BUS615: International Marketing

4a. Compare and contrast marketing research and marketing intelligence 

• What are the different types of competitive intelligence that are available to marketers?
• What are some of the customary topics for marketing research?
• What are the steps in the marketing research process?
  

Having information about the competition and the overall marketplace can enable a company to better understand the challenges they are facing in each market. Important data about the competition includes product information, which can identify who else is making similar goods and services, what these goods offer to consumers, and how they are presented to the public. It is also essential to have an understanding of competitive market share, the direction in which that market share is headed, and which brands are considered to be the market leaders. Competitors' pricing strategies are also an important factor to evaluate. By understanding their offerings and the discounts or promotions they provide, a company can determine how this might impact their own pricing approach and where they fit relative to other brands in the category. Positioning relates to product image and how brands are perceived relative to the competition. By evaluating another brand's messaging, a company can craft their own messaging in response and help create a position in the mind of the consumer. Finally, it is important to take a look at the sales that a company is gaining from the competition or losing out. Analyzing why consumers select your product, or those from the competition, is helpful in developing meaningful strategies.
 
There are several areas that are the most common subjects for market research. Marketers are generally interested in learning about the environmental factors that exist in a marketplace and how they impact consumer behavior. These might include the economy, market trends, the legal environment, technology, and so on. Customer attitudes and behaviors are a common field of research. It is important to understand the factors that relate to consumer needs and wants, what consumers prefer in their products or services, and how they go about making purchase decisions. Companies also conduct product research about the different products that are available in the marketplace to see where opportunities exist or where their products can better meet consumer needs. Product testing is also valuable in determining new opportunities and how to gain a competitive advantage. Research about marketing effectiveness is commonly conducted, as well. This is done to ensure that campaigns are as effective as possible, that they are reaching their intended target markets, and what activities could improve brand awareness. Finally, companies will conduct corporate research to evaluate their image in the industry, how they can build their reputation, and how they can increase profitability through acquisitions, partnerships, or other means of expansion.
 
The first step in the marketing research process is to identify the problem. This includes articulating the objectives and creating research questions that need to be answered. The next step is to develop the research plan, which encompasses the information that is needed, the methods to be used, and the people responsible for the project. These steps are followed by actually conducting the research, either through primary or secondary sources. Once the data is collected, it is analyzed, interpreted, and reported upon. Finally, based on the results of the research, action is taken to address the questions the research was designed to resolve.
 
To review, see Marketing Information and Research.

4b. Explain the role of global research in international marketing

• How can a company narrow down the choices of which country or countries are most attractive for expansion?
• What are the benefits of the Market Diversification Tool?
• How can market research identify the pros and cons of globalization vs. global marketing standardization?
  

There are many sources of information for helping a company evaluate the global marketplace and identify the locations that are best suited for expansion. Researching US Trade Data is a good place to start. Having the Export Classification Code for the product is essential and can be obtained through the US Census Bureau.
 
Tariff rates around the world are available through these sources, as well as other information about nations where similar products are being sold. There are other government resources, such as export.gov, which can provide other trade information. Additionally, a company should take a close look at the countries that are part of the United States' Free Trade Agreements.
 
Internal research can also be valuable, especially as it relates to website visitors. This can provide a company with information about the locations from which inquiries are coming.
 
Global research can also provide a company with information about the size of different markets, ease of entry, geographic factors, weather conditions, and other related information.
 
The Market Diversification Tool is available through the International Trade Administration, and supplements research that a company may conduct on its own. It can help a company identify new markets that have growth potential and are under consideration for exporting. The research this tool provides includes comparisons of markets where a company may already be exporting; it examines trade data specific to the product and offering; and evaluates the data to determine whether these markets are desirable for doing business.
 
The decision to adopt a globalization strategy vs. a global standardized strategy is complicated, and organizations take a great deal of time and effort to determine the most effective strategies for their companies. Factors to be considered include organizational competencies, product and service offerings, stakeholder expectations, finances and resources, logistics, culture, consumer needs, political and government factors, and many others. By researching each marketplace in-depth, coupled with the goals of the organization, a company can determine the most attractive markets for expansion and the strategies that will best meet organizational goals and the needs of consumers in those geographic areas.
 
To review, see Global Marketing in the US and International Market Research.

4c, 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

• What are the characteristics of a primary source of research?
• What are the characteristics of a secondary source of research?
• What are the benefits that qualitative and quantitative research methods provide?
• What are examples of scholarly sources that can provide reliable secondary data?
  

Primary research is new information that is conducted by a company for the first time. It can specifically address the questions that need to be answered and can provide the company with the most current and up-to-date information available. However, conducting primary research is time-consuming and can be costly.
 
Secondary research is information that is already published. This information is readily available and is often available for free. However, data may be outdated, it may not be from a reliable source, and it may not answer the specific questions that need to be addressed. Scholarly resources include information from government departments, the US Constitution, or other historical documents. Medical journals and scientific studies can generally provide reliable data. Pieces of artwork or literature may be accompanied by scholarly analyses, and textbooks and other documents from historical figures may be considered, as well.
 
Quantitative data is information that can be tabulated and measured. This can include information from surveys, questionnaires, interviews, observations, and other activities where specific answers can be noted and calculated.
 
Qualitative data provides a more descriptive evaluation of the subject being researched. This method can provide emotional responses and help marketers gain a more in-depth understanding of consumer attitudes and beliefs. Some of the methods used for this kind of research include focus groups, interviews, observations, and surveys with open-ended questions.
 
In general, it is a good strategy for companies to begin their research process by looking at the secondary data that is available before conducting primary research. It is possible that relevant and timely information is available, reducing the need for costly and time-consuming primary research.
 
To review, see Finding Your Sources and Primary and Secondary Research.

4d, 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 

• What factors should companies consider when deciding whether to use traditional research methods vs. digital research methods?
• What are the factors associated with researching market size, market segmentation, and market share?
• What kinds of information can a company uncover by conducting research about a host country's culture?
  

The first factor to consider when determining which marketing methods are most appropriate relates to the segment of the population included in the study. If older consumers are the desired respondents, marketers might consider using traditional methods for obtaining data. Traditional methods can be implemented both online and in person. These methods can include surveys and focus groups, interviews, and online research communities.
 
For gathering information from younger demographic groups, data can be collected through online monitoring of websites, social media platforms, online focus groups, and other digital technologies. Data obtained through these methods can include both quantitative and qualitative data. Qualitative data will provide information from smaller groups of respondents, which can be useful for generating ideas and gaining insight. Quantitative data will generally come from larger respondent groups and can help companies confirm ideas and narrow down their choices.
 
Additionally, time and budget should be major considerations when determining which research methods are to be used. For example, as noted earlier, secondary data is easily obtained and can be free or low-cost. This is attractive for companies with limited budgets or those that are short on time. If a company has a larger budget, conducting various forms of primary research can provide the most current and relevant information but may come with a long timeline and a high cost. As noted earlier, conducting secondary research prior to implementing primary research is advised since available information may be relevant and useful.
 
Conducting research about market size, market segmentation, and market share is also important when determining which markets are attractive for entering. Market size measures the overall world in which a company is seeking to make an impact. The information included in these studies looks at the size of certain regions, as well as sales within specific product categories, and also predicts what may happen in the future. As a result, these studies tend to be quite expensive.
 
Market segmentation explores different groups of consumers to identify who might be potential customers. This information can be defined as data that is measurable; it can illustrate consumers who can be reached through marketing activities; whether it is expected that consumers will continue to seek out this product or service, and whether this market is sufficient to provide a sustainable profit.
 
Researching market share will enable a company to gain a greater understanding of how much of the market each of their competitors owns. This information can help a company identify what percentage of the market they might be able to capture if they were to enter. While conducting these last pieces of research is time-consuming and costly, they are essential in enabling a company to make the appropriate decisions before taking the steps to enter a marketplace in which the opportunities are minimal or limited.
 
As noted earlier, culture can be explicit or implicit. Explicit cultures include those that can be seen or perceived, such as fashion, language, food, architecture, and so on. Implicit factors relate to attitudes, values, and beliefs. Researching these elements prior to choosing to enter a market is important to ensure that mistakes aren't made in product development or marketing campaigns. Colors, wording, graphics, and other elements of a marketing message can attract consumers to a product or service or result in a negative response that will inhibit growth and sales.
 
To review, see:

• Introduction to Market Research
• Digital Marketing Research
• Marketing Across Cultures

Unit 4 Vocabulary

This vocabulary list includes the terms that you will need to know to successfully complete the final exam.

• corporate research
  
• customer attitudes and behaviors
• global research
• internal research
• marketing effectiveness
• marketing research process
• market research
• primary research
• product research
• qualitative data
• quantitative data
• secondary research