6-1 Chapter 6 Global Information Systems and Market Research.
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Transcript of 6-1 Chapter 6 Global Information Systems and Market Research.
6-1
Chapter 6 Global Information Systems and Market
Research
6-2
Introduction
Understand the importance of information technology and marketing information systems
Utilize a framework for information scanning and opportunity identification
Understand the formal market research process
Know how to manage the marketing information collection system and market research effort
6-3
Globalisation of brands
Re-branding with global brand names– Jif - Cif, Marathon - Snickers, etc– Unilever reducing portfolio from 1600 to 400
brands
e.g., Citibank/corp
6-4
6-5
•> international travel•World media channels•Regional / global HQ’s•Economies of scale packaging, PR, image, signs, etc.•International consistency & global reach
MASSIVE COST SO WHY BOTHER?
6-6
Information Technology for Global Marketing
Information Technology refers to an organization’s processes for creating, storing, exchanging, using, and managing information.
Management Information Systems provide managers and other decision makers with a continuous flow of information about company operations
6-7
Tools of MIS
Intranet
Electronic Data Interchange (EDI)
Efficient Consumer Response (ECR)
Electronic Point of Sale (EPOS)
Data Warehouses
6-8
Customer Relationship Management
New business modelPhilosophy that values two-way communication between company and customerEvery point of contact with a consumer is an opportunity to collect dataCan make employees more productive and enhance corporate profitability
6-9
Customer Relationship Management
The major thing is, ‘One size fits all’ is not true. CRM is designed to support the sales
process, and if I develop a system that works in the U.S., it might not work in
Europe.”
- Jim Dickie, Insight Technology Group
6-10
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 3rd parties that
are in compliance with Safe Harbor– Individuals must have access to information
6-11
Information Subject Agenda
The starting point for global marketing information system is identifying a list of subjects for which information is desired– Should be tailored to the needs and objectives of the
company
Two essential criteria– Is all the information subject areas relevant to a
company with global operations
– Categories should be mutually exclusive
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Information Subject Agenda
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Scanning Modes: Surveillance and Search
Surveillance– Informal information gathering
• VIEWING – general exposure to information• MONITORING – paying special attention and
tracking a story as it develops
Search– Formal information gathering
• INVESTIGATION – seeking out secondary data• RESEARCH – conducting primary research
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Avoiding Information Overload
Global organizations need– Efficient, effective system to scan and digest
published sources of information in all countries in which it conducts business
– Daily scanning, translating, digesting, abstracting, and electronic input of information into MIS
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Sources of Market Information
Human sources– Executives based abroad are likely to have
established communication with distributors, consumers, customers, suppliers, and government officials
– Friends acquaintances, professional colleagues, consultants, and prospective employees
6-17
Formal Market Research
Global Marketing Research is the project-specific, systematic gathering of data in the search scanning mode on a global basis– Challenge is to recognize and respond to
national differences that influence the way information is obtained
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Steps in the Research Process
Identifying the research problem
Developing a research plan
Collecting data
Analyzing data
Presenting the research findings
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Int’l research considerations (emerging mkts) IN ADDITION TO THE USUAL PITFALLS
Research norms may vary
Local researchers: availability / quality
Secondary data source reliability
Totally different infrastructure, e.g.,–Communications, transport, equipment, etc., –Employment: staffing costs / availability of field staff
Socio-cultural differences, living standards, literacy, tribalism
Political instability–Exchange rate fluctuations
Security
Legislation issues / corruption
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Standardised / multi country research
Direct comparisons between countries feasible
Economies of scale senior management time research development, data processing, etc.
Uniform quality control standards data collection, processing/analysis,
confidentiality, etc,
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Managing multi-country studies
Using own staff only
Using local agency only (Preferably international name)
Using own staff + local agency
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Identifying the Information Requirement
What information do I need?– Existing Markets – customer needs already
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 was there
• Incipient market – market will emerge as macro environmental trends continue
Why do I need this information?
6-28
Overcoming the SRC
Self-Reference Criterion occurs when a person’s values and beliefs intrude on the assessment of a foreign culture
Must be aware of SRC’s– Enhances management’s willingness to conduct market
research
– Ensures that research design has minimal home-country bias
– Increases management’s receptiveness to findings
No right or wrong, just different
6-29
Are Latin Americans really Americans too?
U.S. perception
Latin American perception
Turkish perception
6-30
Perception of Time
Organization of work– U.S.– Latin America
Organization of free time– U.S.– Latin America
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How to avoid SCR:– Define the business problem according to culture,
habits,norms in home market.
– Define the business problem according to culture, habits,norms in foreign market.
– Isolate the SCR influence in the problem and examine it carefully to see how it complicates the problem.
– Refine the problem without the SCR influence and solve for the optimum business goal situation.
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Ten Good Reasons to use export marketing research and take control of your export markets 1) Put yourself in the "driving seat"2) Develop an efficient market entry strategy3) Control overseas representatives4) Increase your profits5) Familiarize yourself with the market6) Save time and money7) Gain favor with potential customers8) A comprehensive report9) Expert help at hand10) Double your budget
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Developing A Research Plan
Do we need quantitative or qualitative data?
What is the information worth (versus what will it cost to collect)?
What will it cost if we don’t get the information?
What can be gained from the information?
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Availability and Use of Secondary Data
Availability of DataAvailability of Data
Reliability of DataReliability of Data
Comparability of DataComparability of Data
Validating Secondary DataValidating Secondary Data
8-4
6-36
Collecting Data (cont.)
Primary Data Collection Methods– Survey research– Interviews– Consumer panels– Observation– Focus groups
6-37
Special Considerations for Surveys
Benefits:– Data collection from a large sample– Both quantitative and qualitative data possible– Can be self-administered
Issues– Subjects may respond with social desirability– Translation may be difficult
• Use back and parallel translations to ensure accuracy and validity
6-38
Sampling
A sample is a selected subset of a population that is representative of the entire population.– Probability samples– Non-probability samples
6-39
Analyzing Data
Demand Pattern Analysis
Income Elasticity Measurements
Market Estimation by Analogy
Time-series displacement
Comparative Analysis
Cluster Analysis
6-40
Presenting the Findings
Report must clearly address problem identified in Step 1
Include a memo or executive summary of the key findings along with main report
6-41
Global Issues in Marketing Research
Many country markets must be included
Markets with low profit potential justifies limited research expenditures
Data in developing countries may be inflated or deflated
Comparability of international statistics varies greatly
Limits created by cultural differences
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Enhancing Comparability of Data
Emic analysis– Ethnographic in
nature– Studies culture
from within– Uses cultures’ own
meanings and values
Etic analysis– From the outside– Detached
perspective that is used in multi-country studies
– Enhances comparability but minimizes precision
6-43
Looking Ahead
Chapter 7 Segmentation, Targeting, and Positioning
6-44
Intranet
A Private network
Allows authorized company personnel (or outsiders) to share information electronically
24-Hour Nerve Center
Return
6-45
Electronic Data Interchange
Allows business units to:– Submit orders
– Issue invoices
– Conduct business electronically
Transaction formats are universal
Return
6-46
Efficient Consumer Response (ECR)
This is in addition to EDIAn effort for retailers and vendors to work closely on sock replenishment
ECR can be defined as a joint initiative by members of a supply chain to work toward
improving and optimizing aspects of the supply chain to benefit customers.
Return
6-47
Electronic Point of Sale
Gathers data at checkout scanners – Identifies product sales trends
– Identifies how consumer preferences vary geographically
Return
6-48
Data Warehouses
Can help fine-tune product assortments for multiple locations
Enhances the ability of management to respond to changing business conditions
Return