Chapter 2: Market Research in

the International Environment

Instructor: Dang Thi Mai Huong (Sarah)

Department of Economics and Management
Email: sarahhuong11@gmail.com
 Learning Outcomes

• After reading and studying this chapter, you

should be able to answer the following
questions.
1. Understanding the task of market research
2.Understanding the International Business
Environment
 Learning Outcomes

3.What are the steps of the Marketing Research

Process
4. An overview of some main markets in the
world
 Chapter Outline

1. Definition of Market Research

2. The Scientific Method
3. Types of International Market Research
4. International Business Environment
5. The International Market Research Process
6. An overview of some main markets in the
world
 1. Definition of Market Research

• Market Research is the systematic gathering,

storing, and analyzing of marketplace
information for use in strategic decision-
making.
• Companies seeking ------- satisfy the wants
and needs of customers groups --- first
understand them --- requires quality marketing
information -----> find out the research
methods.
 2. The Scientific Method

• Scientific method, a term that describes how

researchers use observations (quan sát),
empirical evidence (nghiên cứu thực
nghiệm), and knowledge to objectively study
various phenomena (hiện tượng khách quan).
3. Types of International Market Research

3.1. Product Research:

• Companies develop products to existing
product offers often utilize product research
program.
• Cultural differences also affect this type of
international market research.
• Consumer responses to various products
change over time.
• For example, the American staple, the
hamburger, was once frowned upon in
France. Now, however, the burger has
become much more acceptable in the French
culture, offering new market opportunities for
American fast-food franchises. Product
research helps marketers stay current on
changing international tastes and trends
• Taste preferences should also be considered.
• Coca-Cola introduced a line of drinks in China
that included traditional Chinese herbal
ingredients.
• Being a truly global brand, Coca-Cola took
advantage of its international market research
program by adapting to the differences in taste
revealed by the findings.
3.2. Pricing research: The price of a product
often represents a statement of value or worth,
and signals the quality of the item being sold.
The meaning of “price” varies across cultures.
Cultures influences should therefore be
carefully considered and researched before
international pricing policies are set.
• Researchers have discovered that consumers in
Poland generally view price as a positive signal
of quality. Consumers are less likely to connect
a product’s price with quality in the United
States. In Poland, price changes, especially
discounts, may be used less often.
3.3. Promotion Research: When researchers
study the effectiveness of promotional
messages.
Cultural differences dictate that researchers
should take careful steps to make sure the
message in an advertisement is the message
that the company intended to deliver.
3.4. Distribution Research: Distribution research
takes on special importance because
infrastructure development varies greatly
around the world.
As a result, gaining a better understanding of the
physical distribution methods available in a
targeted country constitutes an important task for
the market researcher.
• For example: Nepal is largely a mountainous
country. The mountains and rugged hills make
public transportation difficult. Roads are
generally concentrated in the eastern and central
regions of the country. Although air and rail
transportation are available, difficulties exist in
the physical distribution of goods and services in
Nepal and similar countries.
4. International Business Environment
 Technology
Political

International
Business/Marketing
Environment
Competition

Social and
cultural

Economic Demographic
 4. International Business Environment

4.1. Economic - Finance – Infrastructure environment

The situation of production and output of a given country for
each specific item.
• GNP, GDP Index
• Banking system: Nation and International
• Inflation and Deflation
• Infrastructure: communications systems, transportation
systems, electricity and water systems, energy supply
business; Storage system ...
• Infrastructure of business: wholesale, retail, advertising
company , organization consulting, marketing research.
 4. International Business Environment

4.2. Political environment

• The attitude of the government to foreign trade: trade
protection or free trade.
• International agreements that countries have
participated.
• Regulation of the government to the law,
representative offices and branches of foreign
companies.
• The customs procedures, customs duties and other
regulations affecting trade.
 4. International Business Environment

• Import and export licenses, provisions of food, health

and safety guarantee should be ensured.
• Foreign Investment Law and related documents
• Taxes outside the import and export taxes: VAT,
special consumption tax (thuế tiêu thụ đặc biệt),
corporate income (thuế thu nhập doanh nghiệp.
• Quotas (hạn ngạch xuất nhập khẩu)
• The law of each country in advertising
4.3. Competition environment
By Product: offer higher quality products, better
packaging.
By price: lower price compare to competition,
reduce prices.
By distribution systems
By advertising and promotion
4.4. Social and cultural environment
Culture affects the behavior and attitudes of
customer consumption.
Each country also has different sub-cultures, it is
often based on religious beliefs and religion.
Each sub-cultures will point out the different
market segments.
Language: Language is a means of
communication. Differences in language much
influence on decisions in marketing information
(trademarks, slogans, advertising messages).

The Japanese avoid saying "no", they always say

yes but do not always mean “yes”. Sometimes it
implies that I'm listening.
Canadians, Peruvians, and British greet each
other with a handshake
Korean, Japanese, and Indonesian greet each
other with a bow.
Americans, Danes, and the Egyptians greet each
other with a hug.
Brazilian, French, and Italian greet each other
with a kiss on the cheek.
The Greeks, Russians and Mexicans greet each
other by pat the back
Religion: Religion affect to the attitude of
consumers consumption
Example: Month of the Muslim diet or high
consumption related to the Christmas day and
Easter day
Education: Education can be a major impact on
consumer awareness about marketing
techniques from outside.
Different countries will have different views on
education
4.5. Demographic:
Market size: population, birth rate
Age distribution and population density
4.6. Technology
The development of technology has created a
revolution in the production and consumption
of products. Technology may change the
demand, shopping habits, social relations
The application of new technologies to help
businesses create new products and increase
competitiveness in the market
 5. The International Market Research
Process

5.1 Define the problem or situation

5.2 Complete a Cost/Benefit Analysis
5.3 Develop a Research Design
5.4 Develop a Sample
5.5 Collect Data
5.6 Analyze and interpret data
5.7 Formulate conclusions and write a report
 6. An overview of some main markets in the world

• NAFTA (North America Free Trade Area):

+ United States
+ Canada
+ Mexico
• (European Union - EU)
- Belgium - Italy - Austria
- Denmark - Luxembourg - Sweden
- France - Netherlands - Finland
- Germany - Portugal
- Greek - Spain
- Ireland - United Kingdom
• Association of Latin American
- Argentina - Mexico
- Bolivia - Paraguay
- Brazil - Peru
- Chile - Uruguay
- Colombia - Venezuela
- Ecuador
• Association of South East Asian National
(ASEAN)
+ The establishment and development of ASEAN
+ The main objective of ASEAN