Imm unit-02 (global marketing research)

07/06/10 1
By :
Prof. Amit Kumar

07/06/10 2
International marketing has become a major concern
for business schools to develop global strategies
to lead and sustain in the much expanded and
competitive arena. Liberalization thus catalyzing
market competition, poses challenge for the
managers in handling the rigors of expanding
global marketplace.
Syllabus aims at providing contemporary
knowledge & skills on issues of global
marketing management.
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Importance of this course
Global Marketing Management

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Course: Global Marketing Management
1. Framework of Global Marketing Management
2. Global Marketing Research
3. Decision Making in International Marketing
4. Foreign Market Entry & Export Marketing
5. Product Planning & Development
6. Global Pricing Strategies
7. Global Distribution System
8. Promoting Product Internationally
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Global Marketing Management

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Global Marketing Management Global Marketing Research

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Contents
• Challenges in Global Marketing Research
• Introduction of New Coke: The Classic Marketing Blunder
• Objectives of GMR
• Cross-Cultural Marketing Behavior & Research
• Implication of Religion in GMR
• Global Marketing Research Process
• Multicultural Research : A Special Problem
• Research on the Internet: A Growing Opportunity
• Websites for International Marketing
• Case: Gillette’s Marketing Research in Sri Lanka
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Marketing Research
• Marketing research is the systematic gathering, recording,
and analysis of data about issues relating to marketing
products and services.
• The goal of marketing research is to identify and assess
how changing elements of the marketing mix impacts
customer behavior.
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Global Marketing Research
• GMR involves carrying out research across the borders to
gain insight into various cultures.
• International Marketing Research follows the same path
as domestic research, but there are a few more problems
that may arise.
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Challenges: Global Marketing Research
• Customers in international markets may have very
different customs, cultures, and expectations from the
same company.
• In this case, secondary information must be collected from
each separate country and then combined, or compared.
This is time consuming and can be confusing.
• International Marketing Research relies more on primary
data rather than secondary information. Gathering the
primary data can be hindered by language, literacy and
access to technology.
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Marketing Blunders: A case
of Coca Cola
• Market Research plays a critical role in determining the
success or failure of international marketing decisions.
• Even companies enjoying one of the highest brand
equities in the world like Coca Cola made classic
marketing blunders due to shortcomings in conducting
marketing research.
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Reason of Failure: Coca Cola
The basic reasons for market failure of new coke were
primarily due to shortcomings in conducting market research
as summarizes under:
• The results of the research were solely based on blind tests but
the participants were not aware of that they are choosing a new
flavor which would mean that they would lose the other.
• The research overlooked the emotional attachment of the
consumers with Coke’s 100-years formula.
• The group of respondents for the blind test was young who
generally prefer sweet taste. However, the taste for sweet
things diminishes with age.
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Final Decision: Coca Cola
On 23 April 1985 the company withdraw its
age-old Coke from the market and introduced
a new Coke formula. The company had to
withdraw its decisions within four months and
had to re-introduce the classic Coke.
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Ice Tea in India
Unilever introduced ice tea in India after seeing
the success of this brand in various other
countries like the US. Although this concept
was successful in other countries, it failed in
India primarily due to poor market research.
• The introduction of the product was based on the fact that
60% of the people in other countries like ice tea. It was
envisaged that India being a tropical country with a much
longer summer season, people would prefer ice tea.
• However, Unilever faltered in the fact that in India most of
the people are fond of hot tea.
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Kraft Introduced Orange
Drink: Tang
Kraft introduced an orange energy drink
concentrate Tang in India few years ago on
the basis of the findings of an extensive
market research which indicated there was an
identified need for an energy drink like Tang.
• Kraft India, a 100% subsidiary of Phillip Morris, US,
accordingly went ahead and launched Tang in India. It tied
up with Dabur for its distribution.
• The product however failed miserably in local markets.
The prime reason for the failure of Tang was its
comparatively higher prices in relation to other energy
drink substitutes like Glucon-D.
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Brands that did not Diffuse in India
1 Hina peas frozen green peas from
HLL (sixties)
Ahead of time?
2 Merlin Home Theatre (eighties) Ahead of time?
3 An apple drink from Cadbury
(eighties)
Ahead of time?
4 Dollops Ice Cream Positioning problems?
5 Greatshake-the soya drink
from Godrej
Cultural habits?
6 Nikytasha 3D TV Competitive
advantage?
7 Paltab tablet-based soft-drink
Boots (sixties)
Was there a need at
from all?
8 Four-stroke scooters
(Legend & Spectra)
Value proposition/ CA
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Major Objectives of Global
Marketing Research
• To carry out country screening and selection
• To evaluate a country’s market potential
• To identify problems that would not require a country’s
listing for further consideration
• To identify aspects of country’s environment that needs
further study
• To evaluate the components of marketing mix for possible
adoption
• To facilitate in developing a strategic marketing plan
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Major Challenges to Successful
Global Marketing Research
Researcher should aware of the challenges…
• Overlooking cross-cultural market behavior
• Employing standardized research methodologies across
the international markets
• Using English as a standard language for market
communication
• Inappropriate sample selection
• Misinterpretation of cross-country data
• Failure to use locals to conduct field surveys
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Cross-Culture Marketing Behavior &
Research
Cultural aspects need to be examined while preparing
international marketing research plan.
• A nod means no in Bulgaria, and shaking the head from
side to side means yes.
• The ‘okay’ sign means zero in France, is a symbol for
money in Japan & carries a vulgar connotation in Brazil.
• Never touch the head of a Thai in Thailand.
• Avoid using a triangular shapes in Hong Kong.
• Number 7 is bad in Kenya, good in Czechoslovakia.
• Red is a positive color in Denmark, but it represents
witchcraft and death in many African countries.
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Implication of Islam (Religion) in
International Marketing Decisions
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Elements Implications for Marketing
Unity (Concept of
centrality, oneness of
God, harmony in life)
Product standardization, mass media techniques,
strong brand loyalties, opportunities for brand-
extension strategies
Legitimacy (Fair
dealings, reasonable
level of profits)
Less formal product warranties, switch from profit
maximizing to profit satisfying strategy
Zakaat (2.5% per annum
compulsory tax binding to
all)
Use of excessive profit for charitable acts, Corporate
donation for charity
Usury (Cannot charge
interest on loan)
Avoid direct use of credit as a marketing tool,
establish a consumer policy of paying cash for low-
value products, for high value product offer discounts
for cash payments and raise prices of products on
an installment basis
Banks take equity in financing ventures

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Process of International Marketing Research
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Problem Identification
Decide Research Methodology
Workout Information Requirement
Identify Source of Information
Prepare Research Design
Collect & Analyze the Information
Evaluate & Interpretation

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It has to be as precise as possible.
• Whether to remain in domestic market or enter into
international markets
• Product identification for the international markets
• Deciding international markets for entry
• Deciding upon mode of entry
• Decisions related to international marketing mix
• Decisions for implementing and controlling the
international marketing plans
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Deciding Research Methodology
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Marketing Mix Decision Type of Research
Product Policy Focus groups and qualitative research to
generate ides for new products
Survey research to evaluate new product ideas
Concept testing, test marketing
Pricing Policy Pricing sensitivity studies
Distribution Study on shopping pattern and behavior
Consumer attitude towards different store format
Distributor attitudes and policies
Advertising Advertising pre-testing
Sales promotion Survey of response to alternative type of
promotion
Sales force Test of alternative sales presentations

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Working out Information Requirement
Decision regarding domestic or enter international…
• Analyzing basic trade statistics related to firm’s product
• Assessment of international market demand
• Competitiveness of firm’s product
Estimating market size
• Total sales in the market: last 3 years growth rate
• Total imports of the product into the country
• Domestic production
• Balance of payment: last 3 years
• Foreign exchange reserves: trend and present amount
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Working out Information Requirement
Accessing market access
• Import Policy: Control mechanism
• Import licensing: banned, restricted, open
• Tariff regime: ad valorem, specific, MFN, preferential
• Exchange rate: convertible, non- convertable
Market Selection
• Political Risks and relationships with India
• Cultural affinity
• Communication facilities
• Logistics & other marketing-mix decisions
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Process of International Marketing Research
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Decide Research Methodology
Workout Information Requirement
Identify Source of Information
Prepare Research Design
Collect & Analyze the Information
Evaluate & Interpretation

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Identify Sources of Information
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Information Examples of Sources
Import Statistics UN, OECD trade statistics
Tariff & Quotas Embassies, Chamber of
Commerce
Currency restrictions Banks, Embassies
Economic Situation IMF, Banks, Financial Journals
Political situation Press Reports
Consumption Trade associations, trade
journals
Transport cost Freight forwarders
Prices Catalogues and price lists
Geographic features Atlases, Encyclopedias

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Preparing Research Design
• Research design is the specification of methods and
procedures for acquiring the information needed to
structure or solve problems.
• It includes an outline of what a researcher will do from the
stage of writing the hypothesis and its operational
implications to the final analysis of data.
Types of Research Design
1. Exploratory Research
2. Descriptive Research
3. Causative Research
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Methods of Collecting Primary Data
There are two principal methods of collecting primary data:
1. Observation
2. Survey Questions
In case of observation, respondents are visually observed,
regardless of whether they realize it or not.
When the survey question method is used, respondents are
asked certain questions relating to their characteristics or
behavior.
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1. Observation
In addition to the consumer interviews, Toyota’s
product teams attended a cocktail party at a Huston
country club and learned that car owners preferred
a distinctive grille that made the car more
impressive when brought to the door by a valet. The
teams also measured how close cars were parked
to one another at the ball parks, leading the
company to implement sliding doors instead of
swing-open doors in its minivans.
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1. Observation
By observing that adults take their children
along when shopping and return to the car
with their arms full, Toyota realized the
need to have an easy-to-open door
mechanism that also opens the trunk.
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2. Questioning
• Personal Interview (Language problem, interview
style and technique need to be adjusted)
• Telephonic Interview
• Mail Questionnaire (Survey)
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Multicultural Research: A Special Problem
Multicultural research involves dealing with
countries that have different languages,
economies, social structures, behavior, and
attitude patterns.
These differences must be taken into account in the
design of a multicultural survey & different
research methods should be applied in individual
countries.
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Multicultural Research: Example
• In Latin American countries it may be difficult to attract
consumers to participate in either focus groups or in-depth
interviews because of differences in the value for time.
• Japanese, compared with American businesspeople, tend
not to respond to mail surveys.
• For the Indian firm, participants in a sales training program
were asked to complete the questionnaires during the
program.
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Research on the Internet: A growing
Opportunity
For many companies the internet provides a new and
increasingly important medium for conducting a variety of
international marketing research.
New product concepts and advertising copy can be tested
over the internet for immediate feedback.
Worldwide consumer panels have been created to help test
marketing programs across international samples.
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Research on the Internet: A growing
Opportunity
It has been suggested that there are at least eight different
uses for the internet in international research:
1. Online survey and buyer panels
2. Online focus group
3. Web visitor tracking
4. Advertising measurement
5. Customer identification systems
6. E-mail marketing lists
7. Embedded research
8. Observational research
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Websites for International Marketing
1. www.stat-usa.gov
2. www.ita.doc.gov
3. www.usatradeonline.gov
4. www.census.gov
5. www.cia.gov
6. www.customs.ustreas.gov
7. www.opic.gov
8. www.exim.gov
9. www.imf.org
10. www.oecd.org
11. www.euromonitor.com
12. www.worldchambers.com
13. www.ipl.org
14. www.world.wtca.org
15. www.worldtrademag.com
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Imm unit-02 (global marketing research)

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