DISCUSSION QUESTIONS
6-1. Explain how information technology puts powerful tools in the hands of global marketers.
Electronic data interchange (EDI), electronic point of sale (EPOS), efficient consumer
response, and data warehouses are some of the new tools and techniques available.
6-2. Assume that you have been asked by the president of your organization to devise a
systematic approach to scanning. The president does not want to be surprised by major market or
competitive developments. What would you recommend?
As described in the chapter, a systematic approach would begin with an audit of reading
activity. Presumably, many executives would spend some time with The Wall Street
Journal (or the Journal’s Asian or European editions) and, if appropriate, the Financial
Since 1995, a wealth of company, industry, product, and country information has become
6-3. Outline the basic steps of the market research process.
The process of collecting data and converting it into useful information includes basic 8
steps:
1. information requirement,
2. problem definition,
Step 1: Identify the Information Requirement
The first two questions a marketer should ask are:
Step 2: Problem Definition
Step 3: Choose Unit of Analysis
America, or it may be global.
Step 4: Examine Data Availability
Secondary data is data that was not gathered for the specific project at hand. Personal files,
Step 5: Assess Value of Research
Step 6: Research Design
Points to keep in mind:
Use multiple indicators rather than a single measure.
Research Methodologies
Survey research utilizes questionnaires designed to elicit quantitative data (“How much
prospective buyers.
Step 7: Analyzing Data
required.
Step 8: Presenting the Findings
6-4. Describe some of the analytical techniques used by global marketers. When is it appropriate
to use each technique?
There are several industries in which demand pattern analysis can be useful for
companies targeting developing countries. For example, demand for telecommunications
to expect that the advent of good telephone service in a particular country will be
followed by economic growth and demand in other industries.
China’s auto industry is good for China.”
Income elasticity measurements can provide insights into market potential for specific
1. This means that demand in developed nations the agricultural exports of developing
nations increases proportionately less than the increase in income.
Cluster analysis is based on statistical techniques described in the academic literature in
6-5. Coach has been described as “a textbook lesson on how to revitalize a brand”. The same
could be said for Burberry, the British fashion-goods company discussed in Chapter 1. Locate
some articles about Burberry and read about the research its management has conducted and the
formula it used to polish the brand. Are the approaches evident at the Burberry and Coach
similar? Are they competitors?
Student answers will vary, but better students will note that both Burberry and Coach are
extensively using consumer-marketing research to tighten inventory controls at store
6-6. Below is a table similar to Table 6-3 that contains eight sports sedan nameplates. You can
perform a rudimentary analysis along the lines of multidimensional scaling by ranking them by
similarity. Do some research on the different models and see which pair you find to be the most
similar. Which pair is the most different? Using these eight brands, create a rough perceptual
map. What dimensions would you use to label the axes?
Each student’s answer will vary due to the many, many features of automobiles. The most
similar is a three-way tie between the BMW and the Audi and the Volvo and the Acura and the
MDS Study Inputs: Similarity Judgment Scales for Pairs of Sport
Sedans
Very Very
Similar Different
1 2 3 4 5
BMW328i/Volvo S60 ____ ____ __X__ ____ ____
BMW328i/Acura TL ____ __X_ ____ ____ ____
BMW328i/Lexus IS ____ ____ ____ __X_ ____
BMW328i/Infiniti G37 ____ ____ __X_ ____ ____
Volvo S60/Acura TL __X_ ____ ____ ____ ____
Volvo S60/Cadillac AT S ____ __X_ ____ ____ ____
CASES
Case 6-1: Big Data Transforms the Music Business
Overview: Until recently, only a few low-tech metrics were available to help record companies
track the popularity of artists and songs. In the new millennium, sales data tracked by Nielsen’s
SoundScan unit are still published each week in Billboard’s charts, including the Hot 100. Some
data is gathered from point-of-sale barcode scans of individual albums. Today, a typical album
may generate as many as 4,000 separate lines of sales data. Media analytics – including music as
well as television, and movies – is now a $ 3 billion global business.
6-7. Do you think that the technology available today reflects how people have always related to
music? Or has technology itself changed how people relate to music?
While students answers will vary based on their age and other demographics, this baby-
6-8. Some in the industry think that the music industry should be driven by eyes, ears, and gut
instinct rather than by math and algorithms. Do you agree?
6-9. How can big data help artists, artist managers, concert promoters, and record labels make
better decisions?
Big data can help quite a bit. Different data will help the different players name above.
Case 6-2: Research Helps Whirlpool Keep Its Cool at Home, Act Local in the Emerging
Market
Overview: Whirlpool, an American company selling home appliances, is using extensive
research methodologies to adjust to new markets around the globe. The market entry strategy of
purchasing local established companies combined with adjusting to the needs of local market
seems to be successful for Whirlpool.
6-10. Describe Whirlpool’s global marketing strategy. Does Whirlpool use an extension product
strategy or an adaptation product strategy?
Whirlpool’s basic market entry strategy was purchasing local established appliance
companies, merging with already existing markets. In Europe, Whirlpool invested $3
replacing sales organizations in 17 separate countries with four regional sales offices and
by reducing the number of warehouses.
6-11. What is the primary reason people buy and own major appliances such as a washing
machine? Is there a secondary reason as well?
Owning a washing machine is second only to a cell phone as an “aspirational” product.
6-12. What are the key lessons to be learned from Whirlpool’s experience in emerging markets?
Whirlpool jumped into the Chinese market without using extensive consumer research
methodologies such as surveys and interviews. The company’s success was the “T-4”
consumer
research.