Relevance and importance

Small and medium-sized export firms should be particularly aware of their need for information and knowledge as they may be operating in geographically dispersed markets, whose information systems are very often little formalised, unsophisticated and quickly overloaded. Timely, accurate and relevant information, evaluated effectively, is crucial to marketing decision makers in helping them satisfy customer requirements profitably, taking advantage of opportunities and avoiding threats.

Overview

Although the SME may not have formal information collection systems they can still effectively gain knowledge of their market at both the organisational and individual levels.

Market knowledge may be gained through:.

	Market Intelligence - the systematic collection and analysis of publicly available information about competitors and development in the market.
	Market research - the systematic design, collection, analysis and reporting of relevant marketing data.
	Customer behaviour - Understanding the reasons why, when, where and how people buy, and the interrelationship between these. Factors may be external (marketing and business environment), cultural, social, personal and psychological.

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Recommendations and practical tips

Some suggestions of ways to gain market knowledge:

	Engage in dialogue with and seek feedback from customers.
	Use suppliers, resellers and competitors, for example, press reports, trade shows, advertising, business publications, web sites.
	Undertake internal analysis, for example sales or financial analysis.
	Purchase market intelligence from commercial research suppliers.
	Build excellent local relationships.
	Use informal networks and personal relationships.
	Enter the market gradually.
	Official promotional bodies, e.g. Export boards, chambers of commerce.
	Survey your customers/potential customers.
	Model customer buying behaviour. Investigate a particular buying process to see how the factors of buying behaviour might interact. e.g. changes to price, distribution, product design, and promotion.

Warnings and potential pitfalls

Determine what market intelligence is actually needed to avoid being overloaded with too much information.

Much information can actually be gained internally, for example, your engineers or salespeople may be very valuable sources of market knowledge.

Facilitate an environment in your company that stimulates and encourages your employees to collect and share market knowledge.

Good customer surveys and market research depend on a sound conception and design. Market information is often useless unless it is properly distributed, analysed, interpreted, evaluated and acted upon.

Play by the rules! Avoid inadvertently gaining market information through unethical means; it will be better for the company's reputation in the long-term.

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