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International Marketing Research:
Practices and Challenges
Dana-Nicoleta Lascu
Chapter 6
Copyright Atomic Dog Publishing, 2008
Chapter Objectives
• Define international marketing research and provide a
description of its immense scope; offer examples of
each type of research conducted in international
marketing.
• Describe the steps involved in the international
marketing research process while addressing the
international constraints involved in each step.
• Introduce the concept of decision support systems for
international marketing and the sales forecasting
process.
Copyright Atomic Dog Publishing, 2
2008
International Marketing Research
International marketing managers need to constantly
monitor the different forces affecting their
international operations.
International marketing research is the systematic
design, collection, recording, analysis, interpretation,
and reporting of information pertinent to a particular
marketing decision facing a company operating
internationally.
Copyright Atomic Dog Publishing, 2
2008
Research of Industry, Market
Characteristics, and Trends
• Conducted by marketing research suppliers and
shared with subscribers.
• Research techniques range from formal to
informal methods.
• Examples:
 Acquisition analyses
 Diversification analyses
 Market-share analyses
 Export research
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2008
International Buyer Behavior
Research
•
•
•
•
•
Brand preferences
Brand attitudes
Brands awareness studies
Purchase behavior studies
Consumer segmentation studies
Purchase behavior research will
reveal that Eastern European
consumers prefer to purchase
sweets in elegant small bakeries
such as the one in the photograph.
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2008
International Product Research
• Concept development and testing studies:


Typically performed in developed countries by the firms'
research and development departments.
Evaluates the product/service offering in light of the
divergent needs of different target markets.
• Brand name generation and testing:

Ensures that the brand name has appropriate meaning in
the different languages of the target markets.
• Product testing:

Identifies the extent to which the product conforms to local
tastes and performs as expected in the local environment.
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2008
International Product Research
(contd.)
• Product packaging design studies:

Evaluate:
- Consumers' reaction to the package
- The extent to which the package adequately
communicates information to the consumer
- The distribution implications of the packaging decisions.
• Test marketing:

Involves testing the product’s performance in a limited area
to project its performance in the entire target market.
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2008
International Distribution Research
•
Import/export analyses:

•
Channel performance and coverage:

•
Analyses that aid firms in identifying the logistics companies
most able to handle paperwork and to move the products
through customs in a timely and cost-effective manner; can
be crucial to the success of the firm in a particular market.
Used to identify which channels need to be used or further
developed by the company, or which types of channels are
predominant in a particular industry or region.
Plant/warehouse location studies:

Evaluate the transportation and warehousing infrastructure
in a particular target country.
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2008
International Promotion Research
• Allows the firm to evaluate the extent to which the
promotional mix effectively targets the market.
Examples:




Studies of premiums, coupons, and deals:
- Identify practices in each country and determine the
legality of using promotions and consumers’ response.
Advertising effectiveness research:
- Examine the effectiveness of ads aimed at individual
markets.
Media research:
- Determines media availability and which communication
channels are the most effective.
Sales force compensation, quota, and territory studies:
- Help determine the appropriate strategies for different
markets.
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2008
International Pricing Research
•
•
•
•
Studies projecting demand
Currency and countertrade studies
Studies of inflation rates and pricing
Studies of negotiation tactics
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Types of Research

Exploratory Research:
- Research conducted early in the research process that
helps further define a problem or identify additional
problems that need to be investigated.

Descriptive Research
- All research methods observing or describing
phenomena.

Causal Research
- Research that examines cause-and-effect relationships.
Copyright Atomic Dog Publishing, 2
2008
The International Marketing Research
Process
• STEP 1 Define the international marketing research
problem and research objectives

International marketers must define a specific research
problem and set specific research objectives, such as
deciding on whether to use exploratory, descriptive, or causal
research.
• STEP 2 Develop the international research plan



Blueprint of the study.
Indicates all the decisions to be made with regard to
information sources, research methods, data collection
instruments, sampling procedures, data collection methods,
and data analysis.
Determines the projected cost of the research.
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2008
The International Marketing Research
Process, continued
• STEP 3 Decide on the information sources:
• Secondary Data:


Collected to address a problem other than the specific
international marketing problem that the company is currently
facing.
Collected before the primary data.
• Primary Data:

Collected to address the specific international marketing
problem.
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2008
Secondary Data Constraints
• Conceptual Equivalence
- Concepts have
different meanings
in different cultural
environments.
A mall in many European
countries is a covered shopping
street in the center of downtown
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2008
Secondary Data Constraints, continued
• Functional Equivalence
- Products themselves
may be used for
different purposes in
different country
environments.
Shopping bags are discarded in the
United States; in other countries they
are used to signal style and/or personal
wealth, travel experiences, etc.
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2008
Secondary Data
• Availability, Reliability, and Validity
- Published statistics may be unavailable – in
many markets, relevant market data has not
been collected; the most accurate secondary
data is available on industrialized countries.
- Data may not be reliable and valid – data may
be underreported or exaggerated.
Copyright Atomic Dog Publishing, 2
2008
Top 10 Global Marketing Research Firms
Rank
1
2
3
4
5
6
7
8
9
10
Company
VNU NV
Taylor Nelson Sofres plc
IMS Health Inc.
GfK AG
The Kantar Group
Ipsos Group SA
Information Resources Inc.
Synovate
Westat Inc.
Arbitron Inc.
Home
Country
Research
Revenues
(US$ millions)
Netherlands
U.K.
U.S.
Germany
U.K.
France
U.S.
U.K.
U.S.
U.S.
3,537.90
1,802.73
1,754.84
1,311.35
1,237.26
964.67
624.80
602.99
420.41
310.00
Source: Adapted from “Top 25 Global Research Organizations,” Marketing
News, Vol. 40, No. 10, August 15, 2006, p. H4.
Copyright Atomic Dog Publishing, 2
2008
Primary Data
• Used in international marketing research far less
than it should be: temptation is to use secondary
data to serve all research functions.
• Expensive: The costs of collecting primary data in
international markets are likely to be much higher,
especially if an adequate marketing research
infrastructure is lacking.
• Time consuming.
Copyright Atomic Dog Publishing, 2
2008
Qualitative Research
• Qualitative research has been particularly useful as
a first step in studying international marketing
phenomena.

Examples:
- Focus Groups.
- Observation.

Constraints:
- Responses can be affected by culture.
- Individuals may act differently if they know they are being
observed.
Copyright Atomic Dog Publishing, 2
2008
Quantitative Research
• Quantitative research are more structured, involving
either descriptive research approaches, such as
survey research, or causal research approaches,
such as experiments.

Examples:
- Content Analysis
- Survey Research
- Experimental Research

Constraints:
- Respondent factors
- Infrastructure factors
Copyright Atomic Dog Publishing, 2
2008
The International Marketing Research
Process, continued
• STEP 5 Design Data Collection Instrument

Emic instruments
- measure phenomena specific to each culture.
Etic instruments
- measure the same phenomenon in different
cultures.

Constraints:

- Translation costs and accuracy
- Instrument reliability
- Reluctance to answer certain questions
Copyright Atomic Dog Publishing, 2
2008
The International Marketing Research
Process, continued
• STEP 6 Decide on the Sampling Plan

The sampling plan involves deciding:
- The sampling unit (who will be included in the study).
- The sample size (how many individuals or groups, such
as households, will be surveyed).
- The sampling procedure (how the sampling units will be
selected).
• STEP 7 Collect, Analyze, and Interpret Data

Consists of collecting the primary data, evaluating
and interpreting the results, and writing the report.
Copyright Atomic Dog Publishing, 2
2008
Decision Support Systems
for Global Marketing
• A coordinated collection of data, systems, tools, and
techniques, complemented by supporting software
and hardware designed for the gathering and
interpretation of business and environmental data.
Copyright Atomic Dog Publishing, 2
2008
Sales Forecasting
• Sales Force Composite Estimates
 Personal observations and expectations of the
local sales force and the international sales
manager.
• Jury of Expert Opinion
 Opinions of different experts about future demand.
• The Delphi Method
 Experts to estimate market performance; findings
are aggregated, and experts are queried again with
the purpose of arriving at consensus.
Copyright Atomic Dog Publishing, 2
2008
Sales Forecasting (contd.)
• Time Series and Econometric Models
 Use data of past performance to predict future
market demand.
• Analogy Methods
 Estimation method that relies on developments
and findings in markets…
- with similar levels of economic development, or
- where the product is in the same market
development stage, or
- in markets which share similar cultural
characteristics
Copyright Atomic Dog Publishing, 2
2008
Sales Forecasting, continued
• Point of Sale Projections
 Made with the help of store scanners or retail
reports, in markets where scanners are not
available.
- Weekly or biweekly store audits are needed in
order to reveal the movement of goods within
the store and from warehouses.
- Involve comprehensive store audits.
Copyright Atomic Dog Publishing, 2
2008
Chapter Summary
• Defined international marketing research.
• Described steps involved in the international
marketing research process and related
international constraints.
• Discussed marketing decision support systems
and international sales forecasting.
Copyright Atomic Dog Publishing, 2
2008