The main objective
of this marketing research is to assess the level of complexities of global
business world with the help of adequate marketing research. So that the
company can understand the potential of global market and develop strategies
according to that
Table of Contents
Introduction
Purpose of Marketing Research
Scanning the Environment
Secondary Data
Primary Data
Marketing Research Process to Achieve Objective
Problem Definition:
Defining Objectives of the Research:
Development of an Approach
Research Design Formulation Data Collection and
Analysis:
Report Preparation and Presentation:
Conclusion
References
Introduction
Marketing research
is a systematic design, collection, analysis and reporting of data &
findings, which is relevant to a specific marketing situation. It is a form of a business research (Andreas
and Cliff, 2007). Marketing research anticipates customers’ future wants &
desires and allows organizations to produce and promote their products and
services in accordance with them. It emphasizes on the identification of market
opportunities (Kotler, 2002).
An effective
marketing research involves the following steps: To define the problem, the decision
alternatives, and research objective, to develop the research plan, to collect
the information, to analyze the information, to present the findings, and to
make the decision (Boone and Kurtz, 2005). By the marketing research, a company
may develop the marketing strategy and tactics for its product.
This paper
explains the approach of marketing research that should be followed by a
company to assess the potential of the global market. Before entering in the
global market, it is necessary for the firm to assess the potential of the
market. In this concern, the best marketing approach would be the evaluation of
past trends, growth and external environment to assess the global potential.
Purpose of Marketing Research
Marketing research
is the objective, systematic and exhaustive search for and study of the facts
relating to any problem faced by the organization in the field of marketing.
With the increase in the complexities of business activities, marketing
research too is growing in complexity and has emerged as a highly specialized
function of marketing management (Bradley, 2007). Marketing research uses the
marketing information as its input and simultaneously generates more of its
output.
Due to the
globalization, almost all the business firms are targeting international market
to expand the business market and increase the profitability of the firm (Gershon,
2003). The main purpose of marketing research is to analyze the opportunities available
in the global market, so that the companies can utilize the advantages and
improve the performance of the firm in the new market (Kerin, Hartley and
Rudelius, 2003). The marketing research will also give the organization an
insight into existing practices adopted by its competitors and the customer
preferences.
It will further
help the company to know whether the products and services are in alignment
with the cultural shifts taking place in the society. It also comes to know
about the acceleration in the trends of switchover from simple products to
branded products or vice versa. Through MR, the organization can also analyze
the requirement of adding any value to the existing product/service or fully
replacing the old service with the new one.
Scanning the Environment
In order to assess
the global potential, it is necessary for the company to analyze the global
environment. Scanning of global environment includes numerous factors. A
company has to monitor demographic, economic, technological, political-legal
and social-cultural factors (macro environment forces) and customers,
competitors, distributors, suppliers (micro environment forces), which affect
its ability to earn profits and opportunities available in the global market (Kotler
and Armstrong, 2007).
It should
establish marketing intelligence system to track trends and important
developments. For each trend, management needs to identify the related or
associated opportunities and threats. A marketing opportunity is an area of
buyer potential interest in which a company can perform profitably (Schroeder, 2007).
Developments in
the external environment represent threats. An environmental threat is a
challenge posed by an unfavorable trend that would lead to deterioration in
sales or profit. These threats are classified according to the seriousness and
profitability of occurrence. An ideal business is high in major opportunities
and low in major threats (Sheth, 2003).
For example, Nestle
has assessed all these factors and trends of the global environment. Company
has decided to target the market of China for the marketing of high-end coffee
equipments. The Chinese region is appropriate for the development of the
business. With the advent of globalization and privatization in the Chinese
markets, MNC’s can enter into the Chinese region for the expansion of their
business.
Due to an increase
in the number of MNC’s in the market, the demand for coffee has increased and
the Chinese people are adopting coffee culture. This has assisted many
companies to flourish in the Chinese region. Nestle established its factory in
China and encouraged the cultivation of coffee in the country (Patton, 2007).
Additionally, for
the retail industry, Wal-Mart has also analyzed that global world has high
potential due to changes in the preferences of the consumers. Due to the
increases in the global economy, living standard of people has been raised. All
the people need luxury and lavish products and services with high quality and
low prices. Thus, Wal-Mart has numerous opportunities in Asian Countries like,
India, China, Japan, etc. due to good economic growth and low political
restrictions (Vignali and Zundel, 2003).
Apart from the
external environment, scanning of internal environment is also essential to
assess the company’s strengths to cope with the changes in the global market. Each
business needs to evaluate its internal strength and weaknesses. These factors may include product, price,
promotion, place (distribution channels); as well as personnel, finance,
manufacturing capabilities etc. (Wrenn, Loudon and Stevens, 2001). The strength
to one objective may be weaknesses for the other. Strength and weaknesses of a
company are as follow: customer service, efficiency, infrastructure, quality,
management, price, cost, capacity, relationship with customers, strong brand
names, ethics etc. (Andreas and Cliff, 2007).
In order to
collect the secondary data in the marketing research process through secondary
research analysis, the companies should concentrate on the increases in the
complexities of the competitive environment, changes in the world economic
status, comparison of economic condition of different countries such as, USA,
UK, Asia, Australia, etc. (Kotler, 2002).
In order to
collect the secondary data, the research on international market should focus
on understanding the cultural, political, legal, social, technological and
economic environment of the Global market. The research should focus on the
business cycle of the product in the international market (Boone and Kurtz,
2005). Furthermore, the companies should also concentrate on the business
activities of competitors, emerging technologies global customers, etc.
Secondary data
will comprise of information about the political and legal environment as well
as government policies of the different countries’ export import records,
economical analysis, relations with neighbor countries, etc. Additionally,
secondary data also comprise of performance of competitors in the relevant
industry, assessment of fast growing market, identification of emerging market,
etc. (Bradley, 2007).
In order to assess
the secondary data, the company should concentrate on the past record of
growth; data and information provided in economic and social development
reports, trade report, technological development in the country, etc. (Gershon,
2003). Evaluation of secondary data is less expensive and easy for the company,
because of the reliability and authenticity.
For example, with
the help of secondary data, a sports company can analyze that how much
teenagers spend their pocket money on basketball shoes. The secondary data will
assist in understanding the competitors and their strategies for setting up the
price of the product.
Primary Data
For accomplishing
the research of international market, it is necessary for an organization to
evaluate the demand for the product in the region which is to be tapped and
explored. Primary data of market research comprises of evaluation of target
market to identify the segment and understand the needs and preference of
consumers (Kerin, Hartley and Rudelius, 2003). It will assist the organization
in comparing the demand existing in one region with another region (Kotler and
Armstrong, 2007).
It is necessary for
the company to focus on the buying behavior of the customers and the trends in
the market to evaluate the primary data and understand the potential of global
market. In this way, the firm can develop strategies related to the demand and
supply in the market of the target region (Schroeder, 2007). Primary data allows
the firm to use best promotional method as per the consumer’s behavior and
preference to promote the product in the international market by focusing on
the target customers and the target markets (Sheth, 2003).
For example, the
fast food company can also access which country invites multinational firms or
how and why consumers prefer fast food with different flavors (Vignali and Zundel,
2003). Primary data allows the firms to understand the consumer behavior and
market demand at the global level (Kotler, 2002).
There are so many
uncertainties, which prevail in the global market. The business organization
learns to overcome these problems with experience. Without doing business in
the international market, no business organization can handle its business
process smoothly. These business organizations can research the global market
with the help of an external business service agency (Wrenn, Loudon and Stevens,
2001). In order to achieve the objective of the marketing research, it is
necessary for the company to conduct a research process, which comprises of following
steps:
Problem
Definition:
Here the problem
is to select best approach of marketing research to evaluate the global market
potential and identify the opportunities available in the market to become
successful.
Defining
Objectives of the Research:
The main objective
of this marketing research is to assess the level of complexities of global
business world with the help of adequate marketing research. So that the
company can understand the potential of global market and develop strategies
according to that.
Development
of an Approach
As the objective
and problem of this marketing research is associated with the global world, the
secondary research would be best suitable for this company. The marketing
approach should be based on following steps:
Evaluation of Social and Cultural Trend:
The Company should analyze the changes in the global trend and cultural environment
of different regions. For example, culture of China and India is entirely
different from the culture of USA (Wrenn, Loudon and Stevens, 2001). On the
other hand, social development in India and China is similar as like of USA. People
have become conscious about brand name and luxury goods in China and India due
to the economic and educational development. Thus, it is essential for the
company to evaluate these areas to understand the global market potential (Andreas
and Cliff, 2007).
Data Collection through Analysis of
Government Policies and Economic growth: Different country has different
policies and regulations to do business. Understanding of these regulations is
necessary to analyze the global market potential (Kotler, 2002). With the help
of this, it would be easy for the companies that which country and industry
have low entry barriers and which have high entry barriers. Analysis of global
economy report will help the company to identify the growth of different region
(Boone and Kurtz, 2005). In this way, company would be able to assess that
which market has high economic potential.
Research
Design Formulation Data Collection and Analysis:
This is the blue
print to conduct the market research. This would be secondary research.
Firstly, the researcher has to collect latest reports about trends, cultural
environment, political and social environment. After collecting all the latest
reports, the research would prepare different section to put the reports (Bradley,
2007).
It is an important
step in any research. This step reveals the information about the potential of
global market to become an international firm. The data should be collected on
the basis of their geographical distribution according to the different region
(Kotler, 2002).
From each section,
the researcher would compare reports of different countries to assess, which
country has high potential. For example, Economy of China is highly growing, cultural
environment of Saudi Arabia is totally different from USA and India, USA has
low restrictions to enter for new companies in the market, etc. (Gershon, 2003).
Report
Preparation and Presentation:
This is the final
step to prepare a report of the marketing research. In this section, the
research will present the data in tabular as well graphical format. Graphical
and tabular presentation would help to compare different report in easy ways (Kerin,
Hartley and Rudelius, 2003).
Conclusion
Thus, on the basis
of above discussion, it can be concluded that above mentioned approach of the marketing
research is based on secondary research methodology. This research approach
would help the company to understand the potential of global market. It would surely
help the company in expanding its business in the international market (Kotler
and Armstrong, 2007). All the important points mentioned in the research
analysis should be considered and implemented by the company. It will assist
the company in gaining success and growth in the global market.
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