5 Mistakes to Avoid with Local and International Market Research

1. 5 Mistakes to Avoid with Local and International Market Research Although global expansion is becoming increasingly common, many firms still end up making expensive mistakes. Hiring local and international market research companies is the only solution.

2. Local and International Market Research Marketeers these days are the face of global expansion. Like traders of the ancient world, marketeers are the modern crusaders, entrusted to conquering new worlds. Modern businesses, big and small, are expanding rapidly and marketeers are leading this wave. They are the ones who have made the world a very small place. But this is not always easy. Unlike their past colleagues, these modern day crusaders cannot use armies and do not have the authorisation to use any force. Instead, they must charm the people of the new territory with stealth and cunning. Luckily, they have the support of local and international market research companies. Research is often the only thing that stands between an expensive failure and a slow and steady success path. Companies that combine both local and international market research have the unique position of offering valuable local insight, while keeping their clients’ global ambitions in perspective. Research firms are strategic partners with important contribution in all areas, not just marketing.

3. Ignoring the unique national character For many business people in the western world the markets are seen as territorial blocks, such as Asian, African or European. Such a classification completely ignores the local characteristics of a particular nation. For instance, both Singapore and India may fall into Asia, but their markets are completely different with a unique consumer base and market conditions. Ignoring local product adaptations Why tinker with anything that is a success? But in marketing that philosophy just never works, especially if you are taking your product to a new market. What worked in one market may not transition as smoothly to another. Most of the time it is just a minute adaptation that is required. This could be to do with the product or one of the business functions. For instance, an automobile company entering India finds its SUV market dominated by diesel engine-powered vehicles, forcing it to adapt the same. This local adaptation was unique to the market and were necessary to create a competitive base.

4. Ignoring viability One of the biggest perils of global expansion is stretching your resources too thinly or entering a market which is not ready for you. Only local and international market research companies can put its local viability with its international ambitions. Does the expansion hurt current resource base? Will the business be able to bear local staffing and business costs? Will the cost of localising the product be worth it? Are the revenues generated from the new market worth the cost of expansion? Is the market ready for your product/service? If not, can a new demand be created in a cost-effective manner? For instance, in the above example, a foreign company may decide to forgo a market with demand for diesel engine because it is contrary to its brand image. It instead focuses on other segments in the same market. Foreign businesses often fail in the understanding of local market and its people. This lack of knowledge affects not just its consumers, but also marketing channels and practices. A research firm is the only option for a better insight. For instance, research for an online retail store finds few takers for credit card payments. The store is hence, advised to install a cash-on-delivery option. Similarly, a garment manufacturer finds that selling through retailers is easier and more cost-effective than direct sales. Ignoring unique marketing channels/practises