Market research should enable businesses to analyse potential targets according to a number of key factors and issues.
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These may include factors such as size/growth and segmentation of markets, customer concentration, import sensitivity & growth, seasonal/cyclical trends, and quality issues.
This will cover factors such as the degree and concentration of competitors (domestic and foreign), the complexity of distribution systems, the availability of substitutes and barriers to new entrants to markets.
This will include basic issues such as the cost of doing business in a particular market but also will require analysis of pricing practices/payment terms, tariffs and other barriers to trade, foreign exchange, currency stability and the provision of concessional finance.
Cultural issues (including language), political stability and legal systems are vital factors in market identification. More specific but no less significant are foreign investment and consumer/environmental legislation, registration & licensing procedures, labour laws and intellectual property protection.
Analysis of the factors listed above, should help firms to rank potential markets in priority order.
Above all, businesses should focus on the influences on demand for products/services, on the acceptance of products/services, on government regulation and the major sources of competition.