International Market Research Process

1. Stages of International Market Research

1. Pre-selection of Favorable Markets
2. In-Depth Market Research in Target Country
3. 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.