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Analysis Interpretation and Report Presentation


Analysis, Interpretation and Report Presentation

Analysis, interpretation & report presentation:

Marketers / researchers should ensure that the following aspects are addressed in the research analysis
– data source must be identified
– data projection must be explained
– identify those interviewed
– highlight alternative courses of action

for translation of questionnaires and the international marketing research analysis report the
following should be observed;
• equivalence of language
• method of translation (different cultural & linguistic backgrounds lead to different ways of
perceiving the world)
• measurement & instrumentation

Problems in international marketing research:

Problems of numerous markets:

– definition error caused by the way problem is defined
– instrument error which arises from questionnaire and the interviewer
– frame error - occurs when sampling frames are available from different sources in different
– selection error which results from the way actual sample is selected from the frames
– non-response error - which results when different cultural patterns of non-response are obtained
Problems with data:

secondary data - comparing several markets
primary data
• language
• social organization
• obtaining responses
• infrastructure constraints
• convergence / divergence of consumer behavior across cultures

Research techniques for analyzing international data:

Demand Pattern Analysis

– Industrial growth patterns provide an insight into market demand. Because they generally reveal
consumption patterns, production patterns and are helpful in assessing market opportunities.

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Additionally, trends in manufacturing production indicate potential markets for companies that
supply manufacturing inputs. At the early stages of growth in a country, when per capita incomes
are low, manufacturing centers on such necessities as food and beverages, textiles, and other
forms of light industry. As incomes rise, the relative importance of these industries declines as
heavy industry begins to develop. Countries at different levels of per capita income, thus, have
diverse patterns of consumption & production. Such data can be gathered on macro levels for
most countries. This simple technique, known as multiple-factor index approach, allows insights
into consumption-production profiles of many countries. Though relatively crude, it gives a clue
both to a country’s present position and the direction it is going. This in turn helps the firm
identify possibilities for export or local production in that market.
Multiple-Factor Indexes

A multiple-factor index measures market potential indirectly, using as proxies a number of
variables that intuition or statistical analysis reveal to be closely correlated with the potential for
the product in question. A model for forecasting the demand for television sets in international
markets could be a function of the market size for TV and consumer’s capacity to by TV. Market
size can be indicated by the proxy variables of number of households, percent of literacy, percent
of urbanization etc. Capacity to buy can be indicated by per capita income, index of standard of
living, price per unit, and price per unit relative to per capita income etc.

Income Elasticity Measurements

– Income elasticity describes the relationship between demand for a good and changes in income.
Studies have shown that basic necessities such as food and clothing are characterized by inelastic
demand. Stated differently, expenditures on products in these categories increase but at a slower
percentage rate than do increase in income. Demand for durable consumer goods such a furniture
and appliances tends to be income elastic, increasing relatively faster than increase in incomes.
Market Estimation by Analogy

– For countries with limited data, estimating market potential can be a precarious exercise. Given
the absence of hard data, one technique - estimation by analogy - can be useful in getting better
feel for market potential in such countries. This estimation is done in two ways:

The cross-section comparison approach involves taking the known market size of a product
in one country and relating it to some economic indication, such as disposable personal
income, to derive a ratio. This ratio (of product consumption to disposable personal income in
above illustration) is then applied to another country where disposable personal income is
known in order to derive the market potential for the product in that country.

• The time-series approach estimates the demand in the second country by assuming that it
has the same level of consumption that the first country had at the same level of development
(or per capita income) at a different point in time.

Comparative Analysis

– One of the unique opportunities in global marketing analysis is to conduct comparisons of market
potential and market performance in different country markets at the same point in time.
– Gap analysis analyzes the difference “gap” between estimated total market potential and a
company’s sales. The gap can be divided into four categories: Usage gap, Competitive gap,
Product-line gap, Distribution gap

Cluster Analysis

– The objective of cluster analysis is to group variables into clusters that maximize within-group
similarities and between-group differences. Cluster analysis using macroeconomic and
consumption data is a favored technique for identifying similar markets. The goal here is to
ensure that the countries with the greatest potential make it to the short list for further
– Countries can also be clustered based on product diffusion patterns - the rate at which new
products are adopted in a market. If such segments can be derived, managers could use
information from the
lead market
, about variables such as growth in market size, when sales
reach a peak, to make inferences on the same variables for
lagging markets

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