Introduction

Global Information Systems and Market Research

Global Marketing (Global Edition) Chapter 6
Chapter topics: Understand the importance of information technology and marketing information systems y Utilize a framework for information scanning and opportunity pp y identification Understand the formal market research p process Know how to manage the marketing information collection system y and market research effort 6-2
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SWOT Analysis
Strengths
Cost advantages Financial resources Customer loyalty Modern production facilities Patents

Opportunities
Leverage

Demographic trends Strong economy Enter new markets Acquire firms with needed technology

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Too narrow a product line Lack of management depth High-cost operation due to high labor cost and obsolete production facilities Inadequate financing capabilities Weak market image
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Weaknesses

Problems

Changing buyer tastes Likely y entry y of new competitors Adverse government policies

Threats

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Information Technology for Global Marketing

Information Technology refers to an organizations processes for creating, storing, g, exchanging, g g, using, g, and managing information Management Information Systems provide managers and other decision makers with a continuous flow of information about company p y operations p
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Tools of MIS
Intranet Electronic Data Interchange (EDI) Efficient Consumer Response System (ECR) Electronic point of sale

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Intranet
A private network Allows authorized company personnel (or outsiders) to share information electronically 24-hour 24 h nerve center Allows companies like Amazon.com and Dell to operate as real time enterprises
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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
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Efficient Consumer Response

A joint initiative by members of a supply chain h i to t work k toward t d improving i i and d optimizing aspects of the supply chain t b to benefit fit customers t This is in addition to EDI An effort for retailers and vendors to work closely on stock replenishment Utilizes electronic point of sale
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Customer Relationship Mgmt

New business model Philosophy that values two-way p y and communication between company customer Every point of contact with a consumer is an opportunity to collect data Can make employees more productive and enhance corporate profitability
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CRM and Privacy Issues

EUs Directive on Data Collection (1998) ensures regulations of all 27 members The US/EU Safe Harbor agreement g (2000) ( ) protects individuals rights among nations

Privacy
Safe Harbor Agreement establishes principles for privacy protection for companies that transfer data to the US 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 a e in co compliance p a ce with t Sa Safe e Harbor a bo Individuals must have access to information
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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
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Organizational IT Necessities
An efficient, , effective system y that will scan and digest published sources and technical j 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
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Sources of Mkt 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 consultants,

Formal Market Research

Global marketing research is the project-specific, systematic gathering of d t i data in the th search h scanning i mode d on a global basis
Challenge is to recognize and respond to national differences that influence the way information is obtained
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Direct sensory perception

U Using i the th senses to t find fi d out t firsthand fi th d what h t is i going on in a particular country
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Agendas for a Global MIS

1. 2. 3 3. 4. 5 5. 6. 7. 8.
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Market Research Process

Information requirement Problem definition Choose unit of analysis Examine data availability A Assess value l of f research h Research design Data analysis Interpretation and presentation
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Step 1: Information Requirement

What information do I need?
Existing E i ti Markets: M k t customer t needs d already l d 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 were there Incipient market market will emerge as macro-environmental trends continue

Step 2: Problem Definition (and Overcome SRC)

Self-Reference Criterion occurs when a persons values l and d beliefs b li f intrude i t d on the th assessment of a foreign culture Must be aware of SRCs
Enhances managements willingness to conduct market research Ensures that research design has minimal homecountry bias b Increases managements receptiveness to findings
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Why do I need this information?

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Step 3: Choose Unit of Analysis

Will the market be:
Global A region A country A province A state t t A city
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Step 4: Examine Data Availability

Sources may be:
Companys records Secondary sources
Trade journals Government sources like CIA World Factbook Factbook, Statistical Yearbook of the UN, World Bank Commercial sources like The Economist and Financial Times, Marketresearch.com
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Lisbon

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Step 5: Assess Value of Research

What is the information worth vs. vs what it will cost to collect? What will it cost if the data are not collected? What will the company gain with this info m tion? information?
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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 p purchasing g patterns p / behavior more important than reports of purchase intention or price sensitivity
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Research Methodology
Secondary Data Collection Primary Data Collection: Surveys Interviews Consumer panels
Nielsen: TV viewing

Research Methodology
Getting into consumers heads with qualitative research common approaches to find out what customers think or feel about brands & products: 9 Word associations 9 Projective techniques 9 Visualization 9 Brand personification 9 Laddering

Observation
Using people or cameras

Focus groups
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Research Designs
Descriptive Research

Special Considerations for Surveys

Benefits
Data collection from a large sample Both quantitative and qualitative data possible Can be self-administered

Exploratory p y Research

Issues
Subjects may not want to answer or intentionally give inaccurate response Translation T l ti may be b difficult diffi lt Use back and parallel translations to ensure accuracy and validity
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Causal Research
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Sampling
A sample is a selected subset of a population that is representative of th entire the ti population l ti Probability samples Non-probability samples

Step 7: Data Analysis

Clean the data Tabulate T b l t the th data d t using statistical t h i techniques: ANOVA, ANOVA regression, factor analysis, l i cluster l t analysis Perceptual mapping, conjoint analysis
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Step 8: Interpretation and Presentation

Report must clearly address problem identified in Step p1 Include a memo or executive summary of the key findings along with main report p
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Enhancing Comparability of Data

Emic analysis Ethnographic Eth hi in i nature Studies culture from within Uses cultures g own meanings and values Etic analysis From F th the outside t id Detached perspective that is used in multicountry studies Enhances comparability but precision minimizes p
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