The difference between market research and marketing research:
Marketing research:
Internal wider in scope, qualitative, creative.
Why do we make a marketing research?
qConsumer needs.
qDevelopment of new products.
qCompetition.
qSize and nature of the target audience.
qProblems.
Market research:
External, quantitative, deals with measurements.
Research steps:
1.Define your situation or the problem:
A)Find causes of the problem, not only symptoms.
B)Make the information gathered measurable.
C)The various pieces of data must be related. (The profits decreases by X percent. The research must answer why is that happening)
2- exploratory research:
A)Assuming the current knowledge, meaning to look in side your company first.
B)The objective of that kind of research is simply to learn more about the current situation, market, and competition before the formal research iis done.
C)You can analyze and collect
1-Internal data: company records, sales records, product shipments, advertising expenses, and customer?s letters.
2-External data: data that already exists or published somewhere, having been already used for another purpose. Example (governmental reports, dept. of commerce, market research firms, trade association)
D)Problems attached to that research: example (not accurate, compliance, may not be relevant, it may be not valid or reliable, out dated)
4-Primary Research:
This research is done to gain additional information directly from the market place.
There are 3 main ways for gathering primary data:
A)Observation: researchers watch their consumers and monitor their actions. Example (standing in the super market)
B)Experimental: researchers design actions to measure actual causes and effects relation ship. This research is used mainly for test marketing new product and advertising campaign.
C)Survey: it is simply asking people. It is the most commonly way used for gathering primary data. It may be done by mail, phone, and personal interview. It is called also quantitative research as it deals with numbers. The data collected through this research, must be valid and reliable so it must be {as close as possible, if you repeated the research it gives the same data}
Questionnaire design:
Problems occur when designing questionnaire.
?Asking the wrong questions
?Too many questions
?Wrong form of a question
?Too difficult and hard to tabulate.
?Wrong choice of words.
Phrasing a question:
1.Open ended: hard to tabulate.
2.Dichotomous: yes or no.
3.Multiple choices.
4.Scale system: from 1 to 5 as from poor to excellent.
After the data is collected it must be validated and tabulated and coded and summarized.
International Marketing
A- examine the international business environment
1.Social: you must know and examine people, culture, language, and education level. This is in order to match your business to the social elements in the foreign country.
2.Legal system: the legal systems vary from a country to another. In the international, the laws of the host country bind the foreign company.
3.Economic system: you must know where this country is moving economically and in what stage does it stand on the international economical map. You must also understand the trade agreements in this country.
4.Political system: you must know the government attitude to wards business and degree of freedom, which allow the business to operate freely. Also the type of the political system is important (ex: library, democratic, national).
5.Technology: the technology level tends to be a major driving force to wards globalization. Also it reflects the ability to gather data and information, establishment of communication channels.
6.Competition: the competition is stronger in the international market, as the market is open for many nations. Also the domestic products are cheaper and governmentally subsidized.
B-Why should a company expand to the international market?
1.More money and profit potential.
2.Stability through diversification.
3.Large market size (ex: mineral water)
4.Proximity to market.
5.Unsolicited orders.
6.Utilize execs capacity.
7.The high level of competition in the local market,
8.An offer from a foreign distributor.
9.The position in the product life cycle. (Ex: cigarettes in usa)
10.The identification of a marketing niche.
C-Barriers to international marketing
1.Bureaucracy or redtops.
2.Trade barriers (ex: Egypt will not allow the import of textiles)
3.Transportation difficulties.
4. Lack of trained personnel
5.Lack of export incentives.
6.Lack of coordinated assistance.
7.Unfavorable conditions overseas.
8.Slow payments by buyers.
9.Payments default.
10.Communication.
How do we enter the international market? (Ways and forms form entering the international market.)
1.Import and export agent: this form is the most common form in Egypt. Its main job is to sell goods form another party with a very little risk involved and they spend a small amount of money and effort. The problem in such form that these middle men is not aggressive marketers.
2.Company sales branch: this form usually is concerned about sales not marketing. This operating sales branch enables the company to promote its products more aggressively and develop foreign markets more effectively. The control of the sales effort is closer and stronger. The problem or disadvantage in this form is that the sales men do not know the market in such foreign company.
3.Licensing: foreign producers produce the goods ?(my goods with their my name) for a fee or a royalty payment (ex: McDonalds and Bentton).
4.Contract agreement: foreign producer contract with foreign company to produce products that the foreign company will sell in the producer?s country.
5.Joint venture: it is a partner agreement where foreigner and local jointly own a company. (Ex fine foods 51% and unilever 49%)
6.Wholly owned subsidiary: it is opening a full companies factories. In that form there an absolute control of every thing. It is a very advanced stage.
7.Worldwide enterprise: example Microsoft.
International marketing research
1- customer information:
The willingness of people responds to accurately (they will lie, suspicious of strangers, there is a distrust of the government, scarcity of reliable data in other countries is worse than Egypt). Cultural influences and differences are very important, when analyzing the consumer?s economic abilities to buy we must study 3 things:
1.Distribution of the income.
2.Rate of growth of buying power.
3.Extent of available financing.
2- cultural elements:
It is elements that can influence a company ?s marketing program:
1.Family: the concept of what family is, as the family in some cultures is close (china), but in other are not. This affects the usage of the promotional tools.
2.Social costumes and behavior.
3.Educational system and liberty rate.
4.Language difference: you cannot always translate every thing.
5.Religion: you must find out what is acceptable and what is not.
?All above gapes are in their way to close because of the increasing effect of globalization and standardization.??
The international marketing p?s
1.Product planning:
Q: To what extent can a company market the same product in several different countries? (Ex: electronics)
You have to be careful when branding and labeling. (You must write the label in another language.
2.Pricing
Exporters face many currency conversions, lack of control over middleman pricing. The price in the foreign country is usually higher than in the original country, because of the additional expenses that are added to the original price like taxes and distribution.
Dumping cartel is a group of companies that produce simile products that combine to restrain competition (ex: OPEC).
3.Distribution
Physical distribution expenses count for much more larger share of the final selling price in case of international distribution. (Ex: laws on packaging and shipping, humidity, marine insurance, and bribery)
4.Advertising and promotion
In this case your contacts and research are the most promotional tool used.
Q: To what extent can we standardize and use the same advertisement in different countries?
Sometimes the ads are customized to match with specific countries. Some countries have governmental laws for advertising.
32b