TARGET MARKET SELECTION IN EXPORT
The primary step of crafting a comprehensive export strategy and
sustainable profitability in export is determining the target markets. In a
world, where trade and competition are globalized and with technology the
access to information becomes easier, accessing the right market and therefore
the valid company information has become critical for the firms to realize
their potential and gain competitive advantage on a global scale.
Target market determination is broadly based on 2 factors. The
first one is internal factors, and the second is external factors. Firstly,
let's analyze the internal factors. Internal factors can be summarized
as the competitiveness of the firm, its export strategies and the competitiveness
and growth model of the country where the firm is located. On the other hand, external
factors can be defined as the status of global competitors whose exports
are growing and also the nature of the markets whose import market is growing.
We would like to start our analysis from inside out. Firstly, we establish the
medium and long-term export strategy of our company. Of course, that is closely
related to the company's resources, the features of our product, as well as the
economic goals and competitiveness of the country where the company is set. The
next step to identify the target markets is to check the trade status of our
product in the world and in Turkey. There are of course, public sources to
access this particular data and conduct market research. The most well-known
database is Trade Map that is offered by the ITC (International Trade Center).
HS CODE (Customs Tariff Statistics Position)
HS Code (Customs Tariff Statistics Position) is the common
standard worldwide for describing the type of commodity. You can click here to watch the short video that explains how you can find your
product HS Code. Right after acquiring our products’ HS Code, we can obtain any
statistics from any database on the internet.
THE
MACROECONOMIC OUTLOOK for MARKET SELECTION
We developed our company’s export strategy, obtained product statistics,
and narrowed down the export markets. The next step is the close monitorization
of the external factors. These factors can be described;
·
The demographic structure of the country- Critical for market
projections
·
Geographical proximity- Directly related to transportation costs
·
Social and economic circumstances- Coincides with income
distribution, growth rates, population distribution
·
The consumers, culture, and lifestyle of the society- How well the
product will be embraced
·
Industrial and technological advancement- How strong telecom
infrastructure is
·
Political and legal system of the country- Represents whether the
political system is stable or not, legal system trustworthy enough in the case
of dispute resolution
·
The distribution channels- If there are wide networks of
transportation, packaging and unloading capacity
·
The competitors in that particular market- How concentrated the
market is in terms of competition
You can access that information by public institutions, like Ministry of Commerce, OECD, IMF, World
Bank.
It is very easy to reach importers and exporters all over the
world directly with TradeAtlas! TradeAtlas is a global importer and exporter
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