What Is(Are) The Marketing Research Goals) Associated With A Firmã¢â‚¬â„¢s Product And Services Strategy?

Spotlight on Market Research

Table of Contentss

The benefits of marketplace research
Types of market inquiry
Steps in the procedure
Market profiling considerations
Common challenges
How the TCS can assistance
Are you export ready?

Market place research is vital to sustainable export success in international markets. It is a procedure that can help you lot avert costly expansion mistakes and place boggling business organization opportunities, allowing you lot to minimize risk before y'all enter a strange market place through proactive data collection and analysis.

The post-obit Spotlight will outline the foundation of performing market enquiry on an international calibration to identify a target market. From differing enquiry methods to valuable profiling elements, this short guide can assistance your company prepare to appoint in market research in order to solidify potential exportation opportunities and avoid the hazard of entering the incorrect market.

"Take the time to examine the local culture, find out how things are washed in that location and adjust. Part of the process includes finding the right local partner." – Export Award Winner

The benefits of market research

When performed correctly, market place research can be instrumental to your company'southward global success and can provide yous with a wealth of concern intelligence on prospective target markets. In general, the process identifies exportation opportunities, detects new or emerging markets, and uncovers the preferences of potential customers. This process can exist benign regardless of your company's size.

Marketplace research involves the collection and analysis of data at successive levels of detail, with the overarching intent of identifying uniform target markets. When performed on an international scale the process becomes especially important due to the increased level of investment required to achieve strange markets.

The Canadian Trade Commissioner Service (TCS) is pleased to nowadays the following Spotlight on Market Research, which compiles information and external resources for firms looking to identify lucrative target markets on a global scale, allowing them to minimize risk and exist confident when making exportation decisions.

For further data and resources on market research and the exportation process, consult the TCS Pace-by-Pace Guide to Exporting, which has a department in step 4 dedicated to finding your side by side target market.

What is market research?

Market inquiry is the process of gathering, analyzing and interpreting data about a market and the individuals it consists of. Internationally, market research is crucial to determine potential market compatibility and depict comparisons between markets.

Types of market place research:

Some forms of market research are more economic and less fourth dimension consuming than others; however, it is always recommended to collect equally much relevant information equally you tin during the process. This ensures that you have the resources y'all need to make the most educated decisions possible. Typically, this is why a combination of different forms of market research is ordinarily the most sensible strategy.

Secondary market research - the data collection has been completed previously past an external source, offering you the opportunity to repurpose this information. Secondary research typically consists of reports, studies, books and surveys, the vast bulk of which tin be found online. This means that the process is ofttimes very affordable in nature, presenting little take chances in assembling a substantial corporeality of information relatively quickly. One drawback of secondary market place research is that information technology is often specialized for the purposes of the original user, meaning you should refrain from drawing firm conclusions from this research due to its subjectivity. Equally a result, the interpretation of secondary data is often used in conjunction with other methods, and acts as a solid foundation in the early on stages of market research.

Did y'all know?

The TCS offers a gratis database of marketplace reports on a wide range of locations, including intelligence on prominent industries in each market. Yous can access this free service past region or by sector.

Market Highlight: Agri-Nutrient manufacture

In certain industries, a wealth of secondary market inquiry may already be available to domestic companies. For example, Agriculture and Agri-Food Canada provides free market intelligence on the agriculture industry to Canadian businesses that are looking to proceeds insights and consign their appurtenances internationally. This service provides information on current opportunities, trends, forecasts and existing distribution channels in foreign markets, too as reports on regions around the globe. To access this service, visit the International Agri-Nutrient Market Intelligence webpage.

Primary market place research - involves a start-hand approach, and is a more exhaustive form of collection and assay than its counterpart. Consequently, this blazon of inquiry is more than time consuming and has a larger fiscal burden, but in turn offers you personalized data that can be analyzed extensively to draw conclusions and make decisions. This inquiry will require some type of on-site behaviour to be completed accurately, which is an important factor to consider when evaluating prospective locations to export your appurtenances or services. It is essential that you contact potential customers and respondents directly, usually taking identify in the course of personal interviews, questionnaires, or consultations. Various forms of statistical assay tin can also be performed on chief research figures, allowing for simplified interpretation of marketplace compatibility and a quantitative comparing based decision-making procedure.
It is also important to ensure that your inquiry objectives are well defined to your potential audience, meaning any respondents should exist aware of your company's intentions prior to their involvement. Clarity in this process should atomic number 82 to responses that are both relevant and 18-carat, which can be used to guide yous towards a resolution on which markets to enter.

Strategy Highlight: Varying primary research methods

There are a number of methodologies normally used to collect master enquiry data. Examples of these approaches include questionnaires, focus groups, and personal interviews. Each of these processes requires a different degree of respondent involvement which may influence the enquiry method you lot choose to implement. For example; information that is highly personal in nature may require a more individualistic approach of data collection than what is offered by a questionnaire or focus grouping. A personal interview would probable be a adept selection in this instance, seeing every bit the client will non be influenced by the presence of other respondents and is costless to communicate honestly and without judgement. A full breakup of these methods and when to use them can be found under Market research methods from Innovation, Science and Economic Evolution Canada (ISED).

Strategy Highlight: Crowdsourcing

Some companies conduct market inquiry projects entirely online, finding success through the inexpensive collection format known equally crowdsourcing. This process involves a mass virtual outreach to undefined groups to gather information. This approach typically works best for large enterprises with vast backgrounds in social media, and in locations with high social media and internet penetration rates. For more than examples of crowdsourcing market research, consult the CanadExport commodity on Crowdsourcing your market place intelligence.

Tip:

Attending merchandise shows can be a great way to find market place trends and obtain other valuable marketplace intelligence. You never know where you might find your side by side export opportunity!

Steps in the process

While detailed, the marketplace enquiry procedure tin be simplified to three relatively straightforward steps. Companies showtime demand to screen several markets before making a more than in-depth assessment, at which betoken they can ultimately come up to an educated decision.

Figure 1: The international market research process
Effigy i: The international market place enquiry process

1. Screen potential markets
This step of the marketplace research process involves identifying and collecting statistics concerning markets that currently import items in your product or service category. Once you have gained an agreement of this data, you can select multiple markets which announced to be in stable economic growth with minimal fluctuations. It is also proactive to consider markets that are small and emerging, every bit they tend to offer a high degree of potential market share due to a limited presence of contest. You can then endeavour to narrow your focus down to several of the most promising candidates from your initial screening.

Did yous know?

The World Customs System (WCO) offers a subscription service known every bit the Harmonized Organization Database, which allows users to view reports of almost all appurtenances that cross land borders. Tools like these are useful in market place research projects where data is more difficult to learn.

two. Assess target markets
Assessing markets is a process that involves a more than extensive approach than the initial screening; however, it encompasses much fewer candidates. The aim of this step is to collect as much applicable information every bit possible in order to provide a strong ground for comparison between the remaining markets.
Part of this cess process involves identifying noteworthy appraisal factors for consideration in each viable location, such as cultural norms and growth rates. Competition in each market is also a central consideration in this stage, as the relative success of rivals in a market of mutual interest could forecast similar success for your business concern. Elements like these are extremely useful when determining if your business organization tin can translate to a potential market place efficiently, and are explained in greater detail later on in this Spotlight.

iii. Draw conclusions and make decisions
This stage tin can but begin in one case the assessment of the potential target markets is complete and the entirety of the information has been analyzed. Evaluating this information involves extracting qualitative meaning from your data, which when done correctly should lead you lot to a terminal decision regarding which market(southward) to really aggrandize into. Later this decision has been made, the market enquiry portion of your international exportation process is complete.
The side by side stride in your plan would involve creating an export marketing strategy, for more information on how to arts and crafts a successful export marketing plan read the TCS Spotlight on International Marketing.

Marketplace profiling considerations

What is profiling?

Profiling is applying sets of characteristics to potential markets with the objective of comparison or segmentation.

One strategy commonly used during the market place research process is profiling, which tin can assistance y'all narrow downwardly the amount of potential markets using a comparison of consistent aspects. Any factors you choose to evaluate tin also be personally weighted according to the priorities of your company, highlighting the adaptability of the profiling approach. When profiling markets it is wise to consider aspects that can be compared uniformly across multiple regions, with examples such as:

Evolution - This factor indicates the level of economical advancement in the market, and the extent to which the marketplace presents a mature infrastructure and client base. This could also include the pace at which the market appears to be progressing economically.
Political stability - This element refers to the caste of construction and predictability of the current government within potential markets, and any major political themes that are nowadays.
Merchandise relations - The human relationship between the foreign and domestic parties involved in any potential situation of bilateral commerce is very of import, considering long term trading partners will likely offer more lenient shipping and transportation regulations than countries that do not behave business as frequently. Major imports and exports between the 2 countries and existing tariffs should also be considered.
Economical conditions - Whatever major trends that are currently influencing the market's economic system are worth recording, as well as the consistency and elapsing of these fluctuations. Ideally you lot want to consign to a nation with a robust economic situation and low fiscal risks.
Business organization practices - Understanding the typical business organization customs that are followed in a market place will help yous adapt your business model to run into strange standards. Features included in this analysis could consist of local currency, typical business hours, regulations placed on multinational firms, and common workplace relationships and structures.
Cultural norms - When conducting international business organisation, it is imperative to understand the ins and outs of the foreign culture, and to comprehend how differences between the domestic and strange cultures may require your company to make adjustments in lodge to conduct business seamlessly. Examples of relevant cultural norms could include conversational attributes, perception of outsiders, and principles that are present in everyday life.
Ease of admission - What may sometimes exist disregarded in the process of international market research is the geographical proximity of potential destinations, and how this volition affect the transportation and aircraft costs required to substitution goods. This will also affect your ability to efficiently conduct primary research, including travel expenses and accommodations for researchers. This variable could also encompass the availability of existing foreign warehousing and client-facing infrastructure.

Tip:

Many of these factors can exist combined to determine a market's caste of adventure, which is an effective way of filtering out less desirable markets. For example, a location with political unrest, loftier take chances of conflict, and a depreciating currency would indicate a high-risk destination which you should likely avoid.

Did you know?

The Centre for Intercultural Learning (CIL) at Global Affairs Canada (GAC) offers a free database of cultural insights on a wide spectrum of countries around the world.

Market Highlight: Markets with complimentary trade agreements

When evaluating prospective markets, it is wise to take free trade agreements (FTAs) into consideration. Countries that have already laid the groundwork for simplified trade can be much easier to export to than others, not-to-mention much cheaper. An example of such an agreement is CETA, otherwise known every bit the Comprehensive Economical Trade Understanding, which eliminates a multitude of tariffs and regulations between Canada and members of the European Wedlock.

In the absence of an existing FTA, companies can choose to consult the Canada Tariff Finder, a articulation venture tool from the Canadian Trade Commissioner Service (TCS), Concern Evolution Bank of Canada (BDC) and Consign Development Canada (EDC). This tool can help companies because global expansions place the relative costs of entering each of their potential target markets.

Common challenges

Marketplace research tin be a relatively complicated procedure, particularly when it is performed on an international calibration. This ways there are a host of challenges that many companies encounter during the procedure. Some of these challenges include:

Methodology – A common fault amongst companies performing marketplace research lies within their power or lack thereof to choose the correct information drove techniques. It is critical to utilize the methods that will produce data you can base of operations decisions off of, which will exist dependent on the personal needs of your company and the size of your marketplace research projection.
Communication - Difficulties involving advice and interpretation are common in international market research, due to the elementary fact that foreign markets tend to speak different languages. It is important to recruit individuals who are fluent in the foreign culture so that your data collection and conversion efforts are non lost in translation.
Financing – Conducting effective international market research will likely not be a inexpensive endeavour, and for this reason it is recommended that companies but take on a telescopic of enquiry that realistically fits their upkeep. Doing so will preclude inquiry from existence abased before completion and should upshot in cost-efficiency. An example of this scenario would involve a house selecting too many markets to enquiry simultaneously, leaving them with the dilemma of spreading their resources too thin to cover every market they planned for. Proper budgeting is an effective way of ensuring that there are no costly surprises during the market research process.
Scaling – Some companies endeavour to replicate successful market enquiry strategies used by large multinational firms; however this approach does non interpret well to pocket-size and medium sized enterprises (SMEs). If you attempt to replicate the market inquiry of a larger visitor you will acquire an overwhelming amount of not-relevant information, which in turn will be nearly impossible to interpret accurately and could consequently lead to skewed conclusion making. Each international exportation circumstance is unique, and should be treated equally such when it comes time to perform market research.
Sampling – Whenever quantitative research is conducted, at that place is always an opportunity for collection errors to occur. In international market research, it is specially of import to make certain yous are evaluating the individuals in a market that are truly representative of the population. Failure to practise this accurately could upshot in a skewed perception of the market's demographics and consumer demand, which could consequently lead to poor determination making. On the other manus, a sample taken properly can provide an excellent snapshot of what an entire market place can offering your visitor, which is why enlisting the assistance of experienced researchers is oft a sensible strategy.
Forecasting - Exist realistic in your projection of how much market place share you can acquire in a foreign location. It is a common mistake to be overly optimistic when envisioning your potential market share, which is merely the portion of the market that is hypothetically accessible. Instead, consider taking a more refined approach and contemplate the available market for your goods or services. This is the amount of the target market place that tin realistically be acquired by your business, rather than only the total market that is available.

How the TCS can help:

The TCS can provide owners and representatives of SMEs with on-the-ground support in potential target markets, including localized marketplace intelligence. Merchandise commissioners can assistance your concern scope out prospective export locations and get you connected with the right people.

Fact:

More than than half of TCS staff working abroad are local specialists who are hired for their first-hand noesis of the state in which they alive. You also tin do good from their market intelligence and valuable connections.

lxxx% of TCS clients say…

Merchandise Commissioners helped them connect with foreign business organization contacts that would take otherwise been difficult to identify or access.

Trade Commissioners helped them gain the confidence to explore or expand their operations in to new global markets.

Are y'all export prepare?

The Step-by-Stride Guide to Exporting volition aid you to:

Sell to more customers. Target global buyers online.
Enter more than markets. Leverage the benefits of free trade.
Save time & avert risks. Learn the legal aspects of trade.

Download this complimentary guide and proceeds admission to all TCS export publications through My TCS.
Access these boosted resources:

Canadian Trade Commissioner Service (TCS)

CanExport
Spotlight on Global Value Chains
Spotlight on Gratuitous Trade
Part of the Chief Economist
Canada Tariff Finder

Canada Business Network

Conducting Marketplace Inquiry
Designing a questionnaire

Consign Development Canada (EDC)

Country Data

Business Development Depository financial institution of Canada (BDC)

Market Research
Inbound a strange market: 4 tips for successful marketplace inquiry

Manufacture Canada

Trade information Online

Date Modified:: 2021-12-23