Analyzing International Marketing Research Challenges in Philippines

This report delves into the challenges of conducting international market research in emerging markets, with a specific focus on the Philippines. It identifies key issues such as political and legislative hurdles, infrastructural limitations, and communication barriers that significantly impact the reliability and effectiveness of market research. The report analyzes how these challenges pose risks to informed decision-making for international businesses and subsequently affect the market growth potential of the Philippines. Furthermore, it proposes strategies to overcome these obstacles, including building strong relationships with the government, improving infrastructural facilities through local authority engagement, and utilizing innovative communication methods like satellite-based data gathering to enhance market research capabilities. The study concludes by emphasizing the need for cooperation between government, national, and international market research agencies to foster a more conducive environment for effective market research and sustainable economic growth in the Philippines.

Running head: CHALLENGES OF INTERNATIONAL MARKETING RESEARCH
CHALLENGES OF INTERNATIONAL MARKETING RESEARCH
Name of the Student
Name of the University
Author Note

1CHALLENGES OF INTERNATIONAL MARKETING RESEARCH
Abstract
The report focuses on the topic of international market research and decision making in the
prevalent market situations of countries with developing markets. The analysis of challenges of
market research especially in emerging markets have been evaluated. The Philippines have been
selected as the country in focus. A brief background of the topic is provided followed by the
systematic analysis of the significant challenges that affect the market research functions of
companies concerning the emerging market of Philippines. The major challenges identified were
political issues, infrastructural challenges and communication. The recommendation for effective
tackling of the issues were provided subsequently.

2CHALLENGES OF INTERNATIONAL MARKETING RESEARCH
Table of Contents
Introduction......................................................................................................................................3
Research risks in emerging markets................................................................................................3
Decision making risks..................................................................................................................3
Implications of the issues.............................................................................................................5
Strategies to overcome the issues................................................................................................7
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

3CHALLENGES OF INTERNATIONAL MARKETING RESEARCH
Introduction
The report focuses on understanding challenges related to market research especially in
the emerging international markets. Market research is an essential function of companies around
the world. It helps to gather important information in relation to the market growth and
development of various countries of the world. Additionally, from the organizational perspective
it assists in making marketing decisions within the organization. Many of the emerging markets
provide great opportunities for growth for international businesses. However, at the same time
these countries are affected greatly by various challenges for decision making that imply taking
potential risks. The emerging market of Philippines is considered for the research. The market
has great potential but is affected by the same challenges that tend to affect market research in
many other developing economies around the world. The Philippines has a significantly large
population and this has led Asian market experts to believe in its tremendous growth potential in
the future. The Philippines has been chosen as the strategies that can help to identify the risks of
market research in the country can also pave way for the Asian economic zone to consolidate its
position further in the international market.
Research risks in emerging markets
Decision making risks
According to the MSCI international markets index, Philippines is placed in the category
of the emerging markets of Asia (Solutions Resources and classification 2018). The major issues
that tend to affect the market research functions in Philippines are political issues, lack of basic
infrastructure and difficulties of communication and technology.

4CHALLENGES OF INTERNATIONAL MARKETING RESEARCH
The political and legislative issues that affects the country are mainly the rigorous rules
that are implemented by the government. The government limits the amount of advance payment
that can be provided in business transactions of various businesses. Moreover, the government’s
measures for enhancing the functional abilities of the market have been largely ineffective. The
government activities in the country are not transparent and the country ranks very low in the
world transparency index. The product regulation systems laid by the government are also very
stringent.Product standards are greatly regulated and labeling laws are also tough. The VAT
levied by the government also make it very difficult for market research to happen due to the
great differences they create towards the relative market value of certain goods (Jaegeret al.
2017). The main effect of these on market research in the country is that it makes collecting
relevant market facts and figures very difficult. The biggest barrier is created towards
understanding the actual market potential of businesses as the heavy taxation and strict business
laws restrict their free operation along with the market.
Infrastructure issues are greatly present in the country and Philippines remain much less
developed than any of its neighboring countries in terms of infrastructure. This creates an
essential gap concerning market research activities (Jaegeret al. 2017). Especially transport
infrastructure is much less developed in the country meaning that carrying out research activities
on the ground level becomes very difficult. Moreover, there is a lack of offices from where the
market research functions can take place. Hence, this can affect market research to a great extent.
Moreover, the country has many cottage industries that are dispersed. Information about these
requires teams to travel greatly. The International airports of the country are overcapacity leading
to less number of foreign organizations taking part in research activities (Export.gov 2018).
Urban areas of the country are heavily congested.

5CHALLENGES OF INTERNATIONAL MARKETING RESEARCH
Communication is very much important when undertaking market research as the data
gathered need to be communicated through proper channels. Philippines has a very low internet
penetration. This means that the most used communication channel cannot be used properly as
many businesses do not have access to the same. The cost of internet is at par with the developed
countries. Lack of internet availability makes it very difficult for market research to take place as
internet is the easiest way to transfer data related to market research. In many places mobile
connectivity problems also exist (Price, Wrigley andStraker2015).Hence, data gathering and
coordinated data management through effective communication becomes very difficult in the
country.
Implications of the issues
The implications of the major factors that affect the market research in Philippines are large. The
country is a fast emerging international market. It is placed among many of the historically larger
markets in Asia despite being an island economy. However, the problems seem to be large
enough to cause significant hindrance to the market growth of the country in the future. Despite
being one of the emerging markets in Asia, the Philippines may experience lack of steady
growth.
The political issues are much significant, this is because the country’s market can slow
down due to the policies of the government. The government of the country has also
implemented laws that limit foreign investment in the country. The implications of this risk is
that without greater foreign interactions the market might not be able to grow further (Bell,
Bryman. and Harley 2018). The stringent rules of the government would not let effective market
research to happen in the country. Foreign businesses will feel highly demotivated due to this
issue.

6CHALLENGES OF INTERNATIONAL MARKETING RESEARCH
Infrastructural issues are likely to cause disruptions in market research. The country only
has a few large agencies that take part in market research (Albert 2017). Without proper
infrastructural facilities these organizations will be greatly unproductive as they might not be
able to gather the right information at the right time. Market research also depends on gathering
information that is relevant at a given period of time. Without proper roads leading to many
significant business areas of the country will mean that the agencies will have to bear extra
transportation costs for gathering data. Lack of developed office areas will mean that the newer
market research agencies will face great difficulties to establish themselves.
Communication factor is important as this ensures the effective flow of information that
is required in effective research processes. Hence, the lack of internet connectivity can pose
significant threat to any effective research activity that is carried out in the country. The main
problem is in regards to the transfer of information (Jaeger et al. 2017). Without internet
penetration devices for recording data cannot be carried to some of the important centers of
business in the country. The lack of internet penetration means that data cannot be gathered from
separate areas in regards to the businesses that take place in these areas. Hence, this can be a
major hurdle as information gathered can be highly ineffective in this case.
The implications point towards the fact that political barriers, infrastructure and
communication become significant barriers to market information gathering in the Philippines.
Firstly, they greatly affect the quality of market research that takes place. Due to the ineffective
government policies the domestic market information sources only cover a limited perspective of
the market. They do not provide information of the deeper aspects related to market growth such
as preferential changes among specific populations. The infrastructural difficulties affect the ease
of gathering data and significant time and labor is lost which become irreplaceable subsequently.

7CHALLENGES OF INTERNATIONAL MARKETING RESEARCH
Lack of developed communication affects the reliability of data as information may not reach
within time and information may differ in facts and figures. The three barriers interplay many
times and make it very difficult to get solid market data.
Strategies to overcome the issues
The strategies that are needed to overcome the challenges should be focused towards
changing the prevalent situations that hinder the growth of market research in the country. A
significant challenge is the government of the country. However, from an organizational
perspective better technique like face to face surveys, satellite technology oriented online
surveys and recommendation of better market research mechanisms to the government can be
made. The organization has to focus on building essential relationships can be created this way
with the government (Jaeger et al. 2017). Foreign investment should be negotiated with the
country’s administration. Organization should focus on building a strong association that can
hold effective meetings with the authorities. This can increase market productivity to greater
extents along with facilitating better market research.
The infrastructural growth of the country is very important. Lack of roads and travel
options need to be tackled through effective strategies. It is important that the businesses that are
affected by the infrastructural issues need to come forward and approach the local authorities for
help. Better roads and transport networks are necessary for businesses to flourish as well as
gather essential data about them that can help to understand the growing market development
trends. Larger market research organizations need to be built adjacent to the major business areas
of the country to facilitate better market research. Specific focus groups can be created. These
groups can then be approached from time to time to gather valuable data. Proper coordination
can help to manage a large number of focus groups effectively. The organizations can utilize face

8CHALLENGES OF INTERNATIONAL MARKETING RESEARCH
to face research for better results. A very significant step will be to conduct observational
studies. Given the barriers that affect the market research this can be a feasible and effect mode
of understanding the potential of the market.
Communication is a large problem that is faced by the organizations that take part in
market research activities. In this case better communication devices need to be used in order to
facilitate the gathering of information from remotely located businesses (Ruizand
Holmlund2017).It is important that the communication facilities around the large businesses of
the county are improved this will facilitate the gathering of essential data. Moreover, the large
business areas can be used as essential points of communication for the smaller business areas
that are present in the same area. Lack of internet penetration is a significant problem. The
important commercial areas affected mostly due to this need to be identified. Satellite based data
gathering techniques can be implemented in areas that can provide essential market information.
Hence, the choices of research methods become very important while enhancing the
market research potential of the country. In all the strategies need to be optimized in accordance
with the focus groups, research methods, market identification and administrative essentials.
Conclusion
The main issues that were found to greatly affect the market research aspects of
Philippines were found to be government regulations and legislature, infrastructural issues and
communication problems. Despite, Philippines being placed in the category of the emerging
markets of Asia according to the MSCI international markets index, these factors are significant
drawbacks. The identified factors can only be positively changed through better cooperation
between the government and the national and international market research agencies. It is

9CHALLENGES OF INTERNATIONAL MARKETING RESEARCH
important that the international market research teams approach the government for establishing
better relationships. Conclusively, it becomes crucial that in these markets that the international
agencies develop effective coordination with the national market research agencies of the
country.This can be mutually beneficial for the country and international market research
agencies.
It can be recommended that the administrative, infrastructure and communication barriers
be approached in a holistic sense. Data gathering and representation can be effectively enhanced
through these methods. Hence, negotiations should be made with the authorities and
subsequently plans to eliminate infrastructural barriers need to be formed. At the same time
communication enhancement techniques should be properly utilized and implemented. In all, the
strategies should be designed in order to complement themselves.

10CHALLENGES OF INTERNATIONAL MARKETING RESEARCH
References
Albert, J.R.G., 2017 How Do Official Statistics in the Philippines Fare.
Bell, E., Bryman, A. and Harley, B., 2018 “Business research methods”. Oxford university
press.
Export.gov 2018, Philippines - Market Challenges | export.gov, viewed 12 December, 2018,
<https://www.export.gov/article?id=Philippines-Market-Challenges>.
Jaeger, K., Li, Y., Scharl, S. and Praktiknjo, A., 2017, June. “Evaluation of Market
Liberalization in Developing Countries in the Case of the ASEAN and the Philippines in
Particular”. In Meeting the Energy Demands of Emerging Economies, 40th IAEE International
Conference, June 18-21, 2017. International Association for Energy Economics.
Price, R.A., Wrigley, C. and Straker, K., 2015 Not just what they want, but why they want it:
Traditional market research to deep customer insights. Qualitative Market Research: An
International Journal, 18(2), pp.230-248.
Ruiz, C.D. and Holmlund, M., 2017 Actionable marketing knowledge: A close reading of
representation, knowledge and action in market research. Industrial Marketing Management, 66,
pp.172-180.
Solutions, O, Resources, I & classification, M 2018, Market classification - MSCI, viewed 12
December, 2018, <https://www.msci.com/market-classification>.