Home About Contact  
Export Assistance
Guides to Exporting
Finding Export Finance
EMIA
Export Consultants
Export Documentation
Register as an exporter
Proforma Invoice
Commercial Invoice
Letters of credit
UCP600
Packing Lists
Exchange Control Forms
Insurance Forms
Customs Documents
Document Completion Guide
Export Training
Training providers
Training calendar
Export Guide
Export Marketing
What is involved in export Marketing?
Export Marketing Channels
Using Export Agents
Finding Export Agents
The Role of Trade Fairs
Preparing to participate in a Trade Fair
Finding Trade Fairs
Inward Bound Missions
Outward Bound Missions
The Internet and Exporting
Website internationalisation
E-marketplaces
Export portals
Overseas Trade Missions
Embassies and Consulates
Financial Assistance for Export Marketing
ETO Systems
Dealing with Export Environments
Trade Agreements
Export Tools
Export Readiness Checker
Export Checklists
Export Business Planner
Export SWOT Analyser
Country Risk Evaluator
Trademap
Product map
Translation Resources
Currency Converter
Export Documentation
Document Completion Guide
SA and Foreign Tariff Databases
Export Software & Technology solutions
Tracking tools
Exporting & the internet
Export e-Newsletter
Export Law
Laws affecting Exports
Maritime Insurance
Exchange Control
SA Export Regulations
Trade/Maritime Lawyers
ITC Services
Trademap
Productmap

Step 7: Selecting and researching potential countries/markets abroad

You are here:Step 7: Selecting and researching potential countries/markets abroad > Preparing a research brief > Evaluating the cost/benefit of export marketing research


 

 

Evaluating the cost/benefit of export marketing research

 

You need to weight up research benefits against costs

As export research involves some (or, at times, even considerable) financial outlay, it is important that the company evaluate the cost/benefit of such research. It may be difficult to quantify some of the benefits of market(ing) research and to weigh them up against a given set of costs but the export firm should, in general, have certain criteria against which the effectiveness of the research effort can be measured.

Deciding on reasonable market research costs

The principal benefit of market research is improved decision-making. Two possible criteria for judging the reasonableness or otherwise of the cost of market research are:

  1. The number of profitable sales that the firm achieves by acting on the conclusions and recommendations contained in the research report
  2. The amount of money that the research study saves the company by preventing it from making the wrong marketing decisions

Thus, the value of market research lies not only in its ability to save money and identify profitable sales opportunities but also in its ability to identify problems, competition, and other threats which might cause the company to lose money. In other words, it can help make prudent marketing decisions but can also reduce the possibility of unwise decisions and investments being made.

The question of what constitutes reasonable cost will ways be relative to the firm's total resources and to its involvement (present or proposed) in the particular export market(s) under investigation. What may appear to be a very high cost to a small exporter with limited overseas involvement may constitute but a fraction of the export market research budget of a large exporter with substantial, long-term foreign market commitments.

 

Take all costs into consideration

An important aspect to bear in mind when determining the cost of market research is that all costs should be taken into consideration. Even information that is 'free' or can be acquired at a nominal charge (e.g. government trade statistics) incurs some expense in terms of analysis, organisation, or storage. In the light of this, companies that conduct their own in-house market research must be discerning in their choice of publications and journals. Not only must the actual subscription cost be considered but also the cost of management and researcher time in reading through an often large number of publications.

A hidden cost in respect of market research is that of lost opportunities. In some cases, it may be critical to move quickly into an overseas market in order to forestall the competition; thus, taking considerable time over an exhaustive study of the market could result in the market opportunity actually being missed.

Finally, the returns in terms of hard data must be weighed up against the costs. It should be noted that there are areas of research that yield only mediocre results in terms of accuracy, e.g. information about people's purchasing intentions. Such research is costly to conduct and difficult to translate into reliable sales forecasts. Ultimately, the usefulness of market research can be judged by whether or not risk is reduced and the results provide an adequate basis on which effective export marketing decisions can be made.

 
Top of page


next

Step 7: more information

Step 7: Selecting and researching potential countries/markets abroad
      Preparing a research brief
            .Export research budget
      Implementing the research brief
      Preparing a research report

 

Click where you want to go

© Interactive Reality

More information on Step 7
Learning to export...
The export process in 21 easy steps
Step 1: Considering exporting
Step 2:Current business viability
Step 3:Export readiness
Step 4:Broad mission statement and initial budget
Step 5:Confirming management's commitment to exports
Step 6: Undertaking an initial SWOT analysis of the firm
Step 7:Selecting and researching potential countries abroad
Step 8: Preparing and implementing your export plan
Step 9: Obtaining financing for your exports
Step 10: Managing your export risk
Step 11: Promoting the firm and its products abroad
Step 12: Negotiating and quoting in exports
Step 13: Revising your export costings and price
Step 14: Obtaining the export order
Step 15: Producing the goods
Step 16: Handling the export logistics
Step 17: Export documentation
Step 18: Providing follow-up support
Step 19: Getting paid
Step 20: Reviewing and improving the export process
Step 21: Export Management
Export Reference
HS Codes
SIC Codes
TARIC Codes
Incoterms
Country Codes
Airline Codes
Airport Codes
Port Codes
Telephone Codes
Industry specific export control
Electricity Voltages
Transportation Types
Container Types
Hazardous Cargo Symbols
International Trade Agreements
Country Info
Export Documentation
E-marketplaces
Trading cycle
Export Articles
Export Glossary
Export Acronyms
Export Opportunities
Export portals
E-marketplaces
Export calendar
Inward Bound Missions
Outward Bound Missions
Trade Fairs SA
International Trade Fairs
Country Info
Country Help
SA Missions Abroad
Missions in SA
SA Representatives
Bilateral Chambers
Export Network
SA Economic Representatives
SA Missions Abroad
Missions in SA
Export Councils
Export Consultants
Export Trainers
Export Agents
Customs Clearing Agents
Trading Companies
Export Financiers
Chambers
Bilateral Chambers
Government Departments
Trade Associations
Freight Forwarders
Airline Companies
Shipping Lines
Road Haulers
Courier companies
Spoornet
Trade/Maritime Lawyers
World Trade Point Federation
South African Translators
Libraries
Universities with international Expertise
International Trade Statistics
Import and Export Statistics
Main Trading Partners
Main Export Products
Economic Statistics
SA Statistics
SA Reserve Bank
Trademap
Productmap
Data Mapper®
UNCTAD Statistics


SAinfo

     Our sister sites:

Indexing the World

CountryHelp

Trade Training

FreightForwarderHelp

CourierHelp

AssociationFinder

LearnTheNet

     Other useful links:

Freight & Logistics Gateway

Freight quotes