3 Important Fundamentals Of Global Market Research
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With the growing emphasis on globalization, companies are expanding their business overseas beyond their local market. However, to position themselves better in the international landscape, the stakeholders need to become more vigilant in their marketing approach. While local market research solutions apply to international market search, additional challenges, opportunities, and strategies one needs to take care of to enter the global market. To create and garner value from the worldwide market, conducting international market research is of paramount importance.
Global Market Research Companies
Global market research introduces businesses to the international know-how of the target audience and market. It helps marketers align the industry with the cultural, political, and legal requirements to improve business potential. Outsourcing it to global market research companies enables enterprises to overcome the barriers in establishing business internationally. It helps the marketers successfully navigate the international market by conducting interviews, focus groups, qualitative research in the target market to critically review and assess demand for your product beyond your local market.
Hence, for a company that intends to operate globally, worldwide market research must design, collect, record, analyze, interpret, and report data pertinent to a particular marketing decision. Here are a few tips you should consider while conducting global market research before your product or services go international.
Look For Multiple Sources Of Crucial Information.
Robust methodologies and sources are essential to a global market research approach. It provides an extensive and accurate overview of the target market.
- Primary research helps to collect data directly from the foreign marketplace through focus groups, surveys, interviews, and more. It involves direct communication with the target audience to understand their requirements, demands, and purchasing behavior. You can use digital resources to facilitate communication with the international audience through polls, sort and rank, grids, and more to identify the trend in buyer’s behavior. Social media is a powerful tool for understanding customer behavior and extending brand outreach.
- Secondary research also helps in identifying the global market, which promises better conversions and sales. You can use AI and ML algorithms to use databases from relevant sources that help you identify the competition and opportunities in the international market. Assessment of foreign needs which promise better potential for profitability with minimum competition is ideal for brand expansion.
- Compiling competitive dynamics insights and trends about the global market needs a well-devised strategy. The analysis of global trends is further broken into regional trends of that market, distinguishing one market landscape from the other. Assessment of foreign market demographics, income levels, population density, education level, and financial structuring forms part of the global market research plan. You can perform a SWOT analysis to identify the strengths, weaknesses, opportunities, and threats in the global market landscape. Often government agencies provide public free access to various statistics pertinent to understanding the dynamics of the concerned market, which becomes a trusted source for conducting global market research. Attending international trade shows, workshops, and seminars in the concerned industry is yet another viable option to collect necessary data. Moreover, scholars publish articles about emerging trends in consumer behavior, market statistics, and more. These are some credible sources to get information about the global market.
- The expansion of business globally requires the stakeholders to compete against the already established companies. Researching about the competitors besides potential customers is essential. Identify your key competitors, and determine the pricing rates within the country or region to better align the pricing policy with the target market.
Hence, the type of information one needs to collect while conducting global market research but not limited to are economical and demographic data, cultural, sociological, and political climate, market conditions, technological environment, and competitive situation.
Common Challenges While Conducting Global Market Research
Cultural and language barriers impose one of the most distinct challenges in global market research. Due to insufficient understanding of contextual cues, the brand can conflict with the target countries’ cultural values. Hiring a local researcher can help marketers identify the cultural climate and local regulations and norms to tap into missed opportunities and better align the product with the target marketing landscape. Another pertinent barrier during global market research deals with the government bureaucracy. There are specific laws that define the extent of the research permits. To get the advanced research operation sanctioned, it might take longer than expected. Emerging companies also face challenges due to the limitations in costs and technological capabilities. Insufficient infrastructure can also hinder the companies approach to conducting global research studies.
Research Process
A clear layout of the global market research process at the outset is essential. It would be best to define your goals, problems, KPIs, budget, and objectives at the beginning of market research. Based on your research objectives, identify the best sources of information. Gather relevant data using both primary and secondary methods. Finally, analyze, interpret, and summarize the results to make effective business decisions.
To Conclude:
These key fundamentals will drive the understanding of the global market in which you intend to expand your business. A well-crafted strategy will enable you to develop a customer-centric brand with a greater probability of success in a new market.
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