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To be successful, exporters must assess their markets through market research.

Exporters engage in market research primarily to identify their marketing opportunities and constraints within individual foreign markets and also to identify and find prospective buyers and customers. Market research encompasses all methods that a company can use to determine which foreign markets have the best potential for its products. Results of this research inform the firm of: the largest markets for its product, the fastest growing markets, market trends and outlook, market conditions and practices, and competitive firms and products. Firstly they would need to Identifying products for export. Although, in any given time you may find numerous products that qualify as exportable one, your chance for success will increase substantially if your chosen product met the following criteria:

You have been handling this product for local market for several years You have full confidence in the quality of the product The value of the product matches or exceeds the imported similar ones You have guaranteed availability of this product for export

Secondly they need to Identifying potential export markets for the products. To identify an export market they have to spend sometimes on gathering necessary information. They need export statistics of the country to see which markets are presently buying products similar to theirs. This will give an idea which markets are viable for them to target. Apart from checking the statistics from their own country, they also should verify export statistics from several other countries that manufacture and export similar products. After analyzing this information, choose couple of markets for further assessment. This time they will need more in depth information on these markets. By keeping abreast of world events that influence the international marketplace, watching for announcements of specific projects, or simply visiting likely markets. For example, a thawing of political hostilities often leads to the opening of economic channels between countries.

By analyzing trade and economic statistics. Trade statistics are generally compiled by product category and by country. These statistics provide the firm with information concerning shipments of products over specified periods of time. Demographic and general economic statistics such as population size and makeup, per capita income, and production levels by industry can be important indicators of the market potential for a company's products. To take an informative decision while selecting a market you will need answers to the following questions:

How big is the demand for your product or similar products in the targeted market? What is the ratio between domestic production and import? Who are the main competitors in this market? What is the growth potential of the market? How strong are they in comparison to you? What is the import duty structure for your product? Is there any incentive available to you from your country for exporting this product?

Answers to these questions will give you enough facts to compare the markets you have chosen for assessment. While taking final decision on export market, dont forget to study the business and social cultures of the specific country. This could be an important issue in selecting the right market for you. To conduct market research they would need to examine trends for company products as well as related products that could influence demand. Calculate overall consumption of the product. They would need to consider Demographic information such as population size, age distribution, etc. This can be obtained from World Population (Census) and Statistical Yearbook (United Nations). Ascertain the sources of competition; including the extent of domestic industry production and the quality and price of the product in that country. Look at each competitors market share.

Analyze factors affecting marketing and use of the product in each market, such as end user sectors, channels of distribution, cultural idiosyncrasies, business practices, purchasing practices of consumers this would include the level of income earned in the country and how the consumer distributes his or her income. When you enter the new market how are you going to cater for this market. They would have to decide if they are going to build a factory and produce or are they going to export from their home country. If building a factory they would have to look at the cost of building the factory. If employees would be employed from new market or does the company need to bring in workers. When they consider bringing in workers to the country how would the citizens of the country view this. This could impact negatively on you. Also if building a factory you would have to look at pollution since some countries are now focusing more on environmental issues due to global warming. If they are shipping the product directly to the country they would have to consider cost of such transportation, length of time for the product to arrive. Identify any foreign barriers (tariff or non tariff) for the product being imported into the country Identify any barriers (such as export controls, custom duties) affecting exports to the country. Identify any foreign government incentives to promote exporting of the product or service, if the government is import oriented or if they prefer to produce their own products. The level of political stability of the country is important. You would need to know if the country is on a verge of collapse, growing economic power, etc. Once you have targeted the market you would like to pursue through analyzing these factors your next step is to start selling your product. External and Internal Factors to be considered: External Factors Public- Legal Restrictions Internal Factors Suppliers

Globalisation Trade Libralisation Economic- State of Economy Inflation Exchange Rate Social- Animal Rights Org. People Culture Main Shoppers Technological- E- Commerce Competition- Forgien Companies Small Businesses Customers- High or Middle Income Intermediaries- Agents

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