International Marketing Research:

Practices and Challenges

Dana-Nicoleta Lascu
Chapter 6

Copyright Atomic Dog Publishing, 2002

 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, for each
step, the international constraints involved
• Introduce the concept of decision support systems for
international marketing and describe the sales
forecasting process

Copyright Atomic Dog Publishing, 2002

 International Marketing Research
• International marketing
managers need to
constantly monitor the
different forces affecting
their international
operations
• International marketing
research is especially
complex

Copyright Atomic Dog Publishing, 2002

 International Marketing Research
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, 2002

 Research of Industry, Market
Characteristics, and Trends
• Acquisition analyses
• Diversification analyses
• Market-share analyses
• Export research

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 International Buyer Behavior
Research
• Brand preferences
• Brand attitudes
• Brands awareness
studies
• Purchase behavior
studies
• Consumer segmentation
studies

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 International Product Research
• Concept development
and testing studies
• Brand name generation
and testing
• Product testing #1
• Competitive product studies
• Packaging design studies
• Test marketing

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 International Distribution Research
• Import/export analyses
• Channel performance and coverage
• Plant/warehouse location studies

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 International Promotion Research
• Studies of premiums, coupons, and deals
• Advertising effectiveness research
• Local media research
• Studies pertaining to personal selling activities
 Sales Force Compensation
 Quota
 Territory

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 International Pricing Research
• Studies projecting demand
• Currency and counter trade studies
• Studies of inflation rates and pricing
• Studies of negotiation tactics

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 The International Marketing Research
Process
• STEP 1 Define the international research problem
and agree on the research objectives
 Exploratory Research
 Descriptive Research
 Causal Research
• STEP 2 Set specific objectives

Copyright Atomic Dog Publishing, 2002

 The International Marketing Research
Process, continued
• STEP 3 Develop the International Research Plan
• STEP 4 Define Information Sources
 Secondary Data
- Researchers must determine if the information is available, and,
if so, how reliable it is
- Internal data is useful only if company has collected similar info
from relevant respondents in a country with similar environment

Copyright Atomic Dog Publishing, 2002

 Secondary Data Constraints
• Conceptual Equivalence
 Concepts have different meanings in different cultural
environments
• Functional Equivalence
 Products themselves may be used for different purposes in
different country environments

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 Secondary Data Constraints,
continued
• Availability, Reliability, and Validity
 Accuracy of secondary data can be questionable: Published
statistics may be unreliable
 Sources of reliable data:
- World Bank
- United Nations Development Program
- Organization of Economic Cooperation and Development
(OECD)
- Euromonitor

Copyright Atomic Dog Publishing, 2002

 Primary Data
• Information collected for a specific purpose, to
address the problem at hand.
 The costs of collecting primary data in foreign markets
are likely to be much higher given the lack of an
appropriate marketing research infrastructure

Copyright Atomic Dog Publishing, 2002

 Primary Data Research Approaches
• Qualitative research has been particularly useful
as a first step in studying international marketing
phenomena.
 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, 2002

 Primary Data Research
Approaches, continued
• Quantitative research are more structured, involving
either descriptive research approaches, such as
survey research, or causal research approaches,
such as experiments.
 Content Analysis
 Survey Research
 Experimental Research
• Constraints: Respondent factors, infrastructure factors

Copyright Atomic Dog Publishing, 2002

 Data Collection
• 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; Instrument Reliability;
Reluctance to answer certain questions

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 Data Collection, continued
• STEP 6 Decide on the Sampling Plan
 Sample Unit
 Sample Size
 Sampling Procedure
• STEP 7 Collect, Analyze, and Interpret Data

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 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, 2002

 Sales Forecasting
• Sales Force Composite Estimates
 Personal observations and expectations of the local sales
force
• 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, in light of
aggregate responses

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 Sales Forecasting, continued
• 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

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 Sales Forecasting, continued
• Point of Sale Research
 Made with the help of store scanners, in markets where they
are available

 Involve comprehensive store audits

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 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, 2002