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Home ARTICLES International market research necessary?
 

International market research necessary?

Market research is essential as the exporter need to establish beforehand if his product must be adapted (incl. Packaging, labelling, country and industry standards and regulations) to be allowed to be sold in the importing country. Depending on the type of product and the country the product will be exported to, this cost can be a substantial financial outlay for the exporter.

Other factors that needs to be considered to ensure successful marketing a product in the overseas market:
 Language, laws and business customs
 Different standards (ISO 9000, HACCP ect.)
 Different packaging
 Health and sanitary regulations
 Import tariffs and taxes
 Consumer prefereces
 Competitors, to name a few

Note: To build a market on the assumption of a favourable exchange rate is never a good business decision. Product prices in overseas markets (just as in South Africa) are regulated by market forces. The exporter will need to identify these market forces of the country he is planning to export to, in relation to which he will set an acceptable price for his product.
Factors to consider:
- Supply and availability of competing products
- the competitor's pricing levels
- nature of the product
- profile of the buyer
- the competitive advantage of the product.

 

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