Fachhochschule Mainz University of Applied Sciences

22 | Auslandsbeziehungen |
Ten Steps of Efficient International Market Research
Prof. Dr. Kurt Scharnbacher
Most managers recognize the need for domestic
marketing research – the single most
important cause for failure in international
marketing and market places is insufficient
preparation and information. Mistakes often
occur, because managers, firms and companies
do not have enough information and
therefore they often do not have an adequate
understanding of the new international markets
and the business environment. Building
a good knowledge base is the key issue for
subsequent and efficient market presence
and success.
1. Step: Defining the issue
We need a definition of market research.
Market research is often defined as the
„systematic and objective identification, collection,
analysis and dissemination for the
purpose of improving decision making related
to the identification
and solution of problems
and opportunities
in marketing“. This definition
states the need
for systematic work,
indicating that market
research should be the
result of planned and organised activity. It
points out the need of objective information
and stresses that subjective opinions are not
very important. Market research must have
a business purpose and international market
research must be linked to the decision making
process within the management strategy.
2. Step: Tools and Techniques of International
and Domestic Market Research
The general opinion is, that tools and techniques
of international marketing research
are exactly the same as those of domestic
marketing research – the only thing that
differs is the environment. But – because
this environment differs, the execution of
international marketing research differs as
well. The tools may be the same but the
primary differences are the new parameters
and the new environment which increases
the number of important factors to be considered.
„It has long been an axiom
of mine that little things
are the most important.“
Sherlock Holmes
In crossing a national border, the company
is faced with new parameters such as different
law and duties, foreign currencies and
changes of their value, international documentation,
different modes of transportation
and others – these are parameters not found
in domestic market research.
The new environment is, that firms have
to learn about the culture and habits of
the host country. They have to understand
the countries policy system and its societal
structures and of course the different language.
This means, that all the results and
assumptions, which were formulated over
years for the domestic market must be re-evaluated.
Going international, the firm exposes itself to
a greater variety of competition than in
the domestic market.
As a result, the numbers
of factors involved
are increasing.
3. Step: The Needs
and Benefits of
Research
Managers often tend to assume, that their
methods are the best and the most acceptable
to all others. Fortunately this is not
true – how boring the world would be, if
there were no differences. But – not aware
of this differences, firms are not very willing
to spend money on research and to find
out about these differences. Often, the companies
are not familiar with international
sources of information and therefore not able
to use them. But – to serve a market very
efficiently and to benefit from a international
market – firms must learn what the customers
want, why they want it and how to serve
their needs and demands.
4. Step: Research Objectives
Because of the different strategies in management
and the market situation, research
objectives will vary from firm to firm. In
international market research, the most frequent
objective is the analysis of the opportunities
the foreign market offers.
Jahrbuch Wirtschaftswissenschaften | FH Mainz | 2002