ional Marketing Management

A study in

International Marketing Research & Advertising

Maleen Danushka Galhena Kankanamge B0628KDKD0410 MBA 2

PART - A

About International Marketing Research

IMR is fundamentally important to the international marketing process where it reduces the risk of making wrong decision as far as possible. Though it cannot reduce the risk to zero, it could reduce the wrong decisions or movement in the IM. Lack of knowledge of foreign markets is one of the first major barriers in IM managers. Marketing research is an area that is developing rapidly. Globally, over US$ 1 Billion annually spent on MR

Roles & Risk faced in International Market Research

The breadth and scope of IMR is scanning international markets to identify and analyze opportunities, Building marketing information systems to monitor environmental trends, Carrying out primary market research studies for input into the development of marketing strategies and to test the feasibility of the possible marketing MIX options, both in foreign country markets and across range of international markets and also to opportunity identification and analysis.

Risk

Market opportunities would always come with a risk but in international marketing the risk could be greater and may difficult to manage. The international marketer will have to analyse and assess the risks and use various models to do so. There are many research organisations where the marketer could use their services.

Research Process
Because of increased uncertainty and complexities in world markets the capacity to ensure a systematic, planned process in the research and the use of secondary information, prior to the field research is of paramount importance if quality information is to be obtained.

Six Stages of the research process Defining the objective / problem Developing the approach to be taken Designing the research Carrying out the field work Analysing the data Preparing report & Presentation

Types of Research

Market research
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Competitors Market structure Government regulations Economic trends Technological advances Environmental scanning

Product research
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Available technology New product development

Advertising research Levels of attention Brand linkage Motivation Entertainment Communication

Complexities faced by the International Marketing Researcher

Complexities faced by International Marketing Researcher are countless, and day to day it is becoming more and more multifaceted or approaching to a conclusion is complicated. Hence a Marketing Researcher should always answer the below questions before initiating an IMR. Should International consumer research be undertaken or will the existing knowledge on the market suffice? Can collective country statistic be used instead of first hand experiential investigations of consumer behaviour in international markets? If specific consumer research is to be undertaken, how must such studies is considered?

There are 5 vital factors that a IMR should consider in order to successfully launch or accomplish the objective of MR. These 5 factors are considered as the main rudiments of IMR. Consumer Behavioural /Culture The decision as to whether to study the behaviour of consumers in foreign countries or rely on the home country based knowledge of consumer behavour depends on the marketers assumptions concerning the nature of international consumer behavours. There are 3 frequently used assumptions. Consumers behave the same irrespective of their national origin. This implies that findings from domestic studies can be used in designing international marketing strategies. Hence, no research need be conducted specifically on international market

Consumers in each country have their own idiosyncratic characteristics. In this case research should be conducted on a country-by-country basis.

Consumers in different countries tend to behave differently, but there may be a greater variance in behaviour within a country than between countries. This suggests that research should be conducted on a global scale, examining specifically difference in behavioural between and within countries.

Data Collection The problems of collecting data have been a foremost case. These problems are of 2 major types. Administrative and Conceptual Administratively there is a lack of sophistication in marketing research services overseas which may give rise to various problems. Ex. Trained interviewers or research personnel may not be available to conduct surveys and facilities may not be available to conduct experiment. Furthermore low levels of education and negative cultural attitudes towards research may also cause difficulties in obtaining survey data. Conceptually and more significant perhaps, is the susceptibility of the most research techniques to the possibility of cultural bias. Since the researcher typically come from a different cultural environment from that which he is investigating, possibilities of miscommunication and misinterpretation of data due to cultural differences may arise. Questionnaires may not be appropriately defined or phrased or alternative data may be incorrectly interpreted.

Research Tools The first stage in the design of an international consumer research study is an explicit problem definition and structuring which can be translated into a specific model. In designing these models, existing models of consumer behaviour are only of describing the behaviour of the consumer, to a model explaining the behaviour of consumers in any foreign country and from general models to problem specific models. In making these transformations or in designing a new problem-specific model of international consumer behaviour, one can be aided be existing behavioural science knowledge. It can be useful in three ways In identifying possible variables to be considered in any given situation specific model In suggesting operational definitions of various variables In providing a set of research hypotheses to be tested and validated

Unreliability of Secondary data Given the need for examining the behaviour of potential market, the second questions confronting the international marketing researcher concerns the type of information to be collected and in particular, whether to use secondary data or primary data collection on consumer behaviour within a country. This decision depends on the specific marketing decisions and their informational requirements. Two major types of decisions may consider Which target markets to enter Which marketing strategies will best meet the needs of the selected target market

1. Cost factor

Investment on an international market surveys is massive. Compared to domestic research its very costly and risky too. The major cost elements which cannot be avoided are as follows. Developing the research tools Collective Primary & Secondary Data Government taxes and other duties Transportation and logistics Communications

The problems associated with research on an international scale indicate the importance of using a correct marketing research approach, i.e., design of appropriate situation specific models of international consumer behaviour which will provide the guidelines for the research deign, the data collection procedure and analytical techniques used to analyse the data. Secondly, knowledge of modern marketing research techniques and their assumptions, limitations and advantage is essential in selecting the appropriate research procedure for the problem at hand. Correct utilization of both these components will advance the quality and utility of international consumer research.

The International Marketing Information System (IMIS)

In order to evaluate further, a marketing information system (MIS) can be used. The 12 C framework for analyzing international markets is as follows. 1. Country 2. Market Segments & Geographical spread 3. Culture / Consumer Behhaviour 4. Choices 5. Consumptions 6. Contractual Obligations 7. Commitment 8. Channels 9. Communication 10. Capacity to pay 11. Currency
12. Caveats

PART - B

International Advertising

International advertising refers to promotion which is carried out in manifold countries around the world. Effectual international advertising requires expert cultural knowledge that considers differences between target audiences in different countries. International advertising is considered not only a communication practice, but a trade action, an industry and a reflection of society as a whole. International advertising can, as a result, be viewed as a communication process that takes place in manifold cultures that vary in terms of ethics, communication types, and utilization patterns. International advertising is also a business movement linking advertisers and the advertising agencies that produce ads and purchase media in different countries. The sum total of these activities constitutes a worldwide industry that is rising in importance. International advertising is also a major strength that together reflects social values, and propagates certain values worldwide. The communication process involves multiple aspects which are affected by media, culture, literacy and language. For example, a multinational company that wishes to place newspaper ads will find that their ads will most likely be unsuccessful in countries that have significantly low literacy rates. Additionally, cultural norms and values differ among countries. For example, a television commercial for birth control does not cause concern in many Western countries, while the same ad televised in a conservative Muslim country, such as Saudi Arabia, may be very controversial.

Advertising Technique for each countries There are 2 foremost ways that a company will communicate with the consumers 1. Towards adaption 2. Towards Standardization

Towards Adaption

Managing International Marketing communication when communicating with consumers in different countries is important. Cultural differences will lead to adaptation. Consumers from different cultures response differently to communications. Eg. USA Individualistic Appeal Self Orientation Self Sufficiency Control Individual Gains China Collective Appeal Subordination Sharing Corporation Harmony

In china they found that, sex role stereotyping was more apparent in China (Women are product users). But in Singapore, women generally appeared as the spokes person for the product, to have product authority and be the providers of help and advice.

Towards Standardization Cost savings activity in International Marketing Communications includes benefits from economics of scale may be from creative work, media buying, and by using better experience from operating in other countries. Standardization of communication gives customer perceived added values. The value perception would be reinforced when communicated well and consistently.

At an operational level, advertising standardization can used when Visual Messages from the main content of the advertisement

Well known international celebrities are featured When music is an important part in the add Well known symbols and trademarks are featured

Advertisements do not travel well to other countries when When the use of spoken and written language from and important part of the communication If the humor is used Specific Country Using personalities well known for the one country only

Advertising moving towards Standardization

Most the companies now adopting Standardization to make a better impact on their key message and for other various reasons. This is become widely used in even in some Multinational Companies around the world to create a behavioural shift. i.e, Attitudes, Language, Perception etc. Advantage of Standardization 1. Gain economics of scale 2. Carry out the identical message & brand 3. Brand Positioning and Identification 4. Less experts needed
5. Saves time on launching products to different countries or marketing activities

Even though all the benefits highlighted above, International Marketers still face loads of matters in implementing their advertising campaigns in the countries they are in action. Since Marketing is all about being gainful in reaching Customer contentment, Marketers cannot just look for the said benefits, since they have to manage some issues as well, which are listed below.

Problems faced in International Advertising

Numerous times international marketing strategies be unsuccessful, the fundamental reason for this is that the marketing managers fail to understand the culture of other countries. Culture involves beliefs, values and attitude pertaining to people living in a particular region. Culture decides how advertisements will be perceived by the target audience. A toothpaste company launched toothpaste in an African country with the tag line that it will enhance the whiteness of your teeth. The product failed because in that culture, having yellow teeth was the symbol of royalty. Many countries are sensitive to certain factors like vulgarity and use of religion in an advertisement. Therefore the marketing manager should consider the cultural values, beliefs and attitude of people living in particular cultural before deciding over the marketing plan. Product and Campaign Blunders to Learn From The main aspect of marketing is to convey message to potential customers in a way that it is understandable and appealing to the potential customers. If a product or service fails to convey the message then the promotional campaign surely is a failure. Over the years there have been product and campaign promotions that simply amaze us with their genius ways of presentation whereas the same companies have made some of the biggest mistakes in the history of marketing. This post is about those mistakes that companies made due to inadequate research before marketing their product to international customers.

When a company foliage its home boundary and sets its foot in the international market, there are something that need to be analyzed, such as cultural value or emotional value that would plea to the international customers. Language, pricing and other factors can be a challenge when entering a fresh market in a foreign country. These examples underneath as to how these companies produced several of the biggest marketing blunders in the history of marketing communication!
1. When Mitsubishi launched its Pajero 4WD in Spain they had the shock of a lifetime.

As they were promoting Pajero they forgot to take into account the word Pajero means jerk in Spanish.

2. The famous fried Chicken hub KFCs slogan finger-lickin good when marketed was

translated into China as eat your fingers off. Oops!

3. GEC and Plesssey had a join company in France which was called GPT. When GPT is

pronounced in French, it sounds as Jay-Pay-Tay which is similar Jai pete, which means I have farted.
4. When Puffs tissue started marketing their tissues in Germany it didnt do so well. The

reason Puff means brothel in Germany.

5. When Italian Mineral Water Company promoted their mineral water Traficante it was a

failure because the word Traficante means drug dealer in Spanish.

6. When Bacardi launched a fruit drink named Pavian they meant French chick, but when

they promoted it in Germany the same word meant Baboon.

7. Electrolux had to take their slogan down which read Nothing sucks like Electrolux.

8. When Ford tried selling its car Pinto in Brazil it was a huge failure. The reason - the

word Pinto is a slang for small penis in Brazil.

9. Parker pens slogan Avoid Embarassment use Quink, when translated into Spanish

came out as Avoid pregnancy use Quink.

10. When Hunt Wesson introduced their Big John products in French Canada as Gros

Jos, they forgot to note one thing; Gros Jos is the slang for big breasts.

Conclusion
These examples above demonstrate that promotional messages in one nation might deliver one message where as in another the similar message can be conceived as something else. Before promoting your products and taking your trade to a fresh market a research must be done in

order to avoid failure and succeed in a new market. Some of the things that require to be taken into consideration while launching a product or creating a marketing campaign in a foreign country are: language, culture, emotional value and slang languages among many other things.

References: Douglas Susan, P., Craig Samuel, C., New York University, Stern School of Business Gamage, A. (2009), International Marketing Research, Managing the International Communication Mix, International Marketing, Vol 1

Sebastian, R. B. (2007), IESE Business School, University of Navarra, Vol 2 Prof. Harzing, A. W., University of Melbourne, Vol 2

http://en.wikipedia.org/wiki/Marketing_research http://marketing.wharton.upenn.edu/documents/research/7406_Some_Issues_in_International_ Consumer.pdf http://en.wikipedia.org/wiki/Marketing_research http://www.wisegeek.com/what-is-international-advertising.htm http://ezinearticles.com/?Why-Do-Some-International-Advertisements-Fail?&id=3018251 http://marketinghackz.com/10-product-and-campaign-blunders-to-learn-from/