Marketing Latam - 05 Marketing Research

www.nataliaceruti.com · [email protected]

Global MarketingDoing Business in Latin America

5. Marketing Research

This presentation (and extra material) belongs to Natalia Ceruti´s Global Marketing Course, within the Leading the Way to Success in Latin America Program. Should not be copied, nor reproduced, in full or in parts, without Natalia Ceruti´s permission.


Global Marketing Research

• International marketing research involves two complications• Information must be communicated across cultural

boundaries• The environments within which the research tools are

applied are often different in foreign markets

Marketing Research is the systematic gathering, recording, and analyzing of data to provide information

useful in marketing decision making.



• Types of information needed by research • General information about the country, area, and/or market• Information to forecast future marketing requirements byy

anticipating social, economic, consumer, and industry trends within specific markets or countries

• Specific market information used to make and develop marketing plans• Product• Promotion• Distribution• Price decisions


Kraft - Oreo



• Unisys Corporation’s planning steps for collecting and assessing the following types of information1. Economic2. Cultural, sociological; and political climate3. Overview of market conditions4. Summary of the technological environment5. Competitive situation


The Research Process

• Research process steps1. Define the research problem and establish research

objectives2. Determine the sources of information to fulfill the research

objectives3. Consider the costs and benefits of the research effort4. Gather relevant data from secondary or primary sources, or

both5. Analyze, interpret, and summarize the results6. Effectively communicate the results to decision makers

• Research steps are similar for all countries• Variations and problems can occur in implementation

(differences in cultural and economic development)


Availability and Reliability of Data

• Most countries simply do not have governmental agencies that collect on a regular basis the kinds of secondary data readily available in the U.S.

• Researchers’ language skills impede access to information• Requires native speaker of language

• Official statistics are sometimes too optimistic, reflecting national pride rather than practical reality, while tax structures and fear of the tax collector often adversely affect data• Less-developed countries prone to optimism• Willful errors• “Adjusted reporting”


Where to look

http://www.iadb.org/research/data.cfm?language=EN&parid=2


www.iadb.org/sociometro


Comparability of Data

• Issues with data (especially in less developed, countries)• Data can be many years out of date • Data collected on an infrequent and unpredictable

schedule

• Too frequently, data are reported in different categories or in categories much too broad to be of specific value


Geographic Sampling

• Highly-polarized wealth patterns (pockets of high purchasing power in certain cities).

• Spending power drops off beyond main cities?

• Eg: sample of Sao Paulo city consumers is not valid for Brazil nor Sao Paulo state.

• AB segments are wealthy, but may also buy big ticket products abroad, except for cars.

Avoid making general averagesAlways consider SELs


Multicultural Research – a Special Problem

• As companies become global marketers and seek to standardize various parts of the marketing mix across several countries, multicultural studies become more important

• Multicultural research involves dealing with countries that have different languages, economies, social structures, behavior, and attitude patterns

• In some cases the entire research design may have to be different between countries to maximize the comparability of the results


Contact Lists

• No equivalents to business-focused research (e.gg.: D&B, Equifax)

• Contact Lists may be heavily biased and not systematically updated

• Survey teams are paid per successful interview →rushed interview completions→ poor quality results

• Consumer-focused contact lists typically limited to credit-card-holding households, representing about 30% of HHs

• In addition, phone penetration is limited in D/E levels.

Target only one SELUse intercept methods

Use local agencieswww.nataliaceruti.com · [email protected]

Agencies

http://ar.nielsen.com/site/index.shtml


Agencies

http://www.ccrlatam.com


Money Questions

• Survey respondents (business & consumer) are unlikely to answer questions about income/profit

• Reasons: tax evasion, security fears

Use snowball methods


Critical Opinions

• In US or Europe consumers and business rarely hesitate to share criticism of a product, company or even an individual.

• Customer satisfaction surveys in the region will almost always score higher than in US or Europe.

Use local partners to design and analizeSatisfaction: use relative terms vs competitor


Estimating Market Demand

• To assess current product demand and forecast future demand• Requires reliable historical data

• When the desired statistics are not available, a close approximation can be made • Using local production figures plus imports, with

adjustments for exports and current inventory levels

• Two methods of forecasting demand1. Expert opinion (the key in using expert opinion to help in

forecasting demand is triangulation)2. Analogy: Assumes that demand for a product develops in

much the same way in all countries as comparable economic development occurs in each country


Analyzing and Interpreting Research Information

• The foreign market researcher must posses three talents to generate meaningful marketing information:1. The researcher must posses a high degree of cultural

understanding of the market in which research is being conducted.

2. A creative talent for adapting research methods is necessary.

3. A skeptical attitude in handling both primary and secondary data is helpful.


Summary

• The basis objective of the market research function is providing management with information for more accurate decision making.

• Customer attitudes about providing information to a researcher are culturally conditioned.

• Foreign market information surveys must be carefully designed to elicit the desired data and at the same time not offend the respondent’s sense of privacy.


Summary

• Many foreign markets have inadequate or unreliable bases of secondary information.

• Three keys to successful international marketing research:1. The inclusion of natives of the foreign culture on research

teams.2. The use of multiple methods and triangulation.3. The inclusion of decision makers, even top executives, who

must on occasion talk directly to or directly observe customers in foreign markets.



Sources

• Cateora, P., Gilly, M. and Graham, J. (2009). International Marketing, 14th ed. New York: MacGraw-Hill.

• Czinkota, M. and Ronkainen, I. (2010). International Marketing, 9th ed. New York: Cengage Learning.

• Keegan, W. and Green, M. (2011). Global Marketing, 6th ed. New Jersey: Pearson Education.

• Kerin, R., Hartley, S. and Rudelius, W. (2007). Marketing The Core, 2nd ed. New York: MacGraw-Hill Irwin.

• Kotler, P. and Armstrong, G. (2006). Principles of Marketing, 11th ed. New Jersey: Pearson Education.

• Kotler, P. and Keller, K. L. (2009). Marketing Management, 13th ed. New Jersey: Pearson Education.

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