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Using Social Media to Unlock Market Intelligence Abroad

By Charles Vejgman

The uptake of social media platforms such as Facebook, Twitter, blogs and discussion forums by enterprise has been nothing less than spectacular since they have come on the scene and continue to do so. Their use as a marketing tool is no longer cutting edge, it has become the norm. If you think that Facebook’s penetration is limited to the United States, think again. Over 70% of Facebook users are now located internationally and as adoption swells worldwide, that percentage will continue creeping up. And as for where in the world Twitter enjoys its greatest market penetration rate? You guessed it… Indonesia.

Adapted from the Facebook website. Data from April, 2010.

How Social Media are Being Used

The current applications of social technologies for business typically deal with brand building, thought leadership and customer service. According to a social media strategist at PayPal, this is because this is the “low-hanging fruit”. Another promising use that seems to be under-utilized at this time is market research. In the B2B sphere at least, only 15% of US enterprises surveyed reported using social technologies to perform market research¹.  In just the 14 months since these results were published, many new tools for gathering social media intelligence have been released, such as Twitter’s search engine.

It has become clear that social media is not just a platform for managing a brand’s image for all of its audiences. Investing the resources needed to comb the social web becomes foundational for driving awareness all the way to developing customer loyalty and advocacy. Researching foreign markets and players through social media will be standard practice in the future; it would therefore be wise to develop these abilities now. We are already seeing signs that the use of social media as a trusted source of product recommendations is approaching that of family and friends.

What Can Be Accomplished?

 Social media’s first premise and great quality is that its content is spontaneous, immediate and unsolicited. Maybe best of all, the information itself is free, whether it comes from Naples, Italy or Naples, Florida.

Enterprises can:

•    monitor end user trends to ensure that they are on the right side of collective intelligence.
•    uncover the marketplace’s unmet needs.
•    manage their reputation by proactively dealing with their customers negative ratings.
•    pick up on weaknesses in the supply chain such as service delivery issues with channel partners.

This type of intelligence has strategic implications for product development, international business development and customer relationship management.

All of the objectives above can be achieved, even uncovering your competitors’ weaknesses. When one of our clients, a manufacturer of pet supplies was evaluating an expansion into the US market, one area we focused our attention on was the online community of pet owners who shared their product experiences on specialized retailer sites and discussion boards. Negative user reviews found on pertinent discussion forums and even the leading online merchants such as amazon.com or laredoute.fr can be an extra arrow in your quiver when trying to sell to foreign markets. Your sales rep won’t even have to make the case against the competition himself; he can simply point the prospective distributor to those negative reviews.

How to Get Started

Several free services can help you transform web searches of brand names, geographic markets, industry keywords, channel members and competitors into valuable market information. Besides Twitter’s advanced search, services such as trackur.com and socialmention.com allow you to save and update search results from several sources such as Facebook, Twitter, Linkedin, Delicious, blogs, discussion forums, as well as sign up for RSS updates. Even Google Alerts can be set to send you the latest pertinent data from the blogosphere.

When one of our clients, a manufacturer of innovative household appliances needed to know consumption habits in Asia’s high growth markets, we compiled intelligence from many fronts. Among them was a tour of the blogosphere which clued us into the growing segment of Western expats who have had difficulties finding appliances that suit their preferences. Their comments provided us with a good idea of which products they were considering, what their unmet needs were and the features they were prepared to make sacrifices on and which they were not. We also obtained valuable data on the local competition, retail channels and pricing.

Keep in mind that end users are not the only audience that can be accessed in this manner. Industrial blogs and Q&A forums are set up for distributors, after-sales service providers etc. where viewpoints related to trends and the challenges and opportunities of the day are exchanged.

Social technologies have only just recently lent themselves to business intelligence activities and will continue to evolve in many predictable and unpredictable forms. The fact remains that the social web presents opportunities for competitive advantages through international business intelligence that cannot be passed up.

¹BtoB Magazine, “2010 Outlook: Marketing Priorities and Plans Survey Results” November 16, 2009

Charles Vejgman,
International Markets Analyst,
Mercadex International
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Conducting Due Diligence Checks Internationally: A Few Basic Principles

By Guillaume Cariou

Establishing a significant volume of business abroad usually entails the SME affiliating itself with partners based in other countries. This sometimes requires proactively searching for allies oneself, whereas some enterprises are directly solicited by their foreigncounterparts. In the latter case, how can one verify the trustworthiness of a potential distributor’s offer that arrives by e-mail, fax or telephone?

Firstly, one has to check if the proposition and its provenance correspond with your enterprise’s international development plan. If you are aiming to develop business in Asia but are approached by a European distributor, this offer should not warrant a period of reflection on your part.

Indeed, a complete due diligence will necessitate time and resources. You will have to inform yourself on the prospective partner’s: experience (e.g.: number of years in business etc.), recognition (e.g.: contacts and networks etc.) and credibility (image and history amongst their suppliers and clients etc.). Getting an accurate picture of their clientele as well as their financial health (namely through websites such as Dun & Bradstreet) are also indispensable to this process.

An effective way of screening a potential distributor is to question them on their motivations and expectations:

• Are they truly familiar with the lay of the land in your sector, namely with respect to competitors?

• How do they propose positioning your line of products in their market?

• Are they prepared to invest in business development and promotion in a sustained manner, as well as in product certification and obtaining various permits?

These are legitimate areas of concern for your enterprise and can help you evaluate the scope of their intent.

In parallel, you must also decide:

• What you are prepared to reveal about your enterprise (technical know-how, financial data etc.)

• What you are prepared to supply your distributor (time, resources etc.) and on which elements you wish to maintain control (promotion, trademarks etc.)

Before initiating any business relationship, you must define the limits of a potential agreement as well as the conditions governing an exit by one of the parties.

Ultimately, an investigation should be carried out in order to confirm the fact that the enterprise contacting you is earnest. These checks can seem complex, but you should not ignore the fact that before associating your name with the name of another firm, you surely want to know with whom you are dealing.

Guillaume Cariou, Chief Analyst,
Mercadex International
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MercadExpress is published by
Mercadex International

Contact:
Guillaume Cariou
1-877-489-9068
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