Market Research in International Markets PDF

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International markets research and how to do it. Lecture notes....

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Market Research in International Markets 1. Explain how global marketing is linked to the decision making process. 2. Discuss the key problems in gathering and using international data. 3. Discuss how to estimate foreign markets potential by using secondary data. Example: Estimating the size of the jet markets. 1. Honda jets enter the small sized business jet market. 2. What data do we need to look at when entering this market? a. World GDP growth b. Wealth creation - Morgan Stanley Capital Growth Index c. No. of Billionaires - there are 2095 worldwide, of which 614 come from USA d. Penetration rate (adoption rate) of business jets in different parts of the world e. Tendency of fractional ownership i. Do they share ownership? Or outright own? f. No. of take off and landings. Estimation of future markets 1. In 201, the worldwide fleet of business jets was approx 28,774 business jets 2. The total sale per year: New sale + exchange sale (of business jets going out of the fleet) 3. New sales is always hard to predict, but if we assume a commercial lifetime of a business jet of 20 years, then 5% of the fleet will be changed each year. 4. Alone for the exchange sale that would mean 28,774 * 0.05 = 1,438 business jets 5. If we assume that around 10% of this number belongs to the ‘small-sized business jets segment, we can conclude that the sales in this segment would be: 1,438*0.10 = 143 Business jets per year Information for the major global marketing decisions 1. Internationalise? a. Domestic vs international market advantages 2. Which markets to enter? a. Local competition b. Political risks c. Trade barriers 3. Enter a foreign market? a. Nature of product b. Size of market c. Behaviour of potential intermediates 4. Global marketing program? a. Buyer behaviour b. Competitive practice c. Distribution channels 5. Implementing and controlling the global marketing programme a. Negotiating style b. Contribution margins c. Marketing expenses per market

Most challenging would be primary data and external data. These are all specific strategies of competitors. Limitations of Secondary Data in Foreign Markets 1. Non availability of data 2. Reliability of data 3. Data classification 4. Comparability of data Example of secondary data source for foreign markets: EuroMonitor (Passport) Database. Uni has paid for the subscription. Estimating Foreign Market potential using secondary data 1. Proxy indicator technique a. This technique is used when there is no direct measure available, instead indirect variable is used as a surrogate or proxy b. Eg. If consumption of washing machines is not available in a country, we can use consumption of a proxy indicator, such as refrigerators and televisions correlate directly. 2. Chain ratio method a. Washing machines in Thailand b. % of house with electricity c. % of house with running water d. Market potential = calculate from total number of houses to find total. 3. Lead lag analysis a. Using time-series data from one country to predict sales in another. 4. Estimation by analogy a. A correlation value between a factor and the demand for the product for one market is used in another international market b. We want to estimate the demand for refrigerators in Germany, but we don't have data. Instead we have data in the UK. We estimate that population would be a good correlation factor. c. UK Population 65 million d. Germany Population = 80 Million

Other types of Market Research 1. Ad Hoc Research a. Collecting data at one point in tie from one sample of respondents 2. Custom designed studies a. Designing the research brief and asking the marketing research agency to collect data 3. Omnibus Studies...