There’s nothing like firsthand evidence over hearsay, and primary and secondary market research is no different. Primary research increases the odds of successfully extending your global reach based on a solid market research strategy.
In this blog post, we will examine the ins and outs of SME’s taking the plunge to conduct primary market research on a global scale. Is it too costly? Can you get away with just cribbing from secondary data sources there for the taking? And, most importantly, can you cut costs by going alone and cutting out the profiteering middleman? We will examine all those possibilities, and how to follow best practices and avoid potential pitfalls. If there’s a simpler and more cost-effective way, we’ll explore it in this pocket guide.
You have others’ global research so you’re ok – or maybe not?
Primary market research enables you to collect first-hand data specifically on your own target market. It uses interviews, focus groups, surveys, polls and observational research methods customised to your company’s products or services. The outcome is specific to what you need to know about your potential clients, clients, and employees. It is private, and it belongs to you.
Compare for a moment secondary market research. You utilise data already gathered by others whether it be government statistics, accessible databases or online public information. It provides second-hand general consumer data. It is also available to your competitors as well as you.
An SME’s first instinct might be that secondary market research conducted country by country will fit the bill and answer all your questions. Not true. Let’s explore why.
Going global means venturing outside your domestic market where, to put it bluntly, you know even less than you do at home. A global market entry strategy, for example, especially requires more complex and specialised market research. The risks are higher, but so are the rewards.
Secondary stats help paint an impressionistic picture. Secondary data insights are often regional and might be skewed towards suiting someone else’s purposes. They will not necessarily reflect the behaviour of your own potential clients, and the resulting knowledge gaps could be costly.
Added value benefits of primary market research
Collecting your own market research data enables you to:
- Own it. You can access your own data whenever you like, providing an invaluable benchmark for measuring future results. The data is original, up to date, and has never been done before. It gives you a competitive edge. It’s not visible to your competitors.
- Customise it. Insights will be 100% relevant to your products or services. Your tailored first-hand data will help you understand your potential clients’ behaviours, preferences and needs.
- Control it. You know best what you want to find out. Conducting your own research gives you complete control over the methodology. You can set your own market research objectives that address your specific concerns.
Going it alone: the SME plan with a global twist
The last thing an SME wants to do is contribute to the market research sector’s $140 billion output for 2024 as predicted in ESOMAR’s latest 2023 Global Market Research report. Most of that is spent on contracting market research agencies to do the work for you. Hiring an agency can run into the many thousands, so undertaking your own primary research is worth considering. A few simple know-hows include:
Budget
Prepare your budget and timeline with the mindset that this is an added-value investment. You will own valuable market information giving you a competitive edge. It will not depreciate as a useful benchmarking tool to measure your future success. You can also use the insights for future marketing by publicising your findings in blogs and articles if you choose to. You can even sell it. It is a valuable commodity and will form the basis of your international business plan.
Resources
Reduce time needed to methodically plan your primary research methods by bringing in the right resources when necessary. Global market research needs additional expertise that might be easier and more cost-effective to source than you think.
Target market
Be specific when identifying your target market. “Focusing on growth in Asia” is too simplistic. Every country has its own local data regulations, cultural norms and unique business practices, as well as its own strong local competitors which you need to be aware of.
Optimal results
Deploy at least two or three primary research methodologies to obtain optimal results. One won’t cut it. Primary research can be quantitative, qualitative, or a hybrid of both. Set your research goals to determine what type of data you require. Quantitative surveys provide you with a larger, high level sample that can later be segmented to reveal your top customer demographics. Qualitative focus groups will dig deeper and explore in more detail. One can complement the other. Qualitative research can uncover key themes that might shape better questions for subsequent quantitative surveys.
Primary market research methodologies in a global market
1: Quantitative online surveys
Online surveys via an email invitation, website, SMS or social media are quick, and cost-effective. Data can be analysed in real time. They will consult a larger sample providing more accurate data. Note that 400 responders will have only a 5% margin of error as opposed to a 10% margin for 100 responders.
Global challenges
- Any collection of personal data must be done in compliance of local data protection laws. Check the rules on emailing individuals directly for a survey. Remember that transferring personal data between countries for data analytics is also regulated. The UK GDPR is governed by the Information Commissioner’s Office. Other examples are the EU GDPR, the LGPD for Brazil and POPIA for South Africa.
- Always consider cultural nuances with surveys, however simple. It might be tempting to think simple ratings from “strongly disagree” to “strongly agree” will conveniently bypass any language misinterpretations. Some cultures such as Japan, however, might be unwilling to give strong responses leaving you with neutral uninformative takeaways. Visuals can also mean different things to different cultures, and it might be important to partner with a locally based language services provider who specialises in localisation services specifically for your primary market research.
- Different geographies favour different communication channels so ensure you choose the most popular used in your target country. Facebook proved to be the most successful channel for a marketing campaign in Brazil because of its popularity as a social network compared to other Latin American countries. Markets where the cost of living is higher habitually prefer automation, such as the Nordic markets.
- Ensure that the format is compatible with your target market. Mobile phone or tablet-friendly surveys increase your chances of responders answering all your questions.
Case study
Consider how best to reach your market. Sauti East Africa needed to reach rural SME cross-border traders, and internet connectivity was not an option. They have since reached 132,000 business operators. They specialise in remote mobile data collection using USSD, SMS and WhatsApp in low-technology communities where phone usage is high. Custom surveys are successfully conducted in multiple languages with no airtime charge to the responder.
2: Qualitative focus groups
A group up to 12 people discussing your product, service or concept will provide invaluable data on potential consumers’ opinions, interests and tastes. They can be conducted in person or online, and you can watch in real-time. They are invaluable in uncovering insights that you might not otherwise have even considered.
Global challenges
You will need a trained local moderator who is well aware of any cultural nuances such as where saving face is a priority, and where how you appear to the rest of the group is more important than giving an honest opinion. Remember that your outlay will include renting a facility, food, travel expenses and an honorarium for participants.
3: Qualitative interviews
In-depth one-to-one interviews (IDIs) by call or in-person can be one of the best ways to find out if your target market needs your product or services, or to explore a new concept. Attending trade shows and industry venues in your target market location are useful venues to conduct primary research conversations.
Global challenges
This method is also worthy of a culture check. Interviews can be treated with suspicion in some cultures such as the Middle East.
4: Qualitative observational research
This is often considered the most authentic way to achieve insights. There is no interaction to potentially skew responses. It can be done using cameras. While a trained observer is involved, it can be especially useful in a foreign market where language is taken out of the equation. It can include in-home usage tests (IHUT) when consumers are observed trying out product samples in their own home.
Global case studies
Successful primary research on a global scale is based on “act global but think local”, yet even some of the biggest companies have failed to realise its importance. Some examples include:
- US retail giant Walmart bought and operated through local retailer Seiyu but failed to find out beforehand that the Japanese associate cheap prices with low quality, and there was nothing new to entice them. That compared to the success of Costco which introduced the idea of bulk-buying as a new experience for Japanese consumers.
- Home Depot exited China after realising that wealthy Chinese citizens live in the cities, and do not shop in the suburbs where they had located their retail sites.
- Starbucks had no idea that they needed to localise their offerings in Australia. Their drinks proved too sweet for the Aussie tooth, and locals preferred their more complex local products. Starbucks eventually focused on the visiting tourist market instead.
Cost-effective solutions to help meet global challenges
Using a market research company can set you back more than a few grand, but any SME heading in an international direction should consider more cost-effective alternatives. Conducting primary research yourself is feasible with the help of some less costly resources:
Tool up: DIY online tools and automated surveys are widely available.
Language Service Providers (LSPs)
So you’re all tooled up, but the language and culture barriers remain and can result in costly mistakes. Many top LSPs have a global network with a deep cultural understanding of your target market. Your message will be delivered effectively to your target audience, and the resulting data will be more accurate as a result. Top LSPs offer:
- Localisation through a global network providing accurate and culturally appropriate translation.
- Overlay of XML, XLATE and XLIFF files and link-checking to ensure your survey runs accurately across all markets.
- Verbatim response coding to gain meaningful insights from open-ended questions
- Technologies that maximise cost efficiencies using the latest automated AI, MT, TM and ASR technologies.
- Local moderators to conduct focus groups and interviews.
- Interpreters to facilitate research participants’ accurate understanding.
- Results analysis identifying themes across your multilingual research.
- Transcription of audio and video recordings for your future reference.
Expert advice
Build up your own knowledge and research free resources available. The Department for Business and Trade have a vested interest in your international expansion. Their UK Export Academy offers free webinars and masterclasses in a range of topics including International Market Research.
Check out the Market Research Society’s series of videos featuring interviews with international market researchers and the global challenges they faced.
Primary Market Research Summary
Overseas markets tend to have a higher level of risk due to more variables like foreign exchange, and economic and political instability. Put simply, a startup or concept backed by primary research has a stronger chance of survival. Primary research enables you to identify new opportunities, make more informed decisions, and so mitigate that greater risk. Insights pertinent to your company give you a competitive advantage. And if you are looking for credibility with potential investors or partners, primary research is a must. Most importantly, if you want to cut costs and do it yourself, it is possible with a language partner rather than an expensive market research agency.
Combine that with Secondary Market Research, and you’re on a roll to the perfect global market research strategy. But look out for more on that combo in our next blog.
Next steps
Set out your target markets, budget and best methodologies to meet your global research objectives.
Research potential research tools and language partners. Check that they are big enough to offer you a global network, and clearly specialise in market research showing membership of ESOMAR (compliance with World Research Guidelines), accreditation as an MRS Company Partner (MRS Code of Conduct) and are ISO 9001 (quality management) and ISO 27001 (Information security) certified. Ensure you will be assigned an expert dedicated project manager who will coordinate their multilingual global teams to deliver on your primary research goals from beginning to end.
For an idea of what your language partner can offer, contact Global Lingo today for a free consultation via telephone, email or online.