International marketing research

worldwide merchandising seekIntroductionOne of the just astir(predicate) striking breedings of recent decades has been the globalization of business. The growth of world trade requires to a greater completion info intimately foreign markets and companies which expand into natural and unknown markets must(prenominal) possess the in diversenessation about the demand and conditions of these markets. Companies invade not scarcely into much(prenominal) developed markets as atomic number 63, US and japan, besides overly into the unsteady but growing markets of Latin America, the politic exclusivelyy uncertain markets of the Middle einsteinium and Russia, and the rapidly changing markets of South eastmost Asia and the emerging Afri throw out markets1. The development of new communication and reading technologies change the lifestyle, consumption behavior and purchase patterns of polar nations. All this indicates that the merchandising search in global environment has commence essential.The purpose of this paper is to give commentary of the outside(a)istic market research and describe the f playactors which influence the merchandise research in divers(prenominal) countries. The paper also deals with the timbers of internationalist marketing research ferment and its primary feather(prenominal) categories. The advantages and disadvantages of collecting alternative and primary entropy and mint methods of international marketing research be presented in the paper. Finally, the troubles which may occur in the international marketing research ar summed up.1. merchandising Research in a Global Environment merchandise research practices and techniques bring in become truly global. For example, the worlds largest research unbendable, Nielsen, is headquartered in the U.S. but derives al or so two-thirds of its revenue from after- naturalize(prenominal) the U.S. It is standardizing much of the entropy it routinely collects in 27 asso rted countries. worldwide marketing managers make the same basic sheaths of ratiocinations as do those who ensnarl in l single(prenominal) one country. Of course, they make these decisions in a to a greater extent complicated environment. As with marketing decisions, the basic function of marketing research and the research mould does not differ between domestic and transnational research. However, the process is complicated al some exponentially as much and much(prenominal) countries ar involved in the same decision. The main factors which influence the marketing research in different countries ar1. Cultural differences. Culture refers to astray sh ard norms or patterns of behavior of a large group of people2. It is the valuates, attitudes, beliefs, artifacts and new(prenominal) meaningful symbols represented in the pattern of life adopted by people that suspensor them interpret, evaluate and communicate as members of society3. A extravagantly society which works o n the international market is in need of flummox heathenish aw atomic number 18ness. Cross cultural differences (language, non-verbal communication, different norms and entertains) may source scrape cultural blunders. at that place are examples of cultural blunders in the marketing mix.Product. When a soft drink was launched in Arab countries, it has a label with six-pointed stars. The gross sales were genuinely low as the stars were associated with Israel.Price. An Ameri tummy firm was go awaying to set a reasonable price for the product they intended to sell to the Nipponese. A dilate presentation was made to the Japanese businessmen, but it was followed by a hidden quieten. The Ameri rumps thought that the Japanese were going to reject the price and offered a pooh-pooh price. The Japanese kept silence again. After that the Americans lowered the price again saying that it was the lowest they could sell at. After a brief silence the offer was accepted. Later the Japa nese confessed that the first offered price was quite acceptable, but they had a tradition to think over the offer silently. An American caller suffered great losses in this case. Place. A smart set wanted to immortalize the Spanish market with two-liter drinks bottles and failed. Soon they gear up out that Spaniards choose miserable door fridges and they could not put large bottles into them.Promotion. Pepsico came to Taiwan with the ad have intercourse Alive with Pepsi. They could not imagine that is it translated Pepsi will bring your relatives back from the lifeless into Chinese.2. Racial Differences. This refers to the differences in physical features of people in different countries4. For example, eccentric persons of haircloth cut and cosmetic products differ greatly in motley countries.3. climatic Differences. These are the meteorological conditions much(prenominal) as temperature execute or percentage point of rain. For example, Bosch-Siemens adapted their wash ing machines to the markets they sell. In Scandinavia, where there are rattling fewer sunny days, they sell washing machines with a minimum spin bout of 1,000 rpm and a maximum of 1,600 rpm, whereas in Italy and Spain a spin hertz of 500 rpm is enough.4. Economic Differences. Economic development of various countries is different and when a company introduces a new product it adapts it to that new market. There are factors which show the level of economic development Buying antecedent and revenue of the market. In developed countries with uplifteder income of revenue people prefer complicated product with advanced functions, while in poor countries undecomposable product are preferable. The infrastructure of the market. Such elements of the infrastructure of the country as transport, communication system and others influence the product. When Suzuki entering the Indian market the good luck was rein business leaderd as the state of roads in India is very poor. 5. religious D ifferences. Religion moves the product greatly and makes companies adapt their product to religious norms. If a company exports grocery products to Islamic countries it must have a especial(a) certificate indicating that the animal was slaughtered according to Halal methods. 6. Historical Differences. Historical differences affect the consumer behavior. For instance, Scotch whiskey is considered fashionable in Italy and not very smart in Scotland. 7. Language Differences. The correct translation and language adaptation is very important. For example, when Proctor Gamble entered the Polish markets it translated properly its labels but failed. Later they found out that imperfect language must have been utilise in order to show that the company fits in. Besides the differences mentioned above, there may be differences in the way that products or services are used, differences in the criteria for assessing products or services across various markets and differences in market resear ch facilities and capabilities5.2. outside(a) selling Research Processa. transnational Marketing Research Categories foreign marketing research is the systematic excogitate, disposition, recording, analysis, interpretation, and inform of information pertinent to a expoundicular marketing decision facing a company direct internationally. external marketing managers need to constantly monitor the different forces touch on their international operations6.There are trinity general categories of research establish on the type of information required.Exploratory research deals with discovering the general reputation of the business and the variables that relate to it. Exploratory research is characterized by a high degree of flexibility, and it tends to rely on secondary info, convenience or popular opinion assays, small-scale surveys or simple experiments, case analyses, and subjective evaluation of the results. descriptive research is centre on the accurate description of the variables in the problem model. Consumer profile studies, market- potentiality studies, product-usage studies, attitude surveys, sales analyses, media research, and price surveys are examples of descriptive research. each source of information can be used in a descriptive story, although most studies of this nature rely heavily on secondary entropy sources and survey research.Causal research attempts to specify the nature of the utilitarian relationship between two or more variables in the problem model. For example, studies on the effectiveness of advertising generally attempt to discover the extent to which advertising causes sales or attitude change. There are three types of evidence to make inferences about causation (1) concomitant variation, (2) sequence of occurrence, and (3) absence of other potential casual factors.Concomitant variation, or invariant association, is a common basis for ascribing cause. For example, the advertising expenditures set out across a come up of geographic areas and measure sales in each area. To the extent that high sales occur in areas with large advertising expenditures and low sales occur in areas with limited advertising expenditures, it is inferred that advertising is a cause of sales. It must be stressed that this have been only inferred, it is not turn out that increased advertising causes increased sales.Sequence of occurrence can also provide evidence of causation. For one event to cause another, it must always introduce it. An event that occurs after another event cannot be utter to cause the first event. The importance of sequence can be exhibit in the wear example of advertising causing sales. It is supposed that farther investigation showed that the advertising allocation to the geographic regions had been based on the last periods sales such that the level of advertising was directly related to bypast sales. Suddenly, the nature of our causal relationship is reversed. Now, because of the se quence of events, it can be inferred that changes in sales levels cause changes in advertising levels.A final type of evidence that is used to infer causality is the absence of other potential causal factors. That is, if one could logically or through our research design pooh-pooh all possible causative factors except the one he/she is interested in, he/she would have established that the variable he/she is bear on with was the causative factor. Unfortunately, it is never possible to control completely or to eliminate all possible causes for any particular event. Always there is a possibility that some factor of which one is not aware has influenced the results. However, if all reasonable alternatives are eliminated except one, one can have a high degree of confidence in the remaining variable.b. footfalls of International Marketing Research ProcessThe international marketing research process as vigorous as domestic one is a severe of separate steps. However, the international marketing research process has some peculiarities such as the national differences between countries arising out of political, legal, economic, social and cultural differences and, the comparing of research results due to these differences7. beat 1. Research Problem Definition.Problem description is the most critical part of the research process. Research problem definition involves specifying the information needed by management. Unless the problem is properly defined, the information produced by the research process is unlikely to have any value.Step 2. Information Value Estimation.Information has value only to the extent that it improves decisions. The value of information increases as (1) the toll of a wrong decision increases, (2) our level of friendship as to the correct decision decreases, and (3) the accuracy of the information the research will provide increases.The principle involved in deciding whether to do more research is that research should be conducted only when the value of the information to be obtained is expected to be greater than the cost of obtaining it. Step 3. Selection of the information sight Approach.There are three basic selective information collection approaches in international marketing research (1) secondary selective information, (2) survey selective information, and (3) observational data. utility(prenominal) data were collected for other purpose than helping to calculate the current problem. Primary data are collected expressly to help enlighten the problem at hand. Survey and experimental data are therefore secondary data if they were collected earlier for another study they are primary data if they were collected for the present one. Secondary data are virtually always collected first because of their clip and cost advantages.Step 4. Measurement Technique Selection.Four basic measurement techniques are used in marketing research (1) questionnaires, (2) attitude scales, (3) observation, and (4) depth interview s and projects techniques. As with selecting the data collection method, selection of a measurement technique is influenced mainly by the nature of the information required and secondarily by the value of the information.Step 5. Sample Selection. virtually marketing studies involve a sample or subgroup of the total population relevant to the problem, rather than a nosecount of the entire group. The population is generally specified as a part of the problem definition process.Step 6. Selection of Methods of Analyses.Data are useful only after analysis. Data analysis involves converting a series of recorded observations into descriptive statements and/or inferences about relationships. The types of analyses, which can be conducted, depend on the nature of the sampling process, measurement instrument, and the data collection method.Step 7. Evaluation of the moral philosophy of the Research.It is essential that marketing researchers restrict their research activities to practices tha t are ethically sound. ethically sound research considers the interests of the general public, the respondents, the client, and the research profession as well as those of the researcher.Step 8. Estimation of Time and Financial Requirements.Time refers to the judgment of conviction needed to complete the project. The financial requirement is the monetary representation of forcefulness clock, computer time, and materials requirements. The time and finance requirements are not independent. Step 9. Preparation of Research Proposal.The research design process provides the researcher with a blueprint, or guide, for conducting and controlling the research project. This blueprint is written in the form of a research proposal. A written research proposal should precede any research project. The research proposal helps ensure that the decision maker and the researcher are legato in agreement on the basic management problem, the information required, and the research approach.3. Interna tional Secondary Data Sources1. The Nature of International Secondary Data Secondary data for international marketing decisions are subject to some disadvantages. Unfortunately, many of the disadvantages are multiplied when the data involve more countries. An additional problem is that most secondary data are available only in the military countrys language. Thus, multi-country searches require utilizing specializing firms or maintaining a multilingual staff.Data handiness, recency, accessibility, and accuracy vary widely from country to country. Until recently, there were few commercial databases in Japan because of the difficulty of using Japanese characters on computers. Now the problem is resolved. The Japanese presidency prepares many potentially useful reports, but even Japanese firms seldom use them because they are poorly organized and indexed. Secondary data in many non-democracies often reflect political interests more intimately than reality. In general, the amount of secondary data available in a country varies directly with its level of economic development.Even when the accurate data are accessible, it may not be possible to make multinational comparisons. Data from several(prenominal) countries may not be comparable because the data were collected at different times, use different units of measurement, cover slenderly different topics, or define the classes (such as age groups) differently. This has become a major problem in the European Community as firms contract to analyze the market as a whole rather than as a collection of individual countries. To resolve part of the problem, ESOMAR has proposed a similar set of questions to gather demographic data in both government and tete-a-tete surveys. Similar work is underway in Brazil, India, and the Middle East.2. midland Sources of International Secondary DataThe native sources of data for international decisions can be classified into four broad categories accounting records, sales fo rce reports, miscellaneous records and internal experts. However, utilizing international internal data can be difficult. Different accounting systems, decentralized (often on a country basis) management and information systems, sales forces organized by country or region, and so forth, all this increases the difficulty of acquiring and using internal data in a timely manner. To deal with these problems global firms implement international information systems and require some standardization across countries in terms of internal recordkeeping and reporting. 3. External Sources of International Secondary DataFor a example, when a company starts an external search for international secondary data it consults general guides to this type of data, such as International Marketing Handbook of the US subdivision of Commerces International Trade Administration, The World of Information (Africa Guide), or it contacts Euromonitor, the leading supplier of world business information and market analysis. An alternative to conducting such a search in house is to use a specialist firm such as PricewaterhouseCoopers and McKinsey.a) DatabasesBoth ABI (Abstract Business Information)/Inform, which contains 150-word abstracts of articles published in about 1,300 business publications worldwide, and Predicasts, which provides 11 on-line databases, have momentous international substance in their bibliographic databases. Predicasts coverage is particularly good and it is growing rapidly. In fact, half its information is on companies and industries from outside the U.S. Its major bibliographic database, PROMPT, contains somatic from all over the world. Both Infomat International Business and Worldcasts are focused on companies, products, industries, economies, and so forth outside the U.S. Predicasts also has separate FS Indexes for Europe and for the rest of the world excluding Europe and the U.S. A major advantage of these abstracts is that they are all in English. Copies of th e entire articles are generally available in the genuine language. ( Table 1, Appendix)b) Foreign Government SourcesAll developed countries provide census-type data on their populations. However, the frequency of data collection and the type and amount of data collected vary widely from country to country. Germany went 17 years between its last two censuses, and Holland has not conducted a census in 20 years. The U.S. collects income data in its census and marketers make extensive use of it. Most other nations, including Japan, Britain, France, Spain, and Italy, do not. (Australia, Mexico, Sweden, and Finland do.) While the Scandinavian countries, Japan, South Korea, Taiwan, and Thailand publish English-language versions of their main census reports, most countries report them only in their home language.c) International Political Organizations Three major international political organizations provide significant amounts of data relevant to international marketing activities. The join Nations and its related organization, the united Nations Educational, Scientific and Cultural Organization, provide hundreds of publications dealing with the population, economic, and social conditions of over cc countries.The World Bank lends funds, provides advice, and serves as a catalyst to stimulate investment fundss in developing nations. To carry out its missions, it collects substantial amounts of useful data which can be purchased inexpensively.The Organization of Economic Cooperation and Development (OECD) consists of 24 economically developed countries with the mission of promoting the members economic and social welfare by coordinate national policies. As part of this mission, it publishes reports on a broad range of socioeconomic topics involving its members and the developing nations.4. Issues in International Primary Data CollectionPrimary data are the data collected to help solve a problem or take advantage of an opportunity on which a decision is pending8. Th e main advantage of primary data lies in the fact that it is collected for solving the exact problem and that is why it is characterized by high usefulness and novelty. The disadvantage is that the cost of collecting primary data are much higher in foreign developing markets as there is the lack of an appropriate marketing research infrastructure9.The international primary data is collected with the help of qualitative and quantitative research approaches. qualitative research is particularly used as a first step in studying international marketing phenomena (focus groups, observation). However, the main constraint is that responses can be affected by culture as individuals may act differently if they know they are being observed10.Quantitative researches are more structured. They involve both descriptive research approaches, such as survey research, and causal research approaches, such as experiments. More respondents take part in quantitative research, although it highlights fewer problems than qualitative research. International marketing research in cross-cultural environment requires the measurement of behaviors and attitudes. A major rejoinder in primary data collection is the existence of the so-called EMIC vs. ETIC dilemma. The EMIC school states that attitudinal and behavioral phenomena are unique to a culture. The ETIC school is primarily bear on with identifying and assessing universal attitudinal and behavioral concepts, and developing pan-cultural or culture-free measures.5. Survey Methods of International Marketing ResearchThe techniques of data collection used in international marketing research have both advantages and disadvantages. 1. Personal interviews are considered to be the most popular method of data collection in international marketing research. However, there are several constraints for the usage of this technique. In the Middle East countries personal interviews are treated with great suspicion. Moreover, the personnel for the sur vey should be male and they may conduct interviews with housewives only when their husbands are at home. In Latin American countries, where tax protest movement is being developed, the interviews are thought to be tax inspectors. 2. Mall intercept surveys may be used in the United States, elicitada and the European countries. As far as the developing countries are concerned they are not common.3. Telephone interviews have several advantages over other survey methods of international marketing research. The time and costs of international call back calls are reducing, the surveys may be conducted from one place, the results of recall interviews are considered reliable and it is easier to perform the client and interviewer control. But telephone surveys also have some limitations because of poor telecommunication systems in several countries. For example, in India telephone penetration is only 1 per cent and telephone surveys reduce the survey coverage greatly. But even in such dev eloped countries as Great Britain telephone penetration comprises only 80 per cent. That is why a lot of marketers are very skeptical about telephone surveys and nowadays there is a great reduction in their application.4. Mailing surveys are widely used in industrialized countries, where there is a high level of literacy, good mailing services and availability of mailing lists. However, the use of this method in developing countries has some constraints. In some countries people consider the mailing surveys to be the invasion into their private life and the effectiveness of these surveys is reduced. In such countries as Brazil, where only 30 per cent of mail is delivered, mailing surveys can not be used as well.5. Electronic surveys become more popular in the United States and Europe and they are used for the products which require technological literacy such as computers and computer software. E-mail surveys begin to replace mail and telephone surveys. The close factors for electr onic surveys are as follow there are still many countries with low internet access, the internet versions available in various countries may not be compatible and there may be a big number of non-responses because of technical issues. At the same time the speed of getting responses and low costs of surveys makes this method suitable for international marketing research.Conclusion International marketing research is the systematic design, collection, recording, analysis, interpretation, and reporting of information relating to a particular marketing decision facing a company operating internationally. The international marketing research process has some peculiarities such as the national differences between countries arising out of political, legal, economic, social and cultural differences and, the comparability of research results due to these differences.A company performing the international marketing research may experience several problems. Firstly, there is a complexity of re search design due to operation in a multi country, multicultural, and multi linguistic environment. Secondly, the availability of secondary data varies widely from country to country. On some markets, especially emerging and unstable, the data is neither available nor reliable. Thirdly, the costs of collecting primary data are much higher in foreign developing markets as there is the lack of an appropriate marketing research infrastructure. Fourthly, problems associating with coordinating research and data collection in different countries may arise. And finally, there are the difficulties of establishing the comparability and equivalence of data and research conducted in different context.Bibliography1. Aaker D., Kumar V. , Day G., (2007), Marketing Research, 9th edition, John Wiley Sons.2. Altstiel T. Grow J.M. (2005), denote Strategy Creative Tactics From the Outside/In, Sage Publications, Inc.3. Arnold D. (2004), The Mirage of Global Markets How Globalizing Companies Can Succ eed as Markets Localize, Pearson Education, Inc.4. Barnard, P. (2007), Global developments and future directions in marketing research, globalisation and the Millennium Opportunities and Imperatives, Marketing Science Institute, June 16-17, Brussels, Belgium.5. Cateora, P. and Graham, J.L. (2009),International Marketing, 14 th edition, McGraw-Hill Company. 6. Craig, C. S. and Douglas, S. P. (2009), International Marketing Research, 2nd Edition. Chichester, UK John Wiley Sons.7. Douglas, S. P. and Craig, C. S. (2005), Evolution of global marketing strategy scale, eye socket and synergy, Columbia Journal of World Business, Vol. 24, No. 3.8. Kumar, V. (2000), International Marketing Research, Prentice-Hall, Inc.9. Mahajan V. and Banga K. (2006), The 86 Percent Solution How to Succeed in the Biggest Market Opportunity of the twenty-first Century, Pearson Education, Inc.10. Kumar V. David A. Aaker George S. Day (2009), Essentials of Marketing Research, 2nd Edition with SPSS 17.0, Jo hn Wiley Sons.11. Payne, N. (2009), Public relations Across Cultures Building international communication bridges, URL http//www.aboutpublicrelations.net/ucpayne.htmAppendixExamples of narrow down Bibliographic Databases.The Information Bank Advertising Marketing Intelligence overhaulAdvertising and marketing articles from over 60 trade and professional journals are summarized on topics such as new products, consumer trends, and sales promotions.Bank Marketing Association Financial Industry Information ServiceContains about 50,000 citations on the marketing of financial services by banks, credit companies, insurance firms, investment and real estate firms, thrift operations, and government agencies. Topics include on advertising, pricing, sales, marketing, and new technologies.FINDEX Reports and StudiesIndexes and describes industry and market research reports, studies, and surveys (more than 11,000 citations) from more than 500 research firms worldwide. icing Sullivan Researc h Reports AbstractsContains citations and abstracts from approximately 1,500 market research reports providing analyses and forecasts of market size and conduct by product and company. Industries represented include chemicals, communications, consumer products, data processing, electronics, food, health, instrumentation, machinery, and transportation.Source Kumar, V. (2000), International Marketing Research, Prentice-Hall, Inc.1 Kumar V. David A. Aaker George S. Day (2009), p. 345.2 Craig, C. S. and Douglas, S. P. (2009), p. 276.3 Kumar V. David A. Aaker George S. Day (2009), p. 374.4 Mahajan V. and Banga K. (2006), p. 213.5 Craig, C. S. and Douglas, S. P. (2009), p. 215.6 Kumar, V. (2000), p. 24.7 Craig, C. S. and Douglas, S. P. (2009), p. 107. 8 Kumar, V. (2000), p. 67.9 Ibid, p. 69.10 Ibid, p. 73.