International Marketing Research Challenges
Title – International Marketing Research Challenges
INTRODUCTION
Due to global financial issues in the recent months, consumer confidence is low in the more developed markets such as Japan, the US and Europe (AFP, 2012). Therefore developing markets, such as the Australian market, are looking towards emerging markets where the markets have remained dynamic and rich in growth opportunities. This is because emerging markets “have reached a minimum level of GDP and are in the growth phase of the development cycle” (Pearson Education, 2012), however due to this growth phase these markets are still vulnerable to both internal and external forces. With many companies world-wide seeking global growth opportunities, it has never been more important for international marketing research to be conducted in order to fully understand the consumers of these markets (Greenland, 2011). This growth of emerging markets has presented a number of challenges for international marketing researchers including differences in research costs and also environmental differences such as differences in culture and even difficulties in communication and technology. Words - 162
CHALLENGE 1 – RESEARCH COST VARIATIONS
Conducting research in a different country, especially one that is classified as an emerging market, can create many issues for international market researchers. For example, Greenland (2011) talked about how the expense of conducting research in emerging markets, such as Africa, is usually much higher than when compared to projects conducted in developed countries. Even though some of these issues may be catered for at the planning stage, many of these issues are unpredictable and can occur at any stage throughout the research project, creating a high chance of the project going over budget. Many factors including travel costs, currency fluctuation and availability of technology can affect the price of market research. However due to the fact that creative
INTRODUCTION
Due to global financial issues in the recent months, consumer confidence is low in the more developed markets such as Japan, the US and Europe (AFP, 2012). Therefore developing markets, such as the Australian market, are looking towards emerging markets where the markets have remained dynamic and rich in growth opportunities. This is because emerging markets “have reached a minimum level of GDP and are in the growth phase of the development cycle” (Pearson Education, 2012), however due to this growth phase these markets are still vulnerable to both internal and external forces. With many companies world-wide seeking global growth opportunities, it has never been more important for international marketing research to be conducted in order to fully understand the consumers of these markets (Greenland, 2011). This growth of emerging markets has presented a number of challenges for international marketing researchers including differences in research costs and also environmental differences such as differences in culture and even difficulties in communication and technology. Words - 162
CHALLENGE 1 – RESEARCH COST VARIATIONS
Conducting research in a different country, especially one that is classified as an emerging market, can create many issues for international market researchers. For example, Greenland (2011) talked about how the expense of conducting research in emerging markets, such as Africa, is usually much higher than when compared to projects conducted in developed countries. Even though some of these issues may be catered for at the planning stage, many of these issues are unpredictable and can occur at any stage throughout the research project, creating a high chance of the project going over budget. Many factors including travel costs, currency fluctuation and availability of technology can affect the price of market research. However due to the fact that creative
References: AFP 2012, Nestle sweet on emerging markets, The West Australian, viewed on 22nd June 2012, <http://au.news.yahoo.com/thewest/business/a/-/business/13484436/nestle-sweet-on-emerging-markets/> Craig, C. S. and Douglas, S. P 2005, Future Directions in International Marketing Research, Chapter 15 in International Marketing Research, 3rd Edition, John Wiley & Sons, viewed 22nd June <http://ezproxy.lib.swin.edu.au/login?url=http://onlineres.swin.edu.au/411008.pdf> Craig, CS and Douglas, SP 2001, Conducting international marketing research in the twenty-first century, International Marketing Review, Vol. 18 Iss: 1, pp.80 – 90 Greenland, S. J 2011, Challenges of researching consumers in emerging markets. Marketing in the age of consumerism: Jekyll or Hyde?, Australian and New Zealand Marketing Academy Greenland, SJ 2009, Visual Research for Segmenting Emerging Markets, Proceedings of 'Sustainable Management and Marketing ', Australian and New Zealand Marketing Academy Conference (ANZMAC), Melbourne, Victoria, Australia, 30 November - 02 December 2009, viewed 19th June 2012 <http://researchbank.swinburne.edu.au/vital/access/manager/Repository/swin:15145> Malhotra, N K 2010, International Marketing Research, Chapter 24, p784 - 803 in Marketing Research: An Applied Orientation: Global Edition, 6th edition, Pearson Higher Education. Viewed 22nd June 2012 <http://ezproxy.lib.swin.edu.au/login?url=http://onlineres.swin.edu.au/411006.pdf> Pearson Education 2012, ‘Emerging Markets Defined,’ viewed 23rd June 2012 <http://www.pearsoned.co.uk/bookshop/article.asp?item=361>