International Marketing Research

Welcome everyone to the class of marketing
research and analysis in the last section we discussed about one other important markets
that is the rule market where we discussed about what are the major differences between
the urban and the rural market why the rural market is so important and what should marketers
keep in mind and accordingly how should the research be conducted in the rural market.
So that right kind of data is made available to the companies and they can accordingly
then may be more innovative and develop new products for the rural markets and all similarly
another important with globalization what does happen is that the markets have all opened
up right today the whole globe as more or less become a single market right companies
somewhere in the you know they say that is a small saying that if there is a any product
which let us say it returned from that it is return that it has come from India.
Then if you break it up into several parts you will find that one part is made in Vietnam
another part is made in may be china the some other part is made is made in let us say Europe
and finally may be it is assembled in India, so at this story is not only in a case of
Indian but it is just a story is applicable to almost every product in the you know around
in the glob the simple reason is that companies are producing and then and assembling part
and collecting parts from various suppliers across the globe right so today globalization
has really opened up challenges it has opened up the competition right so this completion
as brought in several advantages for people who are very innovative and doing well companies
how are very innovative but it could be sometimes dangerous also if you do not compute probably
in the international market so you may fall back right so let us see why this international
marketing research. Important the most important thing is that
international marketing is different because every market is different right every behavior
of people in the market is different right so suppose you want to make a product for
a market x then if you do not understand the culture the people the habits of the people
there the purchasing behavior what do they like in the product how what kind of pricing
mechanism they follow what kind of distribution mechanism they follow.
If you do not understand this then you may land up into problem right so what is this
international marketing research it is a systematic gathering recording analysis and interpretation
of the data and information on problems relating to the international marketing so let me give
you an several examples for example when you know the very popular case of Kellogg’s
when Kellogg’s came to India initially they did not do well.
What was the reason the reason was Kellogg’s through that because that products corn flakes
was very popular across as a breakfast cereal it would automatically sell in India in those
segments where those high in segments and something right but they forgot that the habit
of the Indian consumer to consume his breakfast or at least milk is that Indian consumers
instead of using cold milk which she is required in the case of Kellogg’s they consume hot
milk so when they use to put hot milk on the Kellogg’s they consume hot milk so when
they use to put hot milk on the Kellogg’s cornflakes it use to become very you know
it is louse its crispiness so as the result people felt this product was bad okay it is
an inferior product so they stopped it. The company had to educate the people on the
habit of eating the breakfast cereal so they did well after that so similarly there are
so many other examples well Sea men came to India when they again came to with the products
initially they found that the markets not excepted the reason because they had made
the products looking at the voltage and the current conditions of their country right,
so when they directly launch the products in India, India had a different conditional
together so they did not do well right. So international marketing research helps
you to identify the biggest problem that happens with consumers is marketers sorry not consumers
is that many of times we get into a problem of a self reference criteria, that means we
tend to think from our own point of view which is very dangerous in many cases take a case
of coca-cola when coca cola when to China they converted the change that name in the
mandarin language is the Chinese language, what happen the was the result was that.
They it gave a meaning key ko Kellogg something like that right which meant bite the vax you
tadpole something bite the vax tadpole now when the meaning was such who would like this
product right, so sometimes not understanding the culture who would like not understanding
the language the habits everything becomes a very, very important you know criteria in
the international markets, so how do you do that international domestic research. Is not different they are same the techniques
are same right the differences in the environment to which the tools setup light the environment
to which the tools you are using they are different suppose you want to use a survey
instrument the survey instrument might be applicable in easily in India but it might
not be applicable to another market where people do not have time with them so in such
a condition it becomes and to important to understand okay which form of survey is more
replaced. In that particular country maybe telephonic
method maybe online method or physically one to one interview, so what are the four primary
reasons? For the differences between international
domestic research so there are the four parameter things which are described defining the competition
a broader definition of the competition new parameters environmental factors and increasing
the number of factors involved in the entire process so the functions. For example the functions in the three important
functions in the international market research to first is to scan the international environment
to identify and analyze the opportunities and threats first you to scan the international
environment and identify and analyze the opportunity and threats now for example a market may look
very new creative but because of some political you know threats are instability it might
be a very weak market right. So there could be several reasons so the market
has to build a market information system to monitor the environmental trends to check
okay what is the trend in the market how what are people buying how are they are buying
how are they buying and when they are buying all these things carry out primary. Research service and using those inputs to
the, for the developing the marketing mix options and strategies, so what problems can
occur in the international environment. As I said, it could be a problem of language,
culture anything right, so framework for international marketing research if you can see step 1 same
thing problem identification you identify the problem, develop and approach whether
you want to do it in exploratory approach a descriptive approach what kind you want
to approach, design formulation so have to talk about who is your sample, how many sample,
how to collect the data and all these things. Then you do the date collection, data preparation
and you analysis the data and then you report right things, so this is more or less a same
thing, right. So what are the new environmental factors
the new environmental factors are like the management needs to as it says learn the culture
of the host country. Now the culture, now I will give an example here, this was the
case of Marlboro right, Phips Morris when they had the very popular successful advertising
campaign of the cow boy right, so they thought this became such a craze across the world
that they it would be a successful ad wherever they placed it.
So the ad was such that there is a cow boy who was travelling and he near a jungle forest
and there is railway track and one of the fish you know the screws in the railway track
has been dislodged so he fixes a sit up, so this ad was very, very popular in US and other
markets because the reason was very, the reason was that in the US the cow boy like feeling
you know find a forest and all these things where very new good to the, very nice to them.
Same ad when they did not change much and they launched in Brazil what happen, the ad
flopped the reason was in Brazil a forest looking at a forest is nothing new to them,
because Brazil is filled with forest right, so this was such a small thing that they forget
to understand right, understanding the political systems and level of stability now many marketers
have come to India they have gone back from India.
For example, in the 70s IBM came, Coco cola came and they could not sustain because at
that time the political condition of India was different, right. Comprehending the existing
structures the differences in the social structures societal structures and language. As I told
in the last class also that in India for example, language the delight at least changes every
26 kilometers, now let us say a marketers who is coming to the new place if he does
not understand the structure in the society okay, how the society is formed.
For example, in India or the Asian countries there is a lot of hierarchy for example there
is a lot of respect you cannot say somebody by name right, which is maybe very okay with
an MNC culture in the Western countries where you call somebody who is much senior to you
by name also, so that is the structure or which people might not appreciate in Asian
economies okay, so there are several such things which one has to understand.
The how the culture is different, then understanding the legal issues,so what is you know legal
issue in one place for example bribery in some of the nations bribery the definition
of bribery is quite different to what the definition you find in another country, right,
okay. Now coming to the importance of international research. Firms must learn where the opportunities are
what customers want why they want and how they satisfy their needs and wants okay the
research allows management to identify and develop international strategies and then
those the firms must identify and evaluate and compare the potential this is opportunities
and then subsequently target the markets okay. So to do all these to all these it is not
simple it is very complicate because although we are suppose I mean ion Indian my neighbor
is Pakistan but there is a sea of difference between the culture in the two countries and
the political climate okay. So one is to be very careful when you log get in to the new
market and international market okay. As a management tool international market
research can help the firm to reduce its exposure to risk obviously yes right avoid errors identify
the opportunities and match the firms capabilities with foreign openings for example when one
of the companies they this is an example the chicken wings now that was one product which
is not consumed in many countries but when the same product was launched as a delicacy
in China it become a measure hit right. So understanding an opportunity finding an
opportunity is very important thing right international marketing research is necessary
to decide not to decide which foreign markets to enter for example you see till date Google
which is one of the most successful campiness had not been able to successfully operate
in china or compute against eh Chinese counterpart by to right so why do is it that why it is
happening right. Nestle for a long time could not make profitable
in China just because they were not getting acceptance okay so international marketing
research helps you to identify which markets to enter so markets geographically might not
be close or you know far that is the different story but which are similar in nature in terms
of trades behavior so that becomes easy for you to understand right. So process of researching foreign market potentials
stage one so there are three sages stage one preliminary screening for attractive country
markets so the key question is which foreign markets warrant detail information so you
need to have detail information about the which foreign market you want to go second
is what is the aggregate demand now the research should help you to also not only identify
a market but also to identify the demand to each of the selected markets.
The third is how attractive is the potential demand for the products which are being discussed
so these three things are very important o when somebody wants to enter in the foreign
market right. Now when we talk about international buyer behavior research. Now international buyer behavior now means
what that means simple when I am getting in to a new market so what is the behavior? Behavioral
change in the buyer which is not present in the current market right for example you can
see the brand preferences some brands are very popular in one market but they are absolutely
a failure in another market okay, for example you see if you look at there are several soft
drinks for example Pepsi is a very popular soft drink in India right but it might not
be so in many other countries okay. Brand attitudes brand awareness right how
much of people are aware right so if the awareness is very low automatically it would have a
very poor effect very bad effect that means right. Then finally the consumer segmentation
how do you segment the market if you do not understand the culture of that place or the
you know the way people are buying then segmentation targeting becomes very difficult and even
in positioning okay. So when we talk about international product
research this has a common technique but need to be discussed so when Siemens as I said
cam to India they do not do well when the Kellogg’s came to India they did not do
well right so the demand of the market might be different right so the product that P require
for example in India we believe that the product might not be very attractive for once large
segment of people at least. But it has to be very steady that means the
length of life or the product life cycle is more important to us because we believe in
value and money right so when we are thinking on those patterns automatically a marketer
has to develop a more robust and steady product then more strong product okay.
Testing the product competitive product studies understanding and packaging design as I said
and finally the test marketing so when we are doing a international product research
you need to identify what kind of products would be acceptable in this market and how
they should be packaged how they should be sold to the market okay. So similarly when you come to the distribution
one need to understand the distribution channels are very interesting that in some cases this
distribution channels in some countries are very long for example there is 5, 6 levels
in Japan for example in food industry the 5, 6 levels of you know which are the channel
but in some other countries they have tried to cut down the intermediary to very large
extent okay. So the how is channel performing and how you
know you have the local general knowledge that is very important accordingly where should
be the plan when you are talking about international markets where should you place the plan now
how do you decide that how do you locate the location of the plan is very important because
if your location of the plan is wrong you are cost will go on increasing. And you might sometimes not get it in right
market also okay similarly promotion how effective is advertisement right what is the local media
which is more popular look at many MNC now if your living in the current in the national
channel you see sometimes local languages adds in south Indian language and all now
even MNC’s are trying to release the local you know people through by using local media.
Now this is because to give the local feel right so by doing that they are giving the
feel that we are very much integral part of you so we do not know the company of reason
company might be from let say student but today we feel as it is from here for example
Bata, Bata we many people should now today Bata is very popular right it is not from
India but it is similarly okay. So what are the survey methods differences
so the difference survey method is used survey methods are very largely has for the markets
also right so because of low cost male interviews continue to be used in most developed countries
the literacy is high and process is well developed so if you are in the research let say in a
developed countries may be male interviews are good right.
In countries were educational level all the people is extremely high male interviews are
common okay but on other and Africa, Asia, South America however if you see the use of
male surveys and male panels is very low because of illiteracy. And even the banking and the postal system
not been a very developed one okay. if the last one if you can see the male surveys are
typically more effective in industrial, international marketing research although it is difficult
to identify the appropriate responded within the each firm and personalize that is, so
these are the critical issues that one as to face. Door to door interview is illegal You cannot do a door to door in Saudi Arabia
right, no accurate maps of some south America and Asian cities available, so international
markets these problems one faces. So if you are going global what are the difficulties? Language, religion race, more unknowns’
market conditions, what kind of data collection method I do not know at the method, we have
to think about it. Longer completion time obviously because the market is new. The costs
are high and lots of restrictive laws. So how do these difficulties influence the research?
This becomes very important question okay. Now you could have used the data which is
already available but then there is also problem with the secondary data, first is the availability
of the data, now sometimes the data is not collected regularly and it might aged old
data, so this data the question of is availability and reliability both is questionable okay,
so times people purposely miswritten the data also, now that data cannot be taken as a standard
data. So and it is very difficult to compare also
at different time periods, something has been taken 10 years back or 15 years back, that
data base cannot be used today, because already the market, people, culture has changed dramatically
okay. So these are some of the problems in the secondary data. Now coming to the primary data, when you talk
about the international markets, this becomes some of the issues, sampling lack of adequate
demographic data and available list. So you do not have the demographic data the list
with you 1st problem. How do you communicate your opinions and attitudes? so ability to
recognizes the value and usefulness of product and concept to communicate also is very difficult
thing. Even how the people will react to you, willingness
to respond suppose it is a some of the country where you try to talking to the women it will
be difficult but this is not the case when you go to some of the other countries. Other problems are lack of qualified researchers
and interviewers one and the secondary data which we discussed. So the ability of the
qualified researchers you retain to the new market is may not be very easy but sustaining
yourselves is very tough because having the local knowledge is the challenge okay. So
if you look at most of the cases in the international market it becomes very important that companies
entering into the market and understand that what exactly they are trying to achieve.
For example I will tell how languages become major barriers for some companies to be successful
right. I think it was motors was one company, Car Company which the general motors’ company
launched in Spain. When they launched in the Spain the meaning of the word entirely changed
okay. Now what it is changed the word nova mint
something that does not move that is very identical very you know humour something that
does not over move is something then why should people buy it right so language becomes l
a critical thing right thaws another example also I think ford came with a car called into
right pinto when they went to the American market actually they not know the meaning
although word was actually a slag. So the product ultimately did not do well
they fail right so these are some of the issues which one needs to understand when they talk
about the international market so one has to be very clear when you want to do international
market keep the factors like for example what factors you need to keep in mind let us go
back to this diagram if you see Now if you look at the surrounding you know
this part you will understand the marketing environment government environment the legal
environment the economic environment the structural environment the information and the social
cultural environment now all these factors individually if you understand they have one
when somebody enters into the rural market the international market one has to take care
of all these problems right. The legal issues in one market might be extremely
different from the legal issues in another market the cultural issues in one market is
entirely different to the cultural issues another market okay so I also have told you
about the international promotion international you know one more example of international
promotion in one another countries the you know in Saudi I think in Urdu if you see the
what happens is the way they write the language it is from right to left we write from right
to left to write they are from right to left. So when the product was one of the product
of you know this was the product of detergent product so they taken two kinds of example
they took bad you know dirty cloth dipped into some bucket put some detergent and rinse
clean it and they kept it in the sun so they showed that the dirty one became a very clean
cloth the same interpretation became different in the market in another market where they
took it from the right to left so they first start now a clean cloth is been taken and
it is been dipped in the bucket and now what comes out is a dirty cloth.
So when you are such cultural mishaps can happen it can be extremely dangerous one needs
to be very careful that in the international market one cannot have the approach of one
for all that is standardization might not work for everybody one cannot expect that
whatever product we have build in this market would be equally successful in all the markets
so the marketer needs to define it in the current market scenario even it was a very
surprising thing that India which was considered to be not a very rich country at one point
of time apple considers it one of the largest markets right.
Because apple products being costly nobody have ever thought the Indian market would
be one of the biggest markets for them but now if you see most of the successful brands
of cars more successful you know hands sets computers they are all been successfully launched
in India and indie become a huge market for it.
So the question is in international marketing research when you get into it one has to be
very careful understanding the culture the sentiments the tradition the language and
the behavior the structural behavior of the society all these things and without understanding
them somebody is without doing enough research if somebody does it then he will just face
the fate of what co cola faced right in china or what you know general motor faced in some
other country in Spain and ford faced in you know north America you know south America
so international marketing is very sensitive study.
And one is to very careful and deciding how to conduct the study and what factors to be
taken care of otherwise the research process remains the same it is not different but what
thinks should one consider while deciding the international market right so that’s
all we have for this class for this session and so we have it thank you very much I hope
we made it clear about the role of the international marketeering and how important it has become
now it is with globalization and ultimately how companies need to very careful in developing
products. And selling it to the markets because once
you have done it you have invested a lot into the capital as a capital and all and that
cannot be taken back so it becomes really important for marketers to research and find
out there is a saying the gamble thus research and when it comes with a solution to the market
then it is time for others to give way so that is the kind of research this companies
are doing and that is why they have been successful and those companies who have not been enough
able to do good research in the international markets these are already failed or they have
lost heavily and they been out of the market thank you very much.

5 thoughts on “International Marketing Research

  1. It is the only things which differnciate from the other ptv college… Lots of examples given by the Sir… It's so clear to me. And like with fun due to him..

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