How to Identify Your Target Export Market

First step of export marketing is to identify targetcategorized by HS code.
market and market needs where your products- Other online sources like Comtrade also publishes
services have good market potential and demand.International trade statistic data.
There are many countries in world and you shouldStep 2: Screening
pick right one(s) for your product and services. If- From those collected data, select 5 to 10 countries
you know your target market and market needs,where your product or service has maximum volume
you could easily get export orders from thoseof export from your country. Check them over the
countries.past three or five years to know whether growth
You can identify target market by conductingbeen consistent year-to-year? Did import growth
International Market research activity that will giveoccur even during periods of economic recession? If
you detailed knowledge of opportunities innot, did growth resume with economic recovery?
International market. It can confirm that an- Also select some smaller emerging countries that
opportunity actually exists in a particular market andmay hold ground-floor opportunities for you. If the
can help you to understand the market'smarket is just beginning to open up, you may not
characteristics. It can give you insight into how a newhave as many competitors as you would in an
market can be developed. Most important, it helpsestablished market.
you to identify needs of your potential customers- Screen and target three to five of the most
and factors influences their buying decisions.promising countries for further analysis.
Types of Market ResearchStep 3: Analysis
There are two main types of market research:- Analyse market trends and situation of those
secondary and primary.screened countries that could influence demand for
Secondary researchyour product or service. Calculate the overall
This can be done by using data and informationconsumption of your products or services category
gathered from periodicals, studies, market reports,and identify the amount imported.
books, surveys and statistical analysis available- Study the competition, both domestic and
through various sources like chambers of commerce,non-domestic. Look at each competitor's market
economic development organizations, industry andshare.
trade associations, websites, libraries and government- Identify what affects the marketing and use of the
sources.product or service in each market, such as channels
Primary researchof distribution, economic situation, cultural differences
This can be done by using data and informationand business practices.
gathered by Interviews, Focus groups, Mystery- Identify any foreign barriers (tariff or non-tariff) for
shopping etc. Primary research almost alwaysthe product or service being imported into those
demands personal involvement through interviewscountry affecting exports to the country.
and consultations. Your foreign or domestic contacts- Refer websites of WTO, Euro monitor, Country
will be able to help you better if you state yourreports and screened country's specific business
company's objectives at the outset and present yourportals which will help you more to analyse current
questions clearly.market trends and situation. There are many other
Though Market Research is a complex process butsources on Internet, publishing useful information on
following three simple steps will help you to identifycurrent global market trends and situation.
target with secondary research approach.After completing these three steps successfully, you
Step 1: Collecting datawill be able to identify your target market and
- Collect statistical information of related sector thatrestrict your marketing efforts to those countries
show export data of your product or service toonly. New-to-exporting companies should concentrate
various countries. You can collect those data fromon fewer than ten markets. One or two countries
various sources like periodicals, studies, marketare usually enough to start with. You can then begin
reports, books, surveys and statistical analysesto develop your export marketing strategies and plan
published by chambers of commerce, economicaccordingly.
development organizations, industry and tradeInternational market research activity needs
associations, Export promotion councils.expertise work so recommend you to get expert's
- Many country's concern Govt. dept. publishesadvices on performing research activities because if
export-import statistic data on their websites also.you have identified your target market wrong, all
For Example, in India, Ministry of Commerce &your efforts for export marketing will go waste from
Industry's website- publishes export-import datathe first step itself.