GLOBAL MARKETING RESEARCH V Kumar 1 Dr V

GLOBAL MARKETING RESEARCH V. Kumar 1 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

CHAPTER 1 The Nature and Scope of Global Marketing Research 2 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Chapter Overview q What is Global Marketing Research? q What makes it unique? q What are the important national differences? q What is the cultural impact? q What do researchers need to know? 3 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

What is Global Marketing Research? Research that is conducted simultaneously or sequentially to facilitate marketing decisions in more than one country. Examples of Application: q Cisco’s expansion in India q Kentucky Fried Chicken entering the Japanese Market q Campbell Soup Company’s attempted expansion in England 4 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Global Marketing Research: Is it a valid concept? Critics of Global Marketing research argue that all marketing research is national. However, GMR is a valid concept because: q Local Understanding of Market is needed q Provides important guidance to managers q International surveys are undertaken to aid an international marketing decision. 5 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

What is different about Global Marketing Research? The main factors which affect the way people behave are: Cultural Racial Climatic Economical Religious Historical Consumption Patterns Marketing Conditions Target Groups Consumer Language 6 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Cultural Differences The widely shared norms or patterns of behavior within a large group of people. Examples: • Family structure in Asia vs. United States • Division in Canada between French and English Legacies • Refrigerator preferences in Europe vs. US 7 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Racial Differences in cultures mean differences in physical features as well. Products must be tailored to meet the needs of the people from a particular country. Example: • The sale of Personal skin-care products in the US vs. Japan 8 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Climatic Differences Conditions dictate the use of certain products in certain parts of the world. As a result, brand positioning must be altered to its respective markets. Example: • The need for washing machines in certain European countries due to lack of sunshine 9 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Economical Differences The level of wealth and income affect consumer behavior in different countries. Example: • Poorer countries in the world have less accessibility to electricity. 10 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Religious Differences Certain religions have laid down specific behavioral patterns. Example: • Nike offends Islam religion with new logo design 11 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Historical Differences which explain facts concerning particular countries, have evolved over time and have profound effects on consumer behavior. Example: • The popularity of Scotch whiskey in Italy vs. Scotland 12 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Consumption Patterns The differences in consumption patterns can have a profound impact on the marketing and sales of certain products in particular countries. Examples: • Per capita consumption of soft drinks in the US vs. other countries 13 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Marketing Conditions Researchers must know the ground realities in foreign markets to understand the different nuances of marketing products and services. Examples: • The sale of cellphones in Bangladeshi villages • Interacting over cell phone vs. direct-in-person 14 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Target Groups The ability to collect samples and surveys varies is based on the population of villages and towns in certain countries. Examples: • National samples in France and Germany are possible. • Literacy rates in rural Indian villages prevent surveys from being conducted. 15 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Consumer Language Differences The manner in which particular consumers interact can be very different from country to country. Examples: • Age groups will communicate differently with each other • Median age market of 25 in India and China vs. 43 in Japan and Italy. 16 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Culture The values, attitudes, beliefs, artifacts and other meaningful symbols represented in the pattern of life adopted by people that help them interpret, evaluate and communicate as members of a society. 17 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Hofstede’s Cultural Dimensions Theory Five dimensions • Power Distance • Individualism vs. Collectivism • Masculinity vs. Femininity • Uncertainty Avoidance • Long-term Orientation 18 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Power Distance The extent to which less powerful members of society accept and expect that power is distributed unequally. Ex: The acceptance of inequality in Japan and China vs. equality in the United States 19 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Individualism vs. Collectivism People that look after only themselves and their families as opposed to people who belong to in-groups that look after them in exchange for loyalty. Ex: The market for home-computers in Japan vs. United States 20 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Masculinity vs. Femininity Measuring the distribution of emotional roles between male and female, this dimension is defined as: the dominant values in a masculine society are achievement and success, and in a feminine society the dominant values are caring for others and quality of life. Ex: The Scandinavian cultures are considered Feminine and American culture is very masculine. 21 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Uncertainty Avoidance The extent to which people feel threatened by uncertainty and ambiguity and try to avoid these situations. Ex: The high uncertainty avoidance of France vs. the low uncertainty avoidance of Denmark 22 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Long-term Orientation The extent to which a society exhibits a pragmatic future-oriented perspective rather than a conventional historic or short-term point of view. Ex: Asian culture vs. American culture 23 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Alternative Types of Marketing Research Descriptive Research • The attitudes and behaviors of consumers in other countries and cultures are examined in depth. Comparative Research • The attitudes and behaviors in two or more countries or cultural contexts are compared with a view to identifying similarities and differences between them Theoretical Research • The ability to synthesize data from different countries and interpret the factors which they are based on so as to produce results that are meaningful and can be used from a global point of view. 24 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Required Skill Set A researcher must possess substantial skills in three basic areas: q Knowledge of applicable countries and environment q Ability to relate knowledge to specific research problem q The ability to synthesize data from different countries and interpret the factors which they are based on so as to produce results that are meaningful and can be used from a global point of view. 25 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Importance of Comparability When conducting research, the following differences must be accounted for: Availability of resources and expertise in field q Working habits and Corporate cultures q Organizational Aspects q 26 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Classification of International Marketing Research Single-Country Research • Research conducted in a single foreign market. Multi-Country Research • Research conducted in more than one market. Independent Multi. Country Research Sequential Multi. Country Research Simultaneous Multi. Country Research • Research conducted by companies on the same product in different countries. • Research conducted in a country and then applied to subsequent countries. • Research conducted in multiple markets simultaneously 27 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Challenges to Research Level of importance given to statistics and technique over interpretation of results. q The undue importance given to data as well as reliance on computers. q The role of a marketing researcher is to use their experience to provide insight and analysis of the data collected. q 28 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Marketing Researcher of the 21 st Century Four critical factors will influence the marketing researcher of the 21 st Century: Speed q The Internet q Globalization q Ability to add value and insight to numbers q 29 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Consumer-Generated Marketing Critical dimensions to the marketing world: q The internet has evolved to the gateway of the world for corporations and business, with the cyberspace serving as a portal for commerce, retail and advertising. q Incorporate the geographical, cultural, political, legal and economical aspects of each region. 30 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Classification of International Marketing Research Mobile Marketing The direct marketing to mobile phones utilizing the benefit of sounds, image, and text are challenging channels of advertising and marketing. Social Media Marketing Consists of blogs, social networks, and content communities. Has evolved as a means for consumers to share valuable information with companies and vice versa. 31 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Impact of Technology on Business Practices Due to the emergence in technology, managers of businesses are changing their strategy in handling customer service from “call centers” to “customer contact points”. The latest technologies include: Voice over Internet q Text chat q Escorted browsing q Virtual Conferencing q 32 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Relevance of Technology Based Marketing Parameters Effected by Technology • Response Rate and Quality • Cost of Research • Time • Sample Size • Accessibility 33 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research

Ethics in Research Standards for Marketing Researchers Respondents rights Sponsors rights The right to participate voluntarily in the survey with no coercion from firm for conducting research. 34 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research Agreement between researcher and sponsor on how the research will be conducted.

Ethics in Research (contd) Guidelines for conducting Internet Research: q Compatibility between research purpose and forum. q Awareness of presence, purpose and identity. q Credibility when quoting individuals. q Maintain a level of respect for people and boundaries. 35 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research