Creating a Marketing Strategy
One of the businesses featured in this blog provides English-language software that can be downloaded directly to a smartphone. The planning procedure for this firm included looking for regions where English-language learning was in high demand and where mobile phone penetration was adequate to give the teaching. Another researchable topic was the popularity of credit card transactions over the phone. Then there was a study on how to reach the demographic most likely to buy this form of training and the various prices involved. Other businesses may opt to postpone this type of study until they've met with several potential purchasers. This buyer-finding technique is a viable choice that does not rule out the requirement for market research in addition to an emphasis on meeting buyers. We go on venues and cost-effective ways for meeting eligible buyers later in the blog. But first, let's layout a thorough approach to market research, including the many types of data accessible, where to obtain it, and what it may tell you about where to spend your efforts.
Many overseas marketplaces are vastly different from those in the United States. The following are some of the differences:
• Environmental and climatic considerations
• Social and cultural aspects
• Foreign exchange availability
• Import prohibitions by the government
The next stage is to build your export strategy with data and insights derived from various sources once you've determined that your firm is capable of exporting and is committed to doing so.
This last benefit is very significant. It takes time to build a global company. It might take months, if not years, for an exporting firm to start seeing a return on its investment of time and money. You may ensure that your firm will finish what it starts and that the goals that drove your export efforts will be realized by committing to the specifics of a documented strategy.
Research into the market
You should investigate international markets in order to successfully export your goods. The goal is to discover international marketing possibilities and restrictions, as well as potential buyers and customers. Market research refers to all procedures used by your organization to evaluate which overseas markets provide the most opportunities for your items. The findings of this study show that:
• The most important and fastest-growing markets for your product
• Market circumstances and practices
• Competing firms and goods
• Market trends and prognosis
If your firm obtains unsolicited orders from outside the country, it may decide to start exporting without completing any market research. Reviewing your present client list is a smart starting step; if you're in e-commerce, you've undoubtedly already got consumers from other countries or have gotten inquiries from overseas purchasers. These present and potential international consumers might serve as a useful gauge for creating an export marketing strategy. Although this form of research is beneficial, a systematic search may reveal even more interesting markets for your organization.
Primary Market Analysis
You can do market research utilizing primary or secondary data sources. Interviews, questionnaires, and other direct contacts with representatives and potential purchasers are used to acquire data from the international marketplace while performing primary market research. Primary market research has the benefit of being personalized to your company's needs and providing answers to particular concerns, but gathering such information on your own is time-consuming, costly, and may not be complete. The US Commercial Service can assist you to obtain primary data and evaluating it. This service costs several hundred dollars on average for each market examined and does not require you to travel to the market. The United States Commercial Service can also assist you in locating intermediaries with specialized market knowledge.
Secondary Market Analysis
Secondary market research is gathering information from a variety of sources, such as trade statistics for a nation or a product. Working with secondary sources saves money and helps you focus your marketing efforts. Secondary data sources are important for market research, but they have limits. Some nations' most recent statistics may be many years old, or the data may be too wide to be of much use to your organization.
Market Research Techniques
Because primary market research is expensive, most businesses rely on secondary data sources. These three suggestions will assist you in obtaining relevant secondary data:
1. Keep up with world events that affect the foreign business, keep an eye out for project announcements, or just explore potential markets. A melting of political tensions, for example, frequently leads to the opening of economic channels between countries. When the dollar rises, this might have the reverse effect, making some markets less appealing.
2. Analyze economic and trade statistics. Generally, trade data are prepared by product category and nation. These data give your firm information on product shipments throughout certain time periods. Demographic and general economic information, such as population size and composition, per capita income, and industry output levels, can give you a good idea of how big your company's market is.
3. Obtain advice from experts. This information can be obtained in a variety of ways:
• Speak with specialists from the US Department of Commerce and other government departments.
• Attend industry-related seminars, workshops, and international trade events.
• Hire a consultant that specializes in foreign commerce and marketing.
• Speak with successful exporters of comparable items in your region, such as members of District Export Councils.
• Make contact with trade and industrial organizations.
Secondary market research can be time-consuming and difficult to collect. However, there are a number of books that might help with the process.
Market Research: A Step-by-Step Approach
The following strategy may be beneficial to your firm. It entails identifying possible markets, evaluating those markets, and drawing judgments.
Prospective Markets Evaluation
Step 1: Collect data on exports
The following strategy may be effective for your firm. Screening possible markets, evaluating the targeted markets, and generating conclusions are all part of the process.
Step 2: Make a list of potential markets.
To begin, determine 5 to 10 major and rapidly increasing markets for your company's product. Take a look at the patterns over the last three to five years. Is the market's growth steady from year to year? Is it true that import growth occurred even during economic downturns? If not, did the recovery of the economy result in a resumption of growth?
There may be fewer rivals in a market that are just starting to open up than in more established marketplaces. These countries must have significantly greater growth rates to be considered up-and-coming markets. Burma (which only recently opened its economy after years of sanctions) and Morocco (which signed a free trade deal with the US) are two examples of such markets.
Look at groups of nations within Latin America, such as those with which the US has free trade agreements. Consider big countries' areas, such as western Canada or far eastern Russia. The US Commercial Service offers regional services that can assist you in locating buyers in different nations, such as East Asia. Why not make a pit break in Thailand or Singapore if you're heading to Hong Kong and the Pearl River Delta?
Step 3: Concentrate Your Efforts on the Most Promising Markets
Choose three to five of the most statistically promising markets from the ones you've identified for additional analysis. To further examine prospective markets, consult with a US Commercial Service trade specialist, business colleagues, freight forwarders, and others.
Identifying and Evaluating Targeted Markets
Examine Product Trends in Step 1
Examine your items as well as any connected products that may have an impact on demand. Calculate the product's overall consumption as well as the amount imported. Market research papers from the US Commercial Service give economic backdrop and market trends by nation and industry.
The United States Census Bureau (census.gov/population/international) and the United Nations Statistics Division (unstats.un.org/unsd/databases.htm) both include demographic data (such as population and age).
Step 2: Investigate the Competitors
The native industry in each targeted market, as well as rivals from other nations, are sources of competition. Examine each competitor's market share in the United States as well as in the targeted market. Export.gov/mrktresearch has market research studies and other competitive evaluations from the US Commercial Service.
Step 3: Examine Marketing Elements
Analyze aspects impacting the promotion and usage of your product in each market, such as end-user sectors, distribution channels, cultural peculiarities (for example, does your product's name indicate anything improper when translated into the local language?) and business procedures. The US Commercial Service's market research reports and customized market research are essential once again.
Step 4: Look for any potential roadblocks.
Tariff and nontariff obstacles to imports can exist. Export controls might be one of the United States' hurdles. You may require an export license if you create a product that has both civilian and military use. The US Commercial Service can help you figure out whether or not you need a license. The majority of applications are accepted.
Step 5: Determine If There Are Any Incentives
The government of the United States or another country may provide incentives to encourage the export of your product or service.
Making Inferences
After examining the data, you may come to the conclusion that focusing your marketing efforts on a few key nations would be more beneficial. If your firm is new to exporting, your efforts should be focused on no more than ten markets. Exporting to a small number of countries helps you to concentrate your efforts without endangering your local sales. What decisions you make should be based on your company's internal resources. However, the US government provides programs that can help you export to various markets in the same region.
Market Research Sources
There are several domestic and foreign sources of information about international markets. This section covers the previously stated market research sources, as well as a few more. Because there are so many research sources available, your organization may want to seek help from your local US Commercial Service office in order to get the finest and most up-to-date information.
Simple trade statistics, in-depth market surveys, and direct interviews with governmental and private-sector specialists are among the research sources. Total exports and imports by nation and product are shown in trade statistics. They allow you to compare the size of a product's market in different nations. Some statistics include the United States' portion of a country's entire market in order to assess the overall competitiveness of American producers. You can tell which markets are growing and which are diminishing for your goods by looking at statistics across multiple years.
Market surveys include a narrative overview and appraisal of certain markets as well as pertinent information. The studies are frequently based on actual research undertaken in the nations under consideration, and they may include particular data on both buyers and sellers. Personal conversations with private and government authorities and professionals are one of the finest sources of knowledge. There are a surprising number of persons in the public and commercial sectors that can help you with any area of foreign market research. These folks can supply a plethora of market research information in either face-to-face or telephone interviews.
Local chambers of commerce, international trade centers, or clubs and trade groups are all good places to look for market research expertise. Many state governments have export promotion departments that are functioning. The US Departments of Commerce, State, and Agriculture, as well as the US Small Business Administration, provides industry and commodities expertise to the federal government (SBA).
The following sources are organized into many categories: general export information, statistical and demographic data, export opportunities at development agencies, industry data, and regional and country data.
Exporting Information in General
Commercial Service of the United States of America (export.gov)
The U.S. Commercial Service is the primary port of call for businesses seeking federal export assistance. Specialists in the trade can:
• Provide you with details on all government export programs.
• Refer you to a local US Commercial Service office for one-on-one export advice.
• Assist you with the exporting procedure
• Provide business advice on standards and trade rules, distribution channels, opportunities and best prospects for US firms, tariffs and border fees, customs processes, and frequent commercial challenges by nation and area.
• Provide information on international and domestic trade events and activities
• Direct you to market research and trade leads
Exporting Small Business Administration Resources and Tools (sba.gov)
Publications, training, podcasts, films, and success stories are among the tools and resources available to small enterprises contemplating exporting or expanding into new overseas markets.
Information about statistics and demographics
Current statistical and demographic data is easy to access and may be obtained from a variety of sources. USA Trade Online (usatrade.census.gov) provides specific, up-to-date export data on over 18,000 goods from across the world. You may get the most up-to-date official statistics on US international commerce for a nominal membership charge.
Trade Statistics Express (tse.export.gov)
A comprehensive source of current and historical export and import data for the United States. It covers U.S. trade statistics by nation and product categories, state and metropolitan area export data, and trade and industry statistics, and is maintained by the US Department of Commerce's Office of Trade and Industry Information.
Information on the Industry
Any exporting operation requires industry-specific knowledge. There are various places where you may get up-to-date information:
United States Department of Agriculture's Foreign Agricultural Service (www.fas.usda.gov)
For anyone seeking information on overseas agricultural markets, the Foreign Agricultural Service (FAS) is the primary point of contact. The FAS's Agency of Outreach and Exporter Assistance can offer basic export advice and refer you to the relevant Department of Agriculture office if you have particular inquiries about exporting. The team may give nation and commodity-specific foreign market intelligence studies that focus on the best market prospects and include distributor and importer contact information.
Database of Textiles and Apparel
This database, created by the US Department of Commerce's Office of Textiles and Apparel (otexa.ita.doc.gov), includes information on international markets as well as the laws and regulations that apply to US exports. The database includes information on marketing and distribution, market entrance requirements, shipment and entry procedures, and trade policy for various countries. There is also more general information accessible, including export procedures, possible customers and suppliers, current trade challenges, and history on textile and clothing trade policy agreements.
Product and Industry Resources from the Private Sector
Numerous guides and directories are published by the private sector in the United States and abroad that include useful information for your business. Consult your local US Commercial Service office for particular references.
Information on the region and country
Individual country and area information is generally available. Here are some locations where you may learn more about certain markets:
China (export.gov/china) is a website run by the United States Commercial Service.
A comprehensive repository of China-related information compiled by federal and state government departments, associations, and private-sector organizations. Companies who are new to the market or already have a presence in it can:
Companies who are new to the market or already have a presence in it can:
• Acquire knowledge about how to safeguard their intellectual property rights.
• Obtain industry-specific market research to evaluate export prospects
• Search for trade leads and tender offers
• Attend trade events in the United States and China
• Identify trade finance sources
• Monitor changes in Chinese import regulations
• Identify relevant U.S. export regulations
• Find quick tips on doing business in China Learn about China's economic and political situation.
Publications of the OECD (oecdbookshop.org)
The Organization for Economic Cooperation and Development's (OECD) charter objective is to support the policies of its member countries. These policies are intended to promote economic growth, job creation, and high quality of life, as well as to contribute to healthy economic development and trade.
The OECD's publications cover a wide range of social and economic topics, concerns, and trends. Import data is included in country-by-country reports on international market information that may be used to gauge import competition.
The OECD also produces economic development surveys for each of the OECD's 30 member nations, as well as a few others. Each survey provides a thorough examination of recent changes in market demand, output, employment, pricing, salaries, and other factors. There are also short-term projections and analysis of medium-term challenges that are crucial to economic policies.
(export.gov/mrktresearch) Market Research Library
More than 100,000 industry- and country-specific market research, websites, events, and trade directory listings are available in the US Commercial Service's Market Research Library, which covers more than 120 countries and 110 industrial categories. Country Commercial Guides, Industry Sector Analyses, Marketing Insights, MDB Publications, Best Markets, and other industry or regional reports are among the reports available.
Market research tailored to your needs.
These reports make use of the US Commercial Service's global network to assist US exporters in evaluating their sales potential in a market, selecting the best new markets for their products and services, establishing effective marketing and distribution strategies in their target markets, identifying the competition, determining which factors are most important to overseas buyers, pinpointing exporting impediments, and understanding a variety of other critical market intelligence. The reports are tailored to your preferences. Please visit export.gov for additional details.