International market research is necessary if you want to join a new market abroad. Here are a few reasons why this is the case.But the differences between you and your target market’s cultures could be as significant as those between you and your target market’s cultures. If you don’t learn enough about the culture of your target market, you could make mistakes that hurt your brand’s reputation and make it hard to get into the market. You can also study the international marketing article for knowing in depth into this topic.
Inside story
· Cultural differences don’t have to be big to cause much trouble. In many African countries, containers are marked with a picture of what’s inside. Gerber, a company that makes baby food, got into this market with jars with pictures of babies on them, which was a bad idea and hurt sales.
· Laws and regulations can have a significant effect on your business, and they can also change how you do market research. They can substantially impact every part of getting into a new market and running a business there.
· If you go into a new market without knowing everything there is to know about the law and how it affects your business, you might get in trouble with the law.
· There are many legal risks to be aware of when entering a new market. There are rules about the environment, taxes, and hiring new employees, to name a few. The rules can change quickly, and something acceptable five years ago might be a big no-no now. To succeed in this area, you’ll need to do regular and ongoing research and work with legal professionals in your target market.
Customers in one country could have very different tastes from those in another. Aside from cultural differences, this could also be caused by other things.
When China started letting its people buy and own their homes a few decades ago, the US store Home Depot jumped on board. Six years later, they closed all of their stores in China and never returned.
They opened all of their stores in the suburbs because most middle-class Chinese people live in apartment blocks in the city, which don’t need or allow renovations. Home Depot’s attempt to get into the business failed because of a simple misunderstanding that came from not doing enough research.
If you can answer these questions, you’ll know more about what your brand needs to do well. It will also show you where your competitors’ weak marketing is so that you can improve those areas.
Keep the risks to a minimum
Going global makes the risk of entering a new market even more significant. The Harvard Business Review found that companies that did business outside of their home markets had a much lower Return on Assets than companies that did business in their own country. Many of these businesses fail before they even get off the ground.
You can lower your risk by learning as much as you can about how hard it is to get into a foreign market through market research. So, you’ll know more about your customers and what they want, be better prepared to take on your competitors, and stay out of trouble with the law. When you enter a new market outside of your own country, there will always be some risk, but doing your research can help you reduce that risk.
There are practical things to think about.
Getting started in a new market can be challenging for many reasons. First, you’ll need to find and evaluate suppliers, hire new employees, look for good locations, learn about payment methods and the financial infrastructure of your new market, and understand and follow import and export restrictions.
