International Market Research plays a crucial role when it comes to expanding business to foreign markets, as it mitigates many risks. You might be planning to start exporting your products, establish a sales subsidiary or an entire manufacturing unit to a new market. No matter on the market mode, a properly conducted foreign market research will ensure your success.
While your business might thrive in your home market, the strategies that work there might not seamlessly translate to a foreign market. Cultural, organizational, and language disparities often necessitate adjustments to ensure success in different markets.
Foreign market research entails comprehending a foreign market prior to introducing a product or service there. Its primary goals include grasping the target customer base, pinpointing challenges, acquainting oneself with competitors, and delving into factors that enhance success while averting unforeseen setbacks.
Why to Investigate Foreign Markets?
Cultural discrepancies: Each culture encompasses distinct languages, customs, educational backgrounds, values, attitudes, religious beliefs, and living standards. These factors collectively shape how individuals within a culture perceive a brand or organization.
Differing customer preferences: Beyond cultural influences, preferences are shaped by various factors. Technological advancements, innovation levels within a country, and the competitive landscape all play pivotal roles in shaping consumer preferences.
Different condition of competition: This consists of so-called ‘Porter’s 5 forces’: current competitors, potential competitors, suppliers, substitute products, and buyers. The condition within each of the five forces shapes the nature of competition in a particular market.
Unclear logistics system: Entering a foreign market poses substantial logistical challenges. Tasks such as supplier selection and assessment, staffing, securing suitable facilities, understanding payment protocols and financial systems, devising efficient product transportation methods, adhering to import/export regulations, and a myriad of other responsibilities all demand attention and meticulous planning.
Legal discrepancies: Navigating a new market involves numerous legal intricacies, spanning environmental regulations, tax laws, and employment statutes, among others. Moreover, the dynamic nature of regulations means that what was permissible years ago might now be prohibited.
Lowering risks: Engaging in market research serves as a proactive measure to mitigate risks associated with entering a foreign market. It empowers you to comprehend customer needs, anticipate competitive dynamics, navigate legal complexities, and develop a more robust strategy.
6 Techniques for Foreign Market Research
Here is a list of example methods for conducting an international market research. Although there exist much more techniques, the ones presented here have appeared as the most effective.
- Text Message Survey: Entail sending a sequence of questions to respondents via SMS. This method is rapid, cost-effective, and enables reaching a broad audience swiftly. It serves as an efficient means to gather substantial feedback with minimal effort.
- Attitude Scales: Enable respondents to express their feelings or opinions regarding a question or statement, typically spanning from “Strongly Disagree” to “Strongly Agree.”. This method provides cultural insights from the perspective of individuals.
- Remote Face-to-face research: Through entirely digital means, face-to-face interviews and focus groups can be conducted, eliminating the necessity of sending team members overseas or recruiting individuals within your target market.
- Foreign Government Information Collection: Government sources offer critical insights into potential legal hurdles when entering a new market. They illuminate the spectrum of regulations dictating market entry, product launch, and marketing compliance.
- Online Survey: Numerous online survey types exist for international market research, including email, social media, and web forums, among others, for engaging respondents and distributing surveys. They yield rapid responses and are easily translatable into multiple languages, facilitating a seamless global reach.
- Mobile Web Survey: disseminating surveys through smartphone applications or various online platforms mentioned earlier. In numerous countries, smartphone ownership surpasses computer ownership, validating this approach as a viable alternative for survey distribution.
Why to Outsource Market Research?
Access to expertise and tools: This advantage allows for more efficient and effective research, potentially uncovering deeper insights or executing methodologies that might not be readily available internally within a business.
Time saving: Leveraging external parties’ tools and expertise enables swift and efficient research execution. This capability empowers businesses to obtain insights promptly, facilitating timely, well-informed decision-making processes.
Cost-efficiency: You only pay for the service. investing in services often proves more cost-effective than hiring full-time employees. Outsourcing allows businesses to tap into specialized expertise on an as-needed basis, sidestepping the overhead costs tied to maintaining a permanent staff.
Objectivity: Internal biases and preconceptions can inadvertently skew the research process, potentially yielding incomplete or inaccurate results. External parties bring a new, impartial perspective to the research, enhancing objectivity and the quality of insights gained.
International Market Research at Katrium
Outsourcing market research activities presents numerous advantages for businesses aiming to stay competitive and adept in evolving market landscapes. By harnessing external expertise, gaining unbiased perspectives, and accessing specialized tools efficiently, businesses can navigate changes, understand market trends, and make informed decisions, ultimately enhancing their competitive edge.
Katrium draws from 14 years of specialized experience, excelling in various services, particularly focusing on international market research. Our journey has finely tuned our expertise in conducting different market research through phone interviews. Explore our diverse range of services to uncover what we can offer—feel free to reach out; we’re here to assist you every step of the way.
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