How to Identify Your Target Export Market
The first step in export marketing is to determine the target markets and market requirements in which your product or service has a high demand and potential for the market. The world is full of countries around the world, and you must choose which one(s) for your products and services. If you are aware of your intended market and the needs of your call, you can quickly receive export orders from these countries.
It is possible to identify the target market by carrying out an International Market research activity that can provide you with a comprehensive understanding of the opportunities available in the international market. It is able to verify that an opportunity exists in a specific need and help to comprehend the characteristics of the market. It will give you an insight into how a call could be created. In addition, it can help you understand what your customers want and what factors influence their purchasing choices.
Different types of Market Research
There are two significant kinds of research on the market: primary and secondary.
This is done by making use of data and information from periodicals, research market reports, survey books, books, and statistical analyses available from different sources, such as chambers, chambers of commerce agencies, trade and industry associations libraries, websites, and even government sources.
It can be accomplished by gathering data and data through Interviews, Focus groups, Mystery shopping, etc. Research conducted in the primary research phase usually requires personal involvement in conversations and meetings. Contacts from the US or abroad can assist you more effectively if you clearly state your business’s goals in the beginning and then present your inquiries in a transparent manner.
Although Market Research is a complex procedure, following these three steps will allow you to find your target with secondary research.
Step 1: Collecting data
Collect data on statistical statistics in the related industries that provide export statistics of your service or product to different countries. The data can be gathered from a variety of sources, including periodicals such as market reports, studies books, surveys, and statistical analysis published from chambers, development groups, as well as trade and industry associations Councils for export development.
Many countries’ concern is the government. Dept. publishes statistics on export-import on their websites as well. For Example, in India, the Ministry of Commerce & Industry’s website- http://commerce.nic.in/ publishes export-import data categorized by HS code.
Other online sources such as Comtrade also provide International trade statistics.
Step 2. Screening
In the event that you collect data, Select 5 to 10 countries in which the product you offer is able to achieve the most exports in your nation. Examine them over the last two or three years to see whether the growth has been consistent from year to year? Was an increase in imports even during times of economic downturn? Should not it? If so, would the growth return after economic recovery?
Additionally, you should consider smaller emerging nations that could offer ground-floor opportunities. In the case of a market that is only opening up, it is possible that you will not face the same number of competitors as you would in a mature market.
– Select between three and five most promising nations to further study.
Step 3. Analyzing
Examine market trends and the situation of the countries that are screened, which could impact the demand for your product or service. Determine the consumption for your services or products and determine the number of imports.
Examine competition, both domestic as well as non-domestic. Study the market share of each competitor.
– Determine what influences the promotion and usage for the service or item within each market, for example, distribution channels or economic circumstances, the cultural and business environment.
– Determine any barriers from outside (tariff and non-tariff) to the item or service that is that are imported into the countries that affect exports to that country.
Check out the sites that are part of WTO, Euro monitor, Country reports, and country’s specific portals for business that can assist you in analyzing current market trends and current conditions. There are a variety of other websites on the Internet that provide relevant information about current trends in global markets and their current state.
When you have completed these three steps with success, after which, you’ll be able to identify the market you want to target and limit the marketing effort to these countries only; exporting companies that are new should target smaller than ten markets. Two or three countries are usually enough, to begin with. Then, you can start to design your strategies for export marketing and prepare to implement them.
Market research in the international market requires expert knowledge, so we recommend seeking advice from an expert when conducting research because when you’ve chosen your market incorrectly, the efforts you put into export marketing will fail to start from the very beginning.