The Importance of Market-Knowledge

Imagine you are a manufacturer of high-valued mobile goods and you are planning to enter a foreign market. Right now you have to think about what the market situation will be. Most of the market penetration strategies are failing either because of the wrong marketing strategy or because of a deficit of information. Not orientating yourself with the market will weaken your chances of a new entrepreneur. Analyzing the market is absolutely necessary before taking the next step. Below we will explain to you some important points about a new sales market. Market Volume and Market Potential There are two main business ratios which you should focus on. First you should regard how high the output of your core-business in the aimed market is. Is there enough potential for you to be part of the market? Regarding the market-potential, you have to focus on the level of spending power. A high spending power is always linked to a high sales potential. Spending power is also connected to another part of the analyses, which brings us to the next point.   Clients Without clients there is no sale. This phrase sounds very simple, but you have to care about this fact. The certainty that an area has a high spending power does not say enough about your actual customers. Is there a real chance that people will buy your products if you offer them? Market Structure Here you should focus on two important things: which sales territory is best for my sale and how will I distribute the product? In general it´s necessary that you develop a network of dealers, unless you are selling the product directly. But this is uncommon in Germany. Business Competition There is no business without competition. Please keep in mind that competition is not a bad thing. You only have to know how to handle it and how to use it profitably. Before entering your target market, find out where your competitors are based, and benchmark your company. What are the strength and weaknesses in comparison to the other manufacturers? Supplier Identifying the right supplier for your business is important. Supply-chain-management is a milestone that develops a competitive advantage. Substitution Goods Often neglected, substitutioned goods are a real threat for your business. Please make sure that you identify potential substitutes before going deeper in the foreign market.   These facts should be aware. But where do you find this information? In general you have to make a difference between external and internal data. Internal data can be found in your own company, for example from earlier activities and experience. To get external data is more challenging. It depends on careful research, the right network and specific market expertise to handle this theme.   We are aware that this abstract does not include all the information of entering a foreign market. Make sure that we can go further with you to each point soon. Research of your needed data is our core-business. We have developed skills and technics that can help you to get detailed information to this point.   If you are interested in discussing your goal, do not hesitate to contact us.

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