Marketing Research

1. 5.02Understand the steps in the marketing research process, and identify international data collection problems

2. Marketing Research • Systematic process of gathering information to help make marketing decisions • Used to lower risk associated with developing new products or entering new markets • Identifying Market Opportunities - Screening • Pursue no new products or markets • Introduce new products into existing markets • Introduce existing products into new markets • Introduce new products into new markets

3. Steps in the marketing research process • Define problem – identify the area to be researched – look at all factors • Analyze secondary data • Collect primary data • Perform data analysis & decision-making

4. Analyze secondary data • Data that has been previously collected for different purpose • Not always applicable to specific problem being researched • Difficult to compare between countries with different reporting methods • Often easy to obtain from company records or government data • Secondary data may not be as accurate as primary data

5. Analyze secondary data (cont.) • Environmental scanning: process of collecting information from various sources • Int’l business journals • News programs • Internet • Industry trade magazines

6. Collect primary data • Data specific to research problem that has not been previously collected • Design data collection plan • Collect primary data • Survey—most common method of collecting quantitative data • Sample—smaller number of people who have same profile as larger population • Quantitative data—allows for statistical analysis • Qualitative data—interviews or focus groups asking open-ended questions that provide non-numeric information • Perform data analysis and decision making process

7. International data collection problems • Some countries have no infrastructure for collecting information • Individuals in some cultures may not respond because they do not trust researchers • Cross-cultural equivalence—problem of dealing with how similar or different research results are across cultures • In these instances, Environmental scanning will assist in gaining information

8. Cross-cultural equivalence • Conceptual equivalence—questions in 1culture may have different meaning in another culture • Translation equivalence—different languages require back-translation to ensure same meaning exists in each language • Sample equivalence—respondents from different samples may not share same needs or have same authority to purchase • Measurement equivalence—survey results differ because respondents respond differently to survey questions • Data collection equivalence—researchers are unable to collect data in similar ways across cultures

9. Other data collection problems • Some countries do not have reliable mail or telephone systems • May be difficult to identify segments researcher wants to sample • Privacy laws in some countries do not allow researchers to contact subjects without prior approval • Subjects in one-party governments may fear anyone who asks for their opinions, or they may be afraid to answer honestly

10. Global research organizations • Specialize in collecting data across many cultures • Leading int’l research companies: • ACNielsen • GFK Group • TNS Global • IPSOS Group