Brianna has a masters of education in educational leadership, a DBA business management, and a BS in animal science.
A First Look at Global Market Research
Meet Patty! Patty owns her own business where she takes junk and makes it into a new decorative piece for your home. Patty started her business about 5 years ago in her garage, and it has grown so large that she now operates in 8 different states. Recently, Patty heard that there was a need for products like hers in other parts of the world. Very interested in expanding her business, Patty decides to look into what it would take to sell her products globally. Before Patty can be successful, she needs to understand what consumers want and need by means of global market research. Come along as Patty learns what global market research is and what the components consist of.
Global Market Research
Much like traditional research, global market research is the task of finding out what consumers want and planning how to produce those products. However, the term global means doing this task on a much larger scale. Instead of finding out what consumers want locally or nationally, Patty will be learning what consumers want all over the world. Patty also learns that in order to conduct her global market research, she will use a variety of tools such as surveys, trials, and observations, to name a few. These tools will help her to better understand what the needs are for customers all over the globe.
Importance of Global Market Research
Patty knows that there are many products that consumers all over the world use and want. A good example is vehicles. While vehicles are used globally, not all places want the exact same vehicle. Customers and their preferences are different all over the world, and so are their needs. And in order to meet those needs and actually provide products consumers will buy, Patty and other companies can use global market research.
Another importance of global market research is understanding that just like customer needs are different, so are the ways to reach the customer. What this means is that some marketing strategies work in some countries, while other countries need something more tailored to their area of the world. For example, a price for a shirt in the United States may be significantly different than a price for a shirt in Mexico. Thus, in order to be successful in selling the shirt, global market research can show what an appropriate price might be in each country. Gathering enough information is important to learn what customers need and what they are willing to purchase.
Components of Global Market Research
There are important components to think about when conducting global market research. We have briefly mentioned price, but Patty knows there are a few others too.
- The product-products may need to be altered to meet the demand and the taste of the area. For example, maybe in Japan they eat different food than what consumers eat in Europe. This difference may force a food company or restaurant to adjust their products accordingly for each area.
- Location-this considers how consumers purchase products. Do they go to the store? Do they purchase online? An area without internet connection would probably not benefit from a strictly online store.
- Marketing-how do you reach your customer? If you are trying to reach a customer where television is not readily available, you probably would not want to use television commercials to market your product.
- Price-like we mentioned earlier, in different areas of the world, the prices of products change. It is important to do research on what consumers are willing to pay in each area of the world if companies like Patty's wish to sell products.
So, how does Patty conduct global market research? Well, there are a few methods that can be helpful. Let's take a look at these:
1. Surveys-asking consumers questions is a great way to understand their needs. These can be done in person, over the telephone, or even through mail.
2. Focus groups-getting a group of people together to discuss a product helps a company understand firsthand what consumers want. They get to voice their opinions and can bounce ideas off one another.
3. Observation-sometimes a company needs to go to the different areas of the globe and observe them. This helps explain how consumers behave, what they purchase, and how they purchase products. Observation is also important to understanding habits and purchasing patterns.
4. Home offices-going global with a company often entails setting up a home office in each country. This provides consumers a place of contact so that they can express their concerns and suggestions about products. They can stop by to speak to someone in person from the company and get help, share comments, and explain why they like or dislike a product.
5. Field trials-another option is placing new products in just a few test stores. This can help a company understand how consumers respond to the new product. Are they purchasing the product? Are they happy with the price?
Global market research is the task of finding out what consumers want and planning how to produce those products. It differs from traditional market research because it is on a much larger scale. Some components to consider when conducting global market research include the product, location, marketing, and price. In order to collect research, a company like Patty's could use surveys, focus groups, observations, home offices, and field trials.
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