International Market Research Process
Classified in Economy
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1. Stages of International Market Research
- Pre-selection of Favorable Markets
- In-Depth Market Research in Target Country
- Investment Research
2. Environments to Analyze in Initial Market Research
Economic, cultural, legal, technological, and political environments.
3. Economic Environment Analysis: GDP and Per Capita Income
Analysis of key macroeconomic figures.
GDP: Measures the value of final goods and services produced in a country, indicating its wealth and purchasing power.
Per Capita Income: Directly determines the market's purchasing power.
4. Main Trade Barriers
- Licenses: Required for importing/exporting specific products in certain countries.
- Tariffs: Taxes on imported products.
- Quotas: Limits on the quantity or value of imported products.
- Taxes: Additional import taxes on specific products (e.g., alcohol, tobacco, luxury items).
- Technical Barriers: Obstacles due to safety, health, environmental, and certification regulations. These often involve high switching costs, especially for industrial and durable consumer goods.
- Exchange Controls: Limit the foreign exchange available to importers, acting as import barriers.
5. Types of Tariffs
- Ad Valorem: Percentage-based tariffs calculated on the value of goods (most common).
- Specific: Fixed monetary amount per unit of imported product.
- Mixed: Combine ad valorem and specific tariffs.
- Compound: Consist of an ad valorem and a specific duty with a minimum or maximum rate, or both.
6. Market Selection Criteria
- Market Size: Focus on markets with high purchasing power.
- Growth Phase: Target countries where product demand is projected to grow.
- Price: Seek markets with affordable entry costs and sufficient commercial margins.
- Competitive Advantage: Prioritize markets where the product offers a competitive edge, either in the product itself or the associated service.