Table of Contents

Acknowledgement ........................................................................................................................ 3
Introduction .................................................................................................................................. 5
Overview of Global Marketing Information Systems ................................................................... 6
Marketing Information System as a Strategic Asset..................................................................... 6
Information Subject Agenda ......................................................................................................... 7
Scanning modes: Surveillance and Search.................................................................................... 8
Information Scanning ................................................................................................................... 8
Sources of Global Information ...................................................................................................... 8
Elements of Information system .................................................................................................. 9
Marketing Information Systems Architecture .............................................................................. 9
Business Driver ..................................................................................................................... 9
Global Strategy and Systems Configurations.............................................................................. 10
Centralized Systems ............................................................................................................ 10
Duplicated Systems............................................................................................................. 10
Decentralized Systems ........................................................................................................ 10
Networked Systems ............................................................................................................ 10
Tools of Information Systems ..................................................................................................... 10
Challenges and obstacles to Global Information Systems.......................................................... 11
Formal Marketing Research........................................................................................................ 12
Marketing Decision and Intelligence Requirement .................................................................... 12
Steps in Marketing Research ...................................................................................................... 12
International Marketing Research Environment ........................................................................ 14
Survey Methods in Global Marketing Research ......................................................................... 16
Measurement and Scaling .......................................................................................................... 16
Questionnaire Translation .......................................................................................................... 17
Issues in Global Marketing Research .......................................................................................... 17
Location of Global Marketing Research Headquarters .............................................................. 18
Epilogue ...................................................................................................................................... 19
References .................................................................................................................................. 20
End Notes.................................................................................................................................... 21
Introduction

Information is one of the most basic ingredients of a successful marketing strategy. Information or
useful data is the raw material for executive action.

For achieving success in International Markets, information about buyer behaviour and the overall
business environment is vital to effective managerial decision making. In order to research markets,
marketers must be aware about information sources, areas of interest, methods of data acquisition
and analysis.

Market research is done to identify problems and to discover opportunities existing / likely to
surface in near or imminent future. Research provides value accretions to business which provides
both sustainability of business and viable returns based on accurate decision making mix. Marketing
research provides both conceptual and practical viewpoints.

The marketers in international marketing are faced with a dilemma of both information abundance
and scarcity. The global marketer must scan the world for information about opportunities and
threats and make information available via a management information system in order to reduce
the uncertainty around marketing decision making.

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Overview of Global Marketing Information Systems

Marketing Information System (MIS) provides managers and other decision makers with continuous
flow of information about markets, customers, competitors, and company operations. A MIS should
provide a means of gathering, analysing, classifying, storing, retrieving and reporting relevant data
about customers, markets, channels, sales and competitors. A company’s MIS should also cover
important aspects of a company’s external environment. Global competition intensifies the need for
an effective MIS. Global companies like Caterpillar, Mitsui, Toyota, ABB, Ford and Texas Instruments
have sophisticated electronic data interchange (EDI) isystems to improve inter company information
sharing. Internet has complemented and dramatically expanded the ability to access up to date
information anywhere in the world. MIS acts as a strategic competitive tool. MIS and research
function must provide relevant information in a timely, cost-efficient and actionable manner.
Information systems help geo-centric global companies to meet challenges in the dynamic world
markets due to political and economic events.

Today marketers need to study several important topics in order to make the most of modern
information technology. First, they need to understand the importance of information technology
and marketing information systems as strategic assets. Second, they need a framework for
information scanning and opportunity identification. Third, they should have general understanding
the formal market research process. Finally, they should know how to manage the marketing
information collection systems and the marketing research effort.

Marketing Information System as a Strategic Asset

The role of marketing information systems is changing from support tool to a strategic asset.
Information intensity in a firm impacts market attractiveness, competitive position and
organisational structure. The greater a company’s information intensity, the more the traditional
product /market boundaries shift. In essence, companies increasingly face new sources of
competition from other firms in historically non-competitive industries, particularly if those firms are
also information intensive.

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Information Subject Agenda

The starting point for a global MIS is a list of subjects about which information is desired. The
resulting subject agenda is customized to individual needs and missions of company. There are 6
broad information areas for global marketing. The categories along with their coverage are:

Category
1. Markets
2. Competition
3. Foreign Exchange
4. Prescriptive Information
5. Resource Information
6. General Conditions
Coverage
Demand estimates, consumer behaviour, products,
channels, communication media availability and cost,
market responsiveness
Corporate, business, Functional strategies and plans
Balance of Payments, interest rates, attractiveness of
country currency, expectations of analysts
Laws, regulations, rulings concerning taxes, earnings,
dividends in both host countries and home country
Availability of human, financial, information and physical
resources
Overall review of socio cultural, political, technological
environments.

The above framework comprises of all the information subject areas relevant to a company with
global operations and are mutually exclusive i.e. any kind of information encompassed by the
framework can be correctly placed in one and only one category.

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Scanning modes: Surveillance and Search

Once the subject agenda has been determined, the next step is the actual collection of information.
This can be accomplished using surveillance and search. In the surveillance mode, the marketer
engages in informal information gathering. Globally oriented marketers are constantly on the
lookout for information about potential opportunities and threats in various parts of the world
through a process called monitoring.

Search is characterized by the deliberate seeking out of specific information. Search often involves
investigation, a relatively limited and informal type of search. Investigation often involves seeking
out books or articles in foreign trade publications or searching the Internet on a particular topic or
issue. Search may also consist of research, a formally organized effort to acquire specific information
for a specific purpose.

Information Scanning

The global marketer must know where to go to obtain information, the subject areas that should be
covered, and the different ways that information can be acquired. The process of information
acquisition and processing the acquired information in an efficient and useful way is termed as
Information Scanning.

Sources of Global Information

Sources of secondary data / information include documented sources, human resources or

perceived sources.

Documented Sources: These include government, international bodies, business / trade /

professional bodies, foreign embassies, trade missions, university sources.

Human Resources: These include executives based abroad, sales people, customers, suppliers,
distributors, and government officials. This information is "internal" to the firm as opposed to
documentary sources which are generally external.

Perceived Sources: These are "sensory" sources of information. Direct perception could be achieved
by in country visits, where it would be possible to exercise all the sensory receptors sight, taste,
touch, intuition, hearing and smell. Participation in exhibitions, discussions with importing
organisations and participation in Government working parties can all be useful sources of data.

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Elements of Information system

The following constitute the elements of the global information system.

· Economic - rate of growth of GNP, level of inflation, incomes

· Social - people, demographics, culture, subculture
· Political - risk, instability, attitudes to "foreigners"
· Technology - current, rate of change, infrastructure
· Resources - money, manpower, materials, acquisitions, joint ventures
· Fiscal - taxes, exchange rates
· Institutions - money markets
· Managerial - funds

Marketing Information Systems Architecture

Global Environment: Business

Drivers and Challenges

Corporate Global Strategies

Orgainisation Structure

Management and Business

Process

Technology Platform

Business Driver
A business Driver is a force in the environment to which businesses must respond and that
influences the direction of the business.

9
Global Strategy and Systems Configurations

The configuration, management and development of systems tend to follow the global strategy
chosen. Systems means the full range of activities involved in building and operating information
systems: conception and alignment with the strategic business plan, systems development, and
ongoing operation and maintenance.

System Strategy
Configuration Domestic Multinational Franchiser Transnationals
Exporter
Centralized X
Duplicated X
Decentralized X X X
Networked X X

Centralized Systems
Those systems in which systems development and operations occur totally at the domestic home
base.

Duplicated Systems
Those systems in which development occurs at the home base but the operations are handed over
to autonomous units in foreign locations.

Decentralized Systems
Those systems in which each foreign unit designs its own unique solutions and systems.

Networked Systems
Those systems in which system development and operations occur in an integrated and coordinated
fashion across all units.

Tools of Information Systems

• Electronic Data Interchange (EDI)

• Efficient Consumer Response (ECR)ii
• Electronic Point of Sale (EPOS)iii
• Intranetsiv
• Data Warehousesv

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Challenges and obstacles to Global Information Systems

Global
Cultural Particularism: Regionalism,
nationalism, language differences
Social expectations: Brand-name expectations,
work hours
Political Laws: Transborder data and privacy
laws, commercial regulations
Specific
Standards: Different Electronic Data Interchange
(EDI), email and telecommunication standards
Reliability: Phone networks not uniformly
reliable
Speed: Different data transfer speeds, many
slower than base country.

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Formal Marketing Research

Marketing Research is the project specific systematic gathering of data in the search scanning mode.
Marketing research can be taken up in-house team of the global firm or outsourced to outside firms
specialized in marketing research.

Marketing Decision and Intelligence Requirement

Marketing decision Marketing intelligence

Go international or remain
domestic
Which markets to enter
Assessment of global market and firm's potential share in it, in
view of local and international competition, compared to
domestic opportunities.
A ranking of world markets according to market potential, local
competition and the political situation.

How to enter target markets Size of markets, international trade barriers, transport costs, local
competition, government requirements and political stability.

How to market in target For each market, buyer behaviour, competitive practice,
markets distribution channels, media, company experience

Steps in Marketing Research

1. Problem definition: The purpose of the study, background and required information, and
decision making usage of the information is detailed. Defining the research problem to be
addressed is the most important step because all other steps will be based on this definition.

2. Developing an approach to the problem: A broad specification of how the problem will be
addressed is developed to allow the researcher to break the problem into salient issues and
manageable pieces. Required information is identified. This step is guided by discussions
with decision makers, industry experts, along with secondary data analysis, qualitative
research and pragmatic considerations.

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3. Research design formulation: Framework / blueprint for conducting the Marketing
Research project are prepared.

4. Fieldwork or data collection: A properly selected and trained field force gathers project
data through personal interviewing, telephone, mail or electronically.

5. Data preparation and analysis: Data collected is edited, coded, transcribed and verified to
allow researchers to derive meaning from the data.

6. Report preparation and presentation: The research findings are documented and
presented to decision makers through written reports and presentations. The report should
address the specific research questions identified, describe approach, research design,
adopted data collection and data analysis procedures and conclude the results and major
findings.

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International Marketing Research Environment

With globalization of markets, marketing research has assumed a truly international character.
Conducting international marketing research is much more complex than domestic marketing
research.

The environment prevailing in the international markets being researched influences all six steps of
the marketing research process. Important aspects of this environment include marketing,
government, legal, economic, structural, informational and technological and socio-cultural
environment.

Marketing Environment

The role of marketing in economic development varies in different countries. The variety and
assortment of products policies, government control of media, the public’s attitude toward
advertising, the efficiency of the distribution system, and the level of marketing effort undertaken
should be taken into account by market researcher. Certain themes, words and illustrations used in
one country may be taboo some other countries. The types of retailers and intermediary institutions
available and the services these institutions offer vary from country to country.

Government Environment

The type of government has a bearing on the emphasis on public policy, regulatory agencies,
government incentives and penalties, and investment in government enterprises. Government has
active roles in encouraging or controlling foreign competition, setting market controls, developing
infrastructure, distribution channels and act as an entrepreneur. At the tactical level, the
government determines tax structures, tariffs, and product safety rules and often imposes special
rules and regulations on foreign multinationals and their marketing practices.

Legal Environment

The legal environment encompasses common law, code law, foreign law, international law,
antitrust, bribery, and taxes. For marketing research, particularly salient are laws related to the
elements of the marketing mix – product, pricing, distribution and promotion.

Economic Environment

Economic environmental characteristics include economic size (GDP), level, source and distribution
of income, growth trends, and sectoral trends. A country’s stage of economic development
determines the size, the degree of modernization, and the standardisation of its markets. Consumer,

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industrial, and commercial markets become more standardized and consumers’ work, leisure and
lifestyles become more homogenized by economic development and advances in technology.

Structural Environment

Structural factors relate to transportation, communication, utilities, and infrastructure.

Informational and Technological Environment

Elements of the informational and technological environment include information and

communication systems, computerization and the use of the Internet, use of electronic equipment,
energy, production technology, science, and invention.

Socio-cultural Environment

Socio-cultural factors include values, literacy, language, religion, communication patterns, and family
and social institutions. Relevant values and attitudes toward time, achievement, work, authority,
wealth, scientific method, risk, innovation and change should be considered. The marketing research
process should be modified so that it does not conflict with the cultural values.

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Survey Methods in Global Marketing Research
Major interviewing methods in light of the challenges of conducting research in foreign countries
are:

(i) Telephone Interviewing and Computer Aided Telephone Interview (CATI)

(ii) In-Home
Home Personal Interviews
(iii) Mall Intercept and Computer-assisted
Computer personal interviewing
(iv) Mail Interviews
(v) Electronic surveys through email and Internet

Measurement and Scaling

In international marketing
ting research, it is critical to establish the equivalence of scales and measures
used to obtain data from different countries.

Construct
equivalence

Operational
Equivalence
Types of
Equivalence
Scalar
Equivalence

Linguistic
Equivalence

Construct Equivalence

This deals with the question of whether the marketing constructs have same meaning and
significance in different countries.

Operational Equivalence

This concerns how theoretical constructs are operationalized to make measurements.

Scalar Equivalence

The demonstration
on that two individuals from different countries with the same value on some
variable will score at the same level on the same test; also called metric equivalence

Linguistic Equivalence

The equivalence of both spoken and written language forms used in scales
scales and questionnaire.

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Questionnaire Translation

Research questionnaires need translation for administration in different cultures. Questionnaire

should be adapted to the specific cultural environment and should not be biased in favour of any
one culture or language. Direct translation in which a bilingual translator translates the
questionnaire directly from a base language to the respondent’s language is frequently used. Errors
may result due to incorrect translations. Back translations (source language – translate – back to
source language) and parallel translations (committee of translators in consensus) are useful to
eliminate translation errors.

Issues in Global Marketing Research

Global market researchers face special problems and conditions that differentiate their task from
that of the domestic market researcher.

First, instead of analysing a single national market, the global market researcher must analyse many
national markets, each of which has unique characteristics that must be recognised in analysis. The
availability of data varies with country.

Second, marketing research expenditure is limited because market potential of smaller world
markets is limited. Global researcher must devise techniques and methods that keep expenditures in
line with the market’s profit potential.

Thirdly, data may be inflated or deflated either inadvertently or for political expediency in case of
developing countries like Middle Eastern countries.

Fourthly, comparability of international statistics varies greatly due to absence of standard data
gathering techniques. Similarly, definitions may vary of same things across countries.

Finally, global consumer research is inhibited by people’s reluctance to talk to strangers, greater
difficulty in locating people and lack of communication facilities. It is possible that both industrial
and consumer research services are less developed though cheaper.

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Location of Global Marketing Research Headquarters

A global company must decide where to place the headquarter of its Marketing Research to ensure
comparability of data. Comparability requires that scales, questions and research methodology are
standardized. A global company delegates responsibility for research to operating subsidiaries but
retains overall responsibility and control of research as a headquarters function.

In a multinational company, responsibility of research is delegated to the operating subsidiary. Top

management of marketing research must ensure proper communication among research group in
different countries, integrate worldwide results and are responsible for overall research design and
program and the overall strategy.

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Epilogue

Successful marketing depends on identifying needs of customers and the creation of means to
address the need. To achieve this, marketing research is a valuable tool. Marketing research helps
identify the requirements of the customers and identify market opportunities for successful
placement of firm’s products or services. Formal marketing research consists of six major steps of
problem definition, approach development, research design, fieldwork, data analysis and reporting.

The specific survey methods suitable for use in global marketing research are telephonic interviews,
mall intercepts, in-home personal / mail interviews. These survey methods can be complemented
using Information Systems through use of computer aided telephonic interview, computer aided
personal interviewing and electronic surveys through email and internet. Global market research
faces several challenges as compared to local market research. These include variation in amount of
data available by countries, limited budgets, inaccuracy, non-comparability and differences in
marketing research environments consisting of marketing, government, legal, economic, structural
and technological aspects.

Information Systems acts as a strategic tool to provide global marketers quick access to worldwide
information. Global information systems assist marketer in gathering large amounts of data from
world over and provide insights in to upcoming opportunities or threats to top management through
faster compilation of collected data. The advent of internet has changed the way Market Research is
done internationally. In the context of limited budgets for International Marketing research, internet
can help in cutting costs and sticking to budgets. Expensive survey methods like personal interviews
/ telephonic surveys can be replaced with electronic surveys. However, this requires understanding
obstacles to Global Information Systems like difference in electronic standards, unreliable networks,
legal and cultural issues. Proper location of headquarter of global marketing research is critical to
achieve comparability of research data collected, control and communication of results.

In summary, global information systems today complements global marketing research and helps
provide competitive advantage to firms in the world markets.

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References

• Global Marketing Management (Seventh Edition - 2009) , Warren J Keegan

• Marketing research ( Fifth Edition – 2009), Naresh Malhotra Satyabhusan Dash, Pearson

• Management Information Systems (Eleventh Edition – 2010) Laudon & Laudon, Pearson

• Global Agricultural Marketing Management, S. Carter (1997) ISBN 92-851-1004-5, FAO 1997

• “Marketing research important for SMEs to succeed” - Vaid (Jan ‘10), Trade India (SME Times)

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End Notes

i
Electronic data interchange (EDI) is the structured transmission of data between organizations by
electronic means. It is used to transfer electronic documents or business data from one computer
system to another computer system, i.e. from one trading partner to another trading partner
without human intervention.

ii
Efficient Consumer response (ECR) is about working together to fulfil consumer wishes better,
faster and at lesser cost. ECR encourages companies to pursue continuous improvements under
three focus areas: supply side, demand side and enabling technologies.

iii
Electronic Point of Sale (EPOS)– refers to technologies which enable an efficient recording of the
sale of goods or services to the customer

iv
Intranet – It is a private network that is contained within an enterprise.

v
Data Warehouse - A data warehouse (DW) is a database used for reporting.

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