Question

Discuss how companies research, analyze, and select the international markets they enter.

Answer 1

Research is a key piece of successful export planning. It is important to critically review and assess demand for your product as well as factors related to a given destination. The information will maximize company’s efforts while keeping the export plan cost and time efficient.

Preliminary research by going online and searching for existing survey reports on your topic of interest. There might not be much data, especially if you are looking for very specific information, but you might find something close either for a different country or a report that gives you some ideas. On how to go about your primary research.

Develop a brief research – A brief document should contain the full information of company background, the business objectives, research objectives, your target market, your competition etc.

Also identify the right market research agency, determine Data Collection Mode, conduct data analysis, and complete a post project review. Conducting international marketing research is often a large undertaking and there are various details you need to consider before embarking on your project.

Once you have completed your initial market research and determined which markets have the best potential for your product or service, it is critical to review the steps needed to actually enter the market.

Logistical and cultural factors can all play a role in market entry. Some questions to consider include:

· Are there any infrastructure/ logistical factors which could make your product difficult to access for local consumers.

· If there is a language difference, how will you communicate with potential partners and customers.

· Are there import requirements which may necessitate an alteration of your product.

· Once the market is entered, how will after sales services be conducted or customers questions addressed.

· How can you mitigate risk in case of shipping issues, non-payment or other disputes.

Additionally it’s important to work with reputable partners to support your company in the export process, including a logistical provider, customs broker, attorney, accountant and bank. As you create your market entry plan, the advice of these partners can help you some times and money and avoid potential issues.

Finally, reputable, reliable and knowledgeable local partners can help make your market entry successful. Your local partner should be familiar with the import requirements especially customs clearance for your product. And know the major industry player and also potential customers. The local representative may also register your product for sale locally and in some cases may then have rights to the product design / trademark etc.

Make sure you conduct due diligence on a partner and consult with an attorney to design contracts that protect your company.