New markets vary in similarity to the one in which your business currently exists. Market research may be the best way to find the current climate. Or perhaps you should hire a consultant. Or both. To see if your business has considered the main factors to make its best decision, take the following six-question quiz.
Directions: Circle your answer Y for yes, or N for no, for each question.
We have considered the following in making our decision as to whether to get a consultant to work with us in entering a new market:
- Y N Are competitors selling successfully in the new market?
- Y N Will independent market research cost significantly more than the consultant and do we have the budget for only one or the other?
- Y N Can we make our market research affordable and still get a reputable consultant?
- Y N Can we negotiate the following with the consultant: Reports, follow-up, specific, customized questions for our business, good or service with regards to the other country or market?
- Y N The consultant is well connected in the new market and can help us enter.
- Y N There will be no significant difference in value in hiring a consultant versus doing market research.
Scoring:
Add up Y's __________
Answer Key:
1-2 Your business has given a consultant little consideration, either because it is obvious because competitors are selling well and there is clear demand in the new market, or because your business has not assessed the value of a consultant seriously. Entering a new market requires the ability to appeal well to that market and finding out after an investment is made in large quantities of product or collateral can be detrimental. Various factors to consider about the other market are listed in the The Myth of Global Marketing.
3-4 – To enter a new market, your business has considered a consultant, however reviewing all the factors on the quiz will help to make the best determination. If your business is informed and does enough market research, a consultant may not be an advantage. It depends on the particulars of each situation, although trade organizations can help to give industry trend information available for active markets. Reading The Myth of Global Marketing should also help to shine light on the issue.
5-6 Your business has carefully considered the value of a consultant to help enter a new market. Finer details such as the level of success the consultant has had in the past with similar engagements, cost savings the consultant might bring in conducting or directing some of the market research and the actual relationship your company has with the consultant versus the market research team can also help make the decision. The information needs to be as accurate, taken seriously and presented in a quality, credible fashion to be effective. For more information on entering a new market to help your firm decide whether a consultant might be best, see The Myth of Global Marketing.
Jean Lewis,
has edited and written for consumer Web sites and publications reaching nearly 50 million people. Her credits include writing and editing online and print articles, sales and training materials, marketing collateral, and advertising and PR for conusmer companies including BeautiControl, a Tupperware subsidiary's publications to women ages 20s through 50s, the WHO Foundation, Women Helping Others, MCG Magazine, Los Angeles and Seasonal Living Guide for Sam’s Club, a retailing subsidiary of Wal-Mart. Her career also includes working and living in Canada and Japan. Jean is well regarded for her market-research based approach to managing story development enabling consistently original, relevant and timely content.