Lecture Global marketing management (7th edition): Chapter 6 - Masaaki Kotabe, Kristiaan Helsen

GLOBAL
MARKETING
MANAGEMENT
Seventh Edition
MASAAKI KOTABKE | KRISTIAAN HELSEN

Chapter 6 PowerPoint
Global Marketing Research


Chapter Overview
1.
2.
3.
4.

Research Problem Formulation
Secondary Global Marketing Research
Primary Global Marketing Research
Leveraging the Internet for Global Market
Research Studies
5. Market Size Assessment
6. New Market Information Technologies
7. Managing Global Marketing Research

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Introduction
• Given the complexity of the global marketplace, solid
marketing research is critical for a host of global
marketing decisions and to avoid costly mistakes.
• Seven steps in conducting global market research:
1. Define the decision problem(s)
2. Develop a research design
3. Determine information needs
4. Determine the sources of information
5. Collect the relevant data from secondary and primary
sources
6. Analyze the data, interpret and summarize the results
7. Communicate the findings to the key decision-makers
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Introduction
• Major challenges faced by global marketing
researchers:
1. Complexity of research design due to environmental
differences
2. Lack and inaccuracy of secondary data
3. Time and cost requirements to collect primary data

4. Coordination of multicountry research efforts
5. Difficulty in establishing comparability across
multicountry studies

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1. Research Problem Formulation
• Any market research study starts off with a precise
definition of the research problem(s) to be
addressed.
• In an international context, the marketing research
problem formulation is hindered by the selfreference criterion (SRC).
• A major difficulty in defining the problem is
unfamiliarity with the foreign environment.
• Omnibus surveys are regularly conducted by
research agencies.
• Once the research issues have been stated,
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Chapter
6
management
needs
to determine
the information

Inc.

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Exhibit 6-2: Scope of International
Marketing Research

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Exhibit 6-3: A Multicountry Marketing
Research Project at Eli Lilly

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2. Secondary Global Marketing Research
• Secondary Data: Data/information which is already
available.

• Primary Data: When the secondary data are not
useful, or simply does not exist.
• Selected Secondary Data Sources: See Exhibit 65.

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Exhibit 6-4:
Nielsen
Global
Omnibus
Survey
(2011)

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2. Secondary Global Marketing Research
• Problems with Secondary Data Research
–

–
–
–

Accuracy of Data
Age of Data
Reliability over Time
Comparability of Data
• Triangulate
• Functional or Conceptual Equivalence

– Lumping of Data

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3. Primary Global Marketing Research
• Focus Groups
• Survey Methods for Cross-Cultural Marketing
Research
– Questionnaire Design
•
•
•
•

•

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Conceptual and Functional Equivalence
Back-Translation
Parallel Translation
Scalar Equivalence
Funny Faces Scale

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Exhibit 6-5:
Resources
for
Secondary
Data

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3. Primary Global Marketing Research
– Sampling—A sampling plan consists of:
• Sampling unit
• Sample size
• Sampling procedure

– Contact Method
•
•
•
•

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Mail
Telephone
Person-to-person interviews
Online Survey Methods

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Exhibit 6-6:
The Funny
Faces Scale

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3. Primary Global Marketing Research
– Collect the Information
•
•
•
•
•
•

Courtesy Bias
Yea-saying and Nay-saying
Social Desirability Bias
Extreme Response Style (ERS)
Anchor Contraction Effect (ACE)
Redundancy (asking the same question in different
ways)

– Observational Research
• Ethnographic Research Approach

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Exhibit 6-7: Cross-Country Comparisons
of Survey Response Biases

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Exhibit 6-8: Individualism
and Extreme Response Style

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4. Leveraging the Internet for
Global Market Research Studies
• Advantages

–
–
–
–
–
–

Large samples quickly assembled
Global access
Lower costs
Anonymity for sensitive topics
Direct data load for swift analysis
Short response times

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4. Leveraging the Internet for
Global Market Research Studies
• Disadvantages
–
–
–
–
–

–

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Limited Internet access in many countries
Samples are not representative of target population
Download times hinder access
Incorrect e-mail addresses or poor connections
Low, dishonest, or redundant responses
Identity validation

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4. Leveraging the Internet for
Global Market Research Studies
• Tools
–
–
–
–
–
–

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Online surveys

Bulletin boards and chat groups
Web visitor tracking
Online (virtual) panels
Focus groups
Social media

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Exhibit 6-10: Research Methodology behind
the Durex “Sexual Wellbeing” Survey

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5. Market Size Assessment
• Method of Analogy
– Longitudinal method of analogy
(See Exhibit 6-11.)

• Trade Audit
• Chain Ratio Method

• Cross-Sectional Regression Analysis

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5. Market Size Assessment
• When using market size estimates, keep the
following rules in mind:
–
–
–
–
–

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Use several different methods.
Don’t be misled by numbers.
Don’t be misled by fancy methods.
Do a sensitivity analysis by asking what-if questions.
Look for interval estimates with a lower and upper
limit rather than for point estimates.

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Exhibit 611: Market
Potential
Estimates
for
McDonald’s

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6. New Market Information Technologies
• Innovations in scanning technology:
–
–
–
–
–

Point of sale (POS) store scanner data
Consumer panel data
Single source data
Shift from mass to micro marketing

Continuous monitoring of brand sales/market share
movements
• Scanning data are used by manufacturers to support
marketing decisions
• Scanning data are used to provide merchandising
support to retailers.

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