In our previous article, we looked at a few points to consider when researching export markets. In this article, we will define the two types of market studies you should conduct for your company when determining a primary and secondary market.
Primary market research
Information is gathered directly from the foreign market through interviews, surveys, and contact with customers and/or representatives. However, researching a primary market requires a lot of time and money.
Secondary market research
Many companies prefer to do research through various internal departments, using available data from multiple resources, including:
- Online business databases
- International reports
- Business and economic statistics
- Trade agencies
Determining the size of the potential market will help you decide if it is worth it to invest. You will also need to know how the market works, including the main distribution channels, key trends, and the possible influence of your competitors.
Sorting products and services
When conducting market research, it is highly recommended to use a business database with a comprehensive sorting system for products and services.
- For a database to be effective, it must be able to accurately sort your product or service, so the more specific the sorting system, the better your research will be.
- This will allow you to use the sorting system to guide and refine your searches and get more information about the market and potential competitors.
- As an exporter of a new product that isn’t sorted yet, you can use your current profiles to establish a potential base for international customers and determine your market objective.
Additional market factors
Additional factors to consider are the political and cultural climate, economic stability, geographical factors, and market access. However, business information can help provide some of these answers, including:
- Identify the existing export or import business in your target markets.
- Find out if there is too much competition. This can make it difficult and costly to penetrate a specific market, although if there is a good level of competition, there may be an opportunity and potential for market growth.
- What has the growth rate of your target market been in recent years?
With data from Kompass, you can identify business data to find out the situation in your market(s) of interest.
Kompass offers global database solutions with detailed information on over 21 million B2B companies in 70 countries around the world.
With the aim of more easily identifying aspects such as competition, products, geographical regions, company size, contact information, managers, and business volume, Kompass develops sales intelligence tools with over forty filters to organize your searches and find accurate and precise data that meets your needs.
Kompass has very useful information on 55,000 products and services, which will simplify your export market research.