Chapter 6 Global Information Systems and Market Research

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Introduction
Understand the importance of information technology and marketing information systems Utilize a framework for information scanning and opportunity identification Understand the formal market research process Know how to manage the marketing information collection system and market research effort

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Globalisation of brands
Re-branding with global brand names
Jif - Cif, Marathon - Snickers, etc Unilever reducing portfolio from 1600 to 400 brands

e.g., Citibank/corp

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MASSIVE COST SO WHY BOTHER? > international travel World media channels Regional / global HQs Economies of scale packaging, PR, image, signs,
etc.

International consistency & global reach

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Information Technology for Global Marketing

Information Technology refers to an organizations processes for creating, storing, exchanging, using, and managing information. Management Information Systems provide managers and other decision makers with a continuous flow of information about company operations
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Tools of MIS
Intranet Electronic Data Interchange (EDI) Efficient Consumer Response (ECR) Electronic Point of Sale (EPOS) Data Warehouses

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Customer Relationship Management

New business model Philosophy that values two-way communication between company and customer Every point of contact with a consumer is an opportunity to collect data Can make employees more productive and enhance corporate profitability
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Customer Relationship Management

The major thing is, One size fits all is not true. CRM is designed to support the sales process, and if I develop a system that works in the U.S., it might not work in Europe. - Jim Dickie, Insight Technology Group

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Privacy
Safe Harbor Agreement establishes principles for privacy protection for companies that transfer data to the US from Europe
Purposes of the information collected and used An opt out option to prevent disclosure of personal information Can only transfer information to 3rd parties that are in compliance with Safe Harbor Individuals must have access to information
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Information Subject Agenda

The starting point for global marketing information system is identifying a list of subjects for which information is desired
Should be tailored to the needs and objectives of the company

Two essential criteria

Is all the information subject areas relevant to a company with global operations Categories should be mutually exclusive

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Information Subject Agenda

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Scanning Modes: Surveillance and Search

Surveillance
Informal information gathering
VIEWING general exposure to information MONITORING paying special attention and tracking a story as it develops

Search
Formal information gathering
INVESTIGATION seeking out secondary data RESEARCH conducting primary research

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Avoiding Information Overload

Global organizations need
Efficient, effective system to scan and digest published sources of information in all countries in which it conducts business Daily scanning, translating, digesting, abstracting, and electronic input of information into MIS

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Sources of Market Information

Human sources
Executives based abroad are likely to have established communication with distributors, consumers, customers, suppliers, and government officials Friends acquaintances, professional colleagues, consultants, and prospective employees

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Formal Market Research

Global Marketing Research is the projectspecific, systematic gathering of data in the search scanning mode on a global basis
Challenge is to recognize and respond to national differences that influence the way information is obtained

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Steps in the Research Process

Identifying the research problem Developing a research plan Collecting data Analyzing data Presenting the research findings

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Intl research considerations

(emerging mkts) IN ADDITION TO THE USUAL PITFALLS Research norms may vary Local researchers: availability / quality Secondary data source reliability Totally different infrastructure, e.g., Communications, transport, equipment, etc., Employment: staffing costs / availability of field staff Socio-cultural differences, living standards, literacy, tribalism Political instability Exchange rate fluctuations Security Legislation issues / corruption
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Standardised / multi country research

Direct comparisons between countries feasible
Economies of scale

senior management time research development, data processing, etc.

Uniform quality control standards

data collection, processing/analysis, confidentiality, etc,

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Managing multi-country studies

Using own staff only

Using local agency only (Preferably

international name)

Using own staff + local agency

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Identifying the Information Requirement

What information do I need?
Existing Markets customer needs already being served by one or more companies; information may be readily available Potential Markets
Latent market an undiscovered market; demand would be there if product was there Incipient market market will emerge as macro environmental trends continue

Why do I need this information?

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Overcoming the SRC

Self-Reference Criterion occurs when a persons values and beliefs intrude on the assessment of a foreign culture Must be aware of SRCs
Enhances managements willingness to conduct market research Ensures that research design has minimal home-country bias Increases managements receptiveness to findings

No right or wrong, just different

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Are Latin Americans really Americans too?

U.S. perception Latin American perception Turkish perception
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Perception of Time Organization of work

U.S. Latin America

Organization of free time

U.S. Latin America
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How to avoid SCR:

Define the business problem according to culture, habits,norms in home market. Define the business problem according to culture, habits,norms in foreign market. Isolate the SCR influence in the problem and examine it carefully to see how it complicates the problem. Refine the problem without the SCR influence and solve for the optimum business goal situation.

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Ten Good Reasons to use export marketing research and take control of your export markets
1) Put yourself in the "driving seat" 2) Develop an efficient market entry strategy 3) Control overseas representatives 4) Increase your profits 5) Familiarize yourself with the market 6) Save time and money 7) Gain favor with potential customers 8) A comprehensive report 9) Expert help at hand 10) Double your budget
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Developing A Research Plan

Do we need quantitative or qualitative data? What is the information worth (versus what will it cost to collect)? What will it cost if we dont get the information? What can be gained from the information?

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Availability and Use of Secondary Data

Availability of Data
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Reliability of Data
Comparability of Data Validating Secondary Data

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Collecting Data (cont.)

Primary Data Collection Methods
Survey research Interviews Consumer panels Observation Focus groups

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Special Considerations for Surveys

Benefits:
Data collection from a large sample Both quantitative and qualitative data possible Can be self-administered

Issues
Subjects may respond with social desirability Translation may be difficult
Use back and parallel translations to ensure accuracy and validity
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Sampling
A sample is a selected subset of a population that is representative of the entire population.
Probability samples Non-probability samples

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Analyzing Data
Demand Pattern Analysis Income Elasticity Measurements Market Estimation by Analogy Time-series displacement Comparative Analysis Cluster Analysis

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Presenting the Findings

Report must clearly address problem identified in Step 1 Include a memo or executive summary of the key findings along with main report

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Global Issues in Marketing Research

Many country markets must be included Markets with low profit potential justifies limited research expenditures Data in developing countries may be inflated or deflated Comparability of international statistics varies greatly Limits created by cultural differences
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Enhancing Comparability of Data

Emic analysis Ethnographic in nature Studies culture from within Uses cultures own meanings and values Etic analysis From the outside Detached perspective that is used in multicountry studies Enhances comparability but minimizes precision
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Looking Ahead
Chapter 7 Segmentation, Targeting, and Positioning

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Intranet
A Private network Allows authorized company personnel (or outsiders) to share information electronically 24-Hour Nerve Center

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Electronic Data Interchange

Allows business units to:
Submit orders Issue invoices Conduct business electronically

Transaction formats are universal

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Efficient Consumer Response (ECR)

This is in addition to EDI An effort for retailers and vendors to work closely on sock replenishment
ECR can be defined as a joint initiative by members of a supply chain to work toward improving and optimizing aspects of the supply chain to benefit customers.
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Electronic Point of Sale

Gathers data at checkout scanners
Identifies product sales trends Identifies how consumer preferences vary geographically

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Data Warehouses
Can help fine-tune product assortments for multiple locations Enhances the ability of management to respond to changing business conditions

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