Export is the phenomenon of selling ones product that are produced in home the home country to potential businesses running in host countries. Businesses invest time and resources into alleviating their production and become self reliant and efficient so that products could be exported.
Not only businesses benefit from export businesses, but it also plays a significant role in ameliorating the country’s economy. Doing businesses within a particular country can be thrilling; however, exporting renders an opportunity to expand and step into diverse businesses ventures.
Not to mention, if the domestic business begins to falter, or the country is going through a phase of recession exports will allow continuing business operations in markets outside the home country.
This does not go by without saying that where there are benefits, there are downsides as well. Export businesses require hands-on information regarding the potential markets, the financial risks, cultural change, and skilled labor. To mitigate all these risks, it is pertinent to conduct effective market research for exports.
Market research refers to the process of collecting information relevant to a particular market and its forces such as potential customers, competitors, market gap, and suppliers and to analyze that information.
The data you collect could be either primary or secondary in nature, which means either you collect it yourself or extract information that is already available to you by means of internet or even offline.
In order to succeed in international markets one must be well equipped with top-notch research. Effective market research should include all the information that could essentially help the exporter. This article aims to elucidate all the tips for conducting a successful market research.
Tips for Marketing Research
1. Strategic Planning
For starters, doing a market research requires following a few steps. The first step is to make a strategic plan. When there is a carefully jotted down roadmap then following the lead would be much easier.
Different companies may opt for different strategic plans, but it is clever idea to compare the risks associated with doing businesses internationally to the possible outcome. If the risk and return are aligned only then the company may focus on the next step of studying the market.
2. Types of Data
To conduct market research, the use of accurate data is significant. An important tip in this research would be to use secondary data for the initial research of a market which is relatively cost effective and readily available, and after the completion of initial research, businesses could either travel themselves to conduct a primary research or hire someone to do it for them.
3. Form a team
When collecting primary data for market research for exports, get someone on board who has the experience in exporting so that they could walk you through the entire experience. One can also hire an agency for the purpose of research.
4. Conduct Surveys
When it comes to primary data collection, one can always go old school and conduct surveys. Make a list of all the things you need to know about a market such as, the current satisfaction level, pricing, demographic characteristics etc. This would also help you to come up with competitive prices for your products.
5. Attend Tradeshows
The best way to make the most out of a market research could be by attending tradeshows, because this is the one spot where all your competitors will be gathered, and you can seek valuable information about the market. Check out the Top Ten International Tradeshows for Export Businesses.
6. Analysis of the Country
It is essential to make a list of rules and regulations of the market that a business is looking forward to penetrating into. This involves looking out for taxes, tariffs, patents, registration, trademark, and the overall economic climate of the country.
7. Draw Comparison between Different Markets
While doing a market research for export one might get perplexed as to which market should be penetrated, to mitigate the ambiguity it can be helpful to set some variables such as stability of country, potential risk, and return and compare some of the markets to one another based on these variables.
Assign weights to each variable and select a market for export that yields better result.
8. Assess the Market Gap
Another important tip would be to keep the market gap in mind. Market gap refers to any product or service that has not been introduced in the market which means consumers’ needs are not met properly.
When a commodity is not being produced in home country, businesses tend to satisfy consumer needs by importing it, exporters just need to be clever enough to track those unmet needs and cater to them more effectively.
9. Assess the Consumers’ Preferences
A market has many forces, but the most important is the consumer. Consumers determine whether a product is worth it or not. It is integral that the while doing market research one takes the buyers’ perception into consideration.
The culture shift from one country to another can impact the buyers’ choices and preferences.
10. Study Competitors
Research is an ongoing process and results may vary overtime, it is important to study the competitors, this includes analyzing their strengths and weaknesses and come up with a competitive advantage to use as leverage.
In order to maximize the chance of succeeding in export business many important factors come into play, because understanding a foreign market involve understanding the cultural differences, demand, demographics, and other legal considerations.
An effective market research can act as a catalyst to growth of the business. The tips discussed in this article would help an exporter to stay one step ahead in the market.