Editor’s note: For his annual contribution to the QMRR international research issue, QMRR’s West Coast ad rep Lane Weiss traveled to Egypt and Israel to interview principals of research firms in both countries. In Egypt, our foreign correspondent sat down with Mansour El-Ganady, chairman, Market Insight Egypt, Cairo. In Israel, he spoke to Rafael Gill, managing director, PORI Public Opinion Research of Israel Ltd., Tel Aviv.
Mansour El-Ganady, chairman, Market Insight Egypt, Cairo
QMRR: What are some of the most popular research techniques in Egypt?
Mansour El-Ganady: Because we have European and U.S. experience both on the client and the supplier side, we are in a position to offer state-of-the-art research techniques. All of the techniques that are offered in the U.S. are available here but because the market is an emerging market obviously the demand for sophisticated techniques is less than in mature markets.
QMRR: Is Internet research viable in Egypt now?
El-Ganady: Absolutely. An increasing number of clients and suppliers using it.
QMRR: What are some of the cultural factors to consider when doing research in Egypt?
El-Ganady: There are a lot. One of the main mistakes made by Europeans or Americans doing research in developing markets is that they tend to apply the same techniques as they use in their own countries. But here we have a huge number of social and cultural factors to consider, such as the illiteracy rate, which is quite high. We have a low level of education; even those who are educated, their level of education is not the same as in other countries. The religious and political factors also come into consideration.
QMRR: Does the threat of terrorism hamper the research process?
El-Ganady: I don’t think terrorism has any bearing of the choice of market research techniques or the way research is being done.
QMRR: What advice would you give to U.S. marketers who are considering conducting research in Egypt?
El-Ganady: They have to talk to competent marketing research agencies about their marketing issues and leave the specification of research techniques to the local agencies, because they know what is appropriate and what isn’t. The American marketers shouldn’t ask for what they usually ask for in the States because we have to adapt techniques to the local situations.
They have to consider that collecting secondary information, what we call desk research, is very difficult here and this has to be compensated for by collecting primary information. I can only say what I said before: they should talk to professional market research agencies and see what is and what isn’t appropriate for their specific project.
QMRR: How has the marketing research community changed in Egypt?
El-Ganady: It has grown as the Egyptian economy has grown. There is an increasing level of professionalism. The number of good research agencies is quite limited but I expect that the industry will flourish in the next five to 10 years.
QMRR: For U.S.-based clients, is it necessary to travel to Egypt to monitor the process?
El-Ganady: Not at all. They can rely on very professional people here.
Rafael Gill, managing director, PORI Public Opinion Research of Israel Ltd., Tel Aviv
QMRR: What are some of the social or cultural factors to consider when doing research in Israel?
Rafael Gill: Israel is a multilingual country. So when you come to do research here you have to take into consideration that you may have to have questionnaires in Hebrew, in Russian, in Arabic. Most immigrants cope with Hebrew quite soon, so after a while you can interview them in Hebrew. Because the children of these immigrants go to school, they learn Hebrew quickly. If the parents don’t know Hebrew you can conduct the interview in the home and have the son or daughter translate the questions for you. We are trying to move toward one culture. It’s a melting pot, as you know. But we have people from Western countries, from Morocco, from Iraq, Persia, India and we have a lot of Europeans, of course. So it’s a big mixture and you have to keep that in mind.
QMRR: Does the threat of terrorism hamper the research process?
Gill: No, definitely not. Yes, we have suffered from terrorism and I hope we won’t suffer any more but it does not make any difference. Life goes on as usual. It has almost no effect on our work.
QMRR: Is Internet research viable in Israel now?
Gill: On the whole no, not yet. Some people use it but it has not been used much for research purposes yet but it will be as the Internet develops more and more.
QMRR: How has the marketing research community in Israel changed over the years?
Gill: It has grown tremendously. I started this company in 1966 and when I started it I was the only market research agency in Israel. There are now about a dozen or more agencies, of which about half are quite reliable and big. It has grown tremendously because the economy has grown. When I first started, people said, "What can research tell me?" And I said "Well, it can tell a manufacturer how to price their product." And they said "What do you mean how to price my product? I know how much it costs me to produce it. I put my 6 percent on it and that’s it." I said, "Maybe you can put on 60 percent! Maybe people would be willing to pay a higher price."
The idea of research 30 years ago was unknown because many of the companies were family companies. For example, maybe the family had a factory in Poland and when they came here the son continued the business. And when a family has been in a business for generations, they really know their market.
I was once in the office of a manufacturer of soup and while I was sitting with him one of his workers came in with a bowl of soup and a spoon and he tasted it and said it was good. That was the product test! And I said "What do you need me for? You know much more about soup than I’ll ever know and your father was a big soup manufacturer and you are one of the biggest companies here." He said "I know the tastes of people who come from Europe but I don’t know the tastes of the people who come from Morocco, for instance, or from Egypt. I need your research to tell me what their tastes are."
The main change I have seen over the last 30 years is the quickness. Thirty years ago we didn’t have computer and fax. Now it goes easier from a mechanical standpoint but the theory is the same. Sampling is the same, you should always have a sound sample, based on all the regular rules that are used in the U.S. and Europe.
QMRR: For U.S.-based clients, is it necessary to travel to Israel to monitor the process?
Gill: Not really, unless they want to come to this beautiful country and enjoy a nice holiday. We get a lot of jobs from the U.S. and Europe without the client coming here. Nowadays by fax and by e-mail we get all the briefings and we exchange views on the phone and once I know the purpose of the study I don’t think it is necessary for the client to come here. We’re always happy to have visitors from overseas but it’s not absolutely necessary.
QMRR: What advice would you give to U.S. marketers who are considering conducting research in Israel?
Gill: You need a local agency to help you with the questionnaire and the local culture. Just knowing the language is not enough. Even people who have grown up in England, for example, if they go to the U.S. they speak English but it’s not the same. It’s the same language but it’s very different.
A U.S.-based client must have a reason why he wants to come to Israel. If the market looks good to him, and he thinks his product or service will be used here, then he should try it. For example, we have a lot of cellular phones in use here. It’s very big market here because the penetration rate is close to 50 percent. So it is an interesting market for overseas clients and they even use Israel as a test market to find out how come mobile phones are so popular here. It may be because Israelis like to talk so much! It is also a kind of status symbol; if you have a phone it looks like you are an important manager.
U.S.-based marketers should determine if Israel is an interesting market for them and if it is, we are here to do the job.