by An International Marketing Research Process is the systematic gathering, recording, and analyzing data to provide information useful to marketing decision-making. The information must be communicated across cultural boundaries and these research tools are then often applied in foreign markets. General information about the country, area, and/or market is necessary to forecast future marketing. These requirements are done by anticipating social, economic, consumer, and industry trends within specific markets or countries. Specific market information is then used to make the product, promotion, distribution, and price decisions and develop marketing plans. In domestic operations, most emphasis is placed on gathering specific market information because the other data are often available from secondary sources.
Types of Information:
- Economic and demographic: Data on growth in the economy, inflation, business cycle trends; profitability analysis for the division’s products, specific industry economic studies, analyses of overseas economies, key economic indicators for the US and overseas, and population trends (migration, aging, and immigration).
- Cultural, Sociological, and Political climate: A non-economic review of conditions affecting the division’s business. Covers ecology, safety, leisure time, and their impact on the business.
- Market conditions: Analysis of market conditions the division faces by market segment including international conditions.
- Technological environment: Summary of the state of the art technology as it relates to the division’s business. Needs to be broken down by product segment.
- Competitive situation: Review of competitor’s sales revenues, methods of market segmentation, products, and apparent strategies on an international scope.
Need for Conducting International Marketing Research
International marketing research plays an important role to understand the consumer behaviour. The main objective of international marketing research is to understand the consumer s demands and consumers behaviour and then translates their behaviours into the market’s strategies. In this modern century the international markets consumers have lots of choices due to growth of market research and internet communication development. In order to organization has been responsible to maintain their approaches to enhance the markets strategies in a way of targets markets. In the other hands if the company has no ability to seek the consumer’s behaviour on the international level so the company should be lost its consumer market. In this condition company also faces lots of challenges which have been appear due lack of international market research.
Generelly, market research intends to provide new ideas, comparisons, and control information for marketing deciders. These deciders are found not only in Marketing and Sales, Import and Export positions, but also in New Business Development, in a Strategy staff, in Corporate Planning departments and of course, within top management.
International Market Research provides an information base for strategic decisions. Here, competitive information needs to be available early, fastly, and with the right filter.
International Marketing Research Process
Step 1 Research Problem Definition
Problem definition 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:
- The cost of wrong decision increases,
- Our level of knowledge as to the correct decision decreases, and
- 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 Data Collection Approach
There are three basic data collection approaches in international marketing research: (1) secondary data, (2) survey data, and (3) experimental data. Secondary data were collected for other purposes than helping to solve the current problem. Primary data are collected expressly to help solve 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 time 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 interviews and projects techniques. As with selecting the data collection method, the selection of a measurement technique is influenced primarily by the nature of the information required and secondarily by the value of the information.
Step 5. Sample Selection
Most marketing studies involve a sample or subgroup of the total population relevant to the problem, rather than a census 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, depending on the nature of the sampling process, measurement instrument, and the data collection method.
Step 7. Evaluation of the Ethics of the Research
It is essential that marketing researchers restrict their research activities to practices that 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 time needed to complete the project. The financial requirement is the monetary representation of personnel time, 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 still in agreement on the basic management problem, the information required, and the research approach.
Scope of International Marketing Research
The scope of international marketing research covers a wide range of marketing and environmental factors that can affect a product’s success in a foreign market. These factors can be broadly classified as:
Socio-economic and political profile of the country
Information under this category includes a wide variety of data on factors like size of the population, national income and principal sources, per capita income, standard of living, cultural attributes, geographic and climatic conditions, political system and policy etc.
It is also necessary to find out political and economic relations of the country with other countries, including the country of the exporting company, and the country’s political status among the international trading community.
Size and trend of the market
Several factors enter into the analysis of the size and growth trend of the market for specific product groups. These include: data on indigenous production and\ productmix; direction and sources of export and import, size and trend of foreign trade, proportion of national consumption of the product supplied by the domestic industry, price behaviour of the market, future growth prospects, etc.
Structure of competition
The study of competitive structure of the market is very important for an intending exporter. The strength of competition is a key factor that must be taken into account before an exporter decides to enter a foreign market. The competition may come from the domestic supplies as well as from other exporters into the same market.
Competition may come not only from similar products but also from substitute products. For example, for a coffee exporter, other coffee suppliers would be direct competitors and tea or cocoa suppliers would be indirect competitors.
In studying the strength and structure of competition, a number of specific factors are to be taken into consideration; such as:
- What are the competitors’ shares of the market?
- Is the market dominated by a small group of large-scale suppliers or a large number of small suppliers?
- What are the marketing strategies of the competitors, including product range, pricing strategy, distribution channels, promotional techniques and the like?
- What are infrastructural and institutional facilities available in the market and their cost; for instance, transportation, warehousing, finance, insurance etc.?
- What are the commercial and business practices, norms, ethical standards etc.
These and many more similar factors are required to be considered in order to chalk out a competitive profile of the market, highlighting the strengths and weaknesses of the competition.
Rules and regulations
Rules and regulations governing a foreign market are many and diverse. The rules could be broadly divided into two areas, namely:
(a) Rules governing entry conditions of foreign goods into the country
(b) Rules governing internal business practices.
All countries regulate import of foreign goods by various means such as, imposition of complete ban or of quantitative quotas on imports; tariff barriers; non-tariff barriers of a wide variety; currency and licensing restrictions; internal tax structure; product specifications and standards; health and safety regulations; promotional methods; branding, trademark and patent regulations; and various kinds of restrictions on business relationships and dealings between the exporting and importing organisations. It is important to examine the impact and implications of these factors on the conduct of export business.
IT in Marketing Research
Advanced Analytics
Analysing the data is as important as collecting the data. With increased avenues of data collection, it is crucial for agencies to be able to analyse data methodically. Technological advancements have made the analysis of data today real quick and easy. Agencies can now strengthen customer relationships and maintain communication with advanced analytics which can further result in customer retention. Companies on their part develop in-house modules to make sense of mountains of data to then convert it into meaningful reports.
Data Collection
New age software enables researchers to be more specific and focused in measuring data and feedback, making the process of interaction and operation effortless and uncomplicated. It is a substantial tool for any business to collate insights and to learn more about their consumers.
The best part of technology in market research is mobility. Whether in the office, out in the most remote areas or on-the-go, the advanced software can collect feedback and consumer insights and engage both the consumer and the researcher more effectively.
Social Media
Social media is transforming the interaction and communication between individuals throughout the world at the same time it is impacting business and communication tremendously. Market research is no exception and is witnessing an expansion of the landscape from the time social media has stepped in. LinkedIn, Twitter, Facebook, Google+ etc. are helping in transforming this sector big-time. Social media is extremely engaging for users and has evolved to become a genuine and transparent platform for data. Without compromising on the user privacy and other confidentiality requirements market research can collate valuable data that could go a long way in helping brands and companies in understanding their customers better.
Creation of New Research roles
Evolution of technology is resulting in the creation of new roles. These technological advances are a godsend for those who are unemployed and wish to build a career. For some departments to adapt to the changes is very difficult as they are used to working in a certain manner. Therefore, new roles to strategize as well as process the vast data from social media and mobile data and to further ensure that this data is translated efficiently is vital.
