Secondary and Primary International Market Research Essay

Introduction

The contrasts in the life and culture of a less developed country will significantly visible in the life style of the population, they generally poor or middle class income levels. The purchasing capacity and the consumerist culture influenced by the income levels makes their market more static than dynamic.

In marketing research much of the information required is outside the firm e.g., information on why people buy only certain products and not other products. The variables involved in the marketing decisions being external to the firm make the study of external environment very important in market planning. The researcher will have to take special care to find out which of the environmental factors –social, political, cultural, economic, legal, technological-are the most important for the consumption of a certain product. The researcher should also concentrate on external agents such as competitors, suppliers, customers, trade unions, governments, share holders, local community which are affecting the company most.

The major contributory factor for sustainable competitive advantage of an organization is its positional advantage. The positional advantage of a firm is decided by the assets, skills, and resources possessed by the firm. Examples of positional advantages are factors such as differentiation, customer intimacy, or low cost allowing the firm to achieve superiority and higher profit. Differentiation can be considered as more secure than cost advantage in achieving competitive advantage due to the following reasons such as:

1. differentiation will be build and sustained over time,
2. customer relationships and loyalty are the base of differentiation,
3. differentiation cannot be easily transferred,
4. differentiation can not be easily replicated,
5. quality and innovation are the building factors of differentiation,
6. differentiation stops customers from switching for a lower price,
7. differentiation is successful in creating switching costs for the customers.

Differentiation of a firm’s product is generally based on the following important factors such as:

1. product quality,
2. customer service,
3. product reliability,
4. after sale support,
5. technology leadership,
6. style, and image.

IN order for a company to succeed in understanding how to blend the above mentioned factors to achieve competitive advantage in a less developed country, they must have both primary and secondary information about the market. Unfortunately, it is difficult in the third world or less developed countries to get information relating to the factors mentioned above.

Take an example of a country like Rwanda where information relating to product that will be consumed will be scanty. Therefore for any new multinational going to the market will have difficulty in understanding the customer relationship and other issues that is for the market. This makes research for such markets difficult.

Definitions

Primary Research

This is carried out by gathering data related to the theme of product to be introduced in the market. It includes interviews, surveys, observations, and analyses (Driscoll, D.L. , 2006; Conducting Primary Research Retrieved on 20^th April, 2009. It involves carrying out the research by yourself, and can even help in your secondary research in later stages. Primary research can be helpful when you are conducting a study about a problem that has never before been addressed, or when there is little research available on the topic of your concern. It can be beneficial in writing about a specific product, or when you are writing on a new and original subject (Driscoll, D.L. , 2006; Conducting Primary Research Retrieved on 20^th April, 2009. For example in questionnaire-cum-interview method of conducting survey. A survey of the area is initially conducted prior to giving out questionnaires to people for filling in. the advantages of questionnaires and interviews is that they can be explained by the interviewers in case of any confusions.

The response rate is good; however, questionnaires alone can give a lower response rate (The Education Forum (2008); accessed on 17^th April, 2009) A focus group will taken for the collection of information, which is simpler and effective way to obtain in-depth information from the masses(Kauffman Foundation (2008); Retireved on 20^th April 2009. The number of people to be approached determines which method will be employed to carry out the collection of data. For example, if the number of people is less than twenty, correspondence can be done through the telephone, but if it is greater than twenty, then the survey can be conducted through the Internet (Kauffman Foundation (2008); Retireved on 20^th April 2009.

The questionnaire for the research will be build on a semi-structured approach. The questions were structured in a way that there was no bias whatsoever. The people cooperated well and answered most of the questions included in the questionnaire. There were only a small number of people who were confused regarding one or two questions; otherwise on the whole there was a good feedback from the survey group.

Secondary Research

Secondary research consists of documents and sources that contain data and results from the primary research conducted (Conducting Research, Retrieved on 20^th April, 2009. It involves the making of reports, and exists in the form of books, and journals. Secondary research may include the publications of the primary research results.

The methods used for conducting the research and survey of this paper were mostly through the internet. Online libraries, online books, and articles were consulted for gathering the required and essential information. These days everything is done via internet, from the transactions of businesses to the imparting of education. The internet is the most commonly sought and easiest method of accessing latest possible information these days. Gone are the days when people went around looking for good libraries in city centres, and searching for the books of their interests for carrying out researches. This is the 21^st century, and digital media is the latest technology being used for researching.

The greatest advantage of using the internet to access information is that it possesses ample amount of information al at once, and there is no physical hassle involved in searching matter. Rather, everything is easily accessible all at the same place, and there is no fatigue after writing papers. All the material required by an individual, regarding any subject whatsoever, can be obtained from the internet. And all of it is authentic. There are also some trash websites which do not contain authentic information, but if one knows of such cites to avoid, then a problem does not arise. This is why the only source picked for this paper was also the internet, and its various offerings and sources of information (Creswell, J., 1998).

Online Libraries

There are thousands of libraries online, which one can access through the internet and world wide web. There are various websites which offer material from libraries related to the required subjects of one’s interest. These libraries would provide with written material which one can consult and rewrite in one’s own words, for ease (Online Libraries” 2008. Retrieved on 20^th April, 2009.

Online Books

Online books are an authentic source of information also, as they provide all latest and necessary information required subject-wise. Once again the “search engines” of the internet are consulted, once the names of the books required are typed, one can access the material from them to be written in the papers they are producing. You can seek out electronic texts by typing in the subject of your concern (Online Books” 2008. Retrieved on 20^th April, 2009.

The significance of online books lies in the fact that a person does not have to go to visit libraries physically anymore, and the availability of such written matter help save time and energy of individuals. The books that are accessed online may not be present as a whole, rather, their abstracts may only be given at times. Sometimes you need to subscribe to various sites for access to the complete books. But mostly, a substantial amount of information can be gathered from the reviews or abstracts given. The previews given are at times only of a few selected pages from the book, and some of the pages are missing from in between. It is just like reading the book on a screen, with inclusion of even the contents and the index and glossary, etc. page numbers are also given included as in the case of traditional text books.

The information collected for this paper was also from these online books, which are also called e books. They are basically not in the hard copy form, but are present on the monitor for access of reading.

Articles

The internet contains trillions of articles and there are various directories that provide with the sources one needs. The articles are easily accessed through the search engines one has chosen for research. Currently, “Google” is the most authentic and commonly used search engine, and the articles available here were accessed for this paper’s completion too. All the names of the authors of the articles, and their references are also mentioned inside the articles which are being read, and that makes referencing easier. One can easily make the bibliography of the paper too, with the information provided in the articles. There are a variety of online texts available for viewing, (“HighWire Press: Stanford University” 2008. Retrieved on 20^th April, 2009

Discussion

In less developed countries a marketing researcher faces the dilemma of choosing the most suitable approach to meet the aim and objectives of a study due to availability of information. The application of a wrong approach may render the objectives and significance of the whole study insignificant. However, there is no one best approach to follow since the choice of process is different to each research as well as the objectives themselves. Besides choosing the most suitable methodology also depends on the availability of resources which is by standard is lacking in the third world. The marketer in less developed countries chooses the methodology to satisfy the needs.

The marketing researcher starts by describing the research process and its objectives. Then moves to discuss what maybe the most relevant approaches, research designs, and data collection methods and data analysis. After this, the most suitable methodology for the current research can be selected.

The Research Process in less developed countries

The purpose of conducting research is to find a suitable solution for a specific and immediate problem that is confronted. Research is generally assumed to be a complicated task which is actually not if the various parts or phases of the research are clearly understood. Then the market research project becomes a well-structured process which has a beginning, intermediate part and the end. In today’s world, research is alternatively being termed as logical reasoning (Trochim, 2006)

The problem formulation will be the first and the most important step of the research process for marketing research. The problem will defined clearly and specifically, as an ill-defined problem may result in an ineffective solution. The problem will properly translated into a research topic and the reason why the research is required will also be spelt out. Secondly, an exhaustive revision of the theoretical and empirical framework within the related review of literature will made. The literature review will based on secondary research conducted by reviewing various journal articles, books, research evidences of past research and of course the worldwide web. This step helps the study by generating and refining the research objectives. Another step is the research approach and design of the research. This step covers the way in which data will be collected to answer the research objectives. This step also influences the data collection method. The data collection will be according to the chosen method. Finally, the data is analyzed, interpreted and presented in this research.

Aims and Objectives marketing Research

The purpose of the marketing research is broadly examined in this section. Another important aspect that needs attention while conducting a research is that its objectives should be clear and specific. The objectives should cover question regarding the purpose of the study, how the study will be done, the information needs and the sources of information.

Research Design

The design of the research plan determines the tools and techniques that are employed for conducting the research. Normally the research design is broadly classified into exploratory research, descriptive research and causal research (Institute of Chartered Financial Analysts of India; India Center for Management Research, 2004 accessed on www.asiacase.com/case/southAsia/icmr.html).

Exploratory research helps in the identification of the presence of potential opportunities. The data for this kind of research is obtained from books, journals, magazines etc. Descriptive research is generally conducted after the above research. As the problem is clearly defined in exploratory research, the quantum or intensity of the problem is identified in descriptive research. In causal research, the cause and effect relationships between two variables are analyzed (Institute of Chartered Financial Analysts of India; India Center for Management Research, 2004 accessed on.

Research Design can be simply defined as the structure followed by the researcher. Research Design is the important component or key ingredient which holds all the various elements of the entire research (Trochim, 2006). A design is elaborately explained by using a succinct data which further enables in the summarization of a complex or difficult design structure in an efficient manner. A research design consists of various elements. They are as follows:

• Measures or Observations (Trochim, 2006)– Observations are usually symbolised by ‘O’ in a succinct design. This can be anything ranging from a single instrument or measure to a complex multiple measures.
• Treatments or Programs (Trochim, 2006)– In design notations, treatments or programs are indicated by symbols such as ‘X’. Different program variations can be distinguished by using superscripts as dealt with Measures of Observations above.
• Groups – Every group on a research design is distinct and is given a separate and individual line in the structure of the research. The number of lines in the design notation indicates the number of groups considered for the research.
• Value Assignment to the Groups – This is designated by a particular letter at the beginning of each group. This described the process of assignment. Assignments are of different types

Types of Design

There are basically three types of research design. They are quantitative design, qualitative design and the mixed method design.

Quantitative design is further classified into three types. They are Experimental Design, Quasi-experimental design and Non-experimental Design (Institute of Chartered Financial Analysts of India; India Center for Management Research). Experimental design is conducted to establish a cause-effect relationship. This method helps in the evaluation of a particular outcome simultaneously having a control on the other factors which influence the outcome.

Quasi-experimental design is a process in which pre-existing groups are considered to carry out the research. However, while using this kind of research design, it is mandatory that the characteristics of the selected pre-existing group are described in detail (Institute of Chartered Financial Analysts of India; India Center for Management Research).

Non-experimental design again is classified into three types namely, correlation, descriptive and casual comparative. Correlation is used for prediction and it aims at establishing a relationship between two sets of variables. Descriptive methods just describe the existing phenomena without any change. Casual comparative method is used to prove the cause-effect relationship.

The qualitative methods of research usually give results that are well detailed and very rich in content that provides new concepts and ideas that will work to inform your program. The qualitative research methods will provide the researcher with information on how people and also on what people think about the product but it will fail to provide the information on how many people feel and think in that particular way. If one researcher wants to carry out a research using the qualitative method, the following guidelines have to be used; the researcher will have to select a particular group of people who have similar characteristics in common and thereafter the researcher will have to convene a discussion by the use of either focus groups, interviews or observation of the behavior of an individual through such interviews such as the so called in-home interviews.

The researcher should make sure that the discussion he will start will not have a specific structure so that all the participating people will be free to pick the discussion from any angle and that no specific response will be required for specific questions. He should also have in mind that an interview guide can be used to ensure that the right questions are directed to the right people during the progression of the interview. These questions being talked about here should be asked according to the response of the participant and care should be taken not to ask the questions in predetermined manner or rather order.

The results from qualitative research should be presented as percentages; they should also not be subjected to an analysis of statistics or even be projected to wider population. This is merely because those people participating in this kind of research usually do not make a sample which has been randomly selected and the given samples are usually relatively small and not all the participants are normally asked the same questions. And no matter how much qualitative research one or rather a researcher will conduct, he will still not be sure of how exactly the participants feel or of they are experiencing similar things and at this point is where a researcher will have the preference of using a quantitative research.

There are those tools are normally in common use in a qualitative market research and these tools are the focus groups and those interviews carried out on individual basis and are called the in-depth interviews. Additionally, there are many other methodologies that can be used to assist the researcher to know more about his sample group. Some of the examples of these include; pairs of friendships from which people who claim to be best friends are picked to have a discussion on the subjects that are more sensitive and the other example is observations made on behaviors and how people interact in the natural environment of the targeted participants (Dick, 2005).

This research method has got its own pros and cons which will be mentioned hereafter. The pros of qualitative research method include; this method usually explores various topics in a more detailed manner and depth compared to the counterpart method which the quantitative research method. Also this method has been proven by many to be more affordable that is it is cheaper than the quantitative method because not so many participants will be recruited and also it is not as extensive as the quantitative one. Lastly this method provides room from flexibility as far as timing and location is concerned. The cons of this method include; this many can never quantify the exact answer of your and participants and also it can not be able to generalize the researcher’s findings to his broader target group or generally the public.

The qualitative research method is commonly used when the researcher has one of his goals as exploration of a specific idea or even a topic (Hopwood, 2004). And also it can be used when one wants to fully understand the results obtained from the quantitative research method and lastly can be used when the researcher wants to get some input from his major informants or other people who lie outside the targeted audience.

Mixed-method design is a combination of both qualitative and quantitative research methods.

Data Collection Methods

Data is a collection of related observations, facts or figures. A collection of data is called a data set, and each observation a data point. As already discussed, data collection can be done either by collecting first hand information i.e. primary research or from already existing records i.e. secondary sources. Primary data is collected using research instruments like questionnaires, mails, telephonic interviews etc. Secondary data is collected from already available sources such as published papers, journals, magazines, reports, company literature etc. These strategies can at times be independent and at other times they can be combined with the quantitative methods (Richardson, 1999).

Some of the qualitative strategies will include the following:

• Semi-structured interviews:-These kinds of interviews usually have some kind of questions that are in a way very specific about issues of the project being researched on. These interviews though allow the interviewee to give very detailed answers to the questions.
• Focus groups:-These groups will be seeking to have a full understanding of the attitudes. This will be achieved by carrying out a series of group discussions that will be guided by one researcher leading the discussion and the other one taking the notes. Five or even six questions can selected to act as the guideline for an open ended discussion. The main goal of the discussion will be to achieve a consensus as a group (Robson, 2000). At the end of the discussion the facilitator and the person who was doing the recording will do a summary in written form of the major points that would have been discussed in response to every question that was given.
• Observations:- Observation will be made on the activities of the project and this will be guided by the semi-structured and the structured protocols that have been specifically designed to monitor if these key items that will be discussed in the interviews will be verified.

Procedures of data analysis

There are several steps that will be involved in the analysis of data and these steps are; understanding what qualitative data analysis is all about. The major core of qualitative analysis lies in giving a good description to the phenomenon, classifying the phenomenon and finally seeing how all the concepts interconnect (Roselyn, 2000). The next step will be introducing computers as a main data analysis tool. There are several aspects that will need the help of computers in their analysis and at this point the computers will come in handy.

The following step in the procedure of data analysis will be finding focus. In fact this should have been the first step. The researcher should always have his focus right in place. In finding focus the researcher can use the available resources to make sure everything is in the right place. Then after the focus finding, data management will be the next one. Any good analysis will require that the researcher should have good management of the data found. Information found can best be managed by filing them and giving a good access to the filed information.

A good analysis will depend on how well one reads and understands the data that would have been collected. This requires one to have good reading and understanding skills. Creation of categories will also be necessary in data analysis. These categories will help in easy analysis of data in a faster way. At this point, the data will have to be linked to the actual research project to make sure that everything blends with the other. Once the data or information flows, a conclusion will have to be made on the whole process of analysis.

Management international marketing research

A marketing research management involves a system that consists of people, procedures and methods to get information, analyze the information, evaluate and distribute this information to marketers to make good decisions out of it. It is the proper use of marketing research. It is vital because it assists a company to know what it needs I terms of information and how it will use the information to come up with a good decision in the shortest time possible. It is done by the marketing research team of the company. A market information system includes the sales information systems. These are reports that are made from the up to date sales of a company from the customer and sales representatives. It also includes the marketing intelligence system which is the procedures and sources that are used in the company to obtain information about marketing progress in the environment where they operate( Bernstein, Scheff Joanne and Kotler, Philip, 2006).

The marketing intelligence system also includes the marketing research process which is the designing, analyzing and collection and reporting of data findings to be sued in the company for marketing. Information about marketing intelligence system can be collected from various sources around the company. Some companies have data in the marketing research departments and others have to go to the field to look for information. We have two sources of information and these are (a) Internal sources (b) External sources (Chisnall, P. 2001).

Internal sources for Marketing Information System are most places where the company can get information from within i.e. from the books of accounts, various records kept in the company and former research that was done. Those are the information from records previously kept by the company. External sources include those sources that are from outside the company like publications, books, periodicals, encyclopedia and also commercial data that can be obtained by companies by payment of a fee to research companies. Company can also get information from the internet (Kumar, V., Aaker, D.A. and Day, G.S. 2002).

It is very important for a company to have good Marketing Information System because it helps the company to get more useful information quickly, for expansion, it will assist them to predict how buyers will respond to changes in features of products, environment, styles, etc. they also assist the company on competition and information about competitors price, branding. It also assists the company to develop relevant advertising and good sales promotion and they also get good information about marketing tools through Marketing Information System (Manila Bulletin, 2006).

Methods of research utilized in international marketing

Test marketing

The basic objective of test marketing is to test the effectiveness of a proposed change in a marketing policy and strategy s as to decrease or eliminate the risk attached to such a step. The test method involves an experimental marketing process on a small scale for example the same product may be tested practically in the market in different packaging. A control market is distinguished in which all factors are kept constant in which one factor that is the packaging changes. All other factors are figures’ so it is argues it probably the result of the difference in packaging (Schaik J.L., 2002);.

Various problems emerge such as: which determine the choice of a test market; the comparativeness of the test and control markets; the danger of the carry-over of advertising messages from the test and control markets; the test of the control markets competitors who may attempt to ruin the experiment; retailers who may act differently under test circumstances than under normal business circumstances (Schaik J.L., (2002);.

The field of application is broad and can include: the determination of the potential of new market offering; the determination of the optimum price of a product; and the determination of the most effectiveness advertising message and distribution channel (Schaik J.L., 2002).

Motivation research – the method is concerned with the question of why for example a specific consumption pattern is followed or why consumers act the way the do. The unwillingness or inability of most consumers to explain their behavior gave rise to motivation research. An investigation is thus undertaken of motivations of which the consumer has no conscious knowledge. What persuades consumers to buy a specific product is often not the physical product itself but a total need satisfying market offering and the consumers own conception of ti – they often buy images of thought and not realities. With motivation research the marketing researcher attempts to bring the consumer personality into relation with the personality of the total market offering. The techniques include among others projection techniques such as role play and cloud pictures (Schaik J.L., 2002).

The consumer panel

This method is used to record the spending behavior of the same group of consumers continually over time. The objective of the consumer panel is more specifically: to record the consumer purchases of various products on generic or brand level on a continuing basis; to collect continuous and repeating information from the same households in order to record tendencies in consumer habits and actual expenditure over time and to records tendencies in consumer expectations, attitudes and plans over time. With the aid of the above information a reasonably complete picture can be built up the total market demand and its composition as well as the product is brought when it is bought, the price paid for it who buys it whether it is new or second hand and whether it is an additional or replacement response (Schaik J.L., 2002).

The retail audit

It is thus theoretically possible to determine consumption quantitatively by measuring it at some or other strategic point along the distribution channel. A retail audit is the method which measures the flow at the end point that is the point where the products flow the channel to the consumer. It may be done on a hoc basis, which is generally known as trade research or the measurement of retail sales can take place periodically at the same sample of retail stores (Winer, R.S. ,2007).

The application possibilities of the results are numerous. The most customary one are: the determination of the competitive position of the product. The determination of the general competitive position of the and kind of retailers; the determination of the effectiveness of advertising campaigns specifically and marketing communication programmes in general; the informal can be as a basis for marker forecasting and the method the information can be used as a basis for market forecasting and the method presents an excellent picture of the geographical shift of the market demand for a particular product (Vandermerwe, Sandra 1997).

Consumer intentions

A survey of consumer intentions is usually limited to durable consumer products and for a specific time period. The potential consumers are asked what kind of product and what quantity at specific prices they plan to purchase over a given future period. The intention to buy is of course not always an indication of actual future purchases as purchases are dependent on the availability of the necessary purchasing power and other environmental variables which might affect the consumers’ intention drastically. The information can be made more reliable by taking into account the actual sales over time and the estimated increase in consumer income over time Schaik J.L., 2002).

Conclusion

By understanding the easiness of carrying out market research in less developed countries, multinationals will find it easier to satisfy the needs of their customers thus attaining the objectives of going global. However because there is little information as well as limited resources it becomes very difficult for the companies to carry out research in those countries.

It is clear that international marketing strategy in less developed counties is not at par with developed countries because research in those countries is very difficult because of the amount of information that is available to carry out research.

It must also be acknowledged that when people are asked the questions the responses may be different from their purchasing choices. It is also not always possible to be certain that the responses people give are a fair reflection of the way they would act in real life.

Thus, the possibility to circumvent some of these problems by hosting the questionnaire online cannot be overruled. But then, there is no guarantee that there would be fairness in the response, or for that matter any unbiased response.

Cost benefit analysis is the standard method used to estimate the net gain of a research. With the limited primary and secondary resources available, an attempt will made to elicit consumer needs and how manufacturers achieved this and in the bargain generated ample employment opportunities, and contributed to their national GDP. The results obtained will be helpful in justifying whether predictions for future growth reflect the local market sentiments.

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