What is international marketing research? A strategic guide for global growth

International markets present exciting growth opportunities, but they also pose unique challenges. Many businesses seeking global growth struggle to pin down consumer behavior, market trends, and cultural differences across borders.

That’s where international market research comes in. By thoroughly researching target markets, businesses can better tailor their strategies to engage new audiences and maximize growth potential. This guide will define what international marketing research is and explain various research processes that inform strategic decisions for global expansion.

What is international market research?

International market research involves gathering and analyzing data about consumer behaviors and competitors from markets in other countries.

International market research examples include online surveys with foreign customers, local competitor analyses, and industry studies and reports. Businesses can use this research to build strong international market entry strategies and prepare for the challenges and opportunities of expansion.

Your company may conduct global marketing research to prepare for the following initiatives:

• Launching a new product: Explore whether your product fulfills a niche in a particular market or needs adjustments to differentiate it from competitors.
• Increasing reach and revenue: As your business grows and cash flow increases, you can use your funds to tap into new markets and boost your bottom line.
• Finding the proper engagement channels: Conduct research to see where your new audience is most active and how they move along the path to purchase.

You might already conduct domestic market research to better understand your local customers and reach target markets close to home. However, international market research varies in a few critical aspects:

• Language and cultural barriers: Linguistic differences are one of the biggest challenges in international marketing research. You can often conduct domestic research in your own language, but global research may require high-quality translation tools or interpreters.
• Regulatory restrictions: Your business must comply with regional laws and regulations, such as Europe’s General Data Protection Regulation (GDPR), to collect data from other countries.
• Cost: International market research can be more expensive than domestic research, requiring localization tools or assistance from local, on-the-ground experts.

Benefits of global marketing research 

International market research unlocks new sales and engagement opportunities across the world. Research provides the roadmap businesses need to expertly navigate foreign markets and build winning global marketing strategies.

The following key benefits illustrate the importance of international marketing research:

You’ll identify valuable opportunities

You can research your target market’s pain points and competitors to gauge your products’ potential performance. For instance, you may discover competitors have overlooked a significant advertising or customer service opportunity. Once you pinpoint gaps in the market, you can use your findings to improve your international market positioning and grab customers’ attention.

You can mitigate risks

Entering new markets can be complex. Careful research informs your compliance, security, and logistics strategies. You’ll avoid common pitfalls and make the most of your expansion.

Your customer communication will improve

Research gives you a firm grasp of linguistic differences, cultural nuances, and sensitivities. You’ll learn to communicate accurately and respectfully, helping you nurture relationships and make sales. You’ll also uncover high-quality business translation tools that enable you to share your messaging with new customers and partners in familiar terms.

How primary and secondary research boost global business

Businesses use two general research methods to gather insights: primary and secondary research. Although they’re both vital for understanding international markets, they have unique challenges, use cases, and data collection processes.

Here’s a closer look at the importance of primary and secondary research for international businesses:

What is primary research?

Primary research is collected directly from sources. It includes surveys, interviews, and focus groups conducted by your business. If you’re researching an international market, your primary research may involve asking local shipping companies about their processes or polling potential customers about their experiences with competitors.

Primary research is valuable because it’s tailored to your business interests and not filtered through a third party. However, it can be challenging to gather at scale due to cultural and linguistic differences. Fortunately, Smartling’s translation services help businesses conduct international market research and access cost-effective, professional translations.

What is secondary research?

Secondary research is collected second-hand from other sources. Examples include academic studies, industry reports, and public records. You might use secondary sources during international market research to monitor industry buying trends or track competitors’ growth. 

Secondary research is often more scalable and cost-effective than primary research because it doesn’t require you to fund research or directly communicate with sources. Still, you’ll encounter challenges like biased reporting and outdated information. 

Global market research in 5 steps 

International market research can seem overwhelming, with complex planning and varied costs depending on your target markets and goals. However, the right tools and strategies will equip you to start gathering valuable data and planning your global expansion.

To begin, follow these five steps for conducting international market research:

Determine your target markets and research goals

Which foreign markets are you entering, and why? What do you hope to learn from your research?

Answering these questions and setting actionable goals in advance can help streamline your research process. You may want to gauge the size of your new market, get a clear picture of your target demographic, or identify potential barriers to entry. If you’re still in the exploratory stage, your research may focus on identifying the best countries for international business expansion.

Choose your research methods

After determining your goals, choose methods and strategies to achieve them. Consider leveraging a mix of primary and secondary research sources to gain a comprehensive view of your new market.

Identify and assess your competitors

You might be entering a market with tough competition—not to mention businesses with established, local ties. Research these competitors to assess the playing field. Try to pinpoint their customer demographics and value propositions. You can also conduct an analysis of strengths, weaknesses, opportunities, and threats (SWOT).

Gather and analyze data

Collect and organize your data to inform your market entry strategy. You might try to answer the following questions:

• Who are my most valuable customers in this market?
• Is the market saturated, or are there gaps to be filled?
• Which market trends or patterns are emerging?
• What are customers’ preferred engagement channels?
• Which cultural differences and sensitivities must I navigate carefully?

Build a data-driven international marketing strategy

Use what you’ve learned to build a robust global marketing strategy that engages new audiences and aligns with local consumer behaviors. You might leverage your data to inform your pricing strategy or provide buyers with preferred payment methods.

You can also use your findings to pinpoint the necessary tools to execute your strategy. For example, Smartling’s localization solutions can help you meet global growth goals on time and under budget. Our translation integrations and AI tools are designed to maximize your resources and promote success in new markets.

Expand your business globally with Smartling

A robust international market research strategy is crucial to successful global expansion. Research mitigates risks and unlocks new opportunities for sustainable growth, enabling companies to confidently extend their reach and thrive in foreign markets.

Smartling’s translation services, for instance, provide on-brand translations with a satisfaction guarantee at a fraction of traditional agencies’ cost and turnaround time. With the support of our trusted team, your global business can find an ideal balance of quality, speed, and price.

Smooth and accurate communication can make or break your global strategy. Whether you’re translating legal documents, social media content, or technical guides, you want unparalleled accuracy that retains your business’s unique voice. Download our free eBook, “The Ultimate Guide to Translating Your Marketing Materials,” to learn more about adapting promotional content for new markets.