How to Conduct Global Market Research

Explore this Article

parts

1Identifying Reliable Sources

2Conducting Secondary Research

3Gathering Primary Research

Other Sections

Expert Q&A

Related Articles

References

Conducting global market research is an essential first step if you plan on doing business in another country. Before expanding to a foreign market, you'll need to refine your understanding of that nation's economic and cultural landscapes. Find reliable sources of secondary research, or data compiled by authoritative sources. Then, conduct primary research to learn more about potential customers' specific preferences. If you do your homework, you'll be able to target promising markets with demand for your product, stable political and economic climates, and lower export costs.

Steps

Part 1

Part 1 of 3:

Identifying Reliable Sources

1. 
   1
   Gather data from government agencies. Government agencies are invaluable, reliable sources of information, and government statistics are usually free to access. Search online for a country's census bureau, commerce department or ministry, and other agencies related to demographics and economics.

   • Try using the search terms “census,” your country of interest, and “.gov.” Other useful search terms include “demographics,” “trade statistics,” and “median income.”
   • If you live in the United States and are researching global markets, you can find economic reports, forecasts, and guides on specific countries and industries at https://www.export.gov/Market-Intelligence.
   • For reports on industry-specific opportunities in a number of foreign markets, see https://www.trade.gov/data.asp.
2. 
   2
   Find information in your industry association's publications. Your professional organization most likely publishes market statistics, member lists, emerging trends in technology and customer preferences, and other helpful information. Check your association's website and publications for useful resources.

   • If you're not a member of a professional organization or trade association related to your industry, search online for “trade association” and your industry.
   • You can also head to your local library's reference department, where you should be able to access the Encyclopedia of Associations (Gale Cengage Learning), a comprehensive directory of international associations and organizations.
   Advertisement
3. 
   3
   Ask a local librarian for help. If you run into trouble finding good sources of data, head to your local public or university library. A librarian can steer you in the right direction and recommend authoritative sources.

   • Additionally, the library's credentials can allow you to access sources that require subscriptions.
4. 
   4
   Get in touch with a local business professor. Check the faculty listings of local colleges and universities, and reach out to professors who specialize in marketing or international commerce. They might be willing to provide advice or recommend helpful resources.

   • For instance, you might write an email that says, "I recently read your fascinating article on analyzing text and symbols used in online communities. I would love to learn more about software that automates this process. Would you be willing to recommend any resources or meet to discuss your work?"
   Advertisement

Part 2

Part 2 of 3:

Conducting Secondary Research

1. 
   1
   Learn how your industry functions in foreign markets. If you're researching global markets to expand your business, you'll need to identify where your product or service is in demand. Among the foreign markets where there's demand, identify those with the highest potential for profitability.

   • Look for foreign markets where there's demand for your product or service, but not too much competition. Keep in mind developing markets are often less competitive. A major economy may have higher demand, but there might be too many established companies for you to be competitive.
   • For thorough guides on over 125 countries, see https://www.export.gov/ccg. You'll find evaluations of each country's economy and economic outlook, political climate, and information about trade regulations and treaties.
   • For guides on international markets organized by industry, visit https://www.export.gov/industries.
2. 
   2
   Assess foreign markets' demographics and income levels. Compile data about a country or specific region's population density, education levels, and age and income distribution. Gather data from the last 3 to 5 years to identify trends as the population changes. Compare this information with the statistics you have on your current customer base.

   • For instance, suppose your average customer is 25 to 34, college educated, owns a PC, and earns an income higher than 60% of your nation's workforce. When you research foreign markets, look for population centers with concentrations of educational institutions, a high number of young professionals, and an above average median income.
   • You should be able to find local, regional, and national population statistics on the website of a country's census bureau. This information can help you narrow down specific regions where you should advertise, find foreign distributors, or open a distribution facility.
3. 
   3
   Look up tariffs, taxes, market openness, and other trade statistics. Find trade statistics for the countries you found with strong demand, low competition, and concentrations of potential customers. Learn which foreign markets trade with your nation, information about trade agreements, and how much it costs to export products to that country.

   • You might find that your nation has a trade agreement with another country. It would be more profitable to export to that country instead of one that levies a high tariff on your product.
   • If you live in the U.S., use this tariff tool to calculate your export costs by product and destination: https://www.export.gov/FTA-Tariff-Tool.
   • You can also find international trade data at https://unstats.un.org/unsd/tradekb/Knowledgebase/2.
4. 
   4
   Identify 3 to 5 promising foreign markets for further research. Assessing demographics, demand, competition, and trade data will narrow your list of potential markets. You'll need to target a short list of potential markets for primary research. Primary research, or gathering data directly from customers, is costlier and more detailed.

   • Suppose you're an aircraft parts and supplier based in the U.S. You learned that Austria imports over 30% of its aircraft parts from the U.S., and that the Austrian aviation industry is projected to grow 10% annually. At first, this seems like a promising foreign market to enter.
   • When you research characteristics of the Austrian aviation industry and economy at large, you find that you'll fare better if you work with a German or Austrian distribution agent. This would cut into your profits, and you wouldn't earn the margin required to price your products competitively.
   • You then decide to eliminate Austria from your short list. Upon further research, you find that you should focus your expansion on regions in North and South America.
   Advertisement

Part 3

Part 3 of 3:

Gathering Primary Research

1. 
   1
   Analyze the images and symbols used in online communities. Check the social media pages of international companies in your industry. Study how they interact with their customer base, and try to refine your understanding of how customers think and communicate.

   • Look for common slang, abbreviations, popular images, memes, GIFs, emojis, and other symbols. A deeper understanding of how potential customers communicate will allow to create more effective marketing materials and relate to your customers as people.
   • Try using a search engine to see how frequently terms are used on a website or message board. You can also invest in analytic software to automate your search.
2. 
   2
   Design mobile-friendly online surveys. Most of your customers access the Internet through mobile devices, especially if you're expanding to developing economies. Questions should be concise; you don't want 1 question to take up an entire mobile screen. Your best option is to hire an outside firm to create and distribute surveys, especially if you don't have email lists or a strong social media following in potential new markets.

   • If you can't hire an outside firm to develop survey questions, you can create a survey yourself. You should still use an email survey service to distribute it; search online for “email survey service.”
   • Good questions might be, “What factors do you consider when choosing this product or service? How to do you shop for or access this product or service? What do you like and dislike about your current options? Where would you like to see improvement?”
3. 
   3
   Hire a translator if you need to translate research questions. Language barriers are among the biggest pitfalls of primary global market research. If you plan on distributing surveys in languages other than your own, it's vital to hire a professional translator to customize each survey to a specific language.

   • For instance, many words don't translate directly between languages. You might want to ask potential customers in Russia about importing fresh soybeans. In Russian, there are several easily-confused variations of the word “fresh,” and you might end up asking potential importers about minty soybeans.
   • The best way to find a reliable, experienced translator is to search the directory of a professional association. Search the American Translator Association at http://www.atanet.org. You can find the directory for the International Association of Professional Translators and Interpreters at https://www.iapti.org/registered_members/. Don't just hire anyone who knows the languages; professionals will know best on how to translate hard-to-convey terms.
4. 
   4
   Factor in cultural response biases. Market researchers have figured out that in cultures that value collective harmony, responses are more likely to be favorable. When this happens, survey responses indicate that customers think a product is a great idea, but the product doesn't sell when it's actually released.

   • Failure to factor in cultural response biases is a common pitfall of global market research.
   • To account for a response bias, look for survey data from a country or region published by your trade association, or search online for “statistics,” “survey responses,” the country or region, and the product or service.
   • Compare survey data with a product's performance in that country or region. For instance, you might find products that scored favorability ratings between 3.5 and 4.2 out of 5 underperformed, and only scores above 4.7 sold well. Even though a 4 out of 5 seems like a good score, you'll know to look for ratings above 4.7.
5. 
   5
   Identify 2 to 3 foreign markets that are most promising. By the end of your research, you should have a targeted list of foreign markets that offer the highest potential profit. Initially, you should expand your business to no more than 3 foreign markets.

   • Promising markets have the most potential customers, stable political and economic environments, and lowest exporting costs (including shipping, tariffs, and distribution to end-users).
   • Once you've narrowed your list, work with your nation's export authority, commerce department, or small business administration to streamline the process of becoming an exporter.
   • In the U.S., the Small Business Administration (SBA) offers free or low-cost help to business owners who are planning on expanding to international markets. Find your local SBA export assistance center at https://www.sba.gov/tools/local-assistance/eac.
   Advertisement

Expert Q&A

Search

Add New Question

• Question

  Where can I buy consumer data reports?

  

  Christine Michel Carter
  Global Marketing Expert

  Christine Michel Carter is a Global Marketing Expert, Best-Selling Author, and Strategy Consultant for Minority Woman Marketing, LLC. With over 13 years of experience, Christine specializes in strategic business and marketing consulting services including market analysis, organizational alignment, portfolio review, cultural accuracy, and brand and marketing review. She is also a speaker on millennial moms and black consumers. Christine holds a BS in Business Administration and Art History from Stevenson University. She is a leader in multicultural marketing strategy and has written over 100 articles views for several publications, including TIME and Forbes Women. Christine has worked with Fortune 500 clients such as Google, Walmart, and McDonald’s. She has been featured in The New York Times, BBC News, NBC, ABC, Fox, The Washington Post, Business Insider, and Today.

  

  Christine Michel Carter

  Global Marketing Expert

  Expert Answer

  Luckily, these are available for free from a few different sources. I recommend you check out reports from the Census Burea, the Department of Labor, and private research firms, such as Neilsen.

  Thanks! We're glad this was helpful.
  Thank you for your feedback.
  If How.com.vn has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission.Support How.com.vn

  YesNo

  Not Helpful 0Helpful 0

Ask a Question

200 characters left

Include your email address to get a message when this question is answered.

Submit

Advertisement