Knowing and understanding as much as possible about the international marketplace will improve a company’s ability to achieve success in that market.

Such knowledge will provide valuable insight into the steps that must be taken to meet the demands and specific requirements of that market as well as help companies avoid critical mistakes.

Market research in itself serves no purpose. It must be directed towards some practical objective. Its principal value lies in facilitating the decision-making process. Market research should be closely coordinated with the company’s strategic plan.

The research plan must identify the issues that need to be addressed and the sources of information shown so that the marketing plan can be validated and subsequently updated through reference to the initial sources of information.

Researchers need to have terms of reference to ensure that the information gathered is focused and cost effective.

Exporters want to know what specific market opportunities are available for their product before developing an international marketing strategy. In developing that opportunity, the researcher should gather information on these topics:

1. What does the market structure look like?

Knowledge of the composition, profile or structure of a foreign market enables an exporter to plan for market entry, promotion and development of customized products or services, and address the many other issues important in entering a new market.

2. How is the market share split up?

Market share is an important consideration, but in the long term, achieving sustainable profitability in each market is the ultimate goal. Knowing how the market is currently served is important.

For example, are there any dominant competitors in the market or does each participant have only a small part of the market? Entering into a highly competitive new market means that for every product sold by the company, a competitor loses a sale.

With market share information generated through research, the marketing function can design a specific market entry strategy.

3. What are the current market trends?

Trends in international markets can indicate what products are being phased out or what new products are entering the market. With this information, the marketing function can decide if any modifications are required to its marketing strategies and plans.

Attention should be given to any trends in the economic and political environments within the target markets.

4. What size of market are you looking at?

Market size is often a major determinant when deciding to enter foreign markets. For markets of a certain size, niche marketing may be warranted.

In the case of larger markets, the emphasis may be on taking advantage of economies of scale.

5. What challenges will your product or service face?

A number of questions relating to the nature of the product or service must be considered. What is the consumption rate of the product? Is standardization an issue? Based on the information provided from the research, the marketing function would determine if any product modifications are necessary.

6. How will you price your products or services competitively?

One of the most important elements of information to be generated by market research is a sense of what the foreign customer is willing to pay for the product. Another related factor is the price of competitors’ products.

7. How will you promote your business?

Research can identify promotional channels such as radio, television, newspapers, Internet sites, bulletin boards or high-profile events. Many of these outlets have demographic information about their audiences. With this information, the marketing function can design an effective promotional program.

The existence of product-related trade shows can be determined through research—usually by referring to Global Affairs Canada (GAC) or the Federation of International Trade Associations (FITA).

Additional research can yield information about the nature of promising trade shows and the characteristics of attendees. This enables the marketing function to consider the most appropriate show for a product/audience fit.

8. What kind of competition will you face?

Knowing who the competition is and what it is doing is as important in a foreign market as it is in a domestic one. Increasingly however, the pool of potential competitors is far broader, partly owing to the Internet, and partly to the fact that competition can come from outside a particular industry sector.

9. What kinds of logistics challenges will you face?

Logistics research can yield information on the availability and nature of the various channels of distribution and storage capabilities in the target market. This enables the marketing function to develop a logistics plan to get the product to the customer as quickly and as cost effectively as possible.

10. Are there any cultural issues in your target market?

Significant cultural issues may not always be covered in the standard secondary sources of information.

There are however, many sources especially focused on intercultural effectiveness or cross-cultural interaction, that can offer very practical insight. Additionally, the researcher may consult with business people who have worked in the target market or with travelers who have spent a significant amount of time there.

The objective is to identify significant cultural issues that might pose a barrier to successful entry. Such barriers might require adjustments either to the market entry strategy, the sales approach, product positioning, labeling or even the product itself.

The foregoing research topics can be effectively organized by using various techniques such as PEST analysis, SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis, as well as Porter’s “Five Forces” analysis.

Each of the techniques or models suggested can be readily applied to international markets, and can be valuable in analysis conducted in the context of international marketing activities.

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Export Development Canada is about to embark on their annual “Let’s Talk Exports” tour, and you won’t want to miss it.

Peter Hall, EDC’s Chief Economist will talk about succeeding in the global marketplace amid volatile markets and falling commodity prices.

The tour is designed to benefit businesses involved in product export, financial institutions and various industry associations as well as those servicing the export community.

The idea behind ‘Let’s Talk Exports’ is to provide the Canadian export community with the most up-to-date trends in the global economy, and how they will affect exporting businesses of all sizes, in all sectors.

The main theme of this year’s tour is the volatility that struck global commodity and financial marketing in the beginning of 2016.

Some pressing questions that will be addressed include:

Are the wheels of the world economy getting loose?
Is this the natural point for another global recession, or is the cyclone contained?
And will there be an end to the commodity price plunge?
Is Canada’s winning streak at an end, or are there opportunities to pursue?

The cross-Canada tour will span 11 cities from April 26 – June 1, 2016.

Those unable to attend personally can join the tour virtually via an online webinar that will be held on June 2, 2016. Twitter users are encouraged to join tour by following #LetsTalkExports / @PeterGHallXIII.

This year’s ‘Let’s Talk Exports’ Tour features Peter G. Hall, Vice-President & Chief Economist at Export Development Canada. Peter has over 25 years of experience in economic analysis and forecasting.

He is responsible for overseeing EDC’s economic analysis, country risk assessment and corporate research groups.

During the tour Peter will provide his insight on the current global economy and its effects on Canada, along with forecasts for the Canadian dollar, commodity prices and growth in particular industries.

Will you be attending one of this years events? Let us know what you think and send us your event photos, comments.

The post EDC goes on ‘Let’s Talk Exports’ Tour appeared first on Trade Ready.

In 2016 Canada should focus and exports, experts say.

Export development and investment in trade enabling infrastructure are the two key elements that should keep the Canadian economy steady in 2016.

A rough start to 2016

Despite their best efforts, however, the experts that presented the Canadian Chamber of Commerce’s Crystal Ball Report in Ottawa on January 28 warn that the Canadian economy is in for a bumpy 2016.

“The worst start to a year on record,” said Perrin Beatty, CEO and President of the Canadian Chamber of Commerce in the event’s opening presentation.

Prices of oil reached the level where the lid of the barrel costs more than what’s inside the barrel.

According to Beatty, in 2016 Canada’s economy will face many challenges such as high consumer debt, an overheated housing market, and the inability to rely on traditional sources of growth, such as natural resources or internal consumer spending.

A deep divide in the nation’s business community

The Canadian business community seems to be deeply divided in its outlook, between optimism in sectors that are experiencing rapid growth such as forestry, automotive and technology, and gloom in the mining and energy sectors stricken by low commodity prices.

“The turbulences wreaking havoc in certain parts of the economy are actually fueling a spectacular, double-digit growth in other parts of the economy,” said Peter Hall, Vice President and Chief Economist for EDC and a contributor to the report.

Hall also added that because of the makeup of the Canadian economy the exports are really the engine for moving forward. “And I am not just saying this because I am representing EDC,” he emphasized.

Many Canadian businesses share this sentiment. According to Canadian Chamber of Commerce’s report, most businesses expressed enthusiasm over prospects in the U.S. and Europe, whose economies are expected to grow in 2016. Beatty explains,

Where is growth going to come from? Not consumption – consumers are tapped out. Government spending cannot provide much lift. Most provinces are in cut-back mode. We cannot rely on natural resources anymore. Housing is overbuilt. That means we have to start exporting like crazy.

Exporting to other countries, however, is not as easy as it seems, says Corine Pohlmann, Senior Vice President for the Canadian Federation of Independent Businesses that represents over 100,000 small business owners from coast-to-coast. Small businesses contribute over 50% to Canada’s GDP and provide over 90% of all private sector jobs.

Time to reduce burdens on exporters

“The cost of doing business with the U.S. is still expensive for many companies. We really should start focusing on reducing those types of expenses. There are still too many surprises there. We need to decrease financial and regulatory burden,” Pohlmann said.

Responding to Pohlmann’s concern, Beatty said that enhancing trade enabling infrastructure as well as trade and regulatory harmonization are critical for the economy to grow.

For many industries in the knowledge economy, regulations, ownership requirements and restrictions on data flows can be the most difficult barriers to success. Canada must move quickly to ratify the TPP and a comprehensive economic and trade agreement with Europe.

Ratifying free trade agreements with nations like China will help many small Canadian businesses feel less ‘intimidated’ and help them to understand what needs to be done to access these markets.

Panel experts also identified the shortage of a qualified workforce as a major obstacle for growth. According to the Crystal Ball report, Canadian businesses are facing skills gaps and mismatches right across the board, creating an urgent need for new immigrants and for the skills and education aligned with the needs of employers.

Summarising the outlook for 2016, Hall said that economic turbulence comes with positives and negatives.

Volatility has to come with the growth. Our job is look for those sources of growth, and when we find them to take as much advantage of them as we possibly can.

Do you think Canadian exporters can turn the economy around in 2016? Do you plan to take advantages of the opportunities out there and start “exporting like crazy?”

The post Why “We have to start exporting like crazy” appeared first on Trade Ready.