Although the use of market segmentation analysis is standard research practice in the United States and Europe, many researchers experience difficulty when applying the same methodology to research in other cultures. Market segmentation can be implemented anywhere in the world. The ability to segment a market is not dependent on the geographic region but on the researcher's ability to use the various bases and methods at his/her disposal. In any market segmentation study, two issues need to be addressed: the method of segmentation and the base for segmentation. While there are several bases of segmentation, there are only two methods to form segments: either a priori or post hoc. A typical segmentation study includes an analysis of a priori segments, post hoc segments, and a market forecast of each target segment. Post hoc segmentation analysis offers one of the most effective means of determining target segments in any country, and is applicable beyond cultural boundaries. With a well-designed questionnaire, the process of implementing post hoc segmentation is no more challenging or expensive than any other form of primary research, but will yield far richer and more usable data.
The primary purpose of this paper is to illustrate the implication of sampling, recruitment and respondent interviews when conducting research on sensitive topics in the global marketplace. The paper will discuss how cultural understanding and a sixth sense help to adapt research methodologies so data can be gathered effectively and still meet the requirements of established research standards. This process can be a challenging task, particularly in developing countries, when the research topic is considered culturally sensitive and delicate. Most case studies gathered here are based on research completed in the emerging markets of Asia, where market changes are taking place at an accelerated rate In addition to the pharmaceutical and healthcare primary research studies conducted in several Asian countries, relevant qualitative and quantitative research projects undertaken in the United States and Europe over the past twenty years are also used as sources, as is secondary research. Research respondents have included physicians, pharmacists, consumers, pharmaceutical distributors, government officials, and consultants. As the actual information obtained from these research projects is proprietary, the paper focuses instead on the methodological implications of market research and a comprehensive discussion of the cultural dynamics that impact the process of recruiting, interviewing and analysis, when the issues are sensitive ones. The methodologies used in each country are compared with the accepted standards used in the West and illustrate the adaptations sometimes required in the East to obtain comparable information.
Three major areas will be discussed in this paper: first, the rapid industrialization of East and Southeast Asia as the region becomes a major partner in the global economy; second, suggested methods for defining potential markets in these developing countries; and third, critical prerequisites for entry and expansion into the East and Southeast Asian markets. The countries of East Asia to be discussed are China, South Korea, Taiwan, and Hong Kong. Although Japan is also located in East Asia, it is currently in the Triad and is far from being considered an emerging power. Japan will only be discussed as a reference point for the other countries. The countries of Southeast Asia that will be discussed are: Thailand, the Philippines, Malaysia, Singapore, and Indonesia. The emergence of countries in Asia as major players in the global economy is in itself a significant shift as the world market restructures itself for the twenty-first century. Most importantly however, this shift in the global economy calls for a major adjustment in the thinking processes of both the West and the East. Perceptions from both sides of the globe influence access to these emerging markets. They also limit the ease and speed of obtaining the advantages offered by these new markets. Measurable methods of defining the market potentials in East and Southeast Asia include both old and new ways of market segmentation, critical examinations of economic indicators, and a consideration of a country's current level of industrialization. Actual strategic research examples derived from market research studies during the last 10 years will be used to further illustrate the issues discussed in this paper. These real-life experiences were gained while working with major pharmaceutical companies as they tried to establish, or to re-establish themselves, in this region of the world. The products and companies included in these case histories have been disguised to protect the proprietary nature of strategic information acquired for the pharmaceutical organizations
This paper presents a quantitative marketing research survey through the use of multivariate techniques to address several pre-launch issues of a new product. The main emphasis in the analysis is the use of the conjoint model to determine the actual market share potential of a new product against a defined market. The survey addressed other marketing issues such as product awareness, usage, psychographic segmentation, promotional emphasis, pricing and positioning. After identifying each potential market segment, the use of the conjoint model produced a market estimate that was significantly accurate to the actual market share 12 months after launch.