Global Market Research
Clarke Ricks
School of Business, Liberty University
BUSI 690: Policy and Strategy in Global Competition
Dr. Hicks
April 6, 2021
Global Market Research
Entrepreneurship can be challenging, but a bigger challenge is guessing how a new
product will perform in the market. Market research is the best technique that a company
can incorporate to eliminate guesswork when introducing a new product to consumers.
Companies that understand market research meaning, can show by their product's success.
Market research is defined as collecting information about companies or people and
analyzing it to understand the market better and what it needs. The result is summarized in
a report, and the business owner can use the data to make a more informed decision about
the business strategy, operations, and potential consumer base.
How is Market Research done?
The heart of every market research exercise is an organized procedure. The process
may differ depending on budgets, deadlines, and resources but generally follows the
following stages.
Identify the opportunity or problem. A problem well stated is a problem half solved,
and this is the primary reason why researchers start by diagnosing the problem and defining
it.
Set out a research objective statement to investigate the various research questions.
Develop a research design that specifies the plan to collect and analyze information.
Some plans include identifying information sources, collecting data, sampling methodology,
and the total research cost.
Choose a sample plan to understand the population and make a conclusion.
Researchers define the population size, the sample population, and the sampling method at
this stage.
Gather primary or secondary data based on the research plan or design. In this stage,
researchers use numerous data collection methods to gather information on the variable
that helps to study and analyze the research problem.
Organize and analyze collected data that helps the researchers to spot and remove
data classification inconsistencies. Analysis helps to discover the same data patterns and
their logic.
Prepare and present the findings. The last stage of the research interprets data
analysis to give the conclusion via a report.
Why is Market Research Vital?
Market research provides valuable benefits to companies. Here are some of the most
impactful ways it can empower a business to succeed.
Maintain a Consumer-Centric Approach
The primary purpose is to understand better the consumer base, an essential part of
creating a consumer-centric business. One business recipe for success is prioritizing a
customer's needs and desires. Conducting market research allows a company to appeal
better and specifically to customers' preferences and pain points
Alleviate Risks
In starting a business, there will always be risks involved. Even though there is no such
thing as zero risk in business, market research is one of the steps that a company can take to
minimize the risk. The process provides insights and knowledge to a company in
implementing the best decision.
Competition Analysis
Competing firms can affect the development growth of a company depending on how
long they have been on the market. One way of increasing a business strategy is by knowing
the weakness and strengths of other companies. Market research analysis helps a business
to avoid mistakes that have been made earlier by other companies.
Different Types of Market Research
Market research comprises two distinct types: primary and secondary market research.
Primary Research
Primary research consists of going to the source, generally the customers in the target
market, to make inquiries and collect information. Some of the primary research includes
1. Interviews
2. Questionnaires
3. Focus groups
4. Surveys
Secondary Research
Secondary research involves using already existing information that has been compiled,
gathered, organized, and published by other people. It consists of studies and reports by
trade associations and government agencies. Secondary research is readily available on the
internet and can be easily searched by entering keywords.
Global Market Research
There are so many advantages of moving a business into global markets. However, this
move comes with an equal share of risks and challenges. Global market research refers to
figuring out what consumers want in different parts of the world. Global market research
stems from the same principles as traditional market research, which collects information
about target customers and markets in a particular industry. With the help of global market
research companies, an expanding company can conduct qualitative and quantitative
research to know how well a product will perform in a foreign country because consumers'
tastes and preferences often change from place to place.
Global Market Research Importance
Global market research provides various significant purposes. Below are some reasons
global market research is vital to companies aiming to make a global market appeal.
What works well locally might fall flat internationally
Consumers all have their preferences and tastes, which means that the type of product
they want will also be different. So, it is important to understand the various preferences so
that a company can provide the correct products in the right areas around the world.
In 2006, with the increased growth in the Chinese economy, and the housing market
following suit, Home Depot, one of the largest home improvement retailers, decided to get
into China's market. After opening 12 stores with no increased sales, Home Depot realized
that the Chinese were against doing home renovations themselves and saw it as a sign of
poverty. The belief is opposite to the U.S belief, where home renovations are considered a
hobby.
Helps to Improve Operation and Save Cost
Global market research aids a business in gaining a clearer and more thorough concept
of the new market and the steps needed to operate there. The research helps achieve a
more detailed understanding of the new market and the practical and logistical steps in
working in a new land. Getting the operations right the first time is advantageous as it helps
avoid unnecessary mistakes that might be too costly.
Helps in Understanding Competition
Competition is always a factor when expanding a business in a new country.
Understanding the competition offers excellent chances for a company to compete
effectively and prevent being fully eclipsed by more prominent brands in the country.
Hailo, a U.K.-based taxi app, tried to expand in North America but faced severe
competition from the two main competitors, Lyft and Uber. Despite their large sum of
investment in North America, they had no other option than to give up, as they did not see
the need to compete in the price war between Lyft and Uber when it was already thriving in
Europe.
Global Market Research Components
While taste is a consideration for some products, it is not always the case for all
products. The components to consider include price, product, location, and marketing
Product- product standardization does not always work in new country markets.
Some products need to be altered to fit the country's preference. Good examples are
companies that specialize in products like soaps and shampoos. Such companies need to
consider different skin types and hair types when expanding.
Location- this is mainly important for companies that have adopted online shopping.
Before expanding to new places, such companies need to look into factors like internet
connection and research if the people are conversant with technology.
Marketing- expanding a company to a new country can be scary. A good tip in
marketing might be to start with a country that speaks the same language to help re-use the
same marketing videos like ads, videos, and social posts. Working with a local professional
can also assist the company in knowing the marketing tactics and techniques that appeal to
the new demographic.
Price- expanding to a different country means selling in foreign currencies. There is a
significant need for a company to price the products appropriately. Another critical
requirement is to look into banking options that will assist in managing the new form of
money. Converting the currency into dollars is not free and can reduce the profit margins.
