Want to open up new markets and don’t know how?

13/10/2024
Externa World

Learn why market research provides key insights for companies that want to make informed decisions, thus reducing the likelihood of costly failures.

Conquer new international markets by implementing data-driven strategies

International market research is a procedure implemented to obtain the required knowledge of the new market to which one wants to bequeath, taking into account differences and cultural environments. It is the way to know the factors that must be considered for decision making regarding access to the foreign market considering the controllable and uncontrollable variables present in it.

Many companies fail in their attempts at international expansion by not carrying out exhaustive research which they consider to be key factors of the new environment. Market research provides quantitative and qualitative data that enables companies to make informed decisions, thereby reducing the likelihood of costly failures.

The crucial role of market research in international expansion

In a knowledge economy, the information available to business organizations plays an increasingly important role, since their success does not depend solely on how they manage their material resources (labour, capital, energy, etc.), but also how they exploit their intangible assets (market knowledge, brand image, customer loyalty, etc.).

Companies that invest in sound market research have a better chance of success when they expand into new markets.

The value of information in post market research

International expansion is an ambitious and strategic goal pursued by many companies to increase their competitiveness, diversify markets and seize new growth opportunities. However, to venture into new markets without proper planning can be very risky.

It is in this context that international market research becomes vital, enabling organisations to understand local behaviour, demands and dynamics before they enter the international environment.

Market research therefore assumes a systematic and objective approach that promotes the development and provision of information for the decision-making process by business management.

These skills that must be acquired by professionals working in the economic and business field, require them to use information from market research processes, thus reducing risk and uncertainty.

Research as a tool for obtaining information

The importance of market research as a strategic tool provides the information needed for decision making, that is, it acts as an "input" which helps those in charge of the company in the process of planning and deciding.

Market research thus serves to dispel uncertainties by providing information on market, environment and consumer variables. Continuous market research programmes yield information on controllable and uncontrollable factors, and even on customers; this information is crucial to promoting more effective decisions by managers.

Due to the huge costs of making wrong decisions, it is a priority for executives to work with sound, well-founded, complete and detailed information to achieve.

It is useful to consider the following parameters when validating the information obtained:

    • Sufficiency: The information must be sufficiently complete and/or detailed to enable a decision to be made.
    • Relevance: in relation to the degree of relevance and applicability of the information to the decision, which allows covering all the objectives for which the research was designed.
    • Accuracy: the extent to which information is reflected in reality within acceptable error margins.
    • Availability: information should be available at the time of decision making, with appropriate technical safeguards.
    • Current: the extent to which information reflects facts in the relevant time period, that is, it is no longer outdated.
    • Predictability: the information should not be limited to reflecting facts, but should try to give more dynamic content to results.

What are the key steps in conducting an international market survey?

An international market survey is a strategic research process conducted to understand a foreign market before making a commercial incursion into it. This research includes planning, collecting, recording, analysing, interpreting and communicating a particular market strategy that a company must take.

Therefore, for any market research, the key to successful research is to follow the following steps:

→ Define the case study. It is necessary to define the problem and establish the objectives to be investigated.

→ Establish the research design and identify sources of information according to the objectives of the research. Estimate the value of information

→ Define the research method. Choose an approach for data collection (secondary data, surveys, experiments, etc.).

→ Select a measurement technique (questionnaires, attitude ratios, observation, in-depth interviews and project methods).

→ Set the sample design. Choose a sample (specify the population to be analyzed as part of the problem description process).

→ Collect the information. Choice of analytical methods. Data is useful after being analyzed. A set of collected observations is transformed into descriptive assertions and/or relationship inferences through the data analysis process. The types of analysis that can be performed depend on the sampling procedure, measurement tool and data collection technique chosen.

→ Processing data. Time and resource calculation.

→ Analyze and interpret the results. Draft a research proposal and report.

→ Communicate results to decision-making.

 

    Key benefits of a data-driven strategy
    1. Accurate information for strategic decisions: It’s not just about getting data, but making sure that it’s relevant, up-to-date and sufficient to guide your expansion.
    2. Adaptability: The information collected allows your strategy to be adapted to the particularities of the new market, from marketing campaigns to product personalization.
    3. Detection of hidden opportunities: Emerging markets often present opportunities that are not obvious to the naked eye, but with a deep search, they can be exploited strategically.
    4. Informed decision-making: Companies that rely on thorough research, as recommended by experts like Kotler and Keller, are able to differentiate themselves by minimizing the margin of error and maximizing efficiency in their global operations.

    From Externa World, we recommend the advice of two great experts like Kotler and Keller, who say that the right information about your target market can make the difference between success and failure.

    With solid data, your decisions will be more accurate!