Extending your business on a worldwide scale necessitates considerable market research and the modification of your entire brand and content to make it more appealing to each local audience. Managers that are determined to enter new markets understand that failure at either of these processes can jeopardise their company’s success.
In reality, if the research team is not on top of their game, all of the many challenges that organisations face when entering a new market and undertaking successful localization can become quite difficult.
If you do not conduct thorough international market research ahead of time, you risk being unprepared for the already difficult localization process.
International Marketing Research
International marketing research is comparable to domestic marketing research, with two exceptions. First, information must be shared across cultural divides. This means that executives in India must be able to interpret their research questions into words that American clients understand. The American responses must then be translated into terms that Indian managers can understand, such as reports and data summaries.
Internal workers and research agencies that are well-versed in cross-cultural communication duties are frequently used to tackle such challenges. Second, the circumstances in which research tools are used vary greatly between markets around the world.
The international marketing researcher must develop the ability to use tried-and-true methodologies in novel and often unexpected circumstances. However, the obstacles faced by most foreign marketing researchers are the constantly varied emphasises on the types of information required, the often restricted choice of relevant tools and approaches accessible, and the difficulty in implementing the research process.
Importance for International Marketing Research
International marketing research is very important in the realm of global business. It enables businesses to make well-informed judgments on many areas of international marketing. This knowledge is crucial for effectively addressing problems and grabbing opportunities, which leads to success in foreign markets.
International marketing research can be used as a litmus test to determine whether a company should grow into international markets. It aids in determining whether a company has the resources and strategy required for a successful worldwide enterprise.
Furthermore, it is critical when a company introduces new items. It assists firms in better understanding the overseas market, allowing them to tailor their products to the distinct demands and tastes of international customers.
Finally, international marketing research is critical for communicating changes in an organisation’s worldwide marketing strategy. Whether it’s a growth, repositioning, or a shift in market approach, research provides the framework for effectively communicating these transformations.
Benefits of Doing International Marketing Research
- International marketing research aids in the detection of errors, allowing them to be corrected before they spread. In addition to avoiding them in the future.
- International marketing research helps managers make better judgments by highlighting all available marketing options and presenting decision variables in a way that allows marketing managers to select the best alternatives.
- By analysing what is happening in the industry, international marketing research helps to comprehend the market and the variables that govern it.
- Developing a competitive advantage and outperforming competition.
- International marketing research aids in the investigation and comprehension of state-specific environmental restrictions.
- International marketing research aids in the expansion of the company’s operations.
International Marketing Research Categories
Predictive Research
As the name suggests, academics are interested in what will happen in the future. Based on data obtained about product preferences and customer demographics, they may assess prospective sales growth, user adoption, and market size.
Predictive research uses demographics, brand preferences, and other marketing data, which is frequently combined with Big Data. The end result is data that can forecast purchase trends, product volume, competitor insights, and other statistics that aid in marketing, sales, and finance decisions. Predictive research can assist businesses in determining where to best use their resources.
Descriptive Research
The goal of descriptive research is to provide an accurate description of the variables in the problem model. Descriptive research includes consumer profile studies, market potential studies, product usage studies, attitude surveys, sales analysis, media research, and price surveys. A descriptive study can employ any source of information, though most studies of this type rely largely on secondary data sources and survey research.
Exploratory Research
Exploratory research is concerned with determining the broad nature of the problem and the factors that affect it. Exploratory research has a great degree of flexibility and relies on secondary data, samples, small-scale surveys or basic experiments, case studies, and subjective interpretation of the results.
Causal Research
Causal research investigates the cause-and-effect connection between variables. If a particular factor shifts, the researcher can track the effect on another. Causal research can answer “what if” queries such as price changes, packaging modifications, product additions or deletions, and more.
This method is repeatable and can be applied beyond the scope of a single research study. One disadvantage of this strategy is that it may lead to the perception that cause-and-effect happened when, in fact, it was merely coincidental. Furthermore, if the two variables are closely related, determining which factors contribute to the cause or effect might be difficult.
Best Methods in International Market Research
Government
Governments gather vast amounts of data about their citizens and the businesses that operate within their borders. This includes demographics, geography, and culture, all of which may be quite useful when planning your marketing and deciding where to sell your products.
Furthermore, government data can provide significant insights into the legal obstacles you may face when entering a new market, as well as the different rules you must follow when you market and launch your product. Much of this information can be found on government websites.
In-person
Individual interviews and focus group talks are both extremely effective market research methods. They provide a direct window into your consumers’ thoughts, desires, concerns, pain points, and impressions, as well as their feelings about your competition, among other things.
However, conducting in-person research in an overseas market brings a distinct set of problems. The logistics needs are more demanding, including the discovery and acquisition of suitable venues, as well as collaboration with on-site interviewers, a task that may prove more difficult than in one’s own home.
Additionally, it is critical to address language obstacles, which frequently necessitate the hire of interpreters or locally-based personnel.
Other Businesses
Other businesses’ market research can be an excellent starting point for your own market research. This information may or may not have been gathered by businesses in your area. It could have been gathered by firms in your target market or elsewhere.
Business research is useful since it provides an example of another firm that has done some of your work. The research of other organisations can teach you a lot about business trends, cultural differences, markets, legislation, and more.
Conducting International Market Research
Preliminary Research
Conduct preliminary research by looking online for existing survey reports on your topic of interest. There may not be much, especially if you are seeking for really precise information, but you may find something similar, either for a different country or a report that provides you some suggestions on how to proceed with your primary research.
Determining the Target Audience
As you may be aware, determining the target audience is the first stage in any comprehensive market research approach. Knowing your target audience can assist you in narrowing your research efforts and ensuring that you are gathering data and information that is genuinely relevant to the demands of your organisation.
Establish a Research Plan
You can now begin designing and developing your research strategy in greater depth. This should include a detailed description of how you intend to carry out your overseas market research, including a budget and dates for specific activities, as well as a list of any problems or dangers you expect. For example, if you intend to conduct surveys in China, you must consider issues such as cultural differences and language limitations.
Analysing the Collected Data
After you’ve completed your research plan, you should begin gathering and analysing the study data. Depending on the approaches you’ve used and the type of data you’ve gathered, this could be a lengthy and involved procedure. For example, if you conducted a detailed survey, you may wish to use statistical software to examine the survey’s final results.
To examine their data, researchers employ a variety of statistical techniques, including advanced decision models and predictive analytics. Your analysis may include averages, statistical regression, spreadsheets, and charts.
Setting aside preconceived notions about what the data implies allows data-driven patterns and trends to emerge, which should lead to actionable insights. Analytics and reporting, such as those contained in online surveys, will provide ready-to-use information depending on the research instruments you select.
Your goal is to learn what your data indicates about the behaviour patterns, opinions, and preferences of your target audience. You may discover that your data supports or refutes your initial study topic. It is critical to remain attentive to both outcomes.
Now Work on It
Your research findings should be used to advise specific activities that your organisation may take to improve business performance or develop consumer relationships. If your concept testing proved successful, it’s possible that you’re ready to move on to the product development step. If your new branding and logo gets bad feedback, it’s time to start again or make some substantial changes.
FAQs
Q.1 What function does international marketing research play in corporate growth?
Answer: International marketing research is critical to assisting organisations in expanding abroad. It offers crucial insights into emerging markets, assisting in better decision-making and strategy building.
Q.2 How does foreign marketing research help with cultural differences?
Answer: International marketing research assists firms by revealing cultural nuances, allowing them to efficiently modify their marketing strategies and content to resonate with local audiences.
Q.3 Can global marketing research forecast industry trends?
Yes, organisations may use predictive research to project sales growth, market size, and other crucial statistics by analysing data on product preferences, demographics, and customer behaviour.
Q.4 How might international marketing research help with successful product launches?
Answer: International marketing research assists businesses in developing a thorough awareness of overseas markets, allowing them to design products to fit the special wants and preferences of international clients, resulting in more successful product launches.
Q.5 What role does international marketing research play in risk management in global expansion?
Answer: It assists organisations in identifying potential risks and problems in new markets, allowing them to devise strategies to manage these risks and boost their chances of success.
Wrapping Up
International marketing research is critical for companies trying to extend their operations internationally. It acts as a guidepost, directing firms through the challenging terrain of varied cultures, market complexities, and consumer preferences prevalent in overseas markets. The complex aspect of international marketing research becomes clear when projecting new industry trends, planning successful product launches, and efficiently managing risks.
We must emphasise the importance of adaptation and continuous learning. In a period where borders are no longer impassable barriers and clients are as diverse as ever, paying attention to cultural nuances and market dynamics is not only advantageous, but also required.
International marketing research serves as a compass to keep us on track, and it represents a journey of understanding, discovery, and growth. Businesses must commit to continual research, data-informed decision-making, and the flexibility to adapt to the ever-changing needs of foreign audiences in order to thrive in this dynamic global economy.
