can help
increase comprehension and validity.
• Back translation requires that, after a
questionnaire is translated into a particular target
language, it is translated once again into the
original by a different translator.
• For even greater accuracy, parallel translations –
two versions by different translators – can be
used as input to the back translation.
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Research Methodologies
• Personal interviews
• Consumer panels
– Nielsen—TV viewing
• Observation
– Using people or
cameras
• Focus groups
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• Survey research utilizes questionnaires designed
to elicit quantitative data (“How much would you
buy?”), qualitative responses ("Why would you
buy?"), or both.
• Survey research obtains data using a
questionnaire distributed by mail, telephone, or
in person.
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• Personal interviews allow researchers to ask
“why?” and then explore answers with the
respondent on a face-to-face basis.
• A consumer panel is a sample of respondents
whose behavior is tracked over time.
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Observation Research?
• When observation is used as a data collection
method, one or more trained observers (or a
mechanical device such as a video camera) watch
and record the behavior of actual or prospective
buyers.
• In focus group research, a trained moderator
facilitates discussion of a product concept, a
brand’s image and personality, advertisement,
social trend, or other topic with a group
comprised of 6 to 10 people.
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Sampling
• When collecting data, researchers generally
cannot administer a survey to every possible
person in the designated group.
• A sample is a selected subset of a population that
is representative of the entire population.
– Probability samples each member of the population
under study has an equal chance—or probability—of
being included in the sample.
– Non-probability samples -One form of
nonprobability sample is a convenience sample –
researchers select people who are easy to reach.
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Step 7: Analyzing Data
• Clean the data
• Tabulate the data
using statistical
techniques—ANOVA,
regression, factor
analysis, cluster
analysis
• Perceptual mapping,
conjoint analysis
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• The data collected up to this point must be
subjected to some form of analysis if it to
be useful to decision makers.
• First, the data must be prepared – the
term cleaned is sometimes used – before
further analysis is possible. Questionnaires
must be coded, and some data adjustment
may be required.
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Presenting the Findings
• Report must
clearly address
problem identified
in Step 1
• Include a memo or
executive
summary of the
key findings along
with main report
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Enhancing Comparability
of Data
• Emic analysis
– Ethnographic in
nature
– Studies culture
from within
– Uses culture’s
own meanings
and values
• Etic analysis
– From the outside
– Detached perspective
that is used in multicountry studies
– Enhances comparability
but minimizes precision
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• A key difference between single country market
research and global market research is the
importance of comparability.
•
• Simply put, comparability, means that the results
can be used to make valid comparisons between
the countries covered by the research. To
achieve this, the company must inject a level of
control and review of marketing research at the
global level.
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• Emic analysis attempts to study a culture from
within, using its own system of meanings and
values.
• Etic analysis is “from the outside”; it is a more
detached perspective that is often used in
comparative or multicountry studies.
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Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
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