International marketing exercises group 1

International marketing exercises group 1 International marketing exercises group 1 International marketing exercises group 1 International marketing exercises group 1 International marketing exercises group 1 International marketing exercises group 1

INTERNATIONAL MARKETING GROUP 1The list of members, assigned tasks and their completion status:

EXERCISE 1: 9/6/2023Topic: Cultural impact on International Marketing

1 Definition of culture and material culture and International Marketing

Culture is a concept that has many descriptions The word culture has over 160

definitions in the English language (Jahoda, 2012) The term“culture” can be applied

to a nation, a region, a city, or a single business It influences every aspect of people’slives, includingbusiness, marketing and consumption activities Culture includes

“theideas, values, practices, and material objects that allow a group of people, even anentire society, to carry out their collective lives in relative order and harmony” (Ritzer,2015: 71) Culture is the human-made part of the environment and includes materialculture and subjective (symbolic) culture (Triandis, 2002) There is no clear linebetween material and nonmaterial culture as most material objects have symbolicmeaning, and symbolic culture is manifest in material articles (Ritzer, 2015) Bothaspects of culture have important implications for international marketing activity

Material culture consists of such elements as clothing, food, houses,tools and

machines, works of art, buildings Physical aspects of a culture help to define itsmembers’ behaviors and perceptions For example, technology is a vital aspect ofmaterial culture in developed countries Students must learn to use computers tofunction at university and at work, in contrast to young adults in the traditional

societies of Africa who must learn to build weapons and hunt

The most commonly.cited barriers to communication in international marketing and promotions include:

+ Language and slang

+ Directness of address

+ Eye contact

+ Ethnocentrism

+ Stereotyping

+ Differences in the meanings of nonverbal cues

+ Use of symbols and cultural icons

In general understanding, international marketing is the marketingactivities of a company outside its home country territory Let’s try to know thespecialists' views; I International marketing is the performance of business activitiesdesigned to plan, price, promote and direct the flow of a company's goods andservices to consumers or users in more than one nation for a profit Here the authorhas given priority to the 4Ps of marketing i.e Product, price, place (Outside the homecountry), promotion and distribution The most significant part of this definition

is more than one nation If a transaction occurs inside the territory then it isknown as domestic or native marketing The last and final part is for a profit, if anytransaction occurs without profit then it may be known as donation or grants But to

be an international marketing transaction must have occurred for a profit II.International marketing is the profitable transactions of goods & servicesbetween two or more countries

2 The effect of cultural on International Marketing

A globally integrated marketing communications program requires the strategicmanagement of the firm’s promotions mix :

Culture has a significant impact on international marketing as it affects the way inwhich consumers perceive and respond to marketing messages and behavior Here aresome ways culture impacts international marketing:

in the slogan, it makes the customers think of another sensitive word when there is notonality

2.1.2 Non verbal:

Not only verbally but sometimes people used nonverbal body language orother means of communications like, Proxemics, Postures, Orientations,Oculesics’ Chronemics’ Haptics’ Kinesics’ Paralinguistic Appearances, Olfaction.One particular body sign may carry different opposite meanings to people of differentlanguages

Example:

In Korean, the sign of two fingers crossed means “good luck”, but in Vietnam it is asensitive sign

Besides, showing a thumb to somebody means he is neglecting any effect or actions

of the person at home It is shown in Bangladeshi rural culture Showing a thumb is

a negative sign according to Bangladeshi rural culture But in the Western society itmeans all right A marketer must have to know the local meaning of bodylanguage or postures and gestures that are being used by the general people

of that community Otherwise serious mistakes can be made and allmarket promotions may be worthless

2.2 Social customs and values:

Social customs and values, such as attitudes towards family, religion, and genderroles, vary widely across cultures Marketers need to understand these customs andvalues as they can influence consumer behavior and purchasing decisions

Example 1:

McDonald's - one of the largest fast food chains in the world, currently has more than

400 stores operating in India, all hanging signs that do not serve beef or pork relatedproducts This is because in India, Hindus do not eat beef and they consider it aserious sin, similarly, Muslims do not eat pork So when designing products thatinvolve these sensitive factors, you need to be really careful

2.3 Symbolism and imagery:

Symbols and imagery are often deeply embedded in cultural traditions and can carrydifferent meanings across cultures Marketers need to be aware of the symbolism andimagery used in their marketing communications as they can be interpreted differently

by different cultures

Example 1:

In Zootopia (2016) they use different symbolic animals of the country to appear as thenewscasters for different regions: US as moose, Japan as Tanuki, Australia as Koala,China as Panda, Brazil as Jaguar These actions can be seen as an appropriate action tosuit each country’s culture

Example 2:

Swastika (swastika) is a symbol of divinity and spirituality in Indian religions

(Asia) However, to most Europeans, the Swastika is better known as a symbol

associated with the Nazi regime

2.4 Consumer behavior:

Consumer behavior is heavily influenced by culture Factors such as the importance ofsocial status, the role of family in purchasing decisions, and the level of trust ininstitutions can all vary widely across cultures

2.5 Legal and regulatory frameworks:

Legal and regulatory frameworks, such as advertising laws and product labelingrequirements, can differ across countries and cultures Marketers need to ensure that

their marketing practices comply with these regulations in order to avoid legalconsequences and maintain their reputation.

Example: Copyright regulations In other countries like the US, copyright protectionregulations are very strict but some other countries are the opposite, piracy oftenoccurs

2.6 Color

As one of the important direct eye-catching and attractive elements of design, colorelements have the ability to influence the user's perception of the brand In addition,the meaning behind each color also varies from country to country, culture to culture

Example: in French culture, yellow means deception, forgery, while in Japan, yellow

represents courage, talent, and sophistication Therefore, it is very important to choosecolors that suit the culture of the place you are going

2.7 High and Low- Context Cultures:

2.7.1 Low-context cultures are characterized by explicit verbal or written messages.

Low-context cultures demonstrate high values toward and positive attitudes regardingwords The meaning of a message is mainly contained in the words used Much of theWestern world is historically rich with rhetoric This, in turn, continues to emphasizethe importance of verbal messages Germany, Switzerland, and the United States areexamples of low-context cultures

2.7.2 High-context cultures rely more on symbols and language with less-explicit or

spelled-out codes The meaning of the message is mainly contained in the nonverbalcomponents of the message This includes facial expressions, body language, theperson presenting the message, and the context in which the message is transmitted.High-context communication moves quickly and efficiently Unfortunately, often theverbal messages are less complete, and for those not familiar with the symbols in agiven area, the information becomes difficult to accurately decipher High-contextsocieties are less accessible to outsiders

2.8 Cultural Norms:

Norms are derived from values and defined as rules that dictate what is right orwrong, acceptable or unacceptable

(A) Imperative: What an outsider must or must not do

(B) Exclusive: What locals may do but an outsider cannot

(C) Adiaphora: What an outsider may or may not do

2.9 Cultural Variability:

2.9.1 Power Distance – Power distance means the distance between two people

during mutual interaction We the Muslims and Indian sub continental peopleused to be closer during interaction On the other hand the westernChristians used to hold a gap between two interactive people Muslim think thatwesterns are not friendly and they think Muslims are pushy But it is because of theirculture that power distance is baring here

2.9.2 Uncertainty Avoidance – we are always trying to avoid uncertainty and

happy with what can be found certainly But on the other hand, westerns are risklovers They used to take challenges during any action

2.9.3 Masculinity versus Femininity – Culture defines the priority of decisions in

the family, society and in the country In some tribal communities in thenorthern region of India they are the mother lead society, wealth owner and earningmember is mother in the family As a result women decide what ought to be, whatthey have to do On the other hand in male dominant society fathers are the owners ofwealth and earning members of the family As a result, her father’s decision is thefinal one This masculinity and femininity has a great impact in case of productselection / brand choice and final purchasing decision As a marketer he must have

to know what types of society he is offering products Who has to behighlighted in their promotional campaign and advertisements?

2.9.4 Individualism versus Collectivism – Maximum western countries are

suffering from their individualistic mentality I have this, I have done it, I want it, etc.but in our sub continental culture we think collectively We have this, we have done itand we need it This individualistic and collective thinking has a great effect on theirproduct choice as well as purchase of product

Conclusion

Conclusion from this long discussion it is quite clear that culture has a direct impact

on consumer behavior as well as on their choices, buying behavior and so on As it isimpacting the buying process, it has a great impact on international marketing aswell

An international marketer must have to think first which product he isoffering for whom and their cultural background Because different parts of theworld possess different cultural behavior, different tests, choices, norms,values and attitudes

One marketer must have to promote them according to their choice andbeliefs In this case SRC & Ethnocentrism may be two major barriers So a marketer

in the international market must be aware of his / her SRC &Ethnocentrism Every situation must be translated according to localculture Local culture should be given first priority in case of taking any marketingaction by an international marketer

References:

Slogan Mở lon Việt Nam Coca Cola,

https://copywrite.vn/tin-tuc/slogan-mo-lon-viet-nam-cocacola.html Accessed 9June 2023

“(PDF) Impact of Culture on International Marketing.” ResearchGate, 15 December

2022,

https://www.researchgate.net/publication/228122580_Impact_of_Culture_on_International_Marketing Accessed 9 June 2023

Valades, Brenda “What is the Bottega Veneta marketing strategy? | BluCactus.”

BluCactus digital marketing, 8 February 2022,

https://blucactus.blue/bottega-veneta-marketing-strategy/ Accessed 9 June2023

EXERCISE 2: 16/06/2023

1 Explain Asean free trade area, WTO, EVFTA

1.1 Asean free trade area:

The ASEAN Free Trade Area (AFTA) was established in January 1992 to eliminatetariff barriers among the Southeast Asian countries with a view to integrating theASEAN economies into a single production base and creating a regional market of

500 million people

Most of the Southeast Asian region is now a free trade area, the first six signatories ofthe Common Effective Preferential Tariff scheme for the ASEAN Free Trade Areanamely Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand(collectively referred to as ASEAN-6) Cambodia, Laos, Myanmar and Vietnam(collectively referred to as CLMV) are required to join AFTA upon being admitted tothis block It is currently one of the largest free trade areas in the world

The Agreement on the Common Effective Preferential Tariff (CEPT) Scheme for theASEAN Free Trade Area requires that tariff rates levied on a wide range of productstraded within the region be reduced to no more than five percent Quantitativerestrictions and other non-tariff barriers are to be eliminated

The elimination of tariffs and non-tariff barriers among the ASEAN members hasserved as a catalyst for greater efficiency in production and long-termcompetitiveness Moreover, the reduction of barriers to intraregional trade givesASEAN consumers a wider choice of better quality consumer products

The free trade area covers all manufactured and agricultural products However, 734tariff lines in the General Exception List, representing about 1.09 percent of all tarifflines in ASEAN, are permanently excluded from the free trade area for reasons of

national security, protection of human, animal or plant life and health, and of artistic,historic and archaeological value.

1.2 WTO free trade area

The World Trade Organization (WTO) is the only global international organizationdealing with the rules of trade between nations — is the international organizationwhose primary purpose is to open trade for the benefit of all.WTO is the only globalinternational organization dealing with the rules of trade between nations At itsheart are the WTO agreements, negotiated and signed by the bulk of the world’strading nations and ratified in their parliaments The WTO (World TradeOrganization) has many Free Trade Areas (FTAs) established by member countries.Here are some prominent WTO FTAs:

1 NAFTA: The North American Free Trade Agreement is an FTA between the UnitedStates, Canada and Mexico, signed in 1994

2 CAFTA-DR: The Central American Free Trade Agreement-Dominican Republic is

an FTA between the United States and Central American countries and the CaribbeanCommunity, signed in 2004

3 EU-Korea FTA: Free Trade Agreement between the European Union and Korea,signed in 2011

4 TPP: The Trans-Pacific Partnership is an FTA between 12 countries, includingAustralia, Brunei, Canada, Chile, Korea, Mexico, Japan, New Zealand, Peru,Singapore, USA and Vietnam, signed in 2016

5 CPTPP: The Comprehensive and Progressive Agreement for Trans-PacificPartnership is a new version of the TPP after the US withdrew from it, still includesthe remaining 11 countries and was signed ends in 2018

The WTO is run by its member governments All major decisions are made by themembership as a whole, either by ministers (who usually meet at least once every twoyears) or by their ambassadors or delegates (who meet regularly in Geneva)

The WTO agreements are lengthy and complex because they are legal texts covering awide range of activities But a number of simple, fundamental principles runthroughout all of these documents These principles are the foundation of themultilateral trading system

+ Trade without discrimination

+ Freer trade: gradually, through negotiation

+ Predictability: through binding and transparency

+ Promoting fair competition

+ Encouraging development and economic reform

There are a number of ways of looking at the World Trade Organization It is anorganization for trade opening The goal is to help producers of goods and services,exporters, and importers conduct their business It is a forum for governments to

negotiate trade agreements It is a place for them to settle trade disputes It operates asystem of trade rules Essentially, the WTO is a place where member governments try

to sort out the trade problems they face with each other

1.3 EVFTA free trade

EU-Vietnam Free Trade Agreement (EVFTA) is a new generation FTA betweenVietnam and 27 European Union member states EVFTA and Trans-PacificPartnership (TPP) are two of the largest new generation free trade agreements thatVietnam's largest ever negotiated

On December 1st, 2015, the negotiation rounds of EVFTA was officially announced

to be concluded, and its official full text was published on February 1st, 2016 OnJune 26, 2018, EVFTA was split into two agreements, one is the Trade Agreement(EVFTA), and the other is the Investment Protection Agreement (EVIPA); at the sametime officially ended the legal review process for the EVFTA Agreement In August

2018, the legal review process for EVIPA was also completed

The two Agreements were signed on June 30, 2019 On January 21, 2020, theInternational Trade Committee of the European Parliament (INTA) approved theAgreement, the European Parliament on February 12, 2020 officially approved bothagreements

According to the European Commission, the agreements will provide opportunities toincrease trade and support jobs and growth on both sides, through

+ Eliminating 99% of all tariffs

+ Reducing regulatory barriers and overlapping red tape

+ Ensuring protection of geographical indications

+ Opening up services and public procurement markets

+ Making sure the agreed rules are enforceable

Key areas of commitment in EVFTA include: trade in goods, rules of origin, customsand trade facilitation, the Sanitary and Phytosanitary measures (SPS), The TechnicalBarriers to Trade (TBT),

To sum up, the implementation of the EVFTA allows not only tariffs reduction, butalso removes regulatory barriers and eases all aspects of the import/export process.

2 List the opportunities and threats when Vietnam became a member of Asean and WTO.

2.1 Opportunities and Threats of being a ASEAN’s member

2.1.1 Opportunities:

- Participate in all ASEAN activities

Vietnam has the opportunity to participate in all ASEAN activities in various fieldsincluding economics, culture, education, and technology

- Attract foreign direct investment

As a WTO member, Vietnam is allowed to use 10 percent of its investment capital todevelop the agricultural sector

Joining the ASEAN Economic Community (AEC) and participating in free tradeagreements with ASEAN's partners have provided both opportunities for Vietnam toattract foreign direct investment and serve as a bridge for Vietnam to access potentialmarkets within and outside the region

The most anticipated opportunity, not only for Vietnam but for all ASEAN countries,

is investment and cooperation from large and developed economies The connectivityand establishment of a more unified and integrated ASEAN will make major investorssee ASEAN as a common playing field, a shared workshop where there is a unifiedpool of resources, especially skilled labor at relatively lower costs Attracting moreinvestment implies a faster and more active process of technology transfer

- Expand the market

Having a larger market is another advantage of the AEC through the liberalization ofgoods and services within the ASEAN region This will encourage larger businessactivities and investments in the region Increased foreign direct investment andeconomic activities in the region will naturally lead to an increase in insurancedemand in Southeast Asia Vietnamese enterprises will invest more in production,business, and service activities in other ASEAN countries This presents a greatopportunity for Vietnamese businesses to seize the chance to expand their market.What is more, Vietnam has constantly improved its status in the world It was elected

a non-permanent member of the UN Security Council for a two-year term from 2008

to 2009 This year, as ASEAN chair, it represented the group at the recent G20 summit

in Toronto and last month, Ho Chi Minh city hosted the World Economic Forum onEast Asia

- Expand exports and contributes to the growth of Vietnam's economy

The AEC helps to expand exports and contributes to the growth of Vietnam'seconomy ASEAN is currently Vietnam's leading and important trading partner, and itserves as a driving force for maintaining the country's growth and exports

With the formation of the AEC, Vietnamese businesses can sell their products toASEAN countries almost as easily as selling domestically This is a significantadvantage for the movement of goods for businesses Moreover, import-exportprocedures will be streamlined, and the reform of rules of origin, aiming to allowbusinesses to self-certify origin, will create favorable conditions for businesses tofacilitate the customs clearance of goods to ASEAN markets.

2.1.2 Threats:

- Compared to the original six ASEAN member countries

One of the biggest challenges for Vietnam when joining the AEC is the developmentgap compared to the original six ASEAN member countries (ASEAN-6)

- The issue of low labor productivity

The second challenge for Vietnam is the issue of low labor productivity According tothe International Labour Organization (ILO) report on labor productivity, Vietnam hasthe lowest labor productivity among the Asia-Pacific APEC region Compared toother ASEAN countries, the average labor productivity of Vietnamese workers is lessthan half of that in the Philippines, equivalent to 2 workers in Thailand, and only 5workers in Malaysia Furthermore, the productivity of one worker in Singapore isequivalent to that of 15 workers in Vietnam

- Challenge is the increasing competition

The third challenge is the increasing competition faced by Vietnamese businesses.With the promotion of trade liberalization within the ASEAN Economic Community(AEC), trade barriers and non-tariff barriers among member countries will gradually

be eliminated Vietnamese export products will have to face competition from goodsproduced by other countries in the ASEAN market The formation of the AEC willcreate a common market without trade barriers, services, and capital barriers, therebyintensifying competition for Vietnamese businesses

2.2 Opportunities and Threats of being a WTO’s member

Member countries utilize the WTO as a forum for the negotiation of trade agreementsand as the arbitrator of trade disputes The WTO is often associated with the removal

of trade barriers At the same time, the organization supports some such barriers, such

as those designed to protect consumers, prevent the spread of disease, to serve aspunishment for failing to follow WTO trade rules, or to assist developing markets Incases where barriers exist, the WTO encourages transparency and consistency.Together, these forces increase predictability for outside businesses and investors

2.2.1 Opportunities

- Can access to latest technological advances for national modernisation and industrialisation, enjoy ensured equal access to all member country markets

Vietnam joins the WTO to avoid being solitary in the business world As a MFNstatus country, it is in conformity with the current trend of international trade andVietnam’s interests of national construction and economic development.

Exports bring home capital to import advanced equipment and technologies and otherproducts of an intellectual-based economy Being admitted to the WTO, the tariffbarriers will be removed or reduced, so as the quotas

Products that Vietnam has advantages such as textiles and garments, footwear, coffee,rubber, processed seafood, furniture, electronics appliances will have moreopportunities on the world market

- Attract foreign investment:

Membership in the WTO has made Vietnam an attractive destination for foreigninvestors, particularly those looking to take advantage of the country's low-cost laborand favorable business environment

- More transparent trade practices:

The WTO focuses on transparency The WTO asks member states to set ceilings ontariffs for specific goods Admission to the WTO requires countries to adhere tocertain rules and regulations, which can help to improve transparency and reducecorruption in international trade

- Improved legal framework:

The WTO membership has encouraged Vietnam to develop stronger legal andregulatory frameworks that are compatible with international standards, which canhelp to attract more foreign investment and create a more stable and predictablebusiness environment

2.2.2 Threats

- Integration but not dissolvent

Vietnam integrates but has to maintain national identity as well as the regime’sidentity, always following the policy of independence and self-reliance in economicdevelopment

- Competition are more severe

Once tariff barriers are reduced and quotas abolished, we have to be more competitive.Products of low competitiveness can not be exported On the other hand they will bedefeated by foreign products Thus, domestic businesses might face bankruptcy andthe unemployment rate might rise

- The difference in development level

The development gap between Vietnam and the other ASEAN-6 countries is evident

in various aspects such as the size of the economy's capital, the scale of enterprises,the level of scientific and technical advancements, and labor skills With theimplementation of ASEAN Community Points since 2015, Vietnamese businesses areexpected to encounter intensified competitive pressure from imported goods, products,services, and investments of other ASEAN nations, particularly when non-tariffbarriers are lifted This may lead to certain industries having to downsize production

or even cease operations altogether

- Labor productivity

One of the challenges faced by Vietnam is its low labor productivity The InternationalLabor Organization (ILO) report on labor productivity indicates that Vietnam has thehighest productivity in the Asia-Pacific Economic Cooperation (APEC) region.However, compared to other countries in ASEAN, the average productivity ofVietnamese workers is less than half of that of Philippine workers and only one-fifth

of Thai and Malaysian workers In comparison, one worker in Singapore is asproductive as fifteen Vietnamese workers Many people assume that low productivity

is advantageous because it is often linked to low wages However, the reality is morecomplex Low salaries are only attractive when they are lower than the actualproductivity level, allowing employers to gain an advantage by paying lower wages.Nevertheless, the cost of living in Vietnam has been steadily rising, causing wages toincrease at a faster rate than productivity This trend has eroded the once significantadvantage of cheap labor in the region

References

CƠ HỘI VÀ THÁCH THỨC CỦA VIỆT NAM KHI GIA NHẬP CỘNG ĐỒNG KINH

TẾ ASEAN (n.d.) VNU Retrieved June 16, 2023, from

https://repository.vnu.edu.vn/bitstream/VNU_123/97591/1/Nguyen%20Thi%20Tam.pdf

Cộng đồng Kinh tế ASEAN Cơ hội và thách thức (2021, August 11) Báo điện tử

-Đảng Cộng sản Việt Nam Retrieved June 16, 2023, from

587865.html

https://dangcongsan.vn/thoi-su/cong-dong-kinh-te-asean-co-hoi-va-thach-thuc-Duong, B (2010, July 11) Vietnam as WTO member – advantages and challenges.

Báo Bình Dương Retrieved June 16, 2023, from

https://baobinhduong.vn/en/vietnam-as-wto-member-advantages-and-challenges-a8851.html

Ngozi Okonjo-Iweala (Director-General) (1995, January 01) WTO | What is the

WTO? World Trade Organization Retrieved June 16, 2023, from

https://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm

Vietnam’s joining WTO: opportunities and challenges (n.d.) Smartex Retrieved June

16, 2023, from

https://www.smartex.com.vn/en/market-intelligence/vietnam/wto/76-vietnam-joining-wto-opportunities-and-challenges

WTO AND INTERNATIONAL TRADE CENTER VCCI – SUMMARY OF EVFTA.

(n.d.) Trung tâm WTO Retrieved June 16, 2023, from

https://wtocenter.vn/file/18176/ttwto-tom-luoc-evfta-final eng.pdf

EXERCISE 3: 30/6/2023

1 Describe the basic market research process What types of issues should a researcher consider during each phase with regard to international market research? Which phase is most important?

Describe the basic market research process

The market research process includes 7 steps:

Step 1: Define the problem or situation

The process of correctly defining a company's key situation or problem is crucial foreffective research and decision-making Inadequate problem definition can lead toflawed data and conclusions Cultural differences also need to be considered early on,

as what may be a problem in one market may not be relevant in another due to varyingmarketing practices and consumer behaviors.

Language, behavioral, and cultural differences pose challenges in communicating andunderstanding problems across different markets and stakeholders Identifying theproblem accurately becomes more complex when evaluating products, as consumers

in different countries may have different criteria for satisfaction This can result inconfusion and misunderstandings when analyzing product performance in variousmarkets

To overcome these challenges, researchers need to ensure that problem statementsconsider the cultural context and accurately reflect how products are evaluated in eachspecific market By addressing these factors, market researchers can enhance theirunderstanding of the problem and generate more effective solutions

Step 2: Complete a cost/ benefit analysis

In most business decisions, managers assess the costs and benefits of an activity early

in the process The same holds true for international market research Someinternational research projects may be performed at a relatively low cost Otherresearch techniques involve significant monetary investments

Making the decision to proceed with research requires the marketing team to comparethe importance of obtaining the required information and the time frame within whichthe information will be collected against the value of the benefits of acquiring theinformation and the overall difficulty in obtaining the data The availability and type

of information needed to address the problem can drive up costs The overall researchbudget influences these decisions Sufficient resources should be available to conductquality research

Step 3: Develop a research design

Several issues emerge when developing the design of the research,in both domesticand international markets Decisions will be made regarding the use of primary and/or

secondary research techniques,a micro- or macro-level analysis, and whether toemploy quantitative or qualitative methods.

Step 4: Develop a sample

Sampling is a process wherein members of a population are selected for inclusion in aresearch study because they will be representative of the larger group Deriving thecorrect type of sample based on the information needed remains a key part ofinternational marketing research

Step 5: Collect data

- Primary data (data that are gathered by the researcher or research team for a specificproject)

Primary data take many forms, including:

● Questionnaires: The items should be carefully translated to the language of thetarget market to make certain no confusion emerges

● Telephone and Internet Survey: The data gathered through an interview processwill only be as effective as the skill levels of those conducting the interviews

● Interview of Customer: Primary data may be collected by interviewingcustomers in a store after they have purchased items, a technique known as themall intercept method, or by questioning members in a focus group

● Ethnographic Studies: An ethnographic study takes place when a researcherstudies respondents in their native environment by living with them

● Observational Studies: Observational studies focus on observing consumers asthey shop, as they interact in the marketplace, or as they use products in thehome

- Secondary data (data that have already been collected by an agency and are madeavailable either free of charge or for a fee)

Secondary Sources for International Market Research including:

● U.S Department of Commerce

● U.S Department of Commerce International Trade Association

● Euromonitor

● Organization of Economic Co-operation and Development

● International Monetary Fund

● CIA-The World Factbook

- Macro-Level Analysis

A macro-level analysis often occurs at the national level The Selection of a country toenter requires research devoted to political and legal risk, which, in turn, affects theselection of target market in various countries Most research projects that assess othercountries require both micro- and macro-level data collection

Step 7: Formulate conclusions and write a report

The final step in the international market research process is formulating conclusionsand writing the research report It would be the responsibility of the marketingresearcher to present this information in a manner that earns the executive’sconfidence

What types of issues should a researcher consider during each phase with regard tointernational market research?

In international marketing, conducting quality research requires objectivity and theability to adapt to a changing global environment

● Objectivity: Researchers should strive for impartiality and avoid personalbiases or preconceived notions that may influence data collection, analysis, andinterpretation Objectivity helps ensure that research findings accurately reflectthe reality of the international market and minimize potential errors ordistortions

● The Pace of Change: The global business environment is dynamic andconstantly evolving Researchers should be aware of the rapid changes inconsumer preferences, market trends, technology advancements, andcompetitive landscapes They need to adapt research methodologies and stayupdated with the latest developments to provide relevant and timely insights.Research techniques and conclusions must exhibit reliability and validity to be of use

● Reliability and Validity: Research techniques should be designed to generatereliable and consistent results This involves using standardized data collectionmethods, ensuring data accuracy, and conducting rigorous analysis Validityrefers to the extent to which research measures what it intends to measure.Researchers should use valid research instruments and methodologies thatcapture relevant and meaningful data

Other obstacles include political and legal risks that might occur to obstruct researchefforts

● Political Risk: Political factors, such as changes in government policies, traderegulations, or political instability, can pose risks to research efforts.Researchers need to be aware of these factors and their potential impact on datacollection or access to information

● Legal Risk: Legal considerations, including intellectual property rights, privacyregulations, and data protection laws, vary across countries Researchers mustadhere to legal requirements and ethical guidelines in data collection, storage,and analysis They should also be aware of any potential legal risks that couldhinder or impact their research activities

Which phase is most important?

All phases of international market research are important and interconnected Eachphase contributes to the overall success of the research process and provides valuableinsights for decision-making However, the first stage problem definition is the mostimportant If you have the wrong problem identified, you can do every other stepperfectly, but your results will be meaningless

2 Discuss the advantages and disadvantages of secondary and primary research Which type of research is probably best for micro-level analysis? For a macro-level analysis?

Primary research

Primary research is also called field research According to Gratton & Jones (2009)primary research refers to research that has involved the collection of original dataspecific to a particular research project, for example through using research methodssuch as questionnaires or interviews

Secondary research

Secondary research is also called desk research In this type of research, the researcherwill not collect any primary data and rely on existing sources of data Marketingresearch reports, census, company websites, news reports, magazine articles are some

of the sources of secondary data Secondary research is usually carried out at home orlibrary with the help of both the Internet and printed materials

Research

- Originality: Primary researchprovides fresh and unique data thathasn't been collected before,allowing researchers to explore newareas of study and generate novelinsights

- Specific: Primary research meets the

specific needs of the researchers As

it is based on the collection oforiginal data, the researchers can bevery specific about its aims,objectives, and rationale (Young,2022) It is up to date and providesmore detailed insights as well

- Accuracy and Reliability:

Researchers can ensure the accuracyand reliability of the data by directlycollecting it themselves, reducing thepotential for errors or biasesintroduced by secondary sources

- Greater control: Researchers have a

good level of control in primaryresearch They may decide who theresearch respondents are, how theyare hired, the size of sample,sampling strategies etc

- Flexibility: Primary researchmethods offer flexibility in terms ofdata collection techniques, samplesizes, and customization, allowing

- Time- consuming: Collecting

primary data is oftentime-consuming and difficult.PPrimary research can betime-consuming due to theneed for planning, participantrecruitment, data collection,analysis, and interpretation Itrequires substantial resourcesand may delay the researchprocess

- Costly: Primary research is

often more expensive thansecondary research because itrequires more time andresources to collect the data.Conducting primary researchoften involves expenses such asparticipant incentives,equipment, materials, andpersonnel These costs can besignificant, especially forlarge-scale studies

Misleading information: If the

sample is not big enough, theresults of the research may bemisleading Therefore, theresearcher has to select a goodresearch sample Similarly,biasness may occur as well

researchers to adapt and modify theirapproach as needed.

- Proprietary rights: The dataobtained through primary research isowned by the researcher or theorganization funding the research,making it inaccessible to others

Additionally, researchers can derive

a sense of accomplishment fromtheir work

raising concerns about thevalidity of the research

- Potential bias: Researchers

may introduce unintentional biasduring data collection oranalysis, which can affect thevalidity and objectivity of thefindings Careful design andrigorous methodology arenecessary to minimize bias.- Limited generalizability:

Since primary research focuses

on specific samples orpopulations, the findings maylack generalizability to largerpopulations or different contexts

characteristics may limit theexternal validity of the results

Secondary

Research

-Time and Cost-Efficient: Secondary

research saves time and resources sincethe data already exists and does notrequire the researcher to collect newinformation It can be morecost-effective compared to primaryresearch, which may involve expensessuch as participant recruitment or datacollection

- Affordable: Secondary research is

usually cheaper than primary research

- Lack of Control: Researchers

have limited control over the datacollection process in secondaryresearch The data may have beencollected using methods that don'talign perfectly with theresearcher's specific objectives,leading to potential limitations orbiases

- Not specific: Secondary data may

not be specific sometimes Inmany cases, it is not presented in away that would exactly addressthe researchers’ needs

- Data Quality: The quality and

accuracy of secondary data can

As the research is carried out mostly

indoors, it does not usually cost that

much Similarly, a lot of online data

and information are now-a-days

available free of cost

- Supplementing Primary Research:

Secondary research complements

primary research by providing

background information, context, or

validation for primary findings It can

support or enrich the insights gained

through primary research

- Accessibility: Many secondary

research sources are readily available

and accessible, such as published

books, articles, or online databases

Researchers can access a wide range of

information conveniently

- Large Sample Size: Secondary

research often utilizes large datasets,

allowing for broader population

representation and enabling researchers

to draw conclusions with greater

statistical power

vary Depending on the source,secondary data may be outdated

or incomplete, particularly inrapidly evolving fields It may notcapture the most recentdevelopments or changes, leading

to potential gaps in knowledge.Researchers must carefullyevaluate the reliability andvalidity of the sources they use toensure the credibility of the data

- Insufficient Contextual Information: Secondary research

often provides summarized orgeneralized data without detailedcontextual information specific tothe researcher's needs This maylimit the depth of analysis orunderstanding

- For micro - level analysis : Primary research is often regarded as the most

suitable method Micro-level analysis involves closely studying specificindividuals, small groups, or localized phenomena Primary research enablesresearchers to directly collect firsthand data from the target population or

individuals of interest, leading to a deeper understanding of their attitudes,behaviors, and experiences.Primary research techniques like surveys,interviews, observations, or experiments can be customized to capture precisedetails and subtle nuances at the micro-level Researchers have the ability tocontrol the data collection process, allowing for in-depth examination ofspecific data points or variables This level of control and customization isessential when conducting micro-level analysis to gain insights intoindividual-level characteristics, interactions, or contextual factors.Furthermore,primary research empowers researchers to investigate emerging or uniquemicro-level phenomena that may not have been extensively explored before Itfacilitates the collection of original data, which can contribute to thedevelopment of new theories or models at the micro-level.

- For Macro - level analysis: Secondary research is often considered the most

suitable approach Macro-level analysis involves studying large-scalephenomena, trends, or patterns across populations, regions, or countries.Secondary research involves utilizing existing data collected by others forvarious purposes, such as government reports, statistical databases, academicpublications, or market research reports.By using secondary research,researchers gain access to extensive datasets that encompass broad populations

or geographic areas This allows them to analyze trends, correlations, orassociations at a macro-level Secondary research provides a cost-effective andtime-efficient method to examine large samples and draw conclusions that can

be generalized.Through secondary research, researchers can make use ofhistorical or longitudinal data to investigate changes over time and makecomparisons between different periods They can identify overarching patterns

or trends in social, economic, or demographic indicators.Furthermore,secondary research enables researchers to capitalize on the expertise andknowledge accumulated from previous studies conducted by experts in thefield They can build upon existing theories or models and extract insights from

a wide range of sources without the need for extensive primary data collection

3 Using reliable online resources, prepare a critical review of big data (lanh)

Big data is a term that describes the large volume of data that an organization receives

on a daily basis Big data is being generated at all times Data can either be created bypeople or generated by machines, such as sensors gathering climate information,satellite imagery, digital pictures and videos, purchase transaction records, GPSsignals, etc It covers many sectors, from health care to transport and energy Systems,sensors, and mobile devices transmit it Big data arrives from multiple sources at alarge velocity, volume, and a wide variety

The amount of data available may not be the most crucial factor in marketingprograms Instead, what organizations do with the data is what matters Two commonproblems at this point include linguistic difficulties and metric equivalence issues(Okazaki and Mueller, 2007) and more

Benefits:

1 Data-driven decision making:

Big data provides organizations with vast amounts of information that can be analyzed

to make well-informed decisions By analyzing patterns, trends, and correlationswithin the data, businesses can gain valuable insights, identify opportunities, andmake data-driven decisions to improve their operations, products, and services

2 Improved operational efficiency:

Big data analytics can help optimize and streamline business processes by identifyingbottlenecks, inefficiencies, and areas for improvement By analyzing large volumes ofdata in real-time, organizations can make adjustments and optimizations to enhanceoperational efficiency, reduce costs, and increase productivity

3 Enhanced customer experiences:

Big data allows businesses to gain a deeper understanding of customer behaviors,preferences, and needs By analyzing customer data from various sources such associal media, online interactions, and purchase history, companies can personalize

their marketing efforts, tailor their products or services, and provide more targeted andrelevant customer experiences.

4 Risk management and fraud detection:

Big data analytics can play a crucial role in risk management and fraud detection Byanalyzing large datasets and applying advanced algorithms, organizations can detectanomalies, unusual patterns, and potential risks in real-time This enables proactivemeasures to mitigate risks, prevent fraudulent activities, and enhance security

Challenges:

1 Linguistic problem

International market research can be complicated by linguistic issues, where differentmeanings for terms create challenges Commonly used concepts like "satisfaction" and

"feelings" should be thoroughly examined to grasp their cultural variations The term

"late" demonstrates diverse interpretations influenced by language and culture InFrench, "en retard" translates to "not on time," while "later" and "latest" roughlyconvey the idea of being "more not on time” When formulating research questions,careful consideration and adaptation are necessary

2 Metric Equivalence Issues

Metric equivalence issues occur when individuals from different countries consistentlyassign different scores to interview or survey questions (Mullen, 1995) The presence

of diverse response styles influenced by cultural differences can significantly impactthe outcomes of research (Kumar, 2000)

In societies that prioritize collectivism, individuals are less inclined to expressstrongly polarized attitudes in both face-to-face interactions and survey research Thisaspect has implications for research outcomes in countries like China, Vietnam,Korea, and Taiwan Conversely, American consumers tend to be more open toexpressing extreme positions on measurement scales, which may not hold true forconsumers belonging to other cultural backgrounds

3 The ability to process vast amount of data

Among the many BD challenges the large datasets (in terms of size and complexity)and the ability to process vast amount of data remains a critical challenge for outdateddata processing applications and, relational database management systems.According

to TDWI Predictive Analytic Study (Russom, 2013), there are several BD challengesposing a peril to organizations – among these are, integrating complex and largedatasets, getting started with the right BD project, developing and implementinginfrastructure for managing and processing BD and a lack of skilled personnel or staffwith analytics skills to make sense of BD

a) Volume (e.g large data-sets consisting of terabytes, petabytes, zettabytes ofdata – or even more): Large scale and the sheer volume of data is a bigchallenge in its own right The latter argument is also supported by Barnaghi et

al (2013) that state the heterogeneity, ubiquity, and dynamic nature of thedifferent data generation resources and devices, and the enormous scale of dataitself, make determining, retrieving, processing, integrating, and inferring thephysical world data

b) Variety (text/image/multimedia content/audio…): Data challenges related to thevariety (i.e diverse and dissimilar forms) of data are also deemed a challenge.These articles revealed that the enormous volume of data is not consistent nordoes it follow a specific template or format – it is captured in diverse forms anddiverse sources e.g.: messages – user generated content, transactionaldata, These different forms and quality of data clearly indicate thatheterogeneity is a natural property of BD and it is a big challenge tocomprehend and manage such data (Labrinidis & Jagadish, 2012)

c) Veracity (e.g increasingly complex data structure, anonymities, imprecision orinconsistency in large data-sets): This is not merely about data quality – it ismore about understanding the data, as there are integral discrepancies in almostall the data collected IBM came up with this characteristic of data, whichrepresents the untrustworthiness inherent in many sources of structured as well

as unstructured data Akerkar (2014) and Zicari (2014) refer to veracity as

coping with the biases, doubts, imprecision, fabrications, messiness andmisplaced evidence in the data Veracity feature measures the accuracy of dataand its potential use for analysis (Vasarhelyi, Kogan, & Tuttle, 2015).

d) Velocity (e.g high rate of data inflow with non-homogenous structure): Thechallenge of velocity comes with the requisite to manage the high influx rate ofnon-homogeneous data, which results in either creating new data or updatingthe existing data (Chen et al., 2013) This mainly applies to those datasets thatare generated through large complex networks including data generated by theproliferation of digital devices, which are positioned ubiquitously resulting indriving the need for real-time analytics and evidence-based planning (Lu, Zhu,Liu, Liu, & Shao, 2014)

4 Visit a number of the Internet resources that present secondary data for international market researchers What type(s) of information do you find? How

do you think these sources could be used for international market research?

Secondary sources of information may be divided into two categories: internal sources and external sources.

- Internal sources of secondary information

Sales data: All organizations collect information in the course of their everyday

operations Orders are received and delivered, costs are recorded, sales personnelsubmit visit reports, invoices are sent out, returned goods are recorded and so on.Much of this information is of potential use in marketing research but a surprisingamount of it is actually used Organisations frequently overlook this valuable resource

by not beginning their search for secondary sources For example, consider how muchinformation can be obtained from sales orders and invoices:

● Sales by territory

● Sales by customer type

● Prices and discounts

● Average size of order by customer, customer type, geographical area

● Average sales by salesperson

● Sales by pack size and pack type, etc

This type of data is useful for identifying an organization's most profitable productand customers It can also serve to track trends within the enterprise's existingcustomer group.

Financial data: An organization has a great deal of data within its files on the cost of

producing, storing, transporting and marketing each of its products and product lines.Such data has many uses in marketing research including allowing measurement ofthe efficiency of marketing operations It can also be used to estimate the costsattached to new products under consideration, of particular utilization (in production,storage and transportation) at which an organization's unit costs begin to fall

Transport data: Companies that keep good records relating to their transport

operations are well placed to establish which are the most profitable routes, and loads,

as well as the most cost effective routing patterns Good data on transport operationsenables the enterprise to perform trade-off analysis and thereby establish whether itmakes economic sense to own or hire vehicles, or the point at which a balance of thetwo gives the best financial outcome

Storage data: The rate of stock turn, stock handling costs, assessing the efficiency of

certain marketing operations and the efficiency of the marketing system as a whole.More sophisticated accounting systems assign costs to the cubic space occupied byindividual products and the time period over which the product occupies the space.These systems can be further refined so that the profitability per unit, and rate of sale,are added In this way, the direct product profitability can be calculated

- External sources of secondary information

The main sources of external secondary sources are (1) government (federal, state andlocal) (2) trade associations (3) commercial services (4) national and internationalinstitutions

Government statistics These may include all or some of the following:

· Population censuses

· Social surveys, family expenditure surveys

· Import/export statistics

· Production statistics

· Agricultural statistics

Trade associations Having a wide difference in the extent of their data

collection and information dissemination activities.However, it is worth checking with them to determinewhat they do publish At the very least one wouldnormally expect that they would produce a tradedirectory and, perhaps, a yearbook

Commercial services Published market research reports and other

publications are available from a wide range oforganizations which charge for their information.Typically, marketing people are interested in mediastatistics and consumer information which has beenobtained from large scale consumer or farmer panels.The commercial organization funds the collection ofthe data, which is wide ranging in its content, andhopes to make its money from selling this data tointerested parties

National and international

institutions

Bank economic reviews, university research reports,journals and articles are all useful sources to contact.International agencies such as World Bank, IMF, IFAD,UNDP, ITC, FAO and ILO produce a plethora ofsecondary data which can prove extremely useful to themarketing researcher

To make sure that these sources could be used for international market research, thenext step is to analyze and interpret the secondary data following the below process

● Extract and process the relevant information from the secondary data that youhave collected

● Organize and categorize the data according to your research objectives andquestions.

● Compare and contrast the data from different sources and perspectives, andlook for patterns, trends, gaps, or inconsistencies

● Use appropriate methods and tools to analyze and visualize the data, such ascharts, graphs, tables, or dashboards

● Interpret the data in the context of your product development, and drawconclusions and implications from the data

5 Case 8: Nestle – Researching on the confectionary market

5.1 What issues of confectionery consumption and expectations exactly should be researched at this stage of product development?

The issues with confectionery consumption and expectations that should be researched

at this stage of product development are specific health and wellness Nestle hasbegun to concentrate its success on their nutrition, health, and wellness

At this stage of product development for the new healthy fruit and nut bar, Nestléshould consider researching the following issues related to confectionery consumptionand expectations:

1 Consumer preferences: Understanding the specific preferences of consumers when

it comes to confectionery products is crucial Research should focus on determiningwhat flavors, ingredients, or combinations are most appealing to consumers whenchoosing a healthy fruit and nut bar

2 Nutritional expectations: It is important to understand what nutritional aspectsconsumers are looking for in a healthy fruit and nut bar This can include factors such

as desired protein content, low sugar levels, natural ingredients, or specific dietaryrequirements (e.g., gluten-free, vegan)

3 Packaging and presentation: The overall visual appeal and packaging of the productcan significantly impact consumer perception and purchase decisions Research

should explore what types of packaging, branding, and presentation are mostappealing to consumers in the confectionery market.

4 Price sensitivity: Understanding the price sensitivity of cons

Consumers in the confectionery market is essential Research should aim to determinewhat price range consumers are willing to pay for a healthy fruit and nut bar, takinginto consideration factors such as perceived value, affordability, and the presence ofcompeting products

5 Distribution channels: Identifying the preferred distribution channels forconfectionery products, specifically healthy fruit and nut bars, is critical Researchshould explore whether consumers prefer purchasing these products from traditionalgrocery stores, specialty health food stores, online platforms, or other channels

6 Consumer perceptions and misconceptions: Research should help identify anymisconceptions or misperceptions consumers may have about healthy fruit and nutbars This can include understanding any potential hesitations or skepticism related tothe taste, texture, or overall quality of such products

By researching these key issues, Nestlé can gain valuable insights into consumerpreferences and expectations, allowing the company to develop a product that meetscustomer needs and stands out in the confectionery market

5.2 What secondary data would be helpful in conducting initial market analysis?

When conducting an initial market analysis, several secondary data sources can behelpful Here are some examples:

1 Market reports and research studies: These provide valuable insights into thecurrent trends, market size, growth rate, competitive landscape, and key players in theindustry

2 Government publications: Governments often publish data related to marketindicators, economic trends, and industry-specific information

3 Trade associations and industry organizations: These organizations often releasereports, statistics, and trends relevant to specific industries They can provideinformation on market size, consumer behavior, and industry benchmarks.

4 Company websites and annual reports: By studying the websites and annual reports

of competitors or leading companies in the industry, you can gain valuableinformation about their market positioning, product offerings, target audience, andfinancial performance

5 Online databases: There are various online databases available that provide access

to market research reports, industry analyses, and industry-specific statistics

6 Social media and online communities: Monitoring discussions, reviews, andcomments on social media platforms and online communities can provide insights intoconsumer preferences, needs, and sentiment

7 Academic research papers: Published research papers can offer in-depth analyses ofspecific market segments, emerging trends, and technological advancements

8 News sources: News articles, business magazines, and industry-specific blogs canprovide up-to-date information on market trends, competitor activities, and industrydevelopments

5.3 What type(s) of research would need to be performed in order to establish what products should be developed?

- Consumer surveys or questionnaires to gather quantitative data on preferences,perceptions, and purchasing behaviors related to fruit and nut bars

- Focus groups or in-depth interviews to explore consumer motivations, needs,and attitudes towards healthy confectionery options

- Concept testing to evaluate consumer reactions and feedback on potentialproduct ideas or prototypes

- Market trend analysis and competitor research to understand the currentlandscape, identify gaps, and assess the potential demand for new products

- Packaging and labeling research to ensure compliance with local regulationsand appeal to the target consumer segment.

To determine what products should be developed, market researchers typicallyconduct various types of research to gather relevant information and insights Thespecific types of research that would be needed can vary depending on factors such asthe industry, target market, and business objectives Here are some common researchmethods used to establish product development:

- Market Needs Assessment: This research involves understanding the needs,preferences, and pain points of the target market It includes conducting surveys,interviews, and focus groups to gather customer feedback and insights The goal is toidentify gaps in the market and uncover unmet needs that can be addressed throughproduct development

- Competitive Analysis: Researching and analyzing the competitive landscape helps inunderstanding existing products in the market and identifying opportunities fordifferentiation This involves studying competitors' products, pricing, distributionchannels, and marketing strategies to identify gaps or areas where a new product canhave a competitive advantage

- Trend Analysis: Monitoring industry trends, consumer behavior, and technologicaladvancements is essential to stay ahead in product development Researching markettrends, consumer preferences, and emerging technologies helps in identifying potentialproduct opportunities and aligning them with evolving market demands

- Feasibility Studies: Conducting feasibility studies involves assessing the technical,financial, and operational viability of developing a particular product This researchexamines factors such as production costs, manufacturing capabilities, supply chainrequirements, regulatory considerations, and potential return on investment

- Concept Testing: Concept testing research involves presenting potential productideas or prototypes to target customers to gauge their interest, feedback, and purchase

intent This helps in evaluating the market appeal and acceptance of different productconcepts before investing significant resources in development.

- Market Segmentation: Segmenting the market based on demographic,psychographic, or behavioral characteristics can provide valuable insights into specificcustomer groups This research helps identify niche markets or target segments withspecific product needs, allowing for more focused product development efforts

These are just a few examples of the types of research that may be conducted toestablish what products should be developed The specific research methods andapproaches chosen will depend on the nature of the business, target market, availableresources, and research objectives

5.4 Prepare a research proposal for detailing the following:

1 Research objectives

- To assess consumer perceptions of Nestle products

- To measure consumer satisfaction levels with Nestle products

- To identify the factors influencing consumer perceptions and satisfaction

- To examine the relationship between consumer satisfaction and brand loyaltytowards Nestle

- Understand consumer preferences and expectations for healthy fruit and nutbars in Eastern Europe

- Identify the key attributes, flavors, and packaging features that resonate withconsumers

- Determine the target consumer segments for the new product based on theirpreferences and needs

- Assess consumer perceptions of healthfulness and willingness to try newconfectionery options

- Evaluate the market potential and competitive landscape for fruit and nut bars

in Eastern Europe

2 Sampling approach and sample structure

a) Sampling Approach:

A systematic sampling approach will be used to select participants for this study Thismethod involves randomly selecting individuals from a list of potential participantswith a predetermined sampling interval The systematic sampling approach ensures arepresentative sample while maintaining simplicity and efficiency.

- Random sampling approach to ensure representativeness of the target consumerpopulation

- Sample size of at least 500 respondents from Eastern European countries,considering demographic factors such as age, gender, and location

- Stratified sampling to ensure adequate representation of different regionswithin Eastern Europe

b) Sample Structure:

The target population for this research includes consumers who have purchased andconsumed Nestle products within the past six months The sample will be drawn fromdifferent demographic segments, including age groups, gender, and geographiclocations, to ensure diversity and representativeness The sample size will bedetermined based on statistical power calculations to ensure sufficient statisticalsignificance

3 Specific research methods to be used

a) Questionnaire Design:

A structured questionnaire will be developed to collect quantitative data regardingconsumer perceptions, satisfaction levels, and factors influencing their attitudestowards Nestle products The questionnaire will include both closed-ended andLikert-scale questions to enable efficient data collection and analysis

b) Data Collection:

Data will be collected through online surveys distributed to the selected sample ofconsumers Online surveys provide a convenient and cost-effective method forcollecting data from a geographically dispersed sample Additionally, online surveysallow for efficient data management and analysis

c) Data Analysis:

Quantitative data collected through the questionnaires will be analyzed usingstatistical techniques such as descriptive statistics, correlation analysis, and regressionanalysis These analyses will help identify patterns, relationships, and significantfactors influencing consumer perceptions, satisfaction levels, and brand loyaltytowards Nestle products

4 Materials needed:

To conduct this research, the following materials will be required:

- Questionnaire development software (e.g., SurveyMonkey or Qualtrics) forcreating the online survey

- Internet access for distributing the survey and collecting responses

- Statistical analysis software (e.g., SPSS or R) for data analysis

- Computing resources for data storage and analysis

5.5 What aspects of consumer behavior with regard to conducting market research should be considered when conducting consumer research in Eastern Europe?

When conducting consumer research in Eastern Europe, it is important to consider thefollowing aspects of consumer behavior:

1 Cultural and social factors: Cultural values, norms, and traditions play a significantrole in shaping consumer behavior It is essential to understand the cultural context ofEastern European countries and how it influences consumer preferences, attitudes, andpurchasing decisions

2 Economic factors: Economic conditions, such as income levels, employment rates,and inflation, can impact consumer behavior Eastern European countries havedifferent economic systems, and understanding the economic factors that influenceconsumer behavior is crucial for effective market research

3 Political and legal factors: Political stability, government regulations, and legalframeworks affect consumer behavior Researchers need to consider the political andlegal context of the specific Eastern European country they are targeting to understandhow it influences consumer behavior and market dynamics.

4 Technology adoption: Eastern European countries have varying levels oftechnology adoption and internet penetration rates Researchers should consider therole of technology in consumer behavior, such as online shoppi ng habits, social mediausage, and digital communication preferences

5 Consumer attitudes and motivations: Investigating consumer attitudes, motivations,and values is essential to gain insights into their decision-making processes.Understanding why consumers prefer certain products or brands, their level of brandloyalty, and their perception of quality and value for money is crucial for effectivemarket research

6 Communication channels: Eastern Europeans may have different preferredcommunication channels for receiving product information and making purchasingdecisions Understanding these channels, whether it is through traditional media,online platforms, or word-of-mouth, is important for effective consumer research

7 Social influences: Social networks, family dynamics, and peer groups have asignificant impact on consumer behavior Researchers should consider the influence ofsocial relationships and reference groups on consumer decisions in Eastern Europeancountries

It is important to recognize that consumer behavior can vary across countries withinEastern Europe Therefore, conducting localized research and understanding thespecific context of each country is necessary to obtain accurate and insightful results

References

Advantages and disadvantages of primary and secondary research (2023, January

Case 8.docx - Nestle: Researching the Confectionary Market 1 What issues of

confectionery consumption and expectations exactly should be researched at.

(n.d.) Course Hero Retrieved June 30, 2023, fromhttps://www.coursehero.com/file/80257750/Case-8docx/

Chapter 2: Secondary Sources Of Information (n.d.) Food and Agriculture

https://www.fao.org/3/w3241e/w3241e03.htm

Sage Publishing (n.d.) Review Questions and Discussion Questions.

https://study.sagepub.com/baack2e/student-resources/chapter-8/review-questions-and-discussion-questions

EXERCISE 4: 7/7/2023

I Using the Internet, identify consumer market segments in India for two types

of music: traditional Indian folk songs and music from other countries, including classical, rock, hip-hop, and country and western Then, match each of these forms of music using the various forms of consumer market segmentation presented in this chapter.

Consumer market segments in India:

Geographic Segmentation:

● Urban and metropolitan areas: India has several large cities and developedurban areas, which serve as cultural and entertainment hubs The music market

in cities like Mumbai, Delhi, Kolkata, and Bengaluru is more vibrant compared

to rural areas and countryside

● Rural and countryside areas: Although the music market in rural andcountryside areas is less developed, there is still a demand and preference formusic, especially traditional folk music and popular Bollywood hits

Demographic Segmentation:

● Age: The music market in India is diverse in terms of age groups, ranging fromteenagers to middle-aged and elderly individuals.

● Gender: Both males and females participate in the music market in India,although music preferences may differ between the two genders

Psychographic Segmentation:

● Music enthusiasts: There are individuals who have a passion for music in India,ranging from passive listeners to active participants involved in music-relatedactivities such as composing, performing, or learning music

● Music preferences: The music market in India is diverse in terms of genres,including traditional folk music, Bollywood, and international genres such aspop, rock, hip-hop, and EDM Consumers have different preferences anddemands for these music genres

Usage Segmentation:

● Online music streaming: With the development of online music platforms likeSpotify, Gaana, and JioSaavn, Indian users are increasingly inclined to listen tomusic through the internet and mobile applications

● Participation in music events: Live music performances, workshops, and musicfestivals are widely organized in India, attracting music enthusiasts andenhancing audience engagement and participation

Geodemographic Segmentation:

● Urban centers: Consumers residing in major cities and urban areas tend to haveeasier access to music events, record stores, shopping centers, and online musicplatforms

● Rural areas and countryside: Residents in rural areas have access to traditionalfolk music and community music events

Benefit Segmentation:

● Entertainment and Relaxation:

Benefit: Consumers seek music for entertainment, relaxation, and escapism from dailystress

Segment: This group may be interested in genres such as easy-listening music,meditation music, and soothing background music

Self-expression and Personal Freedom:

Benefit: Music serves as a means of self-expression and fosters personal freedom andcreativity

Segment: This group may search for unique, diverse, and creative genres like rock,hip-hop, EDM, and indie music

Social Connection and Community Bonding:

Benefit: Music has the ability to create a sense of community bonding and socialconnection through shared music interests