How do I analyze the foreign market potential of products such as computer chips, flour for baking, paint, or equipment?
The foreign market potential of selling such products of flour for baking, for example, depends on two main elements. The first is the analysis of the many diverse markets; the second is targeting the product to its unique uses in those various markets.
In addition, as an addendum to these two elements in our example, a marketer of flour today must take into account the changing baking and cooking uses of flour that consumers and bakeries (corporate and independent-small) undertake as concerns healthy eating.
Concerning the first element - diverse markets - a flour supplier must understand what markets use the most flour. Their success as marketers demands that they get their flour products to these high-volume markets. They must also understand the different types of flour that a potential foreign market uses. Do they use white flours predominantly or whole wheat flours? Do they use high-gluten flours? Do they use more cake & pastry type flours?
This is essential knowledge as concerns a particular market and the answers to these questions is dependent upon the main foods consumed in a specific market area and the diet preferences of the market's inhabitants. For example, in the UK, Irish soda bread, a quick bread, is popular and involves the use of all purpose white flour as well as whole wheat flour in some of its well-used recipes.
As pertains to the second element - targeting the flour product to its unique uses - a flour marketer must understand the regional cuisine of the market they are targeting and then tailor their advertising so they match their flour products to the types of food this market wishes to create. Therefore, the foreign market potential for flour depends on detailed market research as to the uses of flour in a market area - fully knowing what the flour will be used for by most of a region's individual citizens and businesses.