Step-by-Step Approach to Market Research
Step 1. Find Potential Markets
Obtain trade statistics
that indicate which countries import your type(s)
of products.
Perform a thorough review of the available market
research reports in the country(ies) and industries
in question to determine market openness, common
practices, tariffs and taxes, distribution channels,
and other important considerations.
Identify five to ten large and fast-growing markets
for the firm's product(s). Analyze them over the
past three to five years for market growth in good
and bad times.
Identify some smaller but fast-emerging markets
where there may be fewer competitors.
Target three to five of the most statistically
promising markets for further assessment. Consult
with U.S.
Export Assistance Center near you.
Step 2. Assess Targeted Markets
Examine consumption and production of competitive
products, as well as overall demographic and economic
trends in the target country.
Ascertain the sources of competition, including
the extent of domestic industry production and the
major foreign countries the firm would compete against.
Analyze factors affecting marketing and use of
the product in each market, such as end-user sectors,
channels of distribution, cultural idiosyncrasies,
and business practices.
Identify any foreign barriers (tariff
or nontariff) for the product being imported into
the country and identify any U.S.
export controls.
Identify U.S. or foreign incentives to promote
exporting of your product or service.
Determine whether your product is price competitive
after you've figured in packaging, shipping, marketing,
sales commissions, taxes
& tariffs, and other associated costs. See
"pricing considerations".
Step 3. Draw Conclusions
If the company is new to exporting, it is probably
a good idea to target 2 or 3 markets initially.
Your local Export
Assistance Center can provide valuable insight
into your "optimal" market opportunities.
Step 4. Test Demand
There are a number of low-cost on-line and off-line
services that can help new exporters gauge foreign
market interest and collect overseas inquiries:
BuyUSA connects you to thousands of qualified international
buyers, distributors and agents.
Catalog exhibitions allow you to cost-effectively
prospect for customers by showcasing your product
and service literature in fast-growing export markets
around the world.
Learn about the various services available to locate
foreign buyers/partners, prospect markets, and effectively
market your company overseas.
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