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
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