Intl Marketing Research

• Define the research problem

• Gather data– Secondary data sources– Primary data collection

• Draw conclusions– Example: estimating market demand

Int’l Marketing Research

• Gathering information – on which to base decisions – to answer questions regarding foreign markets

• Assess:– What type of information do you need?– What issues/problems might you confront?

Gathering data

• Secondary data sources– Data available in some published form, either

for free or for a fee– Examples:

• STAT-USA – U.S. Department of Commerce• International Trade Administration – ibid• Baby Food: Key World Players - $10,425

MarketResearch.com• Doing Business in ______. Price Waterhouse (tax

& accounting issues)

Sources of secondary data

• Country Commercial Guides • Industry Sector Analysis

Reports• Access at Hamersly Library:

Journal Articles & Other Databases: STAT-USA

Example: Brazil• U.S. Sporting goods

well accepted; Brazilians like to emulate U.S. lifestyle.

• 30% of sporting goods are imported.

Issues/Problems with Primary Data Collection…

• Back translations can help resolve direct translation errors:

• Back translation = a minimum of two steps:

– English native translates to Spanish– Spanish native backtranslates to English– Work out inconsistencies and translate again

Another language problem: Multiple languages

Availability of Research Participants

Telephone surveys:• only 21% of population in Central America owns a phone• those who do tend to have higher incomes• but nearly everyone watches TV – so how do you find out if they saw your TV commercial?

Personal (home-to-home) interviews:• remember to bring a translator for native tongues

Estimating market demand…

Use marketing research to estimate foreign market potential for a product.

How?• published forecasts• expert opinion

Estimating Market Demand

• existing vs. potential markets– existing: old product, new market (cameras/film ~ China)– potential: new product category (wireless web)

• traditional forecasting methods– Multiply this year’s sales by change from last year’s:– $55M (year 2001) - $49.5M (year 2000)

$49.5M (year 2000)= + 11.1% ;

$55M x 1.11

= $61.05 (year 2002)

Secondary sources of information are helpful in the following areas:

• Overall industry/market characteristics

• Buyer behavior & preferences

• Product familiarity

• Promotion regulations & availability

• Factors affecting the pricing of goods

• Distribution regulations & availability

• Overall market:– Studies of industry, market

characteristics, and market trends.– Import/export statistics

• Product:– Brand and product preferences;

products may be used/viewed differently than we view them.

Information to seek for your report:

Marketing Plan tips

Marketing Plan tips

• Promotion:– Legality of contests, premiums, coupons.– Media availability – what extent to people use

and have access to tv, radio, internet, etc.– What types of communications are Illegal?– Is advertising accepted where you think it is?

(some countries allow no TV advertising)– Salesforce compensation, territory and quota

regulations

Marketing Plan tips

• Pricing:– Currency exchange rate, – Price increases due to tariffs, etc..– Typical markup on sporting goods– Competitive pricing– Price sensitivity and/or price elasticity

Marketing Plan tips

• Distribution:– Transportation issues:

• Infrastructure, common & uncommon modes of moving freight

– Warehousing location & availability – Availability of logistics expertise or local

distributors– Protectionist policies by a country’s

government or among its industry participants