International marketing research is an essential part of every successful international marketing strategy as it helps you understand the cultural differences and preferences of the new global markets you want to target, as well as the consumer demand in prospective markets.
Even though collecting data about customers and competitors in other countries can be challenging, there’s nothing you can’t accomplish with the right approach!
This article covers everything you need to understand about international market research, from the advantages to the processes invovled, guiding you through all the details.
Let’s get started!!
What Is International Market Research?
International market research is the process of studying and analyzing data regarding customers and competitors in a new country or region. This process gives you valuable insights into foreign audiences’ consumer behavior, helping you adapt your marketing and pricing strategies appropriately to match a foreign market’s cultural nuances.
What Are The Differences Between Domestic And International Market Research
Domestic and international market research refers to analyzing customer and market data. While both are essential for marketing decision-making, the former deals with local markets and the latter with foreign markets.
Each requires different processes and offers different insights. Here are the main differences between domestic and international market research:
| Domestic Market Research | International Market Research |
|---|---|
| Home market culture | Foreign market culture |
| Native language | Foreign language |
| Familiar preferences | Different preferences |
| Local laws and regulations | Foreign laws and regulations |
| Local competitors | Foreign competitors |
| Lower risk | Higher risk |
| Lower cost | Higher cost |
What Are The Benefits Of International Market Research?
International market research comes with many benefits:
#1 Identification Of Differences In Laws And Regulations
Identifying the rules and regulations of a new market is key to a successful international marketing strategy, as it helps you avoid misunderstandings and costly mistakes along the way. Knowing your target market’s laws helps you abide by them, avoiding legal trouble that could potentially hurt your brand’s reputation.
From tax laws to environmental regulations, there are many legal details you need to consider.
However, being informed about the current laws and regulations isn’t enough! Staying updated is equally important, as they may change in the future.
#2 Understanding Cultural Nuances
Before launching a new product or service in a foreign market, you must ensure it aligns culturally with your target audience. Therefore, understanding your target market’s cultural nuances and preferences can facilitate your market entry, enhance your brand’s reputation, and increase profits.
International market research is crucial for identifying each market’s cultural nuances and adapting your strategy to match them!
For example, international market research results may show that you must change your packaging or branding colors to align with your target audience’s preferences.
Adjusting them before you enter a new market can help you avoid negative associations that could hurt your reputation and negatively impact sales!
#3 Identification And Analysis Of Competitors
Your brand won’t be the only player in a new market—there are competitors your target audience already knows and trusts.
Analyzing the competitive landscape and market conditions of the region you want to target will help you identify your competitors’ strengths and weaknesses and adjust your strategy accordingly.
This way, you can gain a competitive advantage against them!
#4 Discovery Of New Marketing Channels
Don’t assume that using marketing channels you know is the best way to engage with foreign audiences.
What is successful in your home country might not be successful abroad, so you must discover your target market’s most popular and effective channels.
Conducting thorough market research can help you identify the best marketing channels you can leverage to enter a new market successfully!
What Is Primary And What Is Secondary Research?
Primary and secondary research are two types of research you can leverage in international market research. Each has its advantages, and combined, they can help you understand foreign markets and adjust your marketing strategy to match local preferences.
Let’s see what each of these research types entails!
Primary Research Method
Primary research refers to data collection from your own qualitative and quantitative research methods, such as online surveys, focus groups, and observations.
This type of research is useful when you need to collect specific data that could impact your business’s success in the future. It gives you an understanding of the most recent data from primary sources, helping you understand cultural nuances and market trends, which is key for successful export planning.
Primary market research is usually carried out by in-house market research teams or in collaboration with local researchers. Regarding its cost, it mainly depends on whether it is conducted in-house or outsourced.
Secondary Research Method
Secondary research is research that has been conducted by other researchers, offering you consumer insights you can leverage in your research project.
This type of research can complement primary research with data collection from pre-existing sources, like scholarly journals, academic studies, international business books and magazines, government reports, and more.
Secondary research is a cost-effective way to gather data from existing sources and access international information. However, this information isn’t always up-to-date, meaning you should check your resources to ensure relevancy.
What Is The Process Of International Market Research?
Conducting international research effectively can be challenging, especially if you don’t use the right tools and practices. Here are some tips on how to conduct successful international market research and avoid common pitfalls along the way!
#1 Define Your Research Objectives
The first thing you should do before starting to gather data is to define your objectives. What are your goals? What are your potential markets? What questions do you aim to answer through international marketing research? What do you want to achieve? What emerging markets do you want to target?
These are some important questions you need to answer before starting your research!
#2 Select The Best Market Research Methods
One of the most important steps in the international market research process is selecting the right research methods. Are you going to choose primary market research, secondary market research, or a mix of both?
As mentioned above, primary and secondary market research complement each other, so combining them might be the best way to ensure accuracy.
Combining quantitative and qualitative approaches that align with your objectives is also an effective way to collect culturally relevant information!
#3 Conduct A Competitor Analysis
Identifying your competitors is crucial for international marketing research success. Knowing the competition in your target markets can help you discover opportunities and adjust your strategy based on your competitors’ strengths and weaknesses.
To do that, you can use a SWOT analysis, which helps you define a business’s strengths, weaknesses, opportunities, and threats.
Conduct one for your competitors and then one for your business, and compare the results. It’s one of the most effective ways to see where your business stands compared to local competition and identify growth opportunities!
#4 Collect And Analyze Data
After completing primary and secondary research, it’s time to collect and analyze data.
By analyzing the data you have gathered, you will extract important information regarding your target market. This can help you adjust your international marketing strategy to match your target audience’s preferences.
Remember to be diligent when analyzing data, organizing information, and identifying patterns, location-based market trends, and cultural nuances!
#5 Present Your Research Findings
Now, you should present your findings to your clients or managers, explaining the research process you followed and every finding’s meaning.
It’s best to highlight the key insights and cultural considerations, using visual aids like tables and charts to help demonstrate the findings. This will give your audience a comprehensive understanding of your research findings!
#6 Prepare Your International Marketing Strategy
Now that you’ve done your market research and know your audience’s preferences, it’s time to leverage this information to create an effective international marketing strategy!
However, research is only a part of a successful international marketing strategy. International marketing has many challenges, which you can overcome only by using the right tools and implementing the right practices.
For instance, linguistic complexities and cultural nuances are often among international marketing’s most challenging aspects. Failing to localize your website and marketing campaigns to align with your target audience’s identity could cause misunderstandings, offend, and even harm your brand’s identity.
Therefore, effective localization tools are crucial for creating highly relevant and localized content that resonates with diverse audiences, boosting your international marketing strategy.
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FAQs
What is the task of the international marketing researcher?
An international marketing researcher studies markets and consumers in different countries and extracts information about their needs, preferences, and behaviors.
How can you develop international market research?
Some of the most effective methods you can use for international market research are:
- Foreign government information collection
- Overseas business research
- Focus groups
- One-to-one interviews
- Online surveys
- Text message surveys
What are the 5 Cs of international marketing?
The 5 Cs of international marketing are company, customers, competitors, collaborators, and climate.
What is SWOT analysis?
SWOT analysis is a type of analysis that helps you identify a business’s strengths, weaknesses, opportunities, and threats. It is essential for creating a new local or international marketing strategy.
