Are there exclusive agreements with specific distributors, or is the product available through a variety of third-party channels?
Understanding the distribution network helps assess how well the product is actually supplied to multiple markets and regions.
A more diversified model of distribution may result in deeper market penetration, while exclusive partnerships could provide higher margins.
Another key component to understand is if there are any existing importers or resellers of your products and services in the target market.
Climate
Climate can be covered by using the PEST framework.
A PEST analysis helps businesses assess political, economic, social, and technological factors that influence their environment.
This approach gives companies a clearer view of external challenges and opportunities.
Political Examples
Data privacy regulations.
Import/export regulations and taxes.
Economic Examples
Currency exchange rates.
Local purchasing power.
Social Examples
Level of digital adoption.
Cultural preferences and trust in digital shopping/payment methods.
Technological Examples
Cloud service adoption rates.
General infrastructure (courier services, internet capabilities).
Analyzing market trends further helps identify emerging opportunities or threats.
For instance, businesses can leverage the rise of ecommerce or address sustainability demands by adapting their offerings.
Understanding how economic conditions impact purchasing power enables companies to predict demand better and make strategy adjustments.
Purchasing power refers to the ability of individuals or groups to buy goods and services influenced by income, prices, and inflation. Understanding it is crucial for entering new markets.
Higher purchasing power indicates greater spending ability, making a market more attractive. Low purchasing power markets can pose risks if consumers cannot afford the product.
Defining “Organic Success”
Every market has its special characteristics, and the application of global success metrics on the mistaken premise that markets are all alike will often result in distortion.
Success metrics need to be able to adapt to the peculiar features of each market.
Trying to compare one market to another, and holding the same SEO KPIs and success metrics can be like comparing apples to pears.
Success Definition And Understanding User Path To Purchase
The understanding of the user’s path to making a purchase or completing a lead is crucial.
Buying cycles may be different in different regions; hence, the user’s behavior may not follow the same path across all territories.
These differences need to be recognized when defining success. What works in one market may not work in another. The buying cycle may be longer or more convoluted in some markets than others.
A user in one region may go through a quick decison-making process, while another takes longer and involves more touchpoints. This has to be factored into how you measure campaign success.
Multi-Modal Search Differences
In some markets, users may also use different search engines or platforms.
They’ll use multi-modal platforms – in other words, a combination of social media, search engines, and video platforms – to discover new information.
It is also important to understand which platforms over-index your target audience and which under-index them in certain regions.
For example, a business selling multiple fashion and apparel products will find that the audience for “Christmas Jumper” over-indexes on TikTok and Facebook, but the audience for “Christmas Dress” over-indexes on TikTok and Instagram (ahead of Facebook).
Given the surge in AI-related products across a number of platforms, such as Meta AI, understanding how your target segments research and discover products alters your definitions of organic success.
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