Editor's note: Ian MacFarlane is president of MacFarlane & Company and chairman of Fry Consultants Inc. These marketing and management consulting firms are headquartered in Atlanta.

When we are asked by a client to help answer international marketing research questions, we try very hard not to reinvent the wheel. One of the first things we do is check established sources of information on countries, products, markets, competitors, and whatever else is needed by the client.

This typically involves a series of at least seven steps to get to the point where we are ready to start the primary international marketing research project. The seven steps are:

1. Checking reference information on countries, products, markets, and competitors.

2. Conducting secondary research online and in the library.

3. Review and selection of multi-client studies that answer some of the questions at relatively low cost.

4. Selection of a foreign firm or firms to assist in the study or in some cases, perform most of the work.

5. Solicit proposals for foreign field work and analysis, particularly where foreign languages are involved.

6. Finalize the client proposal, including business reference information, secondary research, multi-client studies, subcontracted field work and analysis, and all other cost elements.

7. Begin the primary research study, working closely with the clients and arranging for frequent interim meetings to ensure that there are no surprises in the report at the end of the project.

Each of the seven steps is now described in more detail.

I. Reference Information on Countries, Products, Markets, and Competitors

A. Multi-client studies

One of the first things we do is check to see if any multi-client studies have been done on the subject of interest. It may be possible to purchase a multi-client study at much more reasonable cost than conducting a proprietary marketing research project. The three places we look are:

1. MARKETSEARCH, The International Directory of Published Market Research; this directory provides over 18,000 multi-client study references throughout the world; it is published annually and is subdivided by subject based on British SIC classifications.

2. FINDEX, The Directory of Market Research Reports, Studies and Surveys; this directory includes company and industry research from Wall Street as well as a wide variety of other multi-client studies published by research firms and other organizations throughout the world; however, the coverage is stronger domestically than internationally.

3. Marketing Surveys Index (MSI) includes virtually all international multi-client studies; this directory tends to be more current because it is updated ten times per year by supplements sent by airmail from London; the subject index is alphabetical and complete.

B. General reference

We also check general reference information regarding countries, products, markets, and competitors. Typical sources include:

1. The European and Far East Regional Directories published by The Market Research Society in London.

2. Croner's A-Z of Business Information Sources; this directory includes categories for company, product, and market information divided for consumer and industrial/commercial markets.

3. Consumer Japan; this publication covers major consumer markets in Japan with specific information on markets, products, and key commercial organizations.

4. Consumer Europe; this resource covers over 500 products bought by consumers in 17 West European countries; it provides market data and trends for six years through 1988 plus forecasts through 1992 and has a directory of major companies.

5. Croner's Europe; this publication provides current updates on all EEC proceedings of possible interest to international marketers.

6. Country directories like Ireland 1990 and publications of industrial development organizations like the Scottish Development Agency. Similar publications are available from JETRO for Japan and other major foreign industrial development agencies.

C. Sources of Marketing Information

In this category, we check appropriate directories such as the European Directory of Consumer Goods Manufacturers, the European Directory of Retailers and Wholesalers, the European Consumer Electronic Directory, the European Electrical Appliances Directory, the European Drinks Marketing Directory, and a wide variety of other similar publications that cover foods, household chemicals, cosmetics, toiletries, and other product categories; we also check such references as the European Directory of Trade and Business Journals, the European Directory of Trade and Business Associations, and other similar references.

D. Marketing Statistics

The main sources for international marketing statistics are:

1. International Marketing Data and Statistics 1990.

2. European Marketing Data and Statistics 1990.

3. The International Directory of Marketing Information Sources.

4. The European Directory of Non-Official Statistical Sources.

5. The European Directory of Marketing Information Sources; this resource lists over 2,500 sources of market and business information throughout Europe.

6. The Worldwide Government Directory; this directory provides information on 175 governments and 100 international government agencies throughout the world, many of which represent sources of marketing and business information.

7. Other international sources such as the United Nations, the Food and Agriculture Organization (FAO), UNIDO, the World Bank, and other sources where the right kind of digging can pay off with useful information. The same is true of U.S. government agencies and departments, which generally can be accessed through regional U.S. Department of Commerce libraries, International Trade Administration offices for import/export statistics, and other similar organizations.

E. Business Risk

In checking international business risk, we rely on BERI, Business Environment Risk Intelligence:

1. BERI's Risk Service provides country risk forecasts for 50 countries throughout the would and is updated three times per year.

2. BERI's Forelend provides international lenders with risk information on 50 countries with three updates per year.

3. BERI's Force Reports are detailed annual reports on 20 countries, including a Special Report on Eastern Europe and another on Europe 1992.

4. BERI also offers special services for international risk research, foreign exchange guidance, Quick Response advice, and specialized international risk consultancy.

F. Information on Competitors

For information on domestic competitors, we check such sources as local newspapers, The Corporate Directory, the Dun & Bradstreet Million Dollar Directory, Standard & Poor's Register, the international Dun & Bradstreet Million Dollar Directory, Value Line Selection and Opinion, The National Directory, and reports filed with the SEC. For international references, we use the Kompass Directories, The International Corporate 1000, The City Directory (the London financial community), The Canadian Trade Index, Europe's 15,000

Largest Companies, The London Business Pages, and other resources, including:

1. Business-Line Management, Marketing and Administration; this reference lists over 200 on-line services worldwide for product and market research and customer analysis.

2. Business-Line Finance; this resource includes over 300 financial databases throughout the world.

3. Business-Line Company Information; this reference lists over 300 databases for company financial information, key personnel, products and services, subsidiaries, and other database categories.

Obviously, a lot of digging has to be done to find out what kinds of information are available. However, this effort only completes the first step in checking business reference information. It is equally important to go further and check all secondary information that may help answer client questions regarding products, markets, opportunities, competitors, and the wisdom of alternative business strategies. The next major step rechecks some of the previously mentioned resources and adds some new ones.

II. Secondary Research

In conducting secondary research of all pertinent published information, it may be possible to use in-house on-line research capabilities at the research firm or the client organization. If this is not possible because of existing commitments, capabilities, or other project responsibilities, it may be wise to select an outside provider or broker of secondary business research information. One good place to check on outside firms to do secondary research is Burwell's Directory of Fee-Based Information Services. This excellent directory describes literally hundreds of information brokers throughout the world and is subdivided by country, state, company, subject, and service. Most of these information brokers are in the United States, but a wide range of possibilities exists in other countries throughout the world.

In doing secondary research, we:

A. Conduct on-line research through Dialog and other on-line services. The trick here is knowing which of the hundreds of databases to check for appropriate questions, key words, and subjects. Most of our work is done through Dialog, but other resources include Bibliographical Retrieval Information Services (RIS), and others.

B. Use Business-line Management, which lists over 200 on-line services worldwide, Business-Line Finance, listing over 300 financial databases throughout the world, and Business-Line Company Information, Which provides direction to over 300 databases of company financial information, key personnel, products, services, subsidiaries, fee, and other database categories.

C. Use The City Directory for London-based financial information sources.

D. Work with ARK, which covers 14 major industries in Europe to provide information on over 2,000 public European companies throughout Western Europe.

E. After appropriate articles and published references have been identified, we spend time in the library reviewing abstracts and getting copies of permanent articles and other references.

The secondary research step alone can cost anywhere from a few hundred dollars for a simple study to $10,000 or more for a complicated project and an interpretive report.

III. Selection of Multi-Client Studies

At this point, we know what is available in print, including multi-client studies. However, it is not wise to purchase every possible multi-client study, so some additional research is necessary.

Basically, this involves contacting the publishers of the multi-client studies, requesting copies of the Table of Contents and the offering prospectus for each study of interest, discussing options of purchasing the whole multi-client study or just the most pertinent part or parts, and so forth. We also discuss the possibility of purchasing proprietary add-one to the multi-client study to answer specific client questions that are not adequately answered by the basic multi-client study. We also discuss discounts to ensure that we purchase the multi-client study below list whenever possible. In most cases, we can purchase the multi-client study at a discount because we are resellers of this type of information, and in many cases, we can provide the multi-client study to our clients at less than list price.

After we have contacted the publishers and received as much information as possible, we consult with our client and purchase the multi-client studies that seen to be most appropriate.

IV. Selection of a Foreign Firm

At this point, we know what is available in the literature and from secondary research of all available published information, including multi-client studies and foreign and domestic publications. The next step is to provide some proprietary research, and in many cases in foreign markets, we need a local firm that can do field work, gather data, and provide some analysis and interpretation. The selection and use of the foreign firm is extremely important to the success of the overall project. Here we consider the following alternatives:

A. Language considerations may dictate that a foreign firm must be used to assist in the project. We first examine our inventory of correspondent firms, companies and individuals we have worked with before, and qualifications in terms of industry and specific type of study experience.

B. We check directories of foreign firms, primarily the International Directory of Market Research Organization. This directory provides information on over 1,700 marketing research firms throughout the world in 70 different countries. This directory is the best one of its type for international coverage.

C. We review Bradford's Directory of Marketing Research Agencies and Management Consultants.

D. We also check the GreenBook, which is published by the New York Chapter of the American Marketing Association, and the annual Quirk's Marketing Research Review Researcher SourceBook. These directories are useful for information on domestic marketing research firms.

E. If we are working on an industrial/ business marketing research project in Europe, we check the membership directories of the Industrial Marketing Research Association (IMRA) and the Federation of European Marketing Research Association (FEMRA).

F. If we are working on a project in UK, we check the yearbook of The Market Research Society (MRS).

G. If we are working on an industrial business project in Canada, we check the membership directory of the Industrial Marketing and Research Association of Canada (IMRAC).

H. In other countries, we check appropriate association directories, and for Europe as well as other international coverage, we check the directory of ESOMAR, the European Society for Opinion and Marketing Research.

After doing some screening, we present our client with alternative firms in the foreign markets involved, and then we typically ask for proposals from several appropriate firms.

V. Proposals for Foreign Field

Work At this point, we can really describe what we already know and what types of assistance we need in the foreign market study. We prepare a problem statement or brief describing exactly what we want, and we solicit proposals from three or four carefully selected foreign firms that have the capability to conduct the study for our client. We use confidentiality agreements whenever appropriate. Once we receive the proposals for foreign field work and assistance, we recommend a selection procedure and select a subcontractor to complete the foreign work to our client's specifications.

VI. Finalize the Client Proposal

At this point, we have all the information we need to finalize our client proposal and begin the remaining steps of the project.

VII. The Primary Research Study

We typically submit an interim report that covers all of the progress to date in terms of published information, resources, findings, conclusions, and recommendations. The proprietary research in the foreign market is completed and becomes part of the final report for the project. The end result may involve recommendations regarding the competitive situation, an entry strategy, joint venture possibilities, distribution alternatives, acquisitions, and other types of strategic partnerships. These aspects of the study are designed to help the client make the right decision regarding the foreign market opportunity, which by definition also means helping the client to avoid costly mistakes.

It has been our general observation that American companies are not very experienced in assessing foreign market opportunities, and they often go charging off in the wrong directions at the wrong times. In order to avoid these mistakes, a lot of careful checking is necessary, and then you also have to be lucky not to have overlooked something significant. In short, international marketing research done properly is not easy, but it will be increasingly more important in the future than it has been in the past.