Target Market and Choose Product
» Choose the right product and market
Choosing the right product is very important in export trade. Keep the following point in mind before choosing the right product.
* Product should have very high demand.
* You have to match the product to target income people.
* Should have maximum potential in the large market.
* To suit the taste and requirement of the people in different country.
Criteria for selecting the right product
* Trends in export
* Production capacity and product availability
* Product adoption
* Demand for the product abroad
* Probability
* Restriction or trade barriers for export and import
* The incentives offered by the government for the export of the product.
» Choose target market
When you decided to export the product, then it is very important to choose the right market for your product. Before selecting the market, research the market very carefully. There are some points, which will help you to choose the right market for your product.
* Demographic Environment
* Psychology Factor
* Population Growth
* Cultural Environment
* Political Environment
* Social Environment
* Technology Environment.
Demographic Environment
Demographic Environment depends on the following things.
* A size of population
* Average Age of country's people
* Birth rate of country
* Marriage rate of country
* Death rate of country
* Ethics and religious structure of the country.
Population Factor
Population factor depends on the following things.
* More population means more need to anonymous to growth marketing
* Important factor is purchasing power of the country.
Cultural Environment
* Cultural Environment is directly responsible for people behavior.
* Define set of various attributes, needs, wants and demands.
i.e. mini skirts in Saudi Arabia.
Social Environment
* The social classes are divided by Occupation, income, education and value oriented.
* Movements keep happing upwards and downwards during the lifetime.
* People in each social class behave more or less alike each social class has a distinct product preferred.
Political Environment
* A stable government Vs unstable government.
* Economical decision taken by the government.
* Laws that have been enacted.
* Kinds of budget, tax and duty structure
* Import and export policy.
Psychology Factor
Psychology Factor is the combined factor of social, political and technological factors.
Technology Factor
Technology up gradation has a direct role in production, quality, reducing prices and errors, human satisfaction, gives a push to economy.
Tips for Export Marketing
* Carefully select the product and your target market, on the basis of desk research.
* Once a market has been decided, you will need to carry out a more in depth study, which will include field research in the target market.
* Do not embark upon your first trip to the target market with the objective of selling and doing business. Your first trip should be to improve your preparation for entering in market.
* Evaluate all the information received and then try to draft a marketing strategy and develop a marketing plan.
* Don't commit the things that you can't fulfill.
* International markets are trends sensitive, design frequently change and your product may soon be out dated. Be aware and try to keep you to date with market trends.