By boosting the benefits part of the value equation to match the increase in the price part of the value equation, KFC can been able to thrive in Malaysia, but with a very different value equation from what it offers to American consumers.
For global marketers, it is therefore important to remember that the value equation not only remains important as the product or brand is taken around the world, but that the value equation changes in each country around the world. Another example is Starbucks, which succeeds in Japan's congested cities not because the Japanese like its coffee (they are tea drinkers) but because Japanese city dwellers have tiny apartments unfit for socializing, so they enjoy the comfort of a Starbucks as a place to meet people. The value equation of Starbucks is very different to Japanese than it is to Americans and the company has succeeded by marketing to the different value equation. The company has largely failed in France for the same reason -- it has found a way to the French version of the coffee shop value equation. It is important, therefore, when entering new markets to examine consumer behavior anew, and not assume that the value equation of your product or service can translate directly across cultural borders.
6. Marketing research helps the company to understand the marketplace by gathering and analyzing information about consumer preferences and habits. This research can be gathering through third-party sources but there are limits to the value of such research. Therefore, most firms prefer to conduct their own marketing research using studies that they have designed or guided. The result of this research is that the company receives information that is more directly valuable to its needs.
The marketing research process has the following basic steps: define the problem, determine the research design, identify data types and sources, design data collection forms and questionnaires, determine sample plan and size, collect the data, analyze and...
Marketing research is the process by which a company learns about its market. The research is designed with a specific objective in mind. This can be a problem that the company wishes to solve or it can be a subject on which the company would like to gather more information.
The company must select the best means of gathering the information and it needs. This is several steps that comprise the research design. Once the problem has been identified and the research designed, the next step is to collect and analyze the data. The role that marketing research plays for global marketers is that it allows the marketer to understand the dynamics of each market, and how that market responds to different marketing initiatives. For example, a company can undertake market research to better understand its value equation in a particular country where sales are not going as well as expected.
Once the data has been gathered, the marketing research is then analyzed to form conclusions (typically proving or disproving the central hypothesis of the research) or to provide further insight if the market research was explanatory. The next step at this point will be determined by the findings of the research. The research may need to be refined. The research may have been excellent and new areas of market research may be required.
Works Cited:
Pitman, G. & Sanford, J. (2006). The Foreign Corrupt Practices Act revisited: Attempting to regulate "ethical bribes" in global business. Journal of Supply Chain Management. Vol. 30 (3) 14-20.
Neal, W. & Bathe, S. (1996). Using the value equation to evaluate campaign effectiveness. ARF Advertising Tracking and Campaign Effectiveness Workshop. Retrieved June 16, 2010 from http://www.sdrnet.com/article6.html
QuickMBA.com (2007). Marketing research. QuickMBA.com. Retrieved June 16, 2010 from http://www.quickmba.com/marketing/research/
