School of Economic Sciences > Extension Economics > Step 3: Researching Markets

Step 3: Researching Markets

Once you begin planning, you must decide which foreign countries to target. Market research is specific both to that country and your industry. A few variables to consider in addition to those for sales in the U.S. are government regulations (both foreign and U.S.), tariffs and non-tariff barriers, language, growth potential, distribution channels in the foreign country, and the competition in the foreign country (is it state supported or have lax labor and environmental regulations, for example).

Step 3.1: Screening Markets

First, obtain export statistics and examine which countries products are being shipped. Examine and identify 5–10 large and fast-growing countries. Next, consider smaller, fast-emerging markets with ground-floor opportunities. Choose 3-5 targets for further consideration.

Action:

Step-by-step to market research (Export.gov)
Trade data & analysis (Export.gov)
Detailed market research (Export.gov)

Step 3.2: Assess Target Markets

For each of your 3–4 target market, assess the consumption needs of the country and their ability to produce rival products. Also consider which products your target imports from countries other than the United States. Study demographic and economic trends, as well as tariff and non tariff barriers. The goal here is to get a rough estimate if your produce will be price competitive in the target market.

Action:

Revist the resources in step 3.1 for your target markets
Market checklist (Foreign Agricultural Service, United States Department of Agriculture)
Market research library (Export.gov)
Washington State Commodity Supplier Database (WSDA)
Tariff and import fees database (Export.gov)
Details on free trade agreements (Export.gov)
Export licenses, standards, and economic sanctions (Export.gov)
Identifying your most preferred market (Export.gov)

Step 3.3: Deciding on a Single Market

Now that precursory and detailed research has been conducted, decide on which single market to target. This should be the market that offers the best opportunity. New exporters should only enter one market initially, since exporting takes a lot of time and resources. Also by selecting your most promising market first, you minimize your risk on markets with less upside. once you are an experienced exporter to one market, you can expand to other markets.

Disclaimer: This manual is a demonstration based on interviews of successful exporters. Each individual case is specific and optimal strategy may differ from those discussed here. References to sources and documents outside of WSU Extension and the IMPACT Center are for reader convenience. WSU does not review, control, or take responsibility for their content, nor does WSU or any person therein explicitly or implicitly endorse the positions or policies of these sources.

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