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Lesson#21
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Analysis Interpretation and Report
Presentation
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INTERNATIONAL MARKETING RESEARCH PROCESS
Analysis, Interpretation and Report Presentation
Analysis, interpretation & report presentation:
Marketers / researchers should ensure that the following aspects
are addressed in the research analysis
report;
– data source must
be identified
– data projection
must be explained
– identify those
interviewed
– highlight
alternative courses of action
– for
translation of questionnaires and the international marketing research analysis
report the
following should be observed;
• equivalence of
language
• method of
translation (different cultural
& linguistic backgrounds lead to different ways of
perceiving the world)
• measurement &
instrumentation
Problems in international marketing research:
• Problems of
numerous markets:
– definition error
caused by the way problem is defined
– instrument error
which arises from questionnaire and the interviewer
– frame error -
occurs when sampling frames are available from different sources in different
countries
– selection error
which results from the way actual sample is selected from the frames
– non-response
error - which results when different cultural patterns of non-response are
obtained
• Problems with
data:
– secondary data -
comparing several markets
– primary data
• language
• social
organization
• obtaining
responses
• infrastructure
constraints
• convergence /
divergence of consumer behavior across cultures
Research techniques for analyzing international data:
• Demand Pattern
Analysis
– Industrial growth
patterns provide an insight into market demand. Because they generally reveal
consumption patterns, production patterns and are helpful in
assessing market opportunities.
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60
Additionally, trends in manufacturing production indicate
potential markets for companies that
supply manufacturing inputs. At the early stages of growth in a
country, when per capita incomes
are low, manufacturing centers on such necessities as food and
beverages, textiles, and other
forms of light industry. As incomes rise, the relative
importance of these industries declines as
heavy industry begins to develop. Countries at different levels
of per capita income, thus, have
diverse patterns of consumption & production. Such data can be
gathered on macro levels for
most countries. This simple technique, known as multiple-factor
index approach, allows insights
into consumption-production profiles of many countries. Though
relatively crude, it gives a clue
both to a country’s present position and the direction it is
going. This in turn helps the firm
identify possibilities for export or local production in that
market.
• Multiple-Factor Indexes
– A multiple-factor
index measures market potential indirectly, using as proxies a number of
variables that intuition or statistical analysis reveal to be
closely correlated with the potential for
the product in question. A model for forecasting the demand for
television sets in international
markets could be a function of the market size for TV and
consumer’s capacity to by TV. Market
size can be indicated by the proxy variables of number of
households, percent of literacy, percent
of urbanization etc. Capacity to buy can be indicated by per
capita income, index of standard of
living, price per unit, and price per unit relative to per
capita income etc.
• Income
Elasticity Measurements
– Income elasticity
describes the relationship between demand for a good and changes in income.
Studies have shown that basic necessities such as food and
clothing are characterized by inelastic
demand. Stated differently, expenditures on products in these
categories increase but at a slower
percentage rate than do increase in income. Demand for durable
consumer goods such a furniture
and appliances tends to be income elastic, increasing relatively
faster than increase in incomes.
• Market
Estimation by Analogy
– For countries
with limited data, estimating market potential can be a precarious exercise.
Given
the absence of hard data, one technique - estimation by analogy
- can be useful in getting better
feel for market potential in such countries. This estimation is
done in two ways:
• The
cross-section comparison approach
involves taking the known market size of a product
in one country and relating it to some economic indication, such
as disposable personal
income, to derive a ratio. This ratio (of product consumption to
disposable personal income in
above illustration) is then applied to another country where
disposable personal income is
known in order to derive the market potential for the product in
that country.
• The
time-series approach estimates the
demand in the second country by assuming that it
has the same level of consumption that the first country had at
the same level of development
(or per capita income) at a different point in time.
• Comparative
Analysis
– One of the unique
opportunities in global marketing analysis is to conduct comparisons of market
potential and market performance in different country markets at
the same point in time.
– Gap analysis
analyzes the difference “gap” between estimated total market potential and a
company’s sales. The gap can be divided into four categories:
Usage gap, Competitive gap,
Product-line gap, Distribution gap
• Cluster
Analysis
– The objective of
cluster analysis is to group variables into clusters that maximize within-group
similarities and between-group differences. Cluster analysis
using macroeconomic and
consumption data is a favored technique for identifying similar
markets. The goal here is to
ensure that the countries with the greatest potential make it to
the short list for further
investigation.
– Countries can
also be clustered based on product diffusion patterns - the rate at which new
products are adopted in a market. If such segments can be
derived, managers could use
information from the
lead market, about variables such
as growth in market size, when sales
reach a peak, to make inferences on the same variables for
lagging markets.
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