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Notes on Researching and Analysing Overseas Markets
Objectives of global marketing research
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Effective global marketing requires continued market analysis both prior to
entry to a country/market, and afterwards to maintain awareness of
opportunities and threats.
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The main objectives of global research are to:
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
identify new markets

distinguish cheaper resources

spot trends in the marketing mix
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observe changes in needs
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analyse competitive behaviour
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recognise new products opportunities
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monitor the environment
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collect information for decision making.
Measurable aspects that you might expect to be outcomes from meeting
research objectives include:

Identification of new or revised product and service ideas.

Identification of benefits that the products/services will o ffer.

Identification of target markets.
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An outline timing schedule.
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Anticipated sales of new products/services.
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Anticipated costs of new products/services.
Global marketing research and opportunity analysis
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In gathering information the fundamental questions that the global market
researcher aims to answer include:

Where to go.
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How to get there.
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What to market.
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How to persuade people to buy it.
Primary tasks of the global marketing researcher
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There are six key tasks:
1.
Identify whether the market is accessible
2.
Identify the size of the market
3.
Identify whether the market will be profitable.
4.
Identify and analyse the opportunities.
5.
Build marketing information systems.
6.
Carry out detailed studies for developing strategies.
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Key outcomes from the researcher’s primary tasks include:
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Description of the market and its customers.
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Definition of potential customers’ needs.
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Recognition of why potential customers would choose us.
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Identification of what distinguishes us from the competition.
Information sources
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There is often too much information rather than too little.
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As a rule the organisation is already in possession of a considerable amount
of information but it requires categorising.
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There are four main categories of sources of information:
1.
Human.
2.
Direct.
3.
Documentary (or secondary).
4.
Public domain.
Global marketing information system
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Having uncovered an opportunity it is essential to monitor the progress of the
organisation, its competitors and any changes in the consumers demands.
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A marketing information system enables the organisation to monitor its
efforts and gain an early warning of any problems.
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A popular systematic method uses the 12 ‘C’s which are:
1.
Country – basic data.
2.
Choices – analysis of supply.
3.
Competition – concentration, structure of the market, segments etc.
4.
Culture.
5.
Consumption – demand, market share.
6.
Capacity to pay – pricing, conditions of payment.
7.
Currency – stability, exchange controls.
8.
Channels – purchasing behaviour, intermediaries, and coverage of
distribution.
9.
Commitment – access to market, incentives and barriers, government
regulations.
10.
Communication – promotion, cost of promotion.
11.
Contractual obligations – business practices, insurance, legal
obligations.
12.
Caveat – factors to beware of.
The global marketing research process
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In considering a marketing research programme the OPAR model may prove
useful. OPAR stands for Objectives, Planning, Action, and Review.
Research techniques
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There are three popular techniques for market research:
1.
Comparative analysis
2.
Regression analysis
3.
Cluster analysis
Market classification
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Markets may be classified in a number of ways, including, by importance (or
extent of opportunity) and by stage of development.
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The three distinctions made by importance are:
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1.
Primary markets.
2.
Secondary markets.
3.
Tertiary markets.
The three distinctions made by stage of development are:
1.
Existing.
2.
Potential.
3.
Incipient.
Market segmentation systems
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The two leading systems are:
1.
ACORN for use in the UK.
2.
EUROMOSAIC for use in Europe.
Patterns of demand
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One of the goals of research in trying to uncover opportunities is to examine
demand. It is the size and nature of demand that is important.
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The demand for products is not always positively correlated to income.
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As income goes up it is unlikely that demand will rise by the same proportion.
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The measure of responsiveness of demand to changes in income is called
income elasticity.
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This may be measured using the following equation:
% change in quantity demand divided by the % change in income.
Problems In global marketing research
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The specific problems include:

Cost.
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Definition of the product.
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Frame sample.
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Non-response.
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Cultural taboos.
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Low literacy levels.
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Language problems.
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Comparability.
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Secondary data problems.