Global Market Research: Challenges and Opportunities
A notable surge in worldwide business expansion has recently increased the significance of administering global market research projects. Statistical data reveals that the revenue of the worldwide market research industry touched a new peak, surging from 46.09 billion U.S. dollars in 2014 to around 82 billion U.S. dollars in 2022.
This growing inclination of businesses to venture beyond their local markets and domestic customer bases underscores the crucial role of market research in contemporary business strategies. However, while this shift towards global exploration presents opportunities for numerous enterprises, it also introduces a distinct set of challenges not commonly encountered in domestic markets.
Global market researchers confront many challenges rooted in significant disparities across various countries, including cultural diversities, customs, varying levels of economic development, and distinct consumer buying patterns.
Gaining insights into these challenges in advance is imperative, enabling better preparation to navigate them effectively and steer clear of potentially detrimental missteps.
This blog will look at the opportunities and challenges in International marketing research. Let’s begin!
What is Global Market Research?
Global market research is the process of determining what consumers in different parts of the world look for. The approach stems from the same principles as traditional market research, which gathers 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.
Primary Challenges in International Marketing Research:
Financial Considerations and Technological Capabilities
The financial aspect threatens stakeholders and organizations aiming to maximize the value of their research investments. Global market researchers frequently struggle with challenges arising from currency differences, logistical complexities, and limited technological infrastructures. These issues are particularly pronounced in emerging markets characterized by inadequate telecommunications, inconsistent power supply, deficient transportation and road networks, and, at times, low literacy rates. Consequently, some companies exhibit hesitance in financing global research initiatives.
Potential Resolution:
Avail services of a market research provider with substantial experience in facilitating research within your areas of interest, as they deeply understand these limitations. This approach eliminates the necessity of physically traveling to the locations of your respondents.
Government Bureaucracy
Certain countries impose legal requirements for research permits. Government authorities often mandate researchers to submit a copy of their survey questions for approval before commencing their research in a specific city or country. Issuing these permits can be time-consuming, causing delays in the progress of your study.
Potential Resolution:
Once your team outlines the scope of your research, promptly investigate whether any government permits are necessary for the cities or countries involved. Submit requests well in advance to avoid project schedule disruptions.
Cultural and Linguistic Barriers
One of the most formidable challenges in global market research is the translation of research inquiries into the respondents' language. At the same time, responses need to be retranslated into the original language for analysis. Misunderstandings may arise from words, phrases, or idioms that carry distinct meanings in diverse cultures. Sometimes, conveying complex ideas becomes difficult, necessitating visual aids such as photographs to facilitate comprehension. An understanding of how each culture responds to your brand is crucial. In essence, the market research process must be tailored to align with the cultural values of each country.
Potential Resolution:
The optimal solution involves enlisting the services of a local researcher who can assist in formulating, translating, and interpreting data. A local researcher can also provide insights into relevant regulations and cultural norms from the outset.
Researchers seeking to gather data across cultures should meticulously assess these factors before conducting surveys to ensure the representativeness of responses and predictive accuracy for future brand performance. Seeking assistance from a global market research services provider with expertise in addressing the challenges in international marketing research can streamline the project's completion. While the hurdles and expenses associated with international study may be substantial, the potential costs of forgoing it, in terms of missed opportunities and errors, could far outweigh the investment.
Opportunities Arising from Global Market Research
Global market research has emerged as a crucial tool for companies seeking to navigate complex markets and make well-informed strategic decisions in international business. This proactive approach enables businesses to understand consumer preferences, emerging trends, and competitive dynamics on a global scale. Let's delve into the key opportunities that international market research brings forth:
Informed Decision-Making:
Global market research equips businesses with valuable insights into diverse markets, empowering them to make thoughtful decisions. Companies can customize their products, services, and marketing strategies by analyzing consumer behavior, purchasing patterns, and cultural nuances to resonate with local audiences.
Discovering New Markets:
A notable opportunity that global market research provides is the ability to uncover new markets and expansion possibilities. By scrutinizing economic indicators, demographic trends, and market gaps, companies can identify regions with untapped potential, allowing them to enter markets with calculated risk.
Understanding Competition:
Staying ahead in the global marketplace demands a profound understanding of the competitive landscape. Through market research, businesses gain insights into their competitors' strategies, strengths, and weaknesses. This information empowers companies to fine-tune their strategy, leverage gaps, and establish effective differentiation.
Navigating Cultural Sensitivities:
Cultural subtleties significantly influence consumer behavior and preferences. Global market research aids companies in comprehending cultural norms, values, and sensitivities, enabling them to avoid cultural missteps and tailor their messaging to resonate positively with diverse audiences.
Driving Product Innovation:
Market research is pivotal in identifying emerging trends and evolving consumer needs. This information is priceless for fostering product innovation and development. By staying attuned to shifts in consumer preferences and technological advancements, companies can devise products and services that meet the evolving demands of global markets.
To Wrap Up:
These were some of the most notable challenges and opportunities associated with global market research. By keenly understanding these challenges, you can develop a proactive approach and be well-prepared for them. If you’re searching for international market research services, Akademos stands at the forefront of providing web-enabled solutions for the success of your projects. Our comprehensive suite of services encompasses online in-depth interviews, focus group facilitation, a mobile insights app, an online community platform, multimedia curation, and other tailored tools to cater to your specific market research requirements. Contact us for further information.
