International Marketing Research— Effective Use of Secondary Sources
| DOI | https://doi.org/10.1108/eb057278 |
| Published date | 01 September 1982 |
| Pages | 18-21 |
| Date | 01 September 1982 |
| Author | D. Jobber |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
International Marketing Research
—Effective Use of Secondary Sources
by D. Jobber
Senior Lecturer in Marketing, Huddersfield Polytechnic
British firms are fortunate in having access to a plethora of
information regarding markets and marketing activities in
overseas countries. And yet, there are always nagging
doubts as to the extent to which such sources of informa-
tion are effectively used. Perhaps, the choice is too wide.
The myriad of directories, research reports, sources of
sources and books on overseas markets is just too time
consuming to study in detail. There is little doubt,
however, that a systematic study of secondary source in-
formation before entering a foreign market can greatly
enhance an executive's feel for the environment in which
his product may (or may not) be selling. This article at-
tempts to help those managers wishing to conduct interna-
tional market research in the art of finding and using
published sources of information.
Many firms which pay great attention
to marketing detail at home, don't
research overseas markets with such care
Initially, the manager should list the informational types
he wishes to identify in the chosen market(s). Inevitably,
much information which is found will be of only marginal
usefulness. This checklist of required information is a
planning device providing a framework for gathering perti-
nent information. This does not preclude the recording of
unusual or surprising facts which are discovered during
search, but are not included as vital information in the in-
itial checklist—no framework is totally inviolable. But the
existence of a writteh checklist of required information
aids the process of sorting the meaningful from the irrele-
vant. Thus, informational requirements will be peculiar to
the particular firm and the problems and opportunities
associated with it. However, there are certain research
areas which are so fundamental to most marketing opera-
tions that it is worthwhile to discuss them.
Assessments of Overseas Markets—Informational
Requirements
Before researching overseas markets, the fundamental
question which managers need to ask themselves is this:
what information would be relevant to the launch of a new
product or to an increase in sales and profits for an
established brand in the home market? These factors are
just as relevant when launching abroad, and yet many
firms which pay great attention to marketing detail at
home, do not research overseas markets with such care.
There is no excuse since much valuable information is ac-
cessible at very little cost. The following are the types of in-
formation which may be required:
1.
Market Size and Composition
How large is the market in terms of units sold and
value? Who will be the target market? What are the
trends—is it growing, declining or stable? Who and
where are the competition? Are supplies home based or
are importers of importance? What are their market
shares? What is the structure of the market—a few large
firms,
a large number of small, etc.? What is the finan-
cial strength of these companies? Who is the ultimate
consumer of the product?
2.
Products and Prices
What is the range of products supplied in this market?
What is the prevailing price range for these products?
How do the products differ physically, and
psychologically in the minds of buyers? Are there
demographic or regional differences?
3.
Promotion and
Packaging
Media availability needs to be studied. Is commercial
radio and television existent? How are established pro-
ducts promoted? Which media are used? Are other pro-
motional devices of importance in the market? How
much, in total, is spent on advertising and sales promo-
tion in this market? How much do individual firms
spend? Is the product and package sufficiently durable
to withstand the increased problems of transport
abroad, which may be physical and climatic?
4.
Distribution and
Selling
Systems
Convention, as well as economic factors, may dictate
the pattern of a distribution chain. Thus, in Britain,
where retailers may be supplied directly by manufac-
turers,
abroad a wholesale sector may intervene, for ex-
ample, in the UK frozen food can be supplied direct to
the retailer, whereas in Germany the wholesaler is very
important. The conventional practice abroad needs to
be understood—but not necessarily copied! Are we go-
ing to sell direct, or use an agent? Do we need salesmen?
Who are the potential buyers/agents? What is the
nature of their business and their financial standing?
What physical distribution facilities are available?
5.
Culture and Language
Are there any cultural problems which preclude the
usefulness of the product or dictate that it will be used
differently? Adler[1] cites two examples of cultural
dif-
ferences with marketing implications. In Britain, Ger-
many and Scandinavia beer is generally perceived as an
alcoholic drink, whereas in Mediterranean countries it is
considered more as a soft drink. Therefore, a study of
18 INDUSTRIAL MANAGEMENT + DATA SYSTEMS
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