International Marketing Research

10/08/2020 0 By indiafreenotes

The relationship between international marketing research and IMIS has to be understood as a relationship of complementarity rather than equality or competition.

Although they have the same goals and similar tasks, ways of achieving these goals and tasks are based on different grounds. This reflects theirs complementarity. International marketing research project usually occurs when a company finds the problem that often needs to be urgently solved. That leads to an emphasis on data collection and analysis rather than on the development of the formal and regular collection of information. Therefore, the main difference between the research project and the system is in time and speed of execution. The research project appears in times of crisis, so from time to time and as rarely as possible. On the other hand, the data collection process is ongoing, or the keyword in the definition of marketing information system is ʺregularʺ, since the emphasis in marketing information system is the establishment of systems that produces information needed for decision making on a recurring basis. However, the project must be completed as soon as possible due to the fact that the duration of the crisis only exacerbates the situation of the entity which drives the research project. The system of data collection, since it is a continuous process, has enough time to conduct quality research and make the necessary analysis.

Another important difference relates to the scope of research. Considering that the study (project) of research is conducted in a relatively short period of time, it is very often that so called preliminary (investigative or orientation) research is neglected. Preliminary research is a way to get an information that is not strictly formalized, as is the case with detailed research based on the plan drawn up in advance, and therefore this type of study is called investigative. The ultimate goal of investigative research is obtaining the necessary prior knowledge of the specific problem in a rational manner. It is a preceding survey and it is based only on secondary data. In preliminary studies are commonly used four methods shown in the following figures:

Preliminary research Research of existing literature
Studies of previous experience
Analysis of selected cases
Pilot studies

The figure shows a structured review of methods of preliminary research. The first and basic method of search is to use available literature: books, magazines, newspapers, databases accessible through the Internet, libraries, statistical publications, regular information services for marketing research and the like. Also, the use of othersʹ experiences much simplifies and cheapens investigation. Therefore, it is necessary to collect other experiences: field vendors, consultants, engineers and specialists, consumers and customers, competitors and so on. The third method is based on learning through case studies. It is a realistic analysis of some past or current problems and opportunities facing a company. The last method of preliminary research is a pilot study. These are informal methods of communication with customers through which could be know the motives and opinions of consumers. Preliminary research is especially important to a large international marketing research project. Many of the facts, opinions and attitudes, which are already well known in the domestic market, we have to find out when we come to another market. Therefore, the phase of preliminary research is almost obligatory in these cases and requires the collection and analysis of numerous and diverse data.

The third difference between the market research in general, and therefore the international marketing research and IMIS is contained in the following assertion: The task of marketing research is to provide information, while the marketing information system focuses on the routing of information flow in the direction to those who make marketing decisions. This distinction is important because the information is completely worthless unless it is relevant and is effectively communicat. Previous thesis is based on the Kotler`s model of marketing information system, where marketing research is treated as a subsystem of marketing information system. In this system, marketing research is conducted on behalf of marketing information system. All obtained information is analysed and compared with information gathered from internal sources of the company, as well as scanning the environment. Thus, the final information has high value and reliability because it has been checked and confirmed many times. From the prior discussion could be seen how the international marketing research methodology would be quite poor and the less reliable if it is not combined with IMIS. Their combination is a superior way of gathering reliable information. This is a sure path to successful decision‐making and management in international marketing.

Compatibility of international marketing information system with international marketing research

Compatibility analysis

According to Jovićević (2001, pg. 129)29 compatibility could be determined as a situation in which two or more objects (procedures, methods, goals, programs, ideas, etc.) can coexist within one, as a part of the same system, so that the existence of one does not preclude the other. Some studies have shown that managers do not know what information to request for researchers and analysts. They know only what is available. Experience from local and international business practice show that many companies do not have established market research systems or the systems are reduced only to routine predictions based on empirical cognitions or to analyzing of historical data (Hasan Hanić and Čivić Beriz, 2009, pg. 43). This problem could be overcome by efficient functioning of IMIS. It provides, among other things, the survey of the international environment and general information in form of intelligence.

On the basis of such general information, managers can identify important threats and opportunities in the environment, and how it fits into the strategy and other plans of the company. Thus they are able to know exactly what information they need, and such, in this case, detailed information should be required of analysts and researchers of international marketing. Such detailed information could be provided by comprehensive international marketing research. Above mentioned is most easily represented graphically as follows:

All of these on the relationship between IMIS and international marketing research could be circled by the following Heinzelbercker`s (1977) statement: In the last two or three decades market research is developed in three complementary directions which represent paths from traditional marketing research till marketing information system. They are characterized by:

  • Orientation to the method,
  • Orientation to the decision‐making,
  • Orientation to the system.