Chapter 6Global Management

Information Systems and Marketing Research

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Introduction

Understand the importance of information technology and marketing information systemsUtilize a framework for information scanning and opportunity identificationUnderstand the formal market research processKnow how to manage the marketing information collection system and market research effort

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Information Technology for Global Marketing

Information technology refers to an organization’s processes for creating, storing, exchanging, using, and managing information.Management information systems provide managers and other decision-makers with a continuous flow of information about company operations.

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Tools of MISIntranetElectronic Data Interchange (EDI)Efficient Consumer Response System (ECR)Electronic point of sale

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Intranet

A private network Allows authorized company personnel (or outsiders) to share information electronically24-hour nerve centerAllows companies like Amazon.com and Dell to operate as real-time enterprises

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Electronic Data Interchange

Allows business units toSubmit ordersIssue invoicesConduct business electronically

Transaction formats are universalAllows computers from different companies to speak the same language

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Efficient Consumer Response (ECR)

A joint initiative by members of a supply chain to work toward improving and optimizing aspects of the supply chain to benefit customersThis is in addition to EDIAn effort for retailers and vendors to work closely on stock replenishmentUtilizes electronic point of sale (EDI)

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Customer Relationship Management

New business modelPhilosophy that values two-way communication between company and customerEvery point of contact with a consumer is an opportunity to collect dataCan make employees more productive and enhance corporate profitability

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Customer Relationship Management

The major thing is, “One size fits all” is not true. CRM is designed to support the sales process, and if I develop a system that works in the United States, it might not work in Europe.

—Jim Dickie, Insight Technology Group

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Privacy Safe Harbor Agreement establishes principles for privacy protection for companies that transfer data to the United States from Europe

Purposes of the information collected and usedAn “opt out” option to prevent disclosure of personal informationCan only transfer information to third parties that are in compliance with Safe HarborIndividuals must have access to information

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Data Warehouses

Help fine-tune product assortments for multiple locationsEnhance the ability of management to respond to changing business conditions

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Organizational Necessities

An efficient, effective system that will scan and digest published sources and technical journalsDaily scanning, translating, digesting, abstracting, and electronic input of information into a market intelligence systemExpanding information coverage to other regions of the world

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Sources of Market Information

Personal sourcesCompany executives based abroad who have contact with distributors, consumers, suppliers, and government officialsFriends, acquaintances, professional colleagues, consultants, and prospective employees

Direct sensory perceptionUsing the senses to find out firsthand what is going on in a particular country

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Formal Market Research

Global marketing research is the project-specific, systematic gathering of data in the search scanning mode on a global basis

Challenge is to recognize and respond to national differences that influence the way information is obtained

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Steps in the Research Process1. Identify the information requirement2. Define the problem3. Choose a unit of analysis4. Examine data availability5. Assess value of research6. Design the research7. Analyze the data8. Present the findings

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Step 1: Identifying the Information Requirement

What information do I need?Existing markets—customer needs already being served by one or more companies; information may be readily availablePotential markets• Latent market—an undiscovered market;

demand would be there if product was there• Incipient market—market will emerge as

macro environmental trends continue

Why do I need this information?

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Step 2: Problem Definition and Overcoming the SRC

Self-reference criterion occurs when a person’s values and beliefs intrude on the assessment of a foreign cultureMust be aware of SRCs

Enhances management’s willingness to conduct market researchEnsures that research design has minimal home-country biasIncreases management’s receptiveness to findings

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Step 3: Choose a Unit of Analysis

Will the market beGlobalA regionA countryA provinceA stateA city

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Step 4: Examine Data Availability

Sources may beCompany recordsSecondary sources• Trade journals• Government sources such as CIA World

Factbook, Statistical Yearbook of the United Nations, World Bank

• Commercial sources such asThe Economist and Financial Times, Marketresearch.com

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Step 5: Assess Value of Research

What is the information worth versus what it will cost to collect?What will it cost if the data are not collected?What will the company gain with this information?

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Step 6: Research Design—Data Collection

Use multiple indicatorsDevelop customized indicators specific to the industry, product market, or business modelDo not assess a market in isolationObservation of purchasing patterns/ behavior is more important than reports of purchase intention or price sensitivity

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Step 6: Research Design—Research Methodologies

Primary data collection methodsSurvey researchInterviewsConsumer panelsObservationFocus groups

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Special Considerations for Surveys

BenefitsData collection from a large sampleBoth quantitative and qualitative data possibleCan be self-administered

IssuesSubjects may not want to answer or intentionally give inaccurate responseTranslation may be difficult

• Use back and parallel translations to ensure accuracy and validity

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Research MethodologiesPersonal interviewsConsumer panels

Nielsen—TV viewing

ObservationUsing people or cameras

Focus groups

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Sampling

A sample is a selected subset of a population that is representative of the entire population.

Probability samplesNon-probability samples

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Step 7: Analyzing Data

Clean the dataTabulate the data using statistical techniques—ANOVA, regression, factor analysis, cluster analysisPerceptual mapping, conjoint analysis

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Presenting the Findings

Report must clearly address problem identified in Step 1Include a memo or executive summary of the key findings along with main report

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Enhancing Comparability of Data

Emic analysisEthnographic in natureStudies culture from withinUses culture’s own meanings and values

Etic analysisFrom the outsideDetached perspective that is used in multi-country studiesEnhances comparability but minimizes precision

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Looking Ahead to Chapter 7

Segmentation, targeting, and positioning