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Developing a global vision through marketing research

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The process of international marketing research

The directions and methods of marketing research

What will we learn?

The essence, importance, and modern role of international marketing research

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It serves to study in depth the market environment, consumers, competitors, the product, price, distribution, and promotion systems.

Unlike ordinary marketing research, international marketing research is conducted within the context of different countries, cultures, languages, legal systems, and economic conditions. Therefore, it requires not only statistical and analytical knowledge, but also cultural understanding, adaptability, and strategic thinking.

International marketing research

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Main objectives of international marketing research

To carry out country screening and selection

To identify additional requirements of the country environment

To assess a country’s market potential

To support the development of a strategic marketing plan

Domestic (internal) marketing research is usually conducted in an environment that a company knows well. In this case, consumers’ behavior, cultural norms, language, and legal regulations are relatively familiar to the company.

Differences between domestic and international marketing research

In international marketing research, a company works with consumers who:

speak a different language,

have different values,

have different purchase motivations,

live under different economic conditions.

In international marketing research, the availability and quality of data vary; statistical indicators may not be collected using the same methodology, and in some countries open information may be insufficient.

In the USA and Germany, a low price may signal thrift and efficiency. In Japan or South Korea, however, a low price may be perceived as a sign of low quality.

Marketing research is usually used to answer specific questions, and it helps companies avoid mistakes.

When entering the German market, Walmart applied its successful U.S. retail model with almost no changes. The company introduced mandatory employee smiling, overly friendly communication with customers, and strict internal rules. However, its marketing research did not sufficiently take into account the cultural characteristics of German consumers—especially respect for personal space, formality, and the desire to maintain distance in service interactions.

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👉As a result, the company suffered continuous losses and was forced to leave the German market.

The following factors lead to the expansion of the scope of international marketing research

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Cultural differences

Economic differences

Climate differences

Religious and historical differences

Factors influencing international marketing research

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Cultural differences

A company wanted to enter the Spanish market with two-liter beverage bottles and failed. Soon after, they learned that Spaniards prefer refrigerators with small doors, and large bottles do not fit inside them.

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By culture, we mean the broadly shared ways or behavioral patterns of a large group of people.

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Climate differences

Bosch–Siemens adapted its washing machines to the markets where they were sold. In Scandinavia, where sunny days are very few, they sell washing machines with a minimum spin speed of 1000 rpm and a maximum of 1600 rpm, whereas in Italy and Spain a spin speed of 500 rpm is sufficient.

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These are meteorological or climatic conditions, for example, the temperature range or the amount of rainfall.

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Economic differences

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As in developed countries, markets with higher purchasing power and higher incomes tend to prefer more sophisticated products with advanced functions, whereas in poorer countries simpler products are preferred.

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Samsung (Galaxy S / Fold)

Samsung A series

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Religious-historical differences

If a company exports food products to Islamic countries, it must have a special certificate showing that the animal was slaughtered according to the “Halal” method.

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Scottish whisky is considered fashionable in Italy, but in Scotland it is not that modern.

Researching industry characteristics and market trends

Research on industry characteristics and market trends is often conducted in the form of acquisition (buying a competitor), diversification, and analysis of market share, and it is carried out regularly by marketing research departments.

Export research is also considered another type of research within this area.

Example (2012): Facebook and Instagram

In 2012:

Facebook was the main social network.

Instagram was very fast-growing, but it was still a low-income mobile app.

Instagram was popular among young people and was becoming a potential competitor to Facebook.

Facebook’s marketing research department analyzed the following:

Market trend: mobile apps and visual content were growing rapidly.

Consumer behavior: young people were shifting from Facebook to Instagram.

Risk: if Instagram becomes independent, it may become a strong competitor in the future.

Therefore, Facebook bought Instagram for $1 billion. This is a classic example of acquisition (strengthening a market position by buying a competitor).

Researching buyer behavior (Buyer Behaviour Research)

Studying brand preferences and attitudes toward a brand belongs to the category of buyer behaviour research.

In most Asian countries, the level of uncertainty avoidance is high, and this is reflected in strong attention to brands, brand loyalty, high demand for quality, as well as consumers’ active reliance on groups and opinion leaders.

Product Research

Research on developing and testing an idea is usually carried out in developed countries by companies’ research and development (R&D) departments.When entering international markets, companies often already have a successful product. Nevertheless, it is important to reassess the proposed product or service and the marketing mix from the perspective of different target markets and local/regional conditions.

PepsiCo Foods International – Cheetos (China)

Before launching Cheetos in China, PepsiCo Foods International conducted an expanded product test.

First, it measured consumer acceptance through focus-group tests of taste and concept; then it evaluated real sales and repurchase rates through a limited market test in Guangdong.

The test results showed that the “cheesy” flavor did not fit Chinese consumers, so the product was adapted to local tastes with flavors such as Savory American Cream and Zesty Japanese Steak.

Distribution Research

From where, through which channel, and with what infrastructure should we deliver the product so that it is the cheapest, fastest, and most efficient?

What do we mean by channels?

• retail stores
• supermarket chains
• dealers
• online trade (e-commerce)
• wholesale trade

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What did Amazon study?

Where are customers concentrated?

How important is delivery time?

From which areas is delivery faster?

Decision: it built large fulfillment centers close to major cities.

Warehouses were located near highways and airports.

1-day delivery logistics

costs decreased customer satisfaction increased

Promotion Research

Promotion research enables a company to determine whether its advertising, discounts, media, and personal selling strategies are suitable for a particular market. In international markets, due to cultural differences, Promotion research enables a company to determine whether its advertising, discounts, media, and personal selling strategies are suitable for a particular market. In international markets, due to cultural differences, media coverage, and consumer behavior, the same promotion strategy can produce different results in different countries.

This research examines:

• which discounts work in which countries,
• how price-sensitive people are,
• whether a discount harms the brand image or not.

media coverage, and consumer behavior, the same promotion strategy can produce different results in different countries.This research examines:which discounts work in which countries,how price-sensitive people are,whether a discount harms the brand image or not.

International marketing research process

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Thank you for listening

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