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In this essay, describe the concept of international marketing research and how das it works in the market filed world widely. Explain the importance and scope the international marketing research, basically international marketing research deals with to collect information about the market research internationally. This information is based on economical, social, marketing conditions, technical environment and competitors of different countries. International marketing research has a vast knowledge about itself, but it is not possible to discuss every aspect of it. The main objective of this essay to identify the process of its implementations and what type of challenges it has face during the process.
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International Marketing Research
International environment is changing readily and all these changes present organization with opportunities as well as challenges. These changes include rapid progression in the advance technology, international investment trade, growth in international capital and also in customer’s preferences. All these changes influence on business to change or expand these international strategies, polices, and tactics. Javaligi & White,(2002)
Which means the international marketing is focusing business to confirm to a new international order. (Czinkota & ronkainen 2002; Rugman,2001;Yaprak, 2002)
International marketing research and domestic national marketing research has lots of common factors for instance defining the problems, research methodology and design, field work, research report, conclusion and recommendations. Most of the differences have been raised between the two types of researches due to political, economical, social, technological, environmental and legal differences among different countries. (Kumar, 2000)
(2) Importance and Scope of International Marketing Research.
International marketing research plays an important role to understand the consumer behaviour. The main objective of international marketing research is to understand the consumer s demands and consumers behaviour and then translates their behaviours into the markets strategies. In this modern century the international market s consumers have lots of choices due to growth of market research and internet communication development. In order to organization has been responsible to maintain their approaches to enhance the markets strategies in a way of targets markets. In the other hands if the company has no ability to seek the consumer’s behaviour on the international level so the company should be lost its consumer market. In this condition company also faces lots of challenges which have been appear due lack of international market research.
(3) Think Globally, Learn Locally.
International market research is an essential for developing strategy in readily changing global marketplace (Craig and Douglas, 2005). The author said that these tools help to positioning new products, avoiding product formulations errors, accurately considerate the cultural differences classify relevant promotion messages, being an apprehensive approach of geographical differences, assess the language and translations challenges. (Craig and Douglas,2005). Describe three major important information factors. These are as below.
Information needs for international market entry includes micro issues (for instance product and services sales potential, market growth rate and completive intensity) and macro issues e.g. (Political, legal and regulatory environment of each international country).
Information which involves evaluating and integrating data previously collected to examine changes in international environment.
Information on issues which surround tactics in developing the appropriate marketing mix.
(4) International Marketing Research
International Marketing research is consisting of four familiar stages of the domestic process setting research objectives, methodology, collecting data, and report/recommendations. These stages are not unique to the international setting but they provide backdrop for instance between different countries information requirement at corporate, regional, and local level, will vary widely. Correspondingly assessing previous data and collecting secondary data is very complicated in some countries but all of these are depending on the position of the market research infrastructure. International marketing research’s activities have been conduct very tricky on the international level; anyhow these activities are highlight as below.
4.1. Setting research objectives
In domestic research information may be required for decision making at different level in the organization, strategic issues are relating on the corporate level, more tactics are concerned to local operating units
(Craig and Douglas 2005).Projects on the management level cover the following issues. For instance brand awareness and tracking. Decision level covers the following issues for instance local prices, packaging, and marketing mix decisions. International marketing should also consider any previous data that the organization may have, new data should always be considered along the existing information.
4.2. Designing Research Methodology
This is the most important step in the international marketing research which involves the designing the methodology. Methodology research variations vary from primary to secondary research qualitative and quantitative experiments, test markets observations and surveys. Tactical marketing mix decisions would require more of a local unite of analysis and corporate decision would require more global or regional approaches. Here explain some research methods for instance in-person, telephone, and mail and internet survey and data analysis. Technical issues pose many challenges for international marketing research, due to their different levels of presence, acceptance and utilization s across the worldwide markets.
4.3. Collecting data and reporting findings
When the appropriate data collection methodology is selected, fieldwork must be operated. The next step is to assess the findings and make a manage report. Language restrictions have a considerable impact on the data collection. The new information should be integrated into the organization database and business strategies should be customized. This practice repeats itself as a need of the future information has been required. This process exposed is a very uncomplicated and easy method in United State, Western Europe, and other developed countries. The market research industry, was very grown-up and well settled in U.S, it gain $16.1billion annually, which $6 billion is coming from United State, $7.6 billion from the European Union,$2.5 billion from the Asian Pacific region (Marketing News 2005). Today international marketing research infrastructure offers very reliable advantages to the well developed countries and help to grow the markets. Basically market research infrastructure has large range of tools for instance, data sources, methodology options etc, these tools help in the market research projects but sometime this market research infrastructure mostly pretend limited.
(5) Challenges of conducting international marketing Research.
A lot of challenges arise while conducting market research across international borders and if these Challenges are not addressed properly so these impact negatively on project management. These factors can major impact on traditional market research for instances vary cultural norms across different countries or continents, similarly language barriers also have impact on the data collection into the organizations to gain the benefits.
5.1. Cultural Differences
Operate market research is an international environment requires concentration to obtain details and learning new things. In managerial point of views this includes more infinite knowledge of native cultures. Cultural components for instance, social institutions, gender role, language, religion, aesthetics, education, and time orientations are closely related to national culture.(javalgi and white 2000).Cultural differences intensely affect on acceptance of products and services, in the other hand market behaviour. The knowledge of target markets plays a critical role in manipulation of research. Market research professionalises require certain level of educational and technical skills. These skills are very demanding to operate the international marketing research strategies.
5.1.1. Language differences.
As market research is being carried out internationally researchers have to take language and culture consideration while designing their questionnaires. Language is the most important factors which brings challenges in carrying out international research. Many organizations have command over English language, but that does not mean that everyone can understand English. Situations can become more complicated when there variations within the same language for instance, Americans and British have some variations in the way of speak English.
5.1.2. Translation and conversion.
The most common problem that researchers face is translating their questionnaire developed for one country can be difficult to translate into another language because of differences in idioms, concepts, syntax, Venezuelans.(lyer,1997 Rydholm, 1996). IN international marketing research, accurate information takes an essential part to maintain their targets. So sometime market researchers send back the questionnaires translated in to proper translations. In this process questionnaires translated one language to another language to interpret the important information about international marketing research.
5.1.3. Language rules.
Syntax is related to the language as it refers to constructions of sentences and phrasing of words together for instance, translating English in grammar language is very difficult because of sentence constructions.
5.1.4. Traditional and Cultural norms
After language the most important factor is cultural norms in the international marketing researchers. These norms are very prominent strengths and can easily identify the difference between the successful and failure production establishment. Unfortunately these norms are very dedicated rather than transparent which make very difficult to analysis the international market. Consider here the case of U.S Ketchup Company that, after knowing that the ketchup is not available in Japan, so they decided to attempt the market for introduce the ketchup over there. Rather than they should be focus on it why is the ketchup is not available in Japan, here they ignore the investigation through international market research and invested the huge amount for launch their product establishment. After this the company of U.S become to know that soy sauce preferred in Japan. (Zikmund, 2000).So the ignorance the importance of cultural norms has become a cause of certain problems in international marketing research.
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5.1.5. Period and Time Zone
Time zone should be kept in minds while conducting market research. Differences in time zone have a huge impact on communication and timings of the project. Extra time is required for project and communications to take place across the world. Time of days also matter in countries like Japan where business is only done in business hours.
5.1.6. International holidays
Foreign holidays another factor like time zone that has to be kept in mind, as different countries have different holidays depending on their culture, religion, and their beliefs. It is important to check holidays schedule before starting research in another country .Nearby every Monday is holiday somewhere in the world.
5.2. Sampling collecting issues, sampling framework.
Sampling is a very common practise in the manipulating of international marketing research. Here consideration the case of China, China has a total population is 1.2 billion, 350 million of its total population is live in urban areas of 622 cities and scores of smaller towns. Of the cities only 32 have population of at least one million, while 42 have population between 5000,000 and one million, and the remaining 548 have population of less than 500,000 since no smaller towns and rural areas are included in market research (Lee and Wong, 1996).So it become very hard to collect hundred percent from the samplings.
(i). Local Interviews
It is very complicated communication process, but market research hers tried to adopt this technique to be aware the customer’s point of views about the products qualities. This technique has also certain problems due to language barriers among the countries.
(ii) Questionnaire time-span
Different language can shorten and lengthen the amount of time it takes to get through a questionnaire, for instance translated into Italian, a 20 minutes American questionnaire will last only approximately 18 minutes. Translated into French, the same questionnaire will take 22 minutes. The difference between in durations is attributable to the subtle nuances of both languages (LEE and Wong, 1996).
5.3. Measurement and dimension issues
In international marketing research it is critical to establish the equivalent of scale and measures used to obtain data from different countries (LEE and ro, 1994).One of the major issues that must be dealt with early in the international market research process in the equivalence of data.(Kumar,2000).This includes three factors which are as below.
Same phenomena should be used in both countries in the study of equivalence.
The phenomena are being measured consistently each country.
The samples are used in each country must be equivalent to each other.(Kumar, 2000).
These factors are involved in the measurement issues which are rapidly increased time to time in international environments. The perception of reliability, describe as consistency over time, and validity which is responsible that what kind of instrument is basically used to measurement and it is very important to any market research efforts.
5.4. Market examines and research infrastructure
Media internet quality control is very important in market research projects so if any country has no proper media technology there market research has face lots of problems and has no any success in the market research. Widespread print and broadcast media are used generally in Western advantages. Further the internet diffusion remains tilted to male under age 40 with above average education and house hold income (Dodd, 1998).This is very helpful source in international marketing research.
5.5. Data collection complications
The process of carrying salesperson is the international market is more difficult than the domestic market. It is expensive, more time taking, unreliable mailing services in developed countries makes influence international mail survey challenging.(Malhotra, 2004).
5.6 Legal restrictions
Privacy and legal restrictions have different challenges in international marketing research. European countries have strict privacy policies which can shut down marketing activities that collect and portrait personal information. For instance, the Chinese are monitoring questionnaire structure even the endorsement of the final data. This is in direct conflict the American approach of non-disclosure of proprietary client result, (Meijer, 1999).
This essay has a comprehensive understanding about the concept of international marking research and its importance in the research theory. Briefly discuss the factor which is influenced on the international marketing research. The purpose of this essay to emphasis the challenges of international marketing research which are face by researchers day to day.
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