How to Choose Between Local and International Market Research

1. How to Choose Between Local and International Market Research Both local and international research have distinct advantages. So, how do you choose between the two? It depends on the scope of your expansion and priorities

2. Local and International Market With markets around the world opening up, even small businesses are attempting to go global. Gone are the days when only big multinationals had presence in different countries. With its millions of consuming population, a stable government and rising incomes, India is seen as an attractive market by companies in UK and Singapore. A number of small businesses are now claiming a share of the Indian market. Many of them are now in multiple countries. However, these business share a stark handicap — their lack of knowledge about the local markets. This has given rise to the need for local and international market research. Why do we need international research? For smaller companies hiring an in-house research team is too expensive. Good research is a long-term project and an in-house team is a drain on resources and finances. The only solution is to hire research specialists. For a firm looking for expansion in international business it is important to hire an international research firm. Although a number of local firms claim ability to carry out international research, it is a specialisation that comes only with relevant experience. But, why hire an international research specialist at all? Why not go for local firms?

3. Case for international firms • International research firms typically have expertise over a region, such as Asia-Pacific. Bigger firms may cover more than one region. • — Economic: Hiring multiple local research firms for different countries means piling research costs of each firm. In contrast, a single firm will offer better rates. Most international research agencies offer deals on projects with bigger scope. But it is not just the operational cost. An international firm will take into account the entire project and not just the local market when making cost projections. • — Convenience: There is an obvious convenience of working with one firm instead of multiple firms. It can save both time and effort. • — Streamlining policies: When hiring multiple local research firm, each firm will come up with its own set of recommendations. Sometimes these can run contradictory to each other or are too difficult to implement. On the other hand, an international market research firm will give its recommendation with the whole project in mind. • — Marketing innovations: Different markets means dealing with different marketing methods. An international research firm will take a stock of different marketing methods when creating new strategies. • — Product development: A new market often involves product adaptation. Both local and international market research can show how localised improvements can give boost to sales. An international firm, on the other hand, can show the need for product development across markets. An overall picture can help businesses implement planned product improvements, instead of piecemeal additions as one expands to new markets.

4. Case for local firms • — Focused attention: A local research firm will not have its focus divided among different markets and countries. Its sole focus rests with the local market. • — Specialisation: Local market research firms have built up their experience in dealing with their local market and understand its idiosyncrasies. No international firm can rival that knowledge and expertise. • — Consumer knowledge: In indigenous markets like India, understanding the consumer is critical. For companies from countries like UK and Singapore, there is a dramatic change in consumer profile. Here, consumers are influenced by India’s unique culture, trends and traditions. Often the consumer behaviour can even change from one state to another. A local agency brings its knowledge of these nuances. • — Government red-tape: Companies from more open economies often find it difficult to deal with countries where a government has a bigger control, such as India. Although more open than before, the Indian government still has significant control on local economy. Add to this its unique tax and policy structure. A local researcher bring this knowledge and the know-how to deal with such obstacles.

5. Thank you Clearly, both local and international research have their own unique advantages. How-ever, the main criterion of selecting is actually the scope of a project. A sharp focused re-search into a specific market works well with local firms, while a wider expansion needs the comprehensive approach of an international research firm • www.coralresearch.in