External analysis - country and market selection
5 important questions on External analysis - country and market selection
For most countries, the majority of trade is done with countries in the same trade block, for exemple trade within the EU. Many companies choose to sell to neighboring countries because they think they have a better undstanding of the culture. When an export market is close to home distribution costs are kept relatively low. Therefore, the typical exporter slects a market on the basis of the following criteria....
Your first selection of promising countries may be fairly broad but then you begin narrowing the focus to identify which contries need further research. This screening process has several phases. Selecion criteria should be concrete, each one should also meet the following requirements;
with wich sort of research do you start?
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How to acquire information
Field research : must be done in the export market itself
Markets equal people. Ultimately your focus is on the final consumer, also known as the end-user. Your target market consits of people who need or desire the product and are willing to pay a fair price for it (buyers = users).
Market selection can be divided in two phases based on:
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