Page 98 - DMGT547_INTERNATIONAL_MARKETING

Unit 5: International Market Research

When facts and figures about the demand potential are not available. Notes
In designing an advertising programme when consumers habits and preferences and of
the markets are not known.

When product development is needed to adapt a product according to the needs of the
customers.

When the income, fashion, habits and preferences are changing fast.
Having an idea of competitors’ policies and strategies.
When the company’s own price policy is not conducive to the competitor’s pricing policies
and needs a change.

Did u know? Market research is needed in taking decisions regarding new product
launching, product adaptation, entry to new market and alternative pricing strategies.

Self Assessment

State whether the following statements are true or false:
3. Market research is the main instrument for ascertaining demand.
4. Marketing research doesn’t help in knowing the competitive policies.

5.3 Approaches to Marketing Research

There are three main headings which have been identified to carry out step by step market
research. These are covered under (i) screen potential of markets, (ii) assess targeted markets
and (iii) draw conclusions.

Screen Potential Markets

Step 1: Obtain export statistics that indicate product exports to various countries. Export Statistics
Profile (ESP) from the Department of Commerce can assist. If ESPs are not available for a certain
product, the firm should consult the Customs Statistical Service, Foreign Trade Report, Export
Information Data Reports or Annual Worldwide Industry Reviews.
Step 2: Identify five to ten large and fast growing markets for the firm’s product. Examine all
these for the past three to five years.
Step 3: Identify some smaller but fast emerging markets that may provide ground floor
opportunities.
Step 4: Target three to five of the most statistically promising markets for further assessment.

Assess Targeted Markets

Step 1: Examine trends for company products as well as trends regarding related products that
could influence demand.
Step 2: Ascertain the sources of competition including the extent of industry’s production and
the major foreign countries the firm is competing against, in each targeted market.

Step 3: Analyse factors affecting marketing and use of the product in each market, such as end
user sector, channels of distribution, cultural idiosyncrasies and business practices.

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