Page 101 - DMGT547_INTERNATIONAL_MARKETING

International Marketing

Notes 5.4.5 Promotion Research

Promotion research is crucial for companies doing business internationally. By doing
promotional research, the firm evaluates the extent to which it effectively communicates with
the market, it ensures that certain promotional strategies are appropriate for that particular
market, and, finally, it evaluates the extent to which the local media are appropriate for the
intended message.
First, in terms of studies of premiums, coupons and deals, it is important to identify the practices
in each country where the specific promotion will run. Advertising effectiveness research is
frequently conducted to examine the effectiveness and appropriateness of advertisements aimed
at individual markets.
Media research also is important. First, in terms of media availability, developing countries
pose the most problems. Finally, studies pertaining to personal selling activities, such as sales
force compensation; quota and territory studies are crucial in helping to determine the appropriate
strategies for different markets.

5.4.6 Pricing Research

Internationally, pricing research is much more problematic than when it is performed locally,
in a developed country. In addition to studies projecting demand, such as international market
potential, sales potential, sales forecasts, cost analyses, profit analyses, price elasticity studies
and competitive pricing analyses, which are typical of most pricing research studies conducted
by U.S. firms in the U.S., the firm also must look at issues regarding counter trade and currency
issues, inflation rates, and a national tradition of bargaining for every transaction all of which
have implications for pricing decisions.
Self Assessment

State whether the following statements are true or false:
7. The need for research not only arises before product launch but also to ascertain demand
potential.

8. Brand awareness research is conducted to find out the position of the company in the
market.
9. When a company does a research to find out whether people know about their current
product on offer, it is called product testing.

5.5 International Marketing Research Process

The steps in international marketing research process are discussed in the following subsections.

5.5.1 Defining the Research Problem and Research Objectives

The first step in the international marketing research process requires international marketing
manager and marketing researcher to define the research problem and jointly agree on the
research objectives. The complexity of the environment of international operations does not
afford marketing researchers the opportunity to have a very clear idea of the specifics that the
research study should examine. Instead, they may need to engage in an exploratory research of
the problem to define the relevant dimensions of the problem investigated. Exploratory
investigations may help to further define the problem, suggest hypotheses, or even actually

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