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Chapter 08 - Developing a Global Vision through Marketing Research
8-1
Chapter 8 – Developing a Global Vision through Marketing
Research
Teaching Objectives
The availability and accuracy of secondary data and the challenge of collecting primary data are the main
themes of this chapter. The need for good market data is becoming more important in today’s global
markets as companies are seeking market segments across country markets. While more and better quality
secondary data are becoming available, sources of secondary data in most countries is substantially less
than U.S. companies are accustomed to at home. The collection of primary data is also affected by the
availability of good quality secondary data. All in all, international marketing “market entry” decisions to
“continuous operations” decisions create a need for different types of information and data. What
assistance does an MMIS provide?
1) Make students aware of the breadth and scope of international marketing research and the steps of
the research process.
2) Explore the issues of availability of secondary data and the need to validate data.
3) Examine qualitative and quantitative research and the problems of gathering primary data.
Comments and Suggestions
1. While the quality of secondary data is improving, there are major problems with data from some
countries including many developing markets. Most countries are aware of the need to improve the
quality of data collected and are taking steps to correct accidental as well as deliberate errors. The
National Statistics Enforcement Office in China said it uncovered about 60,000 instances of false
statistical reports since it began a crackdown. Most bogus reports involved industrial output. Seeking
advantage or hiding failures, local officials, factory managers, rural enterprises and other have filed
fake numbers on everything from production levels to birth rates. Such inaccurate reporting is not
unusual throughout the developing world although conditions are improving. It is important to stress
the need to validate secondary data. The transparency, Validating Secondary Data, lists several
questions to help in validating secondary data.
2. If a major research project such as the one described in Part I-F, The Country Notebook—A guide for
Developing a Marketing Plan or a similar research project, is used, it is important to stress the issues
discussed about secondary data since the students will confront most of these problems when doing
the research for their projects. Also, the appendix on sources of secondary data should also be brought
to their attention.
Lecture Outline
I. Breadth and Scope of International Marketing Research
II. The Research Process
A. Defining the Problem and Establishing Research Objectives
III. Problems of the Availability and Use of Secondary Data
A. Availability of data
B. Reliability of data
C. Comparability of data
D. Validating secondary data
IV. Gathering Primary Data—Quantitative and Qualitative Research
V. Problems of Gathering Primary Data
Chapter 08 - Developing a Global Vision through Marketing Research
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A. Ability to Communicate Opinions
B. Willingness to Respond
C. Sampling in Field Surveys
D. Language and Comprehension
1. Back Translation
2. Parallel Translation
3. Decentering
VI. Multicultural Research—A Special Problem
VII. Research on the Internet—A New Opportunity
VIII. Problems in Analyzing and Interpreting Research Information
IX. Responsibility for Conducting Marketing Research
X. Estimating Market Demand
A. Expert Opinion
B. Analogy
C. Income Elasticity
XI. Communicating with Decision Makers
Discussion Questions
1.
Define:
Marketing research
Multicultural research
International marketing research
Back translation
Research process
Analogy
Secondary data
Parallel translation
Primary data
Expert opinion
Decentering
Triangulation
2. Discuss how the shift from making “market entry” decisions to “continuous operations” decisions
creates need for different types of information and data. What assistance does an MMIS provide?
3. Discuss the breadth and scope of international marketing research. Why is international marketing
research generally broader in scope than domestic marketing research?
Chapter 08 - Developing a Global Vision through Marketing Research
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4. “The measure of a competent researcher is his ability to utilize the most sophisticated and adequate
techniques and methods available within the limits” (of time, cost, and the present state of the arts).
Comment.
The main theme of the comment on this question should center around the awareness that marketing
5. What is the task of the international market researcher? How is it complicated by the foreign
environment?
6. Discuss the stages of the research process in relation to the problems encountered. Give examples.
The research program should include the following steps:
a. Define the research problem and establish research objectives.
b. Determine the sources of information to fulfill the research objectives.
Chapter 08 - Developing a Global Vision through Marketing Research
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c. Gather the relevant data from secondary and/or primary sources.
d. Analyze, interpret, and present the results.
The second step in the research process is to determine the sources of information to fulfill the
surprisingly unavailable. (2) The reliability of the secondary data which are available. These data
may, in some cases, be too optimistic, either on purpose or as a result of not being collected properly.
They may tend to understate conditions because of improper collection procedures. (3) Comparability
and currency of the data which are available. Data may be many years out of date, they may have
been collected on an infrequent and unpredictable schedule, there may be no historical series with
practice if it can be successfully accomplished. In fact, it can even be a point of pride for the more
adept tax evaders. In many countries, this philosophy is not considered immoral or unethical, as it
Chapter 08 - Developing a Global Vision through Marketing Research
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Another major problem in the collection of primary data is concerned with sampling procedures. An
important problem stems from the lack of adequate detail on universal characteristics and lists from
which to draw meaningful samples. Current and reliable lists are frequently not available. Telephone
exact translations create problems in obtaining the desired information and the interpretation of the
respondent’s answers. Coupled with this language difficulty is illiteracy. In many countries with low
literacy rates, written questionnaires are completely useless. The problem of dialects in different
languages can make a national questionnaire survey impractical. In addition, some respondents with a
minimum of education may have difficulty in comprehending the meaning of questions asked.
practice. Newspaper circulation figures, readership of the census studies, retail figures, and sales
volume can all be distorted through local business practices.
The market on which he is doing research. In order to analyze and in some cases to compensate for
research findings, he must determine the customs, viewpoints, semantics, current attitudes, and
business customs of a society, or a subsegment of a society. Second, the researcher must possess a
7. Why is the formulation of the research problem difficult in foreign market research?
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8. Discuss the problems of gathering secondary data in foreign markets.
The problems of gathering secondary data are:
a. The availability of detailed data on specific market areas. There often is a lack of detailed data on
such items as numbers of wholesalers, retailers, manufacturers, and facilitating services.
9. “In many cultures, personal information is inviolably private and absolutely not to be discussed with
strangers.” Discuss.
10. What are some of the problems created by language and the ability to comprehend in collecting
primary data? How can a foreign market researcher overcome these difficulties?
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the language of the researcher and can translate it correctly.
11. Discuss how “decentering” is used to get an accurate translation of a questionnaire.
12. Discuss when qualitative research may be more effective than quantitative e research.
Qualitative research is more effective than quantitative research when: 1) the researcher seeks open-
ended, in-depth and unstructured responses that reflect the person’s thoughts and feelings on a
13. Sampling offers some major problems in market research. Discuss.
There are several difficulties encountered in the process of taking samples and conducting field
Chapter 08 - Developing a Global Vision through Marketing Research
A lack of detailed social and economic information also can hamper the effectiveness of sampling
research tools must be relied upon. Mainly the various convenience sample methods are used.
14. Select a country. From secondary sources compile the following information for at least a 10-year
period prior to the present data.
Principal imports
15. “The foreign market researcher must possess three essential capabilities in order to generate
meaningful marketing information.” Discuss.
The foreign market researcher must possess three essential capabilities in order to generate
Chapter 08 - Developing a Global Vision through Marketing Research
