Imm unit-02 (global marketing research)

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By :

Prof. Amit Kumar

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International marketing has become a major concern for business schools to develop global strategies to lead and sustain in the much expanded and

competitive arena. Liberalization thus catalyzing market competition, poses challenge for the

managers in handling the rigors of expanding global marketplace.

Syllabus aims at providing contemporary knowledge & skills on issues of global

marketing management.

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Importance of this course

Global Marketing Management

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Course: Global Marketing Management

1. Framework of Global Marketing Management

2. Global Marketing Research

3. Decision Making in International Marketing

4. Foreign Market Entry & Export Marketing

5. Product Planning & Development

6. Global Pricing Strategies

7. Global Distribution System

8. Promoting Product Internationally

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Global Marketing Management

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Global Marketing Management Global Marketing Research

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Contents• Challenges in Global Marketing Research• Introduction of New Coke: The Classic Marketing Blunder• Objectives of GMR• Cross-Cultural Marketing Behavior & Research• Implication of Religion in GMR• Global Marketing Research Process• Multicultural Research : A Special Problem• Research on the Internet: A Growing Opportunity• Websites for International Marketing• Case: Gillette’s Marketing Research in Sri Lanka

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Marketing Research

• Marketing research is the systematic gathering, recording, and analysis of data about issues relating to marketing products and services.

• The goal of marketing research is to identify and assess how changing elements of the marketing mix impacts customer behavior.

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Global Marketing Research

• GMR involves carrying out research across the borders to gain insight into various cultures.

• International Marketing Research follows the same path as domestic research, but there are a few more problems that may arise.

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Challenges: Global Marketing Research

• Customers in international markets may have very different customs, cultures, and expectations from the same company.

• In this case, secondary information must be collected from each separate country and then combined, or compared. This is time consuming and can be confusing.

• International Marketing Research relies more on primary data rather than secondary information. Gathering the primary data can be hindered by language, literacy and access to technology.

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Marketing Blunders: A case of Coca Cola

• Market Research plays a critical role in determining the success or failure of international marketing decisions.

• Even companies enjoying one of the highest brand equities in the world like Coca Cola made classic marketing blunders due to shortcomings in conducting marketing research.

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Reason of Failure: Coca ColaThe basic reasons for market failure of new coke were primarily due to shortcomings in conducting market researchas summarizes under:

• The results of the research were solely based on blind tests but the participants were not aware of that they are choosing a new flavor which would mean that they would lose the other.

• The research overlooked the emotional attachment of the consumers with Coke’s 100-years formula.

• The group of respondents for the blind test was young who generally prefer sweet taste. However, the taste for sweet things diminishes with age.

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Final Decision: Coca Cola

On 23 April 1985 the company withdraw its age-old Coke from the market and introduced

a new Coke formula. The company had to withdraw its decisions within four months and

had to re-introduce the classic Coke.

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Ice Tea in India

Unilever introduced ice tea in India after seeing the success of this brand in various other

countries like the US. Although this concept was successful in other countries, it failed in India primarily due to poor market research.

• The introduction of the product was based on the fact that 60% of the people in other countries like ice tea. It was envisaged that India being a tropical country with a much longer summer season, people would prefer ice tea.

• However, Unilever faltered in the fact that in India most of the people are fond of hot tea.

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Kraft Introduced Orange Drink: Tang

Kraft introduced an orange energy drink concentrate Tang in India few years ago on

the basis of the findings of an extensive market research which indicated there was an identified need for an energy drink like Tang.

• Kraft India, a 100% subsidiary of Phillip Morris, US, accordingly went ahead and launched Tang in India. It tied up with Dabur for its distribution.

• The product however failed miserably in local markets. The prime reason for the failure of Tang was its comparatively higher prices in relation to other energy drink substitutes like Glucon-D.

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Brands that did not Diffuse in India1 Hina peas frozen green peas from

HLL (sixties)Ahead of time?

2 Merlin Home Theatre (eighties) Ahead of time?

3 An apple drink from Cadbury (eighties)

Ahead of time?

4 Dollops Ice Cream Positioning problems?5 Greatshake-the soya drink

from Godrej Cultural habits?

6 Nikytasha 3D TV Competitive advantage?

7 Paltab tablet-based soft-drink Boots (sixties)

Was there a need at from all?

8 Four-stroke scooters (Legend & Spectra)

Value proposition/ CA

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Major Objectives of Global Marketing Research

• To carry out country screening and selection• To evaluate a country’s market potential• To identify problems that would not require a country’s

listing for further consideration• To identify aspects of country’s environment that needs

further study• To evaluate the components of marketing mix for possible

adoption• To facilitate in developing a strategic marketing plan

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Major Challenges to Successful Global Marketing Research

Researcher should aware of the challenges…

• Overlooking cross-cultural market behavior• Employing standardized research methodologies across

the international markets• Using English as a standard language for market

communication• Inappropriate sample selection• Misinterpretation of cross-country data• Failure to use locals to conduct field surveys

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Cross-Culture Marketing Behavior & Research

Cultural aspects need to be examined while preparinginternational marketing research plan.

• A nod means no in Bulgaria, and shaking the head from side to side means yes.

• The ‘okay’ sign means zero in France, is a symbol for money in Japan & carries a vulgar connotation in Brazil.

• Never touch the head of a Thai in Thailand.• Avoid using a triangular shapes in Hong Kong.• Number 7 is bad in Kenya, good in Czechoslovakia.• Red is a positive color in Denmark, but it represents

witchcraft and death in many African countries.

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Implication of Islam (Religion) in International Marketing Decisions

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Elements Implications for MarketingUnity (Concept of centrality, oneness of God, harmony in life)

Product standardization, mass media techniques, strong brand loyalties, opportunities for brand-extension strategies

Legitimacy (Fair dealings, reasonable level of profits)

Less formal product warranties, switch from profit maximizing to profit satisfying strategy

Zakaat (2.5% per annum compulsory tax binding to all)

Use of excessive profit for charitable acts, Corporate donation for charity

Usury (Cannot charge interest on loan)

Avoid direct use of credit as a marketing tool, establish a consumer policy of paying cash for low-value products, for high value product offer discounts for cash payments and raise prices of products on an installment basisBanks take equity in financing ventures

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Process of International Marketing Research

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Problem Identification

Decide Research Methodology

Workout Information Requirement

Identify Source of Information

Prepare Research Design

Collect & Analyze the Information

Evaluate & Interpretation

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It has to be as precise as possible.

• Whether to remain in domestic market or enter into international markets

• Product identification for the international markets• Deciding international markets for entry• Deciding upon mode of entry• Decisions related to international marketing mix• Decisions for implementing and controlling the

international marketing plans

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Deciding Research Methodology

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Marketing Mix Decision Type of Research

Product Policy Focus groups and qualitative research to generate ides for new productsSurvey research to evaluate new product ideasConcept testing, test marketing

Pricing Policy Pricing sensitivity studies

Distribution Study on shopping pattern and behaviorConsumer attitude towards different store formatDistributor attitudes and policies

Advertising Advertising pre-testing

Sales promotion Survey of response to alternative type of promotion

Sales force Test of alternative sales presentations

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Working out Information Requirement

Decision regarding domestic or enter international…• Analyzing basic trade statistics related to firm’s product• Assessment of international market demand• Competitiveness of firm’s product

Estimating market size• Total sales in the market: last 3 years growth rate• Total imports of the product into the country• Domestic production• Balance of payment: last 3 years• Foreign exchange reserves: trend and present amount

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Working out Information Requirement

Accessing market access• Import Policy: Control mechanism• Import licensing: banned, restricted, open• Tariff regime: ad valorem, specific, MFN, preferential• Exchange rate: convertible, non- convertable

Market Selection• Political Risks and relationships with India• Cultural affinity• Communication facilities• Logistics & other marketing-mix decisions

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Process of International Marketing Research

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Decide Research Methodology

Workout Information Requirement

Identify Source of Information

Prepare Research Design

Collect & Analyze the Information

Evaluate & Interpretation

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Identify Sources of Information

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Information Examples of SourcesImport Statistics UN, OECD trade statistics

Tariff & Quotas Embassies, Chamber of Commerce

Currency restrictions Banks, Embassies

Economic Situation IMF, Banks, Financial Journals

Political situation Press Reports

Consumption Trade associations, trade journals

Transport cost Freight forwarders

Prices Catalogues and price lists

Geographic features Atlases, Encyclopedias

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Preparing Research Design

• Research design is the specification of methods and procedures for acquiring the information needed to structure or solve problems.

• It includes an outline of what a researcher will do from the stage of writing the hypothesis and its operational implications to the final analysis of data.

Types of Research Design

1. Exploratory Research2. Descriptive Research3. Causative Research

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Methods of Collecting Primary Data

There are two principal methods of collecting primary data:

1. Observation2. Survey Questions

In case of observation, respondents are visually observed, regardless of whether they realize it or not.

When the survey question method is used, respondents areasked certain questions relating to their characteristics or

behavior.

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Methods of Collecting Primary Data1. Observation

In addition to the consumer interviews, Toyota’s product teams attended a cocktail party at a Huston country club and learned that car owners preferred

a distinctive grille that made the car more impressive when brought to the door by a valet. The teams also measured how close cars were parked

to one another at the ball parks, leading the company to implement sliding doors instead of

swing-open doors in its minivans.

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Methods of Collecting Primary Data1. Observation

By observing that adults take their children along when shopping and return to the car

with their arms full, Toyota realized the need to have an easy-to-open door

mechanism that also opens the trunk.

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Methods of Collecting Primary Data

2. Questioning

• Personal Interview (Language problem, interview style and technique need to be adjusted)

• Telephonic Interview

• Mail Questionnaire (Survey)

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Multicultural Research: A Special Problem

Multicultural research involves dealing with countries that have different languages,

economies, social structures, behavior, and attitude patterns.

These differences must be taken into account in the design of a multicultural survey & different

research methods should be applied in individual countries.

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Multicultural Research: Example

• In Latin American countries it may be difficult to attract consumers to participate in either focus groups or in-depth interviews because of differences in the value for time.

• Japanese, compared with American businesspeople, tend not to respond to mail surveys.

• For the Indian firm, participants in a sales training program were asked to complete the questionnaires during the program.

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Research on the Internet: A growing Opportunity

For many companies the internet provides a new and increasingly important medium for conducting a variety of

international marketing research.

New product concepts and advertising copy can be tested over the internet for immediate feedback.

Worldwide consumer panels have been created to help test marketing programs across international samples.

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Research on the Internet: A growing Opportunity

It has been suggested that there are at least eight differentuses for the internet in international research:

1. Online survey and buyer panels2. Online focus group3. Web visitor tracking4. Advertising measurement5. Customer identification systems6. E-mail marketing lists7. Embedded research8. Observational research

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Websites for International Marketing1. www.stat-usa.gov2. www.ita.doc.gov3. www.usatradeonline.gov4. www.census.gov5. www.cia.gov6. www.customs.ustreas.gov7. www.opic.gov8. www.exim.gov9. www.imf.org10. www.oecd.org11. www.euromonitor.com12. www.worldchambers.com13. www.ipl.org14. www.world.wtca.org15. www.worldtrademag.com

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Date post:	07-Apr-2017
Category:	Leadership & Management
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Imm unit-02 (global marketing research)

Leadership & Management