RESEARCH ON FOREIGN MARKETS

1st. Stage

INFORMAL RESEARCH

2nd. Stage

OFFICE RESEARCH

3th. Stage

FIELD RESEARCH

INFORMAL
RESEARCH

OFFICE
RESEARCH

FIELD
RESEARCH

INFORMATION
SOURCES

TYPE OF
INFORMATION

OBJECTIVES

COST

Directors
Sellers
Sales agents/distributors
Fairs/trips
Colleagues
Newsletters-journals
General statistics

General and
qualitative

Pre-selection
of
markets

-------

Economic Environment
Cultural Environment
Own Sources
Legal Environment
External sources:
Politic Environment
Market studies,
Technological
Statistics,
Economic Reports, etc. Environment
International
Competition
Interviews
In depth interviews
Group techniques
Focus group
Testing techniques

Habit, Tastes
Trade margins and
prices
Delivery and payment
deadlines
Promotion techniques

Selection of the most

favorable markets.
Guidance of ways of
entry
Guidance on
International Mk-Mix

Market Selection
Selection of Ways of
Entry
Delimitation of the
International Mk-Mix

10/20%

80/90%

MARKET RESEARCH:
INSIDE OR OUTSIDE THE COMPANY?
HIRING A CONSULTANT

PERFORMED BY THE
COMPANY

Experience in Research

Greater knowledge of the Product

Techniques

Greater knowledge about the

Experience on the sector and/or

company

Market study

Greater control and monitoring

Greater objetivity

about the research process

Greater accesibility

More security

Major geographical and cultural

Motivation and involvement of

proximity

workers who perform the research

SELECTION OF INTERNATIONAL MARKETS

Criteria used in the preselection:
Largest global market for our product.
Markets with significant increases in imports
Major destination countries of mexican exports
Small markets but with potential opportunities (as long
as we can find market research regarding to the
sector)
Presence of interesting contacts in these markets
(agents, distributors, etc.)

SELECTION OF INTERNATIONAL MARKETS

Selection Criteria

SELECTION OF INTERNATIONAL MARKETS

Selection Criteria
Size of the market
Population
GDP
Per capita income
Expenditures

SELECTION OF INTERNATIONAL MARKETS

Growth of the Market (Potential Market)

Increase
Increase
Increase
Increase

of
of
fn
of

the
the
the
the

Population
GDP
per capita income
product consumption

SELECTION OF INTERNATIONAL MARKETS

Accesibility of the market
Import tariff and taxes
No tariff Barriers
Technical requerimients, certifications and
approvals
Local suppliers
Foreign suppliers
Pricing methods
Promotional practices
Payment terms

SELECTION OF INTERNATIONAL MARKETS

Financial Situation: Collection Risk

Balance of Payments
Level of reserves
External Debt
USD disponibility
Exchange rate (Stability of the currency)

SELECTION OF INTERNATIONAL MARKETS

Political environment
Political Regime
Possibility of conflicts
Memebership in international organizations
Distance (cultural and geographical)

Geographical distance
Language
Culture and religion
Country Brand

Semi-quantitative Method Market selection

Size of the market

Coefic (1-4)

Market Growth

Market Accesability

Financial situation

Political environment

Cultural and Geographical

distance

TOTAL

100%

Country 1

Country 2

Country 3

Country 4

Semi-quantitative Method Market selection

Size of the market Coefic (1-4)

Mexico

Colombia

Chile

Population of young
women

37,129 8

32

15,297 6 24

5,628

4 16

Marriage rate

5.60% 7

28

3.30% 5 20

3.40%

5 20

287,000 7

21

33,000 4 12

166,000

6 18

37,000 8

24

7,000 5 15

2,800

105

71

Imports (from the

world)
imports (from
Spain)

9
63