Global Marketing: Chapter 6

Information Technology (IT)
-an organization’s processes for creating, storing, exchanging, using, and managing information
Management Information Systems (MIS)
-provide managers and other decision makers with a continuous flow of information about company operations
Toold of MIS
Intranet
Electronic Data Interchange (EDI)
Efficient Consumer Response System (ECR)
Electronic Point of Sale
Intranet
A private network
Allows authorized company personnel (or outsiders) to share information electronically
24-Hour Nerve Center
Electronic Data Interchange (EDI)
•Allows business units to:
o Submit orders
o Issue invoices
o Conduct business electronically
•Transaction formats are universal
Efficient Consumer Response (ECR)
•A joint initiative by members of a supply chain to work toward improving and optimizing aspects of the supply chain to benefit customers
•An effort for retailers and vendors to work closely on stock replenishment
•Utilizes electronic point of sale
Consumer Relationship Management
•New business model
•Philosophy that values two-way communication between company and customer
•Every point of contact with a consumer is an opportunity to collect data
•Can make employees more productive and enhance corporate profitability
Data Warehouses
•Integral part of CRM
•Help fine-tune product assortments for multiple locations
•Enhance the ability of management to respond to changing business conditions
•Somewhere to store information
Sources of Market Information
Personal sources
Direct Sensory Perception
Personal sources
-Company executives based abroad who have contact with distributors, consumers, suppliers, and government officials
-Friends, acquaintances, professional colleagues, consultants, and prospective employees
Direct Sensory Perception
Using the senses to find out firsthand what is going on in a particular country
Formal Market Research: Global Marketing Research
-other project-specific, systematic gathering of data in the search scanning mode on a global basis
•Challenge is to recognize and respond to national differences that influence the way information is obtained!
Steps in the Research Process
•Identify the information requirement
•Define the problem
•Choose a unit of analysis
•Examine data availability
•Assess value of research
•Design the research
•Analyze the data
•Present the findings
Step 1: Identifying the Information Management
What information do I need?
-Existing Markets
Potential Markets
-Latent Markt
-Incipient Market
Existing Markets
customer needs already being served by one or more companies; information may be readily available
Latent Market
an undiscovered market; demand would be there if product was there
Incipient Market
market will emerge as macro environmental trends continue

-Incipient is in the middle of latent and existing markets

Step 2: Problem Definition and Overcoming SRC
Self Reference Criterion
-when a person’s values and beliefs intrude on the assessment of a foreign culture
Must be aware of SRC
-Enhances management’s willingness to conduct market research
-Ensures that research design has minimal home-country bias
-Increases management’s receptiveness to findings
Step 3: Choose A Unit of Analysis
• Will the market be:
-Global
-A region
-A country
-A province
-A state
-A city
Step 4: Examine Data Availability
•Sources may be:
o Company’s records
o Secondary sources:
• Trade journals
• Government sources like National Trade Data Base, Bureau of Economic Analysis, Eurostat (EU), Foreign Commercial Service, Virtual Trade Commissioner (Canada)
• Commercial sources like The Economist and Financial Times, Marketresearch.com
Step 5: Assess Value of Research
•What is the information worth vs. what it will cost to collect?
•What will it cost if the data are not collected?
•What will the company gain with this information?
Step 6A: Research Design-Data Collection
•Use multiple indicators
•Develop customized indicators specific to the industry, product market, or business model
•Do not assess a market in isolation
•Observation of purchasing patterns/behavior are more important than reports of purchase intention or price sensitivity
Step 6B: Research Design: Research Methodologies
Primary Data Collection Methods:
-Survey Research
-Interviews
-Consumer Panels
-Observation
-Focus Groups
Survey Research
Good and very versatile and you can do it over the phone, pencil and paper, internet. Get it out to a lot of people. It is Quantitative. Hard in LDC because some people can not read or have internet. Everything is going to have to get translated back into English later on. HUGE SAMPLE, results will be a lot more valid
Interviews
more in depth and one on one. Good thing: very rich qualitative data and you can stop them. Very time consuming and you do not get as many people
Consumer Panels
Observe some actions of consumers over time. Send a diary home and record calories you eat every single day. More limited but you can observe
Observation
A lot more in a natural setting. Watching people, a lot of people don’t know they are being watched. Act different if you know they are watching you. Can be known as well but not getting as much data as you could.
Focus Groups
Similar to interviews however you get a group 6, 10, 12 people and you get a moderator with an outline, free for all where everyone is talking. Use a lot with potential advertisements, tv shows, products that are going to come out
Sampling
-A selected subset of a population that is representative of the entire population.
• Probability samples
• Non-probability samples
Step 7: Analyzing Data
•Clean the data
•Tabulate the data using statistical techniques
o ANOVA
o Regression
o factor analysis
o cluster analysis
o Perceptual mapping
o conjoint analysis
Step 8: Presenting the Findings
•Report must clearly address problem identified in Step 1
•Include a memo or executive summary of the key findings along with main report