If you plan on doing business in another country, you need to conduct global market research.If you want to expand to a foreign market, you'll need to understand that nation's economic and cultural landscape.Reliable sources of secondary research can be found.To learn more about potential customers' preferences, conduct primary research.You can target promising markets with demand for your product, stable political and economic climates, and lower export costs if you do your homework.
Step 1: Data from government agencies should be gathered.
Statistics from the government are usually free to access.You can search online for a country's census bureau, commerce department or ministry.Try using the terms "census," your country of interest, and "gov." Other useful search terms include "demographics," "trade statistics," and"median income."There are reports on industry-specific opportunities in a number of foreign markets.
Step 2: You can find information in your association's publications.
Market statistics, member lists, emerging trends in technology and customer preferences are likely to be published by your professional organization.Useful resources can be found on your association's website.If you're not a member of a professional organization or trade association related to your industry, you can search online.The Encyclopedia of Associations (Gale Cengage Learning), a comprehensive directory of international associations and organizations, can be accessed at your local library's reference department.
Step 3: Ask the library for help.
You can find good sources of data at your local public or university library.A librarian can help you find the right information.You can access sources that require subscriptions with the library's credentials.
Step 4: Get in touch with a business professor.
Reach out to professors who specialize in marketing or international commerce by checking the faculty listings of local colleges and universities.They may be willing to give advice or recommend resources.You could write an email saying, "I recently read your fascinating article on analyzing text and symbols used in online communities."I would like to learn more about the software that makes this process simpler.Would you be willing to discuss your work with someone?
Step 5: Understand how your industry works in foreign markets.
To expand your business, you need to identify where your product or service is in demand.Foreign markets where there's demand should be identified with the highest potential for profitability.There is demand for your product or service in foreign markets, but not a lot of competition.Developing markets are often less competitive.There might be too many established companies for you to be competitive in a major economy.You can find detailed guides on over 125 countries at https://www.export.gov/ccg.Evaluations of each country's economy and economic outlook, political climate, and information about trade regulations and treaties are available.To find guides on international markets organized by industry, visit https://www.export.gov/industries.
Step 6: Foreign markets have demographic and income levels.
Population density, education levels, age and income distribution are some of the data that should be compiled.Data from the last 3 to 5 years can be used to identify trends.You should compare this information with the statistics you have on your customers.Suppose your average customer is 25 to 34 years old, college educated, owns a PC, and earns more than 60 percent of your nation's workforce.When researching foreign markets, look for population centers with concentrations of educational institutions, a high number of young professionals, and an above average median income.You can find local, regional, and national population statistics on the website of a country's census bureau.This information can help you narrow down where you want to open a distribution facility.
Step 7: Look at tariffs, taxes, market openness, and other trade statistics.
Find trade statistics for countries with strong demand, low competition, and concentrations of potential customers.Information about trade agreements, as well as how much it costs to export products to that country, can be found here.It is possible that your nation has a trade agreement with another country.It would be more profitable to export to a country that does not impose high tariffs on your product.If you live in the U.S., you can use the tool to calculate your export costs by product and destination.International trade data can be found at the Knowledge Base.
Step 8: For further research, identify 3 to 5 promising foreign markets.
You can narrow your list of potential markets by assessing demographic, demand, competition, and trade data.A short list of potential markets is needed for primary research.It is more expensive to gather data directly from customers.Austria imports over 30% of its aircraft parts from the U.S., and the Austrian aviation industry is projected to grow 10% annually.This is a promising foreign market to enter.If you work with a German or Austrian distribution agent, you will fare better in the Austrian aviation industry and economy.You wouldn't earn the margin required to price your products competitively, and this would cut into your profits.Austria was removed from your short list.You should focus your expansion on regions in North and South America after further research.
Step 9: Images and symbols are used in online communities.
You can check the social media pages of international companies.Try to understand how customers think and communicate by studying how they interact with their customer base.Look for abbreviations, popular images, and other symbols.A deeper understanding of how potential customers communicate will allow to create more effective marketing materials.If you use a search engine, you can see how often terms are used.analytic software can be used to automate your search.
Step 10: Online surveys should be mobile-friendly.
If you're expanding to developing economies, most of your customers will use their mobile devices to access the internet.You don't want a question to take up an entire mobile screen.If you don't have email lists or a strong social media following in potential new markets, hiring an outside firm to create and distribute surveys is your best option.You can create a survey yourself if you can't hire an outside firm.You can use an email survey service to distribute it, but there are some good questions to ask.How do you find the product or service you are looking for?Do you like or dislike your current options?Where would you like to see improvement?
Step 11: If you need to translate research questions, hire a translator.
Language barriers are one of the biggest pitfalls of primary global market research.If you want to distribute surveys in other languages, you need to hire a professional translator.Many words don't translate into another language.Potential customers in Russia might be interested in buying fresh soybeans.There are several variations of the word "fresh" in Russian, and you might end up asking potential importers about minty soybeans.Search the directory of a professional association for the best way to find a translator.The American Translator Association can be found at www.atanet.org.There is a directory for the International Association of Professional Translators and Interpreters.Professionals know how to translate hard-to-convey terms better than anyone else.
Step 12: There are cultural response biases.
Market researchers have found that in cultures that value collective harmony responses are more likely to be favorable.Survey responses indicate that customers think a product is a great idea, but it doesn't sell when it's actually released.Market research that fails to factor in cultural response biases is a common pitfall.To account for a response bias, look for survey data from a country or region that has been published by your trade association.Survey data can be compared with a product's performance.If you look at favorability ratings, you might find products that scored between 3.5 and 4.2 out of 5, and only scores above 4.7 sold well.Even though a 4 out of 5 seems like a good score, you'll know to look for ratings over 4.5.
Step 13: 2 to 3 foreign markets are most promising.
By the end of your research, you should have a list of foreign markets where you can make the most money.You should expand your business to no more than 3 foreign markets.Stable political and economic environments, lowest exporting costs, and the most potential customers are some of the benefits of promising markets.To streamline the process of becoming an exporter, work with your nation's export authority, commerce department, or small business administration.In the U.S., the Small Business Administration offers free or low-cost help to business owners who are planning on expanding to international markets.You can find your local SBA export assistance center at www.sba.gov/tools/local-assistance/eac.