Market Research.
In the midst of a sluggish economy with possibly not a quick fix to an early economic recovery, looking to foreign markets for growth opportunities makes good sense. For small to mid-sized businesses, getting into the export game is not easy. Finding markets, understanding regulations, figuring out logistics and managing currency exchange rates are just a few of the many hurdles that have to be overcome.
Research is vital to gain an accurate perspective of any new market. Much of the initial research into the viability of the project can be carried out from the home base, this can then be furthered with field research in the chosen export location.
The research will form the basis of the required export-marketing plan. Aside from the analysis of relevant issues, the plan will set out the company’s objective and the strategies used to achieve those objectives along with the resources needed to implement the plan. The initial investigation should address:
- Background of the market including political and economic stability
- The size of the market
- Potential demand for the product
- Import restrictions
- Level of duties/taxes which will be imposed on the product
- The competition
- Restrictions concerning payment methods
- Foreign exchange problems/delays
- Availability of credit risk insurance availability of shipping services
- Infrastructure (roads/telecommunications)
- Technical requirements
- Product labelling /marking requirements
- Packaging requirements
- Languages
- Details of target customers
- Size and location of operation
- Financial standing
- Normal payment terms
- Credit standing with export credit risk insurers
- Cultural/other restrictions, which might affect sales
Although the list looks daunting, much of the information can be obtained from government agencies and the remainder will be completed from your – or your agents – thorough investigations.
Researching the prospective client base is important too -The “Go-to-market” strategy is a term often used in marketing to describe the strategy of reaching customers through multiple marketing channels. It is a simple concept that looks at trying to exploit many ways of reaching the customer
The options for reaching new markets and customers are ever increasing:
- Direct selling through your own staff in the market
- Representatives
- Agents
- Brokers
- Franchisees
- Catalogue resellers
- Internet auctions and shop-fronts
- Distributors
- Systems Integrators
- Value-Added Resellers (VAR)
- Original Equipment Manufacturers (OEM)
- Private Label Resellers
Go-to-Market Plans move decisions and strategy into action, longer-term Go-To-Market Plan (3-5 years) should be put in place to develop a plan to achieve longer term sales goals within the core/focus products/SKU’s. This will help determine how to attack your various customer segments and how to execute marketing plans across the targeted customer base.
- Define profitable growth strategies by business segment, brand, customer and channel for each year over the GTM plan horizon (typically 3-5 years)
- Assess and prioritize specific strategies and the means to achieve those targets
- Identify and prioritize the sales and marketing infrastructure and resources required to deliver and/or exceed the GTM growth targets and the opportunities for increasing the efficiency and effectiveness of the go to market effort
Accurate and relevant research of the market and target client base will provide:
- Market Demand -what is driving or inhibiting market demand for technology solutions?
- Customers – what are customer needs, especially unmet needs, and what are their key buying factors?
- Competition – what competitive set best represents competition and how are they competing?
- Differentiation – what differentiators are sustainable & difficult to replicate by competitors?
- Solutions – what solutions best meet market demand and customer needs?
- Channels – what channel structure & programs enable reaching desired customer segments cost-effectively?