• What is the demand of the type of products (you are dealing in) in the market?
• Who and why will the customers buy your products?
• How many competitors would you face in the target market? How would you get the customers buy your products?
• How can you sell and promote your products in the target market?
• What should be the price of your products?

• Cultural difference often turns to a be major hurdle while dealing with customers in a foreign land. Products which are regarded as basic commodity in your country may not be viewed in the same way in another country. Or, promotional activities you use in the domestic market may hurt cultural taste if used in an overseas market. Consider these issues carefully before taking any decision in your export business.  
• Are you able to speak the language of your potential customers? It helps to establish mutual confidence. If you cannot speak the local language, you may need the help of professional translators and marketing agencies. 

• Export legislation of that country.
• Certifications you require to do business in that country.
• Local standards you have to maintain.
• Patent and trademark issues.
• Testing requirements and product liability.

• * What is the size of the market you are going to explore?
• * What is the political situation in the target country? Is it stable?
• * What is the economic condition of the target country?

• * Who would be your customers? Segment them according to their size, location, region, age, gender, life style, etc.
• * What are the factors which influences their purchasing decisions? Ask yourself three basic questions- who your customers are, what they buy, and why they buy. 
• * How much your customers are ready to pay for your products? Determine your pricing according to it.

Researching overseas sector and potential competition

A. Demand
If the type of product you are dealing in is not in demand in the target market, it is very risky to start your export business in that country. Try to find out what is the reason behind that lack of demand. You may need to tailor your product or services to make them demanding in the target market. Or you may find that the market is already oversupplied.

B. Competition
Analyzing the competition you are going to face in the target market is also very important to avoid potential risk in export business. Consider the following factors while researching your competitors-

• Who are the competitors?
• What are the strengths and weaknesses of your competitors?
• How the competitors promote and market their products?  
• How your competitors price their products?
• What type of customer care services the competitors provide to their customers?
• Why customers buy from those competitors?
  

C. Pricing
While assessing the potentiality of an overseas market, carefully consider economic climate of that country, whether the customers are willing to pay or not and how much they are willing to pay. Determine the price of your products only after considering all these issues. 

D. Market entry:
Choose carefully the way  you want sell and distribute your products. There are two main ways- direct export and indirect export. The first way involves selling directly to a foreign firm. In this case, you have to find out buyers by yourself and arrange everything related to shipping your products overseas. But direct exporting is no the only way to do export business. If you cannot manage all the requirements for direct exporting, try the ways for indirect export business through export a trading companies or distributors.

How to conduct market research?

A. Conduct Market Research by Yourself: For SMEs, the best way for market research is to visit the overseas market and collect data by interviewing people, using media sources, or talking with other experienced exporters.    

B. Commissioning Market Research: If you can afford it, you can hire a professional market research agency to investigate your overseas market on your behalf. In this case, you have to decide whether you want to use a local agency (where your client is located) or one based in your own country.  

C. Research Using Published Market Report:  You can buy some published report on your target market and use the readymade information to research the market. 

To succeed in export business, one has to choose the right market, the best way to approach it, identify the target customers, analysis the market situation and competition, and consider carefully numerous issues such as logistics, supply route, position of the local suppliers, etc. Market research should be used as a means to keep in touch with the requirements the target customers, understand customers' needs as well as market trends, find more promising markets, identify market segments and niches, overcome barriers to market entry and to determine how to price your products. This is why market research is so important before entering into overseas trade.