Market Considerations

It is important that a business determine if the export is allowed in the target market. To determine if your product is allowed to be exported to a particular country, visit www.export.gov/. At this site you can find a trade specialist near you who can assist you in locating the information.

Important considerations to keep in mind when researching who the customers are:

• Not all regions of a country will have the same laws, cultures, and needs. Just like the domestic market, foreign markets will require different marketing strategies; depending on the target audience and what will draw their attention to your product or service. It is important to identify who your customers are and develop an understanding of their needs.
  
• Review the success of the product in its current market and identify what makes the product attractive to current buyers. What makes the current marketplace similar to the potential foreign market?
  
• Research the success of similar competitive products in the target foreign market. How is your product different than the one there and how well have customers received it?
  
• Explore cultural differences within a country as they can vary greatly. Always research and visit a potential market before trying to penetrate it, and never assume one market is the same as the next just because both lie within the same borders. Customs, religions, and social classes can all dramatically affect sales.
  
• Different regions will have diverse social classes and each will have specific needs and wants. Although a product may interest people of a certain region, disposable income for those people may be limited. Thus a product that is a “want” may not succeed even if there is interest.

Important considerations about the product compatibility in the market include:

• Products may need to be altered to succeed in a foreign market. Cultural differences, geographic or climate differences, and use pattern can all be reasons for product modification. Research the costs of these modifications, and determine if they will alter the integrity of the product in any way that could result in fewer sales than projected.
  
• Determine the current market stability, and if the market has yet to emerge, is it on an upward trend, or dwindling?
  
• Investigate the market predictability; even when a country has laws in place to help with importing or exporting goods. Countries or regions do not always enforce established laws and regulations, thus having an idea of market predictability in a specific area could make a difference on the success of the international activity.

It is important to weigh the advantages and the disadvantages of international trade. Make sure you are willing to sacrifice short-term profits to achieve long-term gains. It is important to do upfront homework and determine that you do have a good pool of target customers, and you have a product that will work or adapt to the market needs. This will in part ensure success.