Page 96 - DMGT547_INTERNATIONAL_MARKETING

Unit 5: International Market Research

Objectives Notes

After studying this unit, you will be able to:

Recognise the sources and need for international marketing research
List the approaches to marketing research
Identify the scope of international marketing research
State the international marketing research process

Discuss the concept of market surveys and marketing information systems
Introduction

International marketing research is the systematic design, collection, recording, analysis,
interpretation, and reporting of information pertinent to a particular marketing decision facing
a company operating internationally.
This definition of international marketing research contains a caveat also present in the general
definition of marketing research: An acquired understanding of the market environment. In an
international setting, the environment is particularly complex, and it displays obvious and
important subtle differences in culture, religion, customs and business practices, and general
market characteristics from the environment of the company’s home country.

5.1 Concept of Marketing Research

International marketing research is a complete analysis of the market, information regarding
the nature, size, organisation, profitability of different markets, changes in the market and
various factors — economic, social and political — affecting those changes. The main purpose of
international market research is to know about consumers and the markets for its products and
services. The researcher is mainly concerned with the details regarding consumers. It is a technique
to know the customers — existing and prospective — of our products and services. Where do
they live? When and how do they buy the products of the company? Are consumers of our
products and services satisfied? Who are our main competitors and what strategies do they
follow? In order to know the answers to all these questions regarding market and consumers,
market research is conducted so that the marketer may come to know the shortcomings in his
product, policies and strategies.

The following activities are included in international market research:
1. Analysis of the market size according to age, sex, income, profession and standard of
living of customers.

2. Estimating the regional or territorial demand of different markets.
3. Collecting information about the existing and prospective customers of the company’s
products and their attributes and various competitors’ share in the market.

4. Studying the market changes and conditions affecting market changes such as customers’
preferences, shift in brand loyalty and so on.
5. Analyzing the working of various channels of distribution and their role in creating
market demand of the product.
6. Forecasting the profitability of different markets and marketing segments.

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