Unit 4: Market Research and Selecting International Markets
The marketing research process follows a standard set of steps. It begins with the identification of a problem that needs to be solved. This is followed by developing the research plan and then conducting the actual research. Once all data has been collected, it is analyzed, and the findings are written up in a formal report. At that point, actions can be taken based on the information uncovered and conclusions that have been formed. While this process is relatively customary in business, it takes on new dimensions when implemented on a global scale. For international markets, even identifying the problem to be solved can vary from country to country. A research plan suitable for one nation may not be appropriate or applicable somewhere else. The findings of research gathered in one country may have different implications in another part of the world. In this unit, we will explore the intricacies of market research on an international scale and how we can determine appropriate and effective research methods.
Completing this unit should take you approximately 4 hours.
Upon successful completion of this unit, you will be able to:
- compare and contrast marketing research and marketing intelligence;
- explain the role of global research in international marketing;
- differentiate between secondary and primary research methods, such as mail or online surveys, focus groups, face-to-face interviews, telephone or video conferencing interviews, and observation, for collecting data; and
- determine which market research methods are appropriate for a given market by evaluating what you want to achieve, the data that you will need, the pros and cons of each method, the costs of conducting the research, and the cost of analyzing the results.
4.1: Why Do You Need Market Research?
Information is the key to effective decision-making. Knowing your customers, the marketplace you are operating in, the competitive environment, technology, legislation, trends, and so on can enable a business to make decisions that are appropriate for the company, their products, and the markets they have a presence in. Marketing research is how this information is collected and analyzed. For example, if you were considering opening a chain of cheese shops across Europe, you would want to know about consumers in each city, what kind of competition you might be facing, the price points you should consider, and local trends in the cheese industry. This is the marketing intelligence you need to make decisions. The marketing research process defines how you will obtain this information. Read this chapter for an in-depth look at the marketing research process and its resulting marketing intelligence. This resource also explores specific case studies that show how research enables companies to make effective decisions.
4.2: Scoping Your Market Research
When companies explore global expansion, they need a great deal of information before making decisions with significant implications for their stakeholders. They need to conduct extensive research to ensure that their decisions are appropriate. Think back to the example of an international chain of cheese shops. You can see the many areas where information would be needed: what the competition looks like in each marketplace; what trade barriers exist, if any; challenges related to public relations, ethics, local staffing; and so on. Another decision that needs to be made is whether or not marketing standardization would be appropriate or whether marketing strategies and product development would need to be customized for each market. All of these considerations are the role of marketing research.
This resource from the US Department of Commerce's International Trade Administration includes information about researching specific countries, trade agreements, and international trade opportunities and includes several experts' suggestions. This material can provide insight into which markets are most attractive for global expansion and what challenges might exist in those marketplaces.
4.3: The International Marketing Research Process
So far, we have explored the steps of the marketing research process. Now, we will discuss gathering research and how data can help us meet our research objectives. First, we will look at primary sources of information. These contain new, original information that has not been published previously. Secondary sources are materials that have been published previously and are readily available. No matter what sources you use, the source must be reliable, applicable, and scholarly. If you use secondary research, there are several questions you should ask. Is it current enough to meet your needs? Does it answer the important questions related to your issue? If not, then primary research might be necessary. This section explores the criteria for determining if a source is applicable to your needs.
Research data can be used to evaluate internal factors, such as core competencies and the business model, or external factors, such as Porter's 5 Forces and competitors. These factors all affect how a company will want to implement the marketing research process. This video looks at the role of primary and secondary research in the overall marketing research process.
4.4: Selecting International Target Markets
When conducting international marketing research, a company must find out as much about the market as possible before determining what kinds of research would be most effective in meeting its research goals. This video discusses the importance of analyzing market size, market segmentation, market share, and how these elements relate to the marketing research process.
Digital primary research requires identifying online consumers and determining how to connect with them. Examples include surveys and focus groups. Digital secondary research involves finding where data has been collected and evaluating its applicability to your specific issue. Pew Research is a high-quality source of secondary data. As you watch this video, think about the research methods available to marketers and the challenges they might face in international markets where culture and values vary.
Before entering an international market, understanding that country's culture and values is essential for organizational success. Cultural issues can be explicit – things we can see or perceive – or implicit – values and attitudes. These variations can affect the kinds of research methods that are appropriate and acceptable in a given nation. This section gives some insight into the challenges companies face when researching in a host country.
Unit 4 Assessment
- Receive a grade
Take this assessment to see how well you understood this unit.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.