Page 145 - GLOBAL STRATEGIC MARKETING

5.2 Definition of market research

The concept of international market research is very different from, and
more complicated, than the concept of local research (Doole and Lowe,

2008). International marketing research includes fluctuating foreign
currencies, regulations, political and cultural changes and the modes of

entry and other factors that relate specifically to the international
environment and influence decisions on the marketing process.
International marketing research is defined as research that crosses

national borders and involves respondents and researchers from different
countries and cultures. Most commonly, it involves collecting information

and making inferences about respondents or business activities, in two or
more countries within the context of a single research project (Craig and
Douglas, 1996).

Doole and Lowe (2008) define market research as the systematic
gathering, recording, analysis and interpretation of data on problems
relating to the marketing of goods and services. Hill and O’Sullivan (2004)

define marketing research as a process that organisations can use to
generate the information they need to answer questions related to their

decisions. Information is critical, especially when a company is just
entering international markets, expanding its international operations, or
attempting to rationalise its global activities. Ricks (1993) lists the mistakes

that a company should avoid when conducting market research. These
are:

• Ignoring the need for research: US companies learned the hard
way that the Japanese do not eat ketchup when they decided to
capture the market by sending large quantities of ketchup to Japan.

They found out that Japanese people prefer soy-based condiments
to tomato-based ones.

• Insufficient research: Kentucky Fried Chicken decided to enter the
Brazilian market hoping to open 100 stores. The first sales in Sao
Paulo were disappointing. KFC had not adequately researched the
market for possible competition. Street corner shops sold low-price,