Test the Market*
U.S. Small Business Administration
You have chosen your product, your market and your method of distribution. It is time to do some test marketing. For no matter how much you have researched your potential market, you still can't be sure of your product's reception abroad. And while there is no substitute for actually bringing your product to market, there are various testing methods that will allow you to, if necessary, modify your product, its packaging or your prices before committing yourself to a full scale program.
Trade Missions
The first of these methods--trade missions--is organized by the U.S. Department of Commerce. There are three types of these events:
- Specialized trade missions, planned and led by the department and which bring you into contact with potential buyers, agents and distributors;
- Seminar missions, which feature one- or two-day technical presentations by a team of U.S. industry representatives and are followed by appointments and sales activities similar to those of the specialized trade missions; and
- Industry-organized, government-approved trade missions, which are organized by trade associations, chambers of commerce and other groups with the assistance of the U.S. Department of Commerce.
Trade Fairs and Exhibitions
Another method for test marketing is trade fairs and exhibitions. Hundreds of major general and specialized international trade fairs and exhibitions are held each year. Most of them are open to any firm in the particular industry. U.S. firms that participate in these events benefit from a full range of promotional and display assistance. In return, they pay a specified sum to offset the cost of the services they receive.
To find out about the dates and locations of the various trade missions and trade fairs and exhibitions, ask the U.S. Department of Commerce to send you a copy of its latest "Export Promotion Calendar." The calendar lists department-supported events in the U.S. and overseas as well as the officer to contact for further information.
Catalog Shows and Video/Catalog Exhibitions
The final testing method is also the least expensive: catalog shows and video/catalog exhibitions. Participation in a catalog show does not require that you have a company representative present. Instead, you send your product catalogs, sales brochures and any other sales materials, which are displayed at exhibitions held at U.S. embassies and consulates.
At video/catalog exhibitions, visitors can watch video tapes of products in use. These exhibitions are an excellent method for promoting machinery, equipment and other products that are expensive to ship.
* Excerpted or reprinted with permission from Small Business Success, Volume 1, produced by Pacific Bell Directory in partnership with the U.S. Small Business Administration.
