When using analogy to forecast demand, marketers must exercise caution because it

CHAPTER 6

GLOBAL INFORMATION SYSTEMS AND MARKET RESEARCH

SUMMARY

Information is one of the most basic ingredients of a successful marketing strategy. A

company's management information system and intranet provides decision makers

with a continuous flow of information. Information technology is profoundly affecting

global marketing activities by allowing managers to access and manipulate data to assist

in decision making. Electronic data interchange, electronic point of sale data, efficient

consumer response, customer relationship management, and data warehouses are

some of the new tools and techniques available. The global marketer must scan the world

for information about opportunities and threats and make information available via a

management information system

Formal market research – the project-specific, systematic gathering of data-is often

required before marketers make key decisions. Global market research links customers

and marketers through information gathered on a global scale. The research process

begins when marketers define the problem and set research objectives; this step may

entail assessing whether a particular market should be classified as latent or incipient. A

research plan specifies the relative amounts of qualitative and quantitative information

desired. Information is collected using either primary or secondary data sources. In

today’s wired world, the Internet has taken its place alongside more traditional channels

as an important secondary information source. In some instances, the cost of collecting

primary data may outweigh the potential benefits. Secondary sources are especially

useful for researching a market that is too small to justify a large commitment of time and

money.

If collection of primary data can be justified on a cost-benefit basis, research can be

conducted via survey research, personal interviews, consumer panels, observation,

and focus groups. Before collecting data, researchers must determine whether a

probability sample is required. In global marketing, careful attention must be paid to

issues such as eliminating cultural bias in research, accurately translating surveys, and

ensuring data comparability in different markets. A number of techniques are available

for analyzing survey data, including factor analysis, cluster analysis, multidimensional

scaling (MDS), and conjoint analysis. Research findings and recommendations must be

presented clearly. A final issue is how much control headquarters will have over research

and the overall management of the organization's information system. To ensure

comparability of data, the researcher should utilize both emic and etic approaches.

OVERVIEW

When researching any market, marketers must know where to go to obtain information,

what subject areas to investigate and information to look for, the different ways

information can be acquired, and the various analysis approaches that will yield

important insights and understanding. However, similar challenges are likely to present

themselves wherever the marketer goes.

What are the two stages of analysis that market data must undergo?

What are the challenges to conducting good marketing research in a foreign environment Why?

What are the two types of data that can be used in market research both domestic and international?

Which of the following is a method of demand forecasting that is particularly suitable for international marketers?