Page 104 - DMGT547_INTERNATIONAL_MARKETING

Unit 5: International Market Research

5.6 Market Surveys Notes

A market survey is a fact-finding mission, conducted for the purpose of obtaining all relevant
information about the market. The survey may be (a) product-oriented or (b) market-oriented.

Product-oriented Survey: The aim of a product-oriented survey is to identify market for
the exporter’s existing product or product range. Sometimes, an organisation is already
manufacturing a product for home market where it enjoys a good reputation.
Market-oriented Survey: Main objectives of such a survey are to identify the products that
may be sold in a particular overseas market. An export organisation dealing in a number
of products may explore new markets for its export trade. In undertaking market-oriented
survey, it would identify the product/products that could be sold in substantial quantities
in that particular market.
The following steps are involved in carrying out a market survey:

5.6.1 Setting Objectives

At the outset, the exporter should clearly spell out the objectives of the survey. The objectives of
the survey may be — to find out feasibility of introducing an existing product in the new
market; demand estimation of new product in the target markets; identification of the most
desirable form of export distributions and promotion in target market or investigation into
causes of buyers’ complaint/falling market share.

5.6.2 Adopting Methodology

The methodology adopted with reference to the collection of market information and its analysis,
should aim at reducing the subjective element in the decision-making. The methodology should
provide for the collection of only relevant information. Therefore, no single methodology can
be recommended. In fact, two or more methods of collecting data are adopted, with a view to
eliminate the possibility of collecting irrelevant data.
Desk research and field research methods are popularly used for this purpose. Initially, a desk
research is undertaken. On the basis of the results of desk research, a field survey is conducted to
bridge the gaps and collect the specific information about the product and the market.

5.6.3 Survey Conducting

There are two basic methods of conducting a survey: (a) areas of Investigation and (b) techniques
of survey.

Areas of Investigation

The following areas, both in desk research and field research, should definitely be covered in the
investigation:
Information on market profile: All information about the export market, i.e. its areas,
population, cultural groups, income disparity, income groups, density of population,
language spoken, taste, traditions, preferences and cultural background should be collected.
Information on product file: All information should be gathered regarding the product,
the local manufacturing capacity, local imports and market demand of the product, the
short-term and long-term plans and the increase envisaged thereto, product specifications,
consumer preferences on product ideas. The data should be collected on products, which
could be used as substitutes.

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