Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic

Marketing: A

Global−Managerial

Approach, 14/e

8. Improving Decisions
   with Marketing
   Information

Text © The McGraw−Hill

Companies, 2002

242 Chapter 8

segmenting dimensions as well as environmental factors such as competitors’ prices

and products. Effective marketing research can help to overcome these problems.

Whether a firm is small and entering overseas markets for the first time or already

large and well established internationally, there are often advantages to working

with local market research firms. These research suppliers know the local situation

and are less likely to make mistakes based on misunderstanding the customs,

language, or circumstances of the customers they study.

Many large research firms have a network of local offices around the world to

help with such efforts. Similarly, multinational or local advertising agencies and

middlemen can often provide leads on identifying the best research suppliers.

When a firm is doing similar research projects in different markets around the

world, it makes sense for the marketing manager to coordinate the efforts. If the

manager doesn’t establish some basic guidelines at the outset, the different research

projects may all vary so much that the results can’t be compared from one market

area to another. Such comparisons give a home office manager a better chance of

understanding how the markets are similar and how they differ.

Multinational companies with operations in various countries often attempt to

centralize some market research functions. One reason is to reduce costs or achieve

research economies of scale. The centralized approach also improves the firm’s abil-

ity to transfer experience and know-how from one market area or project to another.

For example, one of Eastman Kodak’s International Divisions appointed a market

research specialist in each subsidiary company throughout the Asian region. The

specialists report to local marketing managers but also receive research direction

from expert research managers in the head office in the U.S.

There is even greater opportunity and need to standardize and coordinate ele-

ments of a marketing information system in an international marketing operation.

Computer databases and information systems are most useful when they are designed

to include the same variables organized consistently over time. Without this, it is

impossible for the manager to go into much depth in comparing and contrasting

data from different markets.^21

There are a large number of

international marketing research

firms that offer specialized

services to marketing managers.

Some coordination and
standardization makes
sense

Avoid mistakes with
local researchers