Global Marketing Management A European Perspective Assessing Global

Global Marketing Management A European Perspective Assessing Global Marketing Opportunities Warren J. Keegan Bodo B. Schlegelmilch

Overview z Global Marketing Research y. Definition y. Relevant Dimensions of the Marketing Environment y. Idiosyncrasies of Global Marketing Research z Data Compatibility and Equivalence z Secondary Data versus Primary Research z Organisation of the Global Marketing Research Process z Summary Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 2

Learning Objectives z To understand the key global information needs of a company z To appreciate the impact of globalisation on the marketing research discipline z To learn how environmental differences impinge on primary and secondary research Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 3

Marketing Research z. . . links the consumer, customer, and public to the marketer through information z Information is used to. . . yidentify and define marketing opportunities and problems; ygenerate, refine, and evaluate marketing actions; ymonitor marketing performance; and yimprove our understanding of marketing as a process. Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 4

Inadequate International Marketing Research Can Cause Costly Mistakes Examples: z. US ketchup -> Japan z. US Kentucky Fried Chicken -> Brasil z. US Soft Drink -> Indonesia z. D Knorr soup -> USA z. US cake Mix -> GB Thus: In international marketing, information is critical in developing effective marketing strategies! Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 5

Relevant Dimensions of the Marketing Environment Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 6

Dimensions to be Examined in the Marketing Environment (1) z Economic and competitive environment yeg GNP, income level, balance-of payment z Technological environment yeg engineering skills (for production in a specific country) z Political environment yeg government actions with respect to taxes, equity control, and expropriation Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 7

Dimensions to be Examined in the Marketing Environment (2) z Regulatory environment yeg governmental and non-governmental agencies which enforce laws and set guidelines for conducting business (such as EU or WTO) z Legal environment yeg patents, trademarks, licensing jurisdiction and antitrust laws z Social and cultural environments yeg conscious an unconscious values, ideas, attitudes, and symbols Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 8

Idiosyncrasies of Global Marketing Research z Complexity of factors to be considered yadditional markets add complexity z Competition ymore firms have to be taken into account z Lack of research infrastructure y. . . especially in developing countries Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 9

Data Compatibility and Equivalence in Global Marketing Research z National markets have unique characteristics z But: It is essential that data have the same meaning and the same level of accuracy, precision of measurement, and reliability z This aspect covers all stages of marketing research from problem definition to data analysis Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 10

Equivalence in Global Marketing Research Source: Salzberger T. , Sinkovics R. , Schlegelmilch B. B. : Data Equivalence in Cross-cultural Research: A Comparison of Classical Test Theory and Latent Trait Theory Based Approaches", Australasian Marketing Journal, Vol. 7, No. 2, 1999, p. 3 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 11

Secondary Data z Data from sources that already exist - they have not been gathered for the specific research project z Therefore: Minimal effort and cost z Possible problems yaccuracy yavailability ytimeliness ycosts and ycomparability of data Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 12

Examples of Secondary Data Sources z Governments y. Department of Trade and Industry z International Organisations y. UN, OECD, Worldbank, z Trade Associations y. Tradefair International, Japan Export Trade Organisation (JETRO) z Electronic Data Bases y. Euromonitor Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 13

Primary Research z. . . when secondary data are inadequate z. . . provides accurate data which give exact answers to a given research problem z Possible problems ydifficulties in gaining the data ycost ymore time is necessary to gather the data Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 14

Primary Research Process z Step I: Identifying the research problem z Step 2: Developing a research plan z Step 3: Collecting data z Step 4: Analysing research data z Step 5: Presenting the findings Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 15

Analysing Research Data Examples: z Demand pattern analysis z Income elasticity measurements z Market estimation by analogy z Comparative analysis z Cluster analysis Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 16

Organising the Global Marketing Research Process Means: z Deciding on research responsibilities z Designing global marketing information systems z Possible scanning modes: surveillance and search y. Surveillance: informal gathering of information, eg about potential opportunities y. Search: more formal activity - seeking of specific information; marketing research is one „method“ Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 17

Honomichl Global 25: The Largest Research Organisations Source: ”Honomichl Global 25”, Marketing News, 16 August 1999, p. H 1 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 18

Global Marketing Information System A means for gathering, analysing, and reporting relevant data to provide managers and other decision makers with a continuous flow of information about markets, customers, competitors, and company operations. Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 19

Summary z Information is one of the most important assets in international marketing z Among the idiosyncrasies of global marketing research are the complexity of factors to be considered and the lack of research infrastructure z Comparability and equivalence in an international context is essential; i. e. the data must have the same meaning and the same level of accuracy, precision of measurement and reliability Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 6 / 20