Identification of information relevant for international marketing

Размещено на http://www.allbest.ru/

identification of information relevant for international marketing

Dr Mitar Lutovac¹, Zoran Jovanovic², Sneћana Maksimovic³, Bojana Lutovac⁴ Marko Matic⁵

¹ Academician, University Union Nikola Tesla, Faculty of Business and Industrial Management, Belgrade,

²College of Economics , Belgrade,

³Master of Economic Science, Union- Nikola Tesla University, Faculty for business and industrial management, Belgrade,

⁴University Union Nikola Tesla, Faculty of Business and Industrial Management Belgrade,

⁵Eurobank, Belgrade

Abstract

A basic ingredient of any market selection program is the availability of market information. As a general observation, the sources of international market and product information can be characterized as overwhelming, the problem being to identify the relevant data when needed. For international marketers this identification problem can be partly solved through the establishment of computerized databases, which must be continually screened and updated. For selecting new markets, and to support ongoing decisions, marketing decision support systems have been developed to simplify the whole process.

Keywords: decision making, information systems, database, international marketing.

идентификация релевантной информации для международного маркетинга

Митар Лутовач¹, Зоран Ёванович², Снежана Максимович³, Бояна Лутовач⁴, Марко Матич⁵

¹Университет им. Николы Тесла, факультет бизнеса и промышленного менеджмента, Белград,

²Экономический колледж, Белград,

³Магистр экономических наук, Университет им. Николы Тесла, факультет бизнеса и промышленного менеджмента, Белград,

⁴Университет им. Николы Тесла, факультет бизнеса и промышленного менеджмента, Белград,

⁵Евробанк, Белград

Аннотация

Основная составляющая любой программы выбора рынка - доступность информации о рынке. В целом, существует огромное количество источников информации о международных рынках и продуктах, и возникает проблема выбора релевантной информации. Для международных маркетологов проблема идентификации может быть частично решена за счет создания компьютерных баз данных, которые необходимо постоянно проверять и обновлять. Для выбора новых рынков, а также для облегчения процесса принятия решений, были разработаны системы поддержки.

Ключевые слова: принятие решений, информационные системы, базы данных, международного маркетинга.

1. Introduction

More internationally experienced companies can afford the cost of building and maintaining a formalized decision support system. For the smaller and medium-sized companies, however, formalized information systems are seldom available, leaving the exporter still with a more or less traditional information problem. However, the continual development of the Internet makes information readily available to all companies, large and small alike [1-5].

An integral part of any international marketing decision support system is an international Marketing Information System (MIS). Such a system involves data management procedures of generating data or collecting existing data, storing and retrieving data, processing data into useful information, and disseminating information to those within the organization who need it.

· relevant: have meaning for decision makers;

· timely: current and available quickly;

· flexible: available in the forms needed by management;

· accurate: valid information for the `problem' at hand;

· exhaustive: data bank should be reasonably exhaustive as international marketing tactics and strategies can be affected by many things that do not enter into domestic markets;

· convenient: access and use must be relatively easy to accomplish [6-8]

2. International marketing information system

The major issue is the collection of information, which involves an organization in facilitating the collection effort, sources and methods of collection, processing, analysis, interpretation, and, where necessary, intracompany dissemination of information. The collection of information involves seeking sources of existing information and selecting research methods to obtain additional information, and disseminating information to those within the organization who need it, Figure 1 shows an outline of such a MIS.

It should be obvious that a critical aspect of this process is the first stage - determining what kind(s) of information is (are) needed. This is not to say that the other stages are not critical. It is just that if the needed information is not properly defined, it will not be obtained, thereby negating the value of the other stages. When analyzing potential markets, information is often needed on the various environmental constraints (and attitudes) facing the exporter/international marketer including educational (for example literacy level, higher education, attitude toward acquisition of knowledge), sociological (for example class structure and mobility; views toward authority, achievement and work, wealth and materialism, risk taking, change), political-legal (for example rules of the game, political stability, and organization), and economic (for example stability, factor endowment, market size) constraints [9-14].

Fig. 1 - Example of marketing information system

More specifically, the major types of information needed for making decisions about what markets to enter, the appropriate mode of entry in a chosen market and the specific export (or other) marketing mix and strategy to use will include the following:

(1) political, financial, and legal data;

(2) data about the basic infrastructure of markets;

(3) marketing data; and

(4) product-specific data.

Thus, the information needed goes beyond that directly related to marketing decisions and includes all other aspects of the company's operations. More specifically, exporters would find the following types of information extremely useful: reports on potential customers, identifying potential overseas agents, specific export opportunities, market reports, and information on export payments, transport, and distribution [15-19].

The overall process, shown in Figure 2, starts with determining information requirements or `problem definition' (and this includes determining the research objectives) and ends with the completed report and ultimate integration of findings into management decision making. As shown, the research process is really no different from a general approach to marketing research. This process can be carried out internally with a so-called in-house research group or it can be done by an outside research organization.

Fig. 2 - The international export marketing research process

3. Sources of information

Sources of information can be classified according to internal or external sources. Internal sources include sales and cost records, and the acquired knowledge of company personnel, such as sales persons or company officers or technical personnel who obtain information in the course of their contacts with customers, competitors, personnel, or governmental officials. Unfortunately, many companies overlook, underutilize or ignore internal data sources. There are times when such sources can provide all the information needed to make the decision at hand.

External sources include both primary and secondary sources. The use of primary sources refers to the collection of information by observation, controlled experiments, surveys, and other techniques to obtain information directly from those on whom one desires such information. The use of secondary sources refers to any source of published information, including government pamphlets or books, news and trade s and magazines, competitors' house organs, trade association publications, websites on the Internet, and miscellaneous published research studies.

National government agencies are a major source of basic data and other reports useful to exporters/international marketers. This includes the exporter's own government as well as governments of potential foreign markets. Both global indicators and specific country analyses may be available as well as studies done on specific business activities or problem areas. Contacting a consulate or embassy often is an early step in conducting foreign market analysis.

Nongovernment agencies also may be useful sources of information for the exporter. Large commercial banks and investment houses often have an international department that regularly collects and disseminates useful statistics. For example, the large US Bank of America has a World Information Services department that provides country outlooks, country data forecasts, and the country risk monitor [19-21].

Business, trade, and professional associations - including chambers of commerce - may be a source of relevant data. For example, Business International Corporation in the United States and the Economist Intelligence Unit in the United Kingdom publish many reports, some as a regular series, that are useful to the international marketer/exporter. Finally, universities and other educational institutions conduct technical and business-type research and make it available through various technical reports and other publications.

One of the major sources of information for international marketers that `took off' in the 1990s and continues to expand in the 2000s is the Internet. This provides instant access to global data online that are mostly accurate and up to date. Data are available that are useful to companies which are evaluating whether they should be doing business internationally, which specific countries are viable target markets, what mode of entry should be used, risks associated with doing business in foreign countries, alternative marketing strategies, and potential customers, suppliers, and partners. For example, the following Internet sites were available as of mid-2010.

Asia-Pacific http://www.asia-pacific.com/links.htm A useful site for locating sources for Asia-Pacific business research; there are links to hundreds of sites about business in the Asia-Pacific region. Included are country and company profiles, bank ratings, market research, trade reports, and so on.

AsiaSource http://www.asiasource.org This site covers various types of information about the countries of Asia. There are economic and other types of statistics, news, business resources, maps, etc., and links to other sites.

Japan Cabinet Office http://www.cao.go.jp/index-e.html Gives links to other sites in Japan and covers various aspects of the Japanese government. Includes a link to the Economic and Social Research Institute of the Government of Japan.

Malaysia Information Network http://www.jaring.my A computer-based network for access to the Internet in Malaysia, it offers information on research and development, the economy, statistics, and the Malaysian Legal Code.

Political and Economic Risk Consulting Ltd (PERC) http://www.asiarisk.com Hong Kong based, this non-government site provides risk reports on the countries of Asia, paying special attention to critical socio-political variables, together with key economic indicators, to subscribers. The site also has a list of business and financial links for Asia.

The World http://www.fita.org The website for the Federation of International Trade Associations. The FITA Global Portal is the source for international import export trade leads, events, and links to 8,000 international trade (export import) related websites.

Euroguide http://www.euroguide.org A gateway to websites which contain information about the European Union. An informal guide to the language and culture of Europe and other countries. The site lists two computer-based language learning courses for 35 languages.

Europa http://europa.eu The portal site of the European Union. It provides up-to-date coverage of European Union affairs and essential information on European integration.

Hong Kong http://www.tdctrade.com The website for the Hong Kong Trade Development Council, the trade promotion arm of the Hong Kong Government. There are links to economic statistics, market news, market profiles, trade show listings, laws and regulations, a business guide, trade leads, industry news, and more.

4. Marketing research process

Marketing research can be defined as the systematic and objective search for, and analysis of, information relevant to the identification and solution of any problem relevant to the firm's marketing activity and marketing decision makers. The process was outlined in Figure 2 earlier in the . Very broadly, the functions of international/export marketing research include description and explanation (which are necessary for understanding), prediction, and evaluation. More narrowly, the function of such research within a company is to provide the informational and analytical inputs necessary for effective planning of future foreign market marketing activity, control of international marketing operations in the present, and evaluation of results.

In European markets, European companies recognize the need to go beyond simply measuring satisfaction and identifying sources of dissatisfaction and view the goal of customer satisfaction management (CSM) programs as customer loyalty and retention. One of the major challenges in implementing CSM programs in Europe is comparing the results across countries. There are cultural differences across the countries that comprise the European Union, for example. Further, respondents in southern Europe tend to overstate their satisfaction while northern European respondents tend to understate it, making valid comparison of satisfaction scores difficult. In a similar manner, it is erroneous to assume that the same questionnaire can be used with consistent effectiveness in all countries [22-25].

1. Problem formulation

In a very real sense, problem formulation is the `heart' of any research process. As such it represents the single most important step to be performed. Problem formulation from the researcher's point of view represents translating the management problem into a research problem. In order for this to occur the researcher must understand the origin and nature of management's problem and then be able to rephrase it into meaningful terms from an analytical point of view. The end result is not only a management problem that is analytically meaningful but one that specifies the types of information needed to help solve the management problem.

2. Method of inquiry

In establishing investigative methods, international market researchers look primarily to the scientific method. Even though this method is not the only one used, it is the standard against which other investigative methods are measured. This approach involves an objectivist view of research. To the researcher everything is open and above-board. At the opposite end are the subjectivists who differ in kind or degree of requirement for publicity of procedures or investigator-independence.

3. Research method and design

Which method is appropriate to use for a research problem depends in large part on the nature of the problem itself, the extent or level of existing knowledge, and the method of inquiry being followed. Two broad methodologies can be used to answer any research question - experimental research and nonexperimental research. The major difference between the two methodologies lies in the control of extraneous variables and manipulation of at least one variable by the intervention of the investigator in experimental research. In nonexperimental research there is no intervention beyond that needed for purposes of measurement.

4. Data collection techniques

The research design begins to take on detailed focus as the researcher selects the particular techniques to be used in solving the problem formulated and in carrying out the strategy or method selected. There are a number of techniques available for collecting data, and these can be used with either methodology.

In general, data collection uses the process of either communication or observation. Communication involves asking questions and receiving (it is hoped) a response. This process can be done in person, by mail, by telephone, by e-mail, or by the Internet, and in most instances constitutes the broad research technique known as the survey.

5. Translating questions into sources of marketing information

In order to communicate or observe there must be a means of recording responses or behavior. Thus the process of measurement and the development of a measurement instrument are closely connected to the decision of which data collection technique(s) should be used. The relationship is two-way. That is, while the structure and content of the measurement instrument can depend on the data collection technique, measurement considerations often influence technique selection. Figure 3 shows a collaborative and iterative approach to translation of a questionnaire [26-28].

Fig. 3 - Model for translating questions into usefull marketing data

More generally, multiple methods should be used. Although the structured questionnaire is a familiar tool in marketing research, it may fail to capture key information regarding the intangible characteristics of a culture, resulting in the overlooking of important nuances. A structured questionnaire also can rarely account for contextual influences on purchase and consumption as it is typically based on assumptions about this behavior and what people can recall about it. In short, depth of understanding may be lacking. Combining qualitative methods with the more traditional quantitative ones will add some flexibility to the research process. One such approach is ethnographic research. Ethnography is a qualitative approach to research that studies human behavior within a cultural context [29-31].

In sampling for research in multiple countries there is often a conflict between the need for within-country representativeness of each national sample and between-country comparability of the samples. Resolution of this conflict depends largely upon the type of research being done. There are identified four types of international marketing research:

1. Descriptive research is focused primarily on understanding behavior and the market environment in a single country.

2. Comparative research is concerned with comparing attitudes, behaviors, etc. in two or more countries with the intent to identify similarities and differences between them.

3. Contextual research is concerned with studying cross-national groups, or so-called `pan-cultural' research.

4. Theoretical research looks at the extent to which theories, models, methods, and constructs developed in one country are valid in other countries and cultural contexts.

6. Conclusion

This chapter has looked at issues relating to the types and sources of information used in market selection analyses and further examined briefly some key issues in export marketing research. The chapter introduced the use of the Internet and World Wide Web as tools for research. The collection of information involves seeking sources of existing information and selecting research methods to obtain additional information. Sources of information can be classified according to internal or external sources. Marketing research can be defined as the systematic and objective search for, and analysis of, information relevant to the identification and solution of any problem relevant to the firm's marketing activity and marketing decision makers. In order to communicate or observe there must be a means of recording responses or behavior.

References

1. Albaum, G. and Baker, K. (2005). The imposed etic in survey research: fact or fallacy? In V. Calluzzo (ed.), Proceedings of the 4th International Business and Economy Conference, 6-9 January.

2. Andruss, P. L. (2000). Going it alone: US research firms must put time, thought into European studies. Marketing News, 11 September, 19.

3. Canniford, R. (2005). Moving shadows: suggestions for ethnography in globalized cultures. Qualitative Market Research, 8(2), 204-18.

4. Craig, C. S. and Douglas, S. P. (2005). International Marketing Research, 3rd edn. New York: Wiley.

5. Czinkota, M. R., Ronkainen, I. A. and Tarrant, J. J. (1995). The Global Marketing Imperative. Lincolnwood, IL: NTC Business Books.

6. Diamantopoulos, A. and Winklhofer, H. (2002). Export sales forecasting by UK firms: technique utilization and impact on forecast accuracy. Journal of Business Research, 56(1), 45-54.

7. Douglas, S. P. and Craig, C. S. (2007). Collaborative and iterative translation: an alternative approach to back translation. Journal of International Marketing, 15(1), 30-43.

8. Ellis, P. (2000). Social ties and foreign market entry. Journal of International Business Studies, 31(3), 443-69.

9. Harzing, A.-W. (2000), Cross-national mail surveys: why do response rates differ between countries? Industrial Marketing Management, 29(3), 243-54.

10. Harzing, A.-W. (2005). The use of English questionnaires in cross-national research. The International Journal of Cross-Cultural Management, 5(2), 213-24.

11. Jarvis, S. (2002). Status quo progress. Marketing News, 29 April, 37-8.

12. Keegan, W. J. and Green, M. S. (2000). Global Marketing, 2nd edn. Upper Saddle River, NJ: Prentice-Hall.

13. Kleindl, B. A. (2001). Strategic Electronic Marketing: Managing E-Business. Cincinnati, OH: South-Western College Publishing.

14. Kotler, P. (2003). Marketing Management, 11th edn. Upper Saddle River, NJ: Prentice-Hall, pp. 124-156.

15. Leonidou, L. C. and Theodosiou, M. (2004). The export marketing information system: an integration of the extant knowledge. Journal of World Business, 39, 12-36.

16. Lyness, K. S. and Kropf, M. B. (2007). Cultural values and potential nonresponse bias. Organizational Research Methods, 10(2), 210-24.

17. Miller, C. (1997). Research firms go global to make revenue grow. Marketing News, 31(1), 6 January.

18. Ramaseshan, B., Bejou, D., Jain, S. C., Mason, C., and Pancras, J. (2006). Issues and perspectives in global customer relationship management. Journal of Service Research, 9(2), 195-207.

19. Reynolds, N. L., Simintiras, A. C. and Diamantopoulos, A. (2003). Theoretical justification of sampling choices in international marketing research: key issues and guidelines for researchers. Journal of International Business Studies, 34(1), 80-9.

20. Salzberger, T. (1997). Problems of equivalence in cross-cultural marketing research. Unpublished working paper, department of International Marketing and Management, Vienna University of Economics and Management, Vienna, Austria.

21. Schmidt, M. J. and Hollensen, S. (2006). Marketing Research: An International Approach. Harlow, UK: Pearson Education, Ltd.

22. Smith, S. and Albaum, G. (2005). Fundamentals of Marketing Research, Thousand Oaks, CA: Sage Publications.

23. Smith, S. M., Smith, J., and Allred, C. R. (2006). Advanced techniques and technologies in online research, in R. Grover and M. Vriens (eds) The Handbook of Marketing Research, Oaks, CA: Sage Publications, Chapter 8.

24. Steenkamp, J.-B. and Baumgartner, H. (1998). Assessing measurement invariance in cross-national consumer research. Journal of Consumer Research, 25, 78-90.

25. Stephens, C. R. and Sukumar, R. (2006). An introduction to data mining, in R. Grover and M. Vriens (eds) The Handbook of Marketing Research. Thousand Oaks, CA: Sage Publications, 455-83.

26. The Economist (2008). Alternative reality. 2 February, 69-70.

27. van Herk, H., Poortinga, Y. H. and Verhallen, T. M. M. (2005). Equivalence of survey data: relevance for international marketing. European Journal of Marketing, 39(3/4), 351-64.

28. Vence, D. L. (2003). Leave it to the experts. Marketing News, 28 April, 37.

29. Williams, J. E. M. (2006). Export marketing information-gathering and processing in small and medium-sized enterprises. Marketing Intelligence & Planning, 24(5), 477-92.

30. Yeoh, P.-L. and Jeong, I. (1996). Export information source use: impact of perceived usefulness, entrepreneurialism, organizational and environmental characteristics. Paper presented at AA Summer Educators' Conference.

31. Young, R. B. and Javalgi, R. G. (2007). International marketing research: a global project management perspective. Business Horizons, 50, 113-22.

Размещено на Allbest.ru