Information for international marketing decisions Types of market

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Information for international marketing decisions - Types of market information - Issues in international

Information for international marketing decisions - Types of market information - Issues in international market research - Role of networks - International market intelligence © 2018 Taylor & Francis BI/C. A. Solberg 2012

International marketing decisions Where to? Entry mode Profile Primary & Positioning Budget secondary Service

International marketing decisions Where to? Entry mode Profile Primary & Positioning Budget secondary Service markets Target Distribution level customers channel Advertising adaptation Ethical issues Partner governance Advertising Trade fair media Roll out participation sequencing BI/C. A. Solberg 2012 Product adaptation Credit policy Partner selection Logistics Pricing policy © 2018 Taylor & Francis

What information do we need to make these decisions? How should we go about

What information do we need to make these decisions? How should we go about getting this information? What resources should we spend to get hold of it? And how much time? BI/C. A. Solberg 2012 © 2018 Taylor & Francis

Ad hoc As input to business decisions Continuous market intelligence Market investigation Market research

Ad hoc As input to business decisions Continuous market intelligence Market investigation Market research Market experience Market intelligence Informal Formal information gathering Different types of market information BI/C. A. Solberg 2012 © 2018 Taylor & Francis

Information from market Information from partner Customer visits, some research Cu on i t

Information from market Information from partner Customer visits, some research Cu on i t a sto m r me o nge f n rv i a h isit c s a ex l a nd n o ne ers l tw p a y ork l t m s r s Mo info d an Sales reports, meetings Information about market Information about partner Market information flows in exports (arrows designate the importance of info flow) BI/C. A. Solberg 2012; based on Gripsrud et al. 1999 © 2018 Taylor & Francis

Information behaviour in international markets Results from a survey among 112 Norwegian exporters 2012

Information behaviour in international markets Results from a survey among 112 Norwegian exporters 2012 Information orientation Information outcome/usage Mean Std. 5. 4 4. 1 2. 8 4. 0 3. 6 5. 0 1. 3 1. 4 1. 5 1. 4 Market insight Responsiveness Marketing plan 5. 4 5. 3 4. 3 1. 0 0. 9 1. 7 Performance 4. 3 1. 3 Info problems 3. 2 Emerging strategies 3. 3 1. 4 Info from - networks - internet - consultants - representatives Info processing Dissemination Impacting factors # of years + sales in market info orientation Competition +market volatility info orientation Sales in market some more planning and responsiveness Competition + volatility some more planning and responsiveness © 2018 Taylor & Francis

How critical really is market research in international markets? Results from a survey in

How critical really is market research in international markets? Results from a survey in the Norwegian fishing sector (N=114) Short relations Information from representative about market Long relations . 25**. 28**. 35*** Information from others about market . 17. 23**. 02 Information from representative about rep. Information from others about representative . 24*. 19*. 32***. 13 -. 06. 19* Export performance Adj R R 222: : . 273***. 280***. 392*** -. 31***. 08 -. 32*** Market research BI/C. A. Solberg 2012 Source: Solberg, Informasjonsadferd og internasjonalisering, BI 2003. * P-value *** P-value . 10. 05. 01 © 2018 Taylor & Francis

Things aren’t straightforward I Data equivalence Construct equivalence Do products, concepts, constructs etc have

Things aren’t straightforward I Data equivalence Construct equivalence Do products, concepts, constructs etc have the same meaning across cultures? Measure equivalence - Different nations have different systems: what is 34 kg/cm 2 in lbs/inch 2? - Scales have different meanings in different cultures - Translation Data collection equivalence - Different compositions, distribution and sample frames yield incomparable samples across countries. - Different response rates in different countries BI/C. A. Solberg 2012; based on Craig and Douglas 2000 © 2018 Taylor & Francis

Things aren’t straightforward II Interpretation of answers in two different cultures Italy UK “Religion

Things aren’t straightforward II Interpretation of answers in two different cultures Italy UK “Religion plays an important role in my life” 55% 75% “I go to church regularly” 30% 10% Source: Williams 1991 BI/C. A. Solberg 2012 © 2018 Taylor & Francis

Things aren’t straightforward III Poor translation or cultural differences? % Partly or entirely agree

Things aren’t straightforward III Poor translation or cultural differences? % Partly or entirely agree Great Britain “There are times when it is right to disobey the law” 6 France “Il y a des fois où désobéir aux lois est une bonne chose” 40 Source: Williams 1991 BI/C. A. Solberg 2012 © 2018 Taylor & Francis

Things aren’t straightforward IV Translation and backtranslation From Norwegian to English to Norwegian Følelse

Things aren’t straightforward IV Translation and backtranslation From Norwegian to English to Norwegian Følelse Sensibility: Sentiment: Instinct: Emotion: Følsomhet Sinnsbevegelse Rørelse BI/C. A. Solberg 2012 Feeling: Hunch: Følelse Kjensle Pukkel Kul Krøke Instinkt Drift Naturdrift Følelse Mening Oppfattelse Tanke Sentens Skjønn © 2018 Taylor & Francis

Personal interviews – focus groups Telephone interviews High Ja Ja SA Fr Ar Br

Personal interviews – focus groups Telephone interviews High Ja Ja SA Fr Ar Br Ge UK Fr Tw Ch SK SK Cn Th Mx SA Costs It Tw Cn Quality Ar=Argentina Br=Brasil Ch=Chile Cn=China Fr=France In=Indonsia High Low It=Italy Ja=Japan Ma=Malaysia Mx=Mexico Ru=Russia SA=Saudi Arabia It UK Ch In. Ma Low Ar Mx Ma In Low Ge Br Ru Th High Quality SK=South Korea Th=Thailand Tw=Taiwan Ge=Germany UK=United Kingdom Costs and quality of market research in different countries BI/C. A. Solberg 2012 Source: Zimmerman and Szenberg 1996 © 2018 Taylor & Francis

“Objective” market research Extensive use Limited use The analytical firm Nationally oriented, often larger

“Objective” market research Extensive use Limited use The analytical firm Nationally oriented, often larger firms that need information for their export ventures. They risk doing “good” research” on irrelevant issues. The international firm Large internationally oriented firms with well-developed market intelligence systems. Active use of both market research and network partners The intuitive firm The network-oriented firm No experience and no network. Risk making bad decisions based on intuition and hearsay. The most competent ones take advantage of structural coincidences. Ethnic trade and special industries (fx. shipping, fish). Firms make their decisions from information from network partners based on trust Undeveloped Well developed Information through network partners BI/C. A. Solberg 2012 Different types of firms adopt different information behaviours © 2018 Taylor & Francis

“Objective” market research Extensive use Limited use The analytical firm The international firm Number

“Objective” market research Extensive use Limited use The analytical firm The international firm Number of firms 63 Sales 653 mill Export share 54% Performance 3. 7 Number of firms 94 Sales 226 mill Export share 59% Performance 4. 1 The intuitive firm The network oriented firm Number of firms 34 Sales 271 mill Export share 34% Performance 3. 4 Number of firms 46 Sales 130 mill Export share 62% Performance 4. 0 Undeveloped Well developed Information through network partners And, indeed, they are different BI/C. A. Solberg 2012 Results from a survey of Norwegian firms in the fishing sector (performance figures 1– 5, where 5 is best) © 2018 Taylor & Francis

Discussions with customers Sales statistics Economic/ financial reports Discussions with representatives Contact with trade

Discussions with customers Sales statistics Economic/ financial reports Discussions with representatives Contact with trade councils and embassies Sales reports Trade journals Do we have mechanisms to receive and process all the information that we have access to? Internet Service reports Newspapers Discussions with competitors Trade fair visits Reports from trade councils Import statistics Dedicated market research There is a lot of information out there! BI/C. A. Solberg 2012 © 2018 Taylor & Francis

Evaluation of the system • Do we get reasonable information • from the right

Evaluation of the system • Do we get reasonable information • from the right sources • is it being embedded in the organisation • so that we can make the right decisions? Selection of information sources Establishment of routines for data retrieval Information processing Decisions Statistics (int/ext) Report from reps Journals/newspapers Trade fairs/seminars Newsletters Dedicated surveys Databases/internet, etc. Yearly/monthly/weekly? Role of representative? Comparability? Dedicated forms? Organisational “home”? How much analysis is needed? Market selection Modes of operation Partner selection Products and product development Marketing effort Setting up and evaluating the international marketing intelligence system BI/C. A. Solberg 2012 © 2018 Taylor & Francis