How to avoid common exporter mistakes – Part 2

In the second part of the series of ‘How to avoid common exporter mistakes’ Handel Export will outline the importance of carrying out sufficient and appropriate market research when approaching a new export market.

Part 2: Failure to carry out sufficient or appropriate market research

Carrying out good market research prior to entering a new market is vital for a number of reasons, not least for saving you time and money through making sure you get it right first time.

The more information you have on your target market, the better your ability to make informed decisions on the best strategy for business development. This is particularly important for SMEs where they may have very limited resources to develop their export activities. Many companies will approach new markets in an ad hoc way, especially in SMEs where the owner / manager is the key person looking after export development as well as one hundred other things! Sometimes they do not see the merit in spending time on market research, although this is ultimately short-sighted – although market research is time consuming, it is one of the most effective ways of saving you money in the long term.

Detailed information is required on your competitors, the structure of the market, who your potential customers are, what the market size is, what the product and service requirements are, and relevant legislation in the market. Other general information is also important such as background on the politics and economics of the country, and one of the most important things of all – finding out about the culture of the country and how business is conducted there.

The most successful exporters and export sales people we know are those who make an effort to find out as much as possible about the market they are doing business with, not just in advance of their first market visit, but also during their market visit. Showing an interest in the market and people you are doing business with goes a long way to establishing successful business relationships. Spending extra time in the market, going early and spending the weekend there to get a feel for the country can really help you to understand how the market ticks, what will work and what will not work in terms of sales and marketing.

Handel Export offers a market research service to exporters, to provide them with key market information to enable the company to make the right decisions about how to approach a new market, without burdening them with reams of information that reduces their will to live! Contact us for more information on our services.