A rigorous screening process needs to be undertaken to determine which overseas markets are likely to offer the best prospects for export success.
While many markets may appear attractive initially, first-time exporters should usually focus their efforts on a small number of key countries.
Businesses should identify the key factors and constraints in each potential market in order to develop sound export strategies.
Market research is a critical element in determining an export strategy.
The principal aim is to differentiate potential markets in terms of critical factors such as market size/growth, competitive environment and availability of key allies & partners such as agents/distributors.
First stage is desk research which is the compilation and analysis of general information on markets and business conditions, obtained from readily available, published sources. This is valuable for providing background data and in the formation of initial impressions of market viability.
Second stage is in-market research to collect first-hand information on doing business in particular markets and specific data from potential customers and users of products and services.
While desk research is an important tool in the identification of potential markets, in-market research is essential in a business’s international decision-making process