Global Marketing Warren J Keegan Mark C Green

Global Marketing Warren J. Keegan Mark C. Green Global Information Systems and Market Research Chapter 6 Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall

Learning Objectives • Understand the importance of information technology and marketing information systems • Utilize a framework for information scanning and opportunity identification • Understand the formal market research process • Know how to manage the marketing information collection system and market research effort Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -2

Information Technology for Global Marketing • Information Technology refers to an organization’s processes for creating, storing, exchanging, using, and managing information • Management Information Systems provide managers and other decision makers with a continuous flow of information about company operations Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -3

Tools of MIS • • Intranet Electronic Data Interchange (EDI) Efficient Consumer Response System (ECR) Electronic point of sale Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -4

Intranet • A private network • Allows authorized company personnel (or outsiders) to share information electronically • 24 -Hour Nerve Center • Allows companies like Amazon. com and Dell to operate as real time enterprises Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -5

Electronic Data Interchange • Allows business units to: – Submit orders – Issue invoices – Conduct business electronically • Transaction formats are universal • Allows computers from different companies to speak the same language Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -6

Efficient Consumer Response (ECR) • A joint initiative by members of a supply chain to work toward improving and optimizing aspects of the supply chain to benefit customers • This is in addition to EDI • An effort for retailers and vendors to work closely on stock replenishment • Utilizes electronic point of sale Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -7

Customer Relationship Management • New business model • Philosophy that values two-way communication between company and customer • Every point of contact with a consumer is an opportunity to collect data • Can make employees more productive and enhance corporate profitability Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -8

CRM and Privacy Issues • EU’s Directive on Data Collection, 1998, ensures regulations of all 27 members • The U. S. /EU Safe Harbor agreement, 2000, protects individuals’ rights among nations Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -9

Privacy • Safe Harbor Agreement establishes principles for privacy protection for companies that transfer data to the U. S. from Europe – Purposes of the information collected and used – An ‘opt out’ option to prevent disclosure of personal information – Can only transfer information to third parties that are in compliance with Safe Harbor – Individuals must have access to information Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -10

Data Warehouses • Integral part of CRM • Help fine-tune product assortments for multiple locations • Enhance the ability of management to respond to changing business conditions Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -11

Organizational IT Necessities • An efficient, effective system that will scan and digest published sources and technical journals • Daily scanning, translating, digesting, abstracting, and electronic input of information into a market intelligence system • Expanding information coverage to other regions of the world Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -12

Sources of Market Information • Personal sources – Company executives based abroad who have contact with distributors, consumers, suppliers, and government officials – Friends, acquaintances, professional colleagues, consultants, and prospective employees • Direct sensory perception – Using the senses to find out firsthand what is going on in a particular country Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -13

Formal Market Research • Global Marketing Research is the projectspecific, systematic gathering of data in the search scanning mode on a global basis – Challenge is to recognize and respond to national differences that influence the way information is obtained Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -14

Agendas for a Global MIS Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -15

Steps in the Research Process 1. 2. 3. 4. 5. 6. 7. 8. Identify the information requirement Define the problem Choose a unit of analysis Examine data availability Assess value of research Design the research Analyze the data Present the findings Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -16

Step 1: Identifying the Information Requirement • What information do I need? – Existing Markets–customer needs already being served by one or more companies; information may be readily available – Potential Markets • Latent market–an undiscovered market; demand would be there if product was there • Incipient market–market will emerge as macro environmental trends continue • Why do I need this information? Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -17

Step 2: Problem Definition and Overcoming the SRC • Self-Reference Criterion occurs when a person’s values and beliefs intrude on the assessment of a foreign culture • Must be aware of SRC’s – Enhances management’s willingness to conduct market research – Ensures that research design has minimal home-country bias – Increases management’s receptiveness to findings Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -18

Step 3: Choose a Unit of Analysis • Will the market be: – Global – A region – A country – A province – A state – A city Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -19

Step 4: Examine Data Availability • Sources may be: – Company’s records – Secondary sources • Trade journals • Government sources like National Trade Data Base, Bureau of Economic Analysis, Eurostat (EU), Foreign Commercial Service, Virtual Trade Commissioner (Canada) • Commercial sources like The Economist and Financial Times, Marketresearch. com Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -20

Step 5: Assess Value of Research • What is the information worth vs. what it will cost to collect? • What will it cost if the data are not collected? • What will the company gain with this information? Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -21

Step 6: Research Design—Data Collection • Use multiple indicators • Develop customized indicators specific to the industry, product market, or business model • Do not assess a market in isolation • Observation of purchasing patterns/behavior are more important than reports of purchase intention or price sensitivity Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -22

Step 6: Research Design—Research Methodologies • Primary Data Collection Methods – Survey research – Interviews – Consumer panels – Observation – Focus groups Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -23

Special Considerations for Surveys • Benefits – Data collection from a large sample – Both quantitative and qualitative data possible – Can be self-administered • Issues – Subjects may not want to answer or intentionally give inaccurate response – Translation may be difficult • Use back and parallel translations to ensure accuracy and validity Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -24

Research Methodologies • Personal interviews • Consumer panels – Nielsen—TV viewing • Observation – Using people or cameras • Focus groups Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -25

Sampling • A sample is a selected subset of a population that is representative of the entire population. – Probability samples – Non-probability samples Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -26

Step 7: Analyzing Data • Clean the data • Tabulate the data using statistical techniques— ANOVA, regression, factor analysis, cluster analysis • Perceptual mapping, conjoint analysis Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -27

Presenting the Findings • Report must clearly address problem identified in Step 1 • Include a memo or executive summary of the key findings along with main report Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -28

Enhancing Comparability of Data • Emic analysis • Etic analysis – From the outside – Ethnographic in – Detached perspective that nature is used in multi-country – Studies culture from studies within – Enhances comparability – Uses culture’s own but minimizes precision meanings and values Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -29

Looking Ahead to Chapter 7 • Segmentation, Targeting, and Positioning Copyright 2013, Pearson Education Inc. , Publishing as Prentice-Hall 6 -30