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Introduction:

Research is very important when marketing in your own country, but it is even more important in
foreign markets. This is because in your own country you can rely on some combination of
research results and your own intuition (i.e. your sense of how people think, how they use your
products, and how they will respond to certain messages). In foreign markets, you do not have
the same kind of personal familiarity with the markets, and therefore need to make up for it with
more extensive research.
Marketing research is the function that links the consumer, customer, and public to the marketer
through information-information used to identify and define marketing opportunities and problems;
generate, define, and evaluate marketing actions; monitor marketing performance: and improve
understanding of marketing as a process.
Marketing research specifies the information required to address these designs the method for
collecting information manages and implements the data collection process, analyzes the results, and
communicates the findings and their implications.
As of 2009, the American Marketing Associations Web site, Marketing Power, supplies marketing
professionals with information on marketing careers, Best Practices articles and industry trends.
For the purpose of this book, which emphasizes the need for information for decision making,
marketing research is defined as follows:
Marketing research is the systematic and objective identification, collection, analysis, dissemination
and use of information for the purpose of improving decision making related to the identification and
solution of problems and opportunities in marketing.
Several aspects of this definition are noteworthy. First marketing research is systematic. Thus,
systematic planning is required at all stages of the marketing research process. The procedures
followed at each stage are methodologically sound, well documented and as much as possible,
planned in advance. Marketing research uses the scientific method in that data are collected and
analyzed to test prior nations or hypotheses.
Marketing research attempts to provide accurate information that reflects a true state of affairs. It is
objective and should be conducted impartially. Although research is always.

Marketing Research in a International Business:


Marketing research practices and techniques have become truly global. For example, the world's
largest research firm, Nielsen, is headquartered in the U.S. but derives almost two-thirds of its
revenue from outside the U.S. It is standardizing much of the data it routinely collects in 27 different
countries.

International marketing managers make the same basic types of decisions as do those who operate in
only one country. Of course, they make these decisions in a more complicated environment. As with
marketing decisions, the basic function of marketing research and the research process does not differ
between domestic and multinational research. However, the process is complicated almost
exponentially as more and more countries are involved in the same decision.

The potential problems that a company might face if it does not have the
knowledge on Marketing Research for doing international business are:
Cultural related Problem: Culture refers to widely shared norms or patterns of behavior of a large
group of people. It is the values, attitudes, beliefs, artifacts and other meaningful symbols represented
in the pattern of life adopted by people that help them interpret, evaluate and communicate as
members of society. A company which works on the international market is in need of cross cultural
awareness. Cross cultural differences (language, non-verbal communication, different norms and
values) may cause cross cultural blunders. There are examples of cultural blunders in the marketing
mix.

Product related Problem:: When a soft drink was launched in Arab countries, it has a label with
six-pointed stars. The sales were very low as the stars were associated with Israel.
Price. An American firm was willing to set a reasonable price for the product they intended to sell to
the Japanese. A detailed presentation was made to the Japanese businessmen, but it was followed by
a deep silence. The Americans thought that the Japanese were going to reject the price and offered a
lower price. The Japanese kept silence again. After that the Americans lowered the price again saying
that it was the lowest they could sell at. After a brief silence the offer was accepted. Later the
Japanese confessed that the first offered price was quite acceptable, but they had a tradition to think
over the offer silently. An American company suffered great losses in this case.
Place related Problem: A company wanted to enter the Spanish market with two-liter drinks bottles
and failed. Soon they found out that Spaniards prefer small door fridges and they could not put large
bottles into them.
Promotion related Problem: Pepsico came to Taiwan with the ad 'Come Alive with Pepsi'. They
could not imagine that is it translated 'Pepsi will bring your relatives back from the dead' into
Chinese.

Racial Differences. This refers to the differences in physical features of people in different
countries. For example, types of hair cut and cosmetic products differ greatly in various countries.

Climatic Differences: These are the meteorological conditions such as temperature range or degree
of rain. For example, Bosch-Siemens adapted their washing machines to the markets they sell. In

Scandinavia, where there are very few sunny days, they sell washing machines with a minimum spin
cycle of 1,000 rpm and a maximum of 1,600 rpm, whereas in Italy and Spain a spin cycle of 500 rpm
is enough.
Economic Differences: Economic development of various countries is different and when a
company introduces a new product it adapts it to that new market. There are factors which show the
level of economic development
Buying power and revenue of the market. In developed countries with higher income of revenue
people prefer complicated product with advanced functions, while in poor countries simple product
are preferable.
The infrastructure of the market. Such elements of the infrastructure of the country as transport,
communication system and others influence the product. When Suzuki entering the Indian market the
suspension was reinforced as the state of roads in India is very poor.
Religious Differences: Religion affects the product greatly and makes companies adapt their product
to religious norms. If a company exports grocery products to Islamic countries it must have a special
certificate indicating that the animal was slaughtered according to 'Halal' methods.
Historical Differences: Historical differences affect the consumer behavior. For instance, Scotch
whiskey is considered fashionable in Italy and not very trendy in Scotland.
Language Differences: The correct translation and language adaptation is very important. For
example, when Proctor & Gamble entered the Polish markets it translated properly its labels but
failed. Later they found out that imperfect language must have been used in order to show that the
company fits in.
From a real life case study we came to know that, The Boeing Company (www.boeing .com) has been
the premier manufacturer of commercial jetliners for more than 40 years and provides products and
services to customers in 145 countries. Headquartered in Chicago Boeing had about 12,000
commercial jetliners in service worldwide as of 2009, which is roughly 75 percent of the world flect.
Boeing Commercial Airplanes (BCA) is the division of Boeing that develops and sells airplanes in
the commercial segment. Although the airplane manufacturing industry is an oligopoly with only a
few players, the competition is intense and the stakes are high. The division understands that it is
important to continuously monitor the dynamic marketplace and understand the needs and priorities
of BCA customers (airlines) and their customers (people who fly). To achieve this purpose, BCA
employs marketing research on a regular basis.

Boeing recently entrusted Harris Interactive (www.harrisinteractive.com) with a study of this type.
Harris Interactive, one of the largest market research firms in the world, is based in Rochester, New
York. It is best known for The Harris Poll and for Pioneering Internet based research methods.
Boeing commissioned a study of determine the aircraft preferences of flierex. We presented
respondents with real-life air travel scenarios to better understand the attitudes and feeling that led to

their choices, said DR. David Bakken, senior vice president of marketing sciences, Harris
Interactive. What we found was that travelers taking very long flights generally prefer the more
convenient and flexible experience provided by smaller planes.
The study was a survey based on 913 interviews conducted n the United Kingdom, Tokyo and Hong
Kong with international travelers (age 18 and over) who had taken at least one recent eight-hour or
longer flight. Interviews were conducted between November 2003 and February 2004 using a twostage methodology. Respondents were first screened and qualified by telephone or vain in person
interviews, and then they completed an online survey at home or work or at a central interviewing
location. In each region, Harris polled equal numbers of premium class Business, Economy Business,
and Economy leisure travelers, Some Key findings:

More than 60 percent preferred a single-deck, 250 passenger airplane airplane to a trip
involving a connecting flight on a double-deck, 550 passenger airplane with an on board
lounge.

Travelers in all the classes of service from all three regions believed smaller airplanes would
provide a better experience with check in, boarding, disembarking, baggage claim and
customs `and customs/immigration than the 550 seat in craft.

From Boeings point of view, these were important insights. The company is responding with
enhanced products. Based on these findings and subsequent product research that involved in depth
interviews and surveys of airlines, BCA developed a new version of the Boeing 737, which caters to
the 100 to 215 seat market. The new concept is focused on bringing more economical solutions to
airlines, a better flight experience to passengers, and improved environmental performance to the
world. The newest members of the Boeing 737 family the 737-600-700/-800/-900 models continue
the 737s preeminence as the worlds most popular and reliable commercial jet transport. Meeting the
market demands, the 737 family has won orders for more than 5,200 airplanes, amazing feat even for
Boeing.

Reference:
Marketing Research, Naresh K. Malhotra, Satyabhushan Dash.