Post on 17-Dec-2015
MARKET RESEARCH:FINDING ESSENTIAL MARKET INFORMATION 1.1
04/18/23
Digging for Gold
Having the ‘Right’ Questions
Articulate questions
Find answers
What is Market Research
Market research is the collection and analysis of information aboutcountries, regions, markets, people, companies and organisations that will enable you to make better decisions for your export marketing plan
COLLECT AND CONVERT INFORMATION INTO KNOWLEDGE
Reseach MythsResearch is only for intellectuals and academic people:
• This misunderstanding is partly created by researchers who have their own sophisticated definitions and jargon. However, good researchers are well aware that research can be easily designed and implemented by anyone
• The trade partner will do all necessary research
• Some exporters believe that they already have enough information through their trade partner or expect the research to be done primarily by them. In addition, some exporters regard market information as a by-product of their accounting system. But often trade partners lack in giving a neutral overview of the market and channel developments in their country.
4
Research Myths
Market research is too expensive:
• Market research does not necessarily mean doing surveys, interviewing large numbers of people and carrying out complicated computer analyses, which are expensive - especially
• when entering different EU countries. There are many low cost techniques.
• I am afraid to lose control with an information overload
• Some exporters are already very busy and are afraid of losing track when browsing through all information and dealings with researchers. However, most research requires common sense and a time commitment
5
6
7
8
9
10
Defining a Research Problem
Articulate your questions clearly
11
Questions?
12
Questions?
• Internal: About your company• External: About Markets
13
Internal Questions
• Are you or can you become part of a global value chain?
• What is your positioning in the value chain?
14
Internal Questions
• How much is available for export?• How is it produced?• At what cost is it produced?
15
External Questions
• What is the volume in world trade?• What is the volume in regional trade?• What is the volume in target market?
16
External Questions: Target Market: DESTEP
• Geography/ Demography• Economy• Social Structures/ Preferences• Technology• Climate/ Environment• Political
17
External Questions
• What are the trade channels?• What does the buyer want?• What are the market entry
requirements?RegulatoryCustomer Driven
18
Internal vs External Questions
• Product market combinations
• Product market compatibility
19
The research instrumentsDesk research• Internet• Publications, magazines, newspapers, etc.• Market research reports• Documentation ( Competition? )
Field research• Specialist MR offices / consultants• DIY
Tradepartners
The research instruments Desk research
CBI’Website and Database: A wealth of information
up-to-date information on more than 35 sectors in European Union • market access requirements, • market size, • consumer trends, • trade structure, • packaging, • pricing, • terms of trade and • export guidelines • Sector alerts
Database content
CBI's database contains 3,000 documents • market studies, • export manuals, • design guides, • fashion forecasts and • 5,000 selected hyperlinks to additional information sources.
Desk research,Statistical information: the basicsStatistical information = quantitative informationGives a general picture of the market, based on market size & trade flows
• Production• Consumption• Imports• Exports
• Eurostat www.ec.europa.eu/eurostat
• EU Export Helpdesk www.ec.europa.eu/trade/creating
• International Trade Centre: www.intracen.org (p-maps, trademap)
• CBI market surveys: www.cbi.eu*
• US Commercial Service: www.export.gov
• National statistics offices
• Branch organizations
Desk ResearchInternet sources:Finding statistics
Desk ResearchFinding statistics cont.
CBI Market surveys are the best starting point to identify the main
Trends.
• F.e.: The Engineering Products Market in the EU
• Check chapter “Trade:Import and Exports”
• Product codes (CN= Combined Nomenclature)/(HS=Harmonized System Codes) and Prodcom. Numbers are given
• In case of Engineering products: CN and Prodcom.numbers
The research instruments
Field research• Specialist MR offices / consultants• DIY
Considerations – Field research
Cost Professional
DIY
Time Professional
DIY
Reliability Professional DIY
?
?
Information sourcesField research
• The user ( where does he/she buy the product? At which price, warranties, service, etc. )
• Retailer or service provider
• Wholesaler
• Importer / Distributor
• Agent
• Trade fairs
• Professional Associations, Bus.Support Organisations, Chamber of Commerce, Banks
CBI - Ministry of Foreign AffairsCBI - Ministry of Foreign Affairs30
Overwhelmed?? How to stay up to date?
Newsfeeds (RSS)
Mark important Websites and prescribe
E-newsletters
Subscribe for News letters
Linked Groups and Communities
Staying up-to-date: Newsfeeds
What?Automatic alerts when websites have been updated
How?As e-mails or ‘bookmarks’. NB! You must subscribe!
Why interesting?Helps you remember sites, no unnecessary searchingAllows you to mark read items
Staying up-to-date: E-newslettersWhat?Regular e-mail updates with content specifically designed for the
target group
How?By sending an e-mail to subscribe
Why interesting?Allows you to stay up-to-date without checking websites
Staying up-to-date: CommunitiesWhat?Groups with people connected online, can be personal or
professional
Why?Network(ing), contacts
Examples:LinkedIn (professional)Facebook (personal)
Linkedin GroupsGroups and Communities
Find Groups of interest on Linkedin
Technical Groups e.g “Foundrymen”
Professional Groups e.g “CE Marking for Fabricated Steel Works”
Skill Groups e.g “Marketing Communication”
Service Groups e.g “Logistics Network”
Become a member of groups
Ask questions
Follow discussions
LinkedIn : for Details : Join Relevant LinkedIn Groups : Some serious discussions go on in specialized groups. Further drilling into group members profiles and companies can yield valuable information on the latest trends, challenges facing an industry or business group. Examples:
•"Heavy Duty Truck & Trailer”, •“HDX Connected Heavy Duty”, •“Auto OEM Network”, •“Automotive Industry Professional…”,• “Automotive SME Manufacturers”. •“HDX Connected Heavy Duty Truck Parts Aftermarket”.
38
Finding your Peers1- iCatalogshttp://www.icatalogs.eu/ : For identifying market leading companies, bench marking product quality, features, technology trends etc2- Materials Handling/Factory layoutshttp://www.mhi.org/ Materials Handling Products, trends, logistics and factory layouts leading to global competitiveness. The Chinese learnt to become world class manufacturers by working as sub contract manufacturers and allowing the western companies (clients) to guide them on assembly techniques.
4-Import Genius : http://www.importgenius.com/ track the international shipping activities of importers and exporters around the world to give you an unprecedented understanding of the import-export business.
39
CBI - Ministry of Foreign AffairsCBI - Ministry of Foreign Affairs
Questions?Questions?
EXERCISE
Write research questions about your market research project
1.2 about market demand
2.2 about target market
3.2 about PMCs