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STEP TWO: ASSESSING MARKET DEMAND

9 November, 2015 - 14:34

Often top managers are reluctant to authorize primary research into specific markets; they question the usefulness of research generally and balk at the tremendous expense involved in conducting in-depth research into foreign markets. As statistical techniques such as Bayesian analysis show, however, the benefits that well-designed and well-executed research can bring to a firm far outweigh the costs.

The dilemma facing an international marketing research team is whether to apply the domestic approach to international marketing research or to design a different type of research for every single country. The answer probably lies between these two extremes: some parts of the research package can be applied across the globe; others must be adapted to fit the peculiarities of the local market.

In general, there are four types of international marketing research:

(1) Single-country research

(2) Independent multicountry research

(3) Sequential multicountry research

(4) Simultaneous multicountry research

Single-country research is undertaken in one country by a foreign company; independent multicountry research is undertaken by subsidiaries of a multinational organization in different countries but is not coordinated across countries. Sequential multicountry research is conducted first in one country and then in other countries. This approach is attractive in that lessons learned in one country can be applied in another-the key findings of earlier studies influence the focus of later ones, increasing the efficiency of the research. In addition, costs are spread over a longer period. Simultaneous multi country research is conducted at the same time in different countries and is coordinated across countries. This is the most difficult type of marketing research to undertake. Organization and coordination tend to be costly and relatively time consuming. Consequently, although such studies are beginning to be undertaken in greater numbers, they are still relatively rare.