Market selection process in international marketing. International Market Selection and Segmentation 2022-12-14

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The market selection process in international marketing involves the careful evaluation and selection of target markets for a company's products or services. This process is crucial for businesses looking to expand internationally, as it allows them to identify and pursue opportunities that align with their goals and resources.

There are several factors that a company should consider when selecting a target market in the international arena. These include market size, market growth potential, market accessibility, market similarity, market risk, and market attractiveness.

Market size refers to the number of potential customers in a particular market. A larger market size generally means more potential revenue, but it also often means more competition. Market growth potential refers to the expected rate of growth in the market over time. Markets with high growth potential can provide long-term opportunities for businesses, but they may also involve higher risk.

Market accessibility refers to the ease with which a company can enter and operate in a particular market. This can be influenced by factors such as language barriers, cultural differences, and the availability of distribution channels. Market similarity refers to the extent to which a market is similar to the company's domestic market in terms of consumer preferences, purchasing behavior, and cultural norms. Markets that are similar to a company's domestic market can often be easier to enter and operate in.

Market risk refers to the potential for loss or damage to a company's investments in a particular market. This can be influenced by factors such as political instability, economic downturns, and legal and regulatory challenges. Market attractiveness refers to the overall appeal of a market to a company, taking into account all of the above factors as well as the company's own resources and capabilities.

To identify potential target markets, companies often use market research techniques such as market analysis, competitive analysis, and customer analysis. This can involve collecting data on market size and growth potential, studying competitors and their strategies, and understanding the needs and preferences of customers in different markets.

Once a company has identified potential target markets, it can then evaluate and compare them using a variety of tools and techniques, such as market attractiveness analysis, market feasibility analysis, and resource allocation analysis. This process helps the company to prioritize markets and make informed decisions about which ones to pursue.

In summary, the market selection process in international marketing involves the careful evaluation and selection of target markets for a company's products or services. It involves considering a range of factors such as market size, growth potential, accessibility, similarity, risk, and attractiveness, and using market research and analysis to identify and compare potential markets. This process is crucial for businesses looking to expand internationally, as it allows them to identify and pursue opportunities that align with their goals and resources.

Steps Involved in the Process of International Market Selection.

market selection process in international marketing

Contract Manufacturing: Under contract manufacturing, an international marketing company enters into contract with a local enterprise abroad to manufacture its product and undertakes the marketing responsibility on its own. Less for much less: a market always exists for products that offer less and therefore costs less. The longer the production setup time and the smaller the sales volume of each product, the more expensive the product becomes. It is the suitable method for the international firms seeking to conduct operations worldwide. We deal in all academic disciplines since our writers are as diverse. This method is more beneficial for the international firm as the channel partners have knowledge and networks in the desired market Amankwah-Amoah, Boso and Debrah, 2018. Complicating the segmentation issues in world markets is the need for companies to make strategic positioning decisions on leveraging brand equity and achieving economies of scale.

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International or Foreign Market Selection Process [with Steps]

market selection process in international marketing

On one level its implications for the international marketer are self-evident: advertising must be translated; brand names must be vetted for international acceptability; business negotiations must often be conducted through expensive interpreters or through the yet more expensive acquisition of a foreign translator. This division of labor will allow individual partner to put more effort on their section of duties. The most important competitors in laser printers are: Hewlett Packard market leader , Lexmark, Oki, Epson, Canon, Samsung, Dell and Xerox. Political factors Political factors must be considered since they directly impact the operations and profitability of corporations. This has resulted to a large number of newly rich.

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International Markets Selection

market selection process in international marketing

For example, it may find Pakistan, Iran and most Arab countries, all of Africa and all of eastern Europe less than satisfactory for entry. Brewing industry is huge and global business includes many dominant multinational companies and various thousands of small manufacturers ranging from regional breweries to brewpubs. In Europe marketers are accustomed to either the so-called nuclear family, with father, mother and children all living together under one roof, or, increasingly as society changes, the single-parent family. Step Five — Direct Experience Personal experience is important. This decision influences the nature of foreign marketing programmes in the selected countries. It corrects the imbalance of trade and completes progressive projects. This means that they have successfully differentiated their product range as a way of marketing their product to a diversified marketplace.


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The International Market Entry Evaluation Process

market selection process in international marketing

Such sources are as follows: i Export Promotion Councils, Commodity Boards, the Trade Development Authority, and various chambers of commerce. Such an analysis helps a company competing in the global scene to use its limited resources more effectively. In our case our choice of China is based on the very fact that it is the 3rd largest country in the world with the largest population in the world also being found in the same country. Haggling in a country such as Turkey is almost a national pastime. Process 4 — Criteria for Selecting Target Countries: The process of selecting target countries through the screening process requires that the exporter identify the criteria to be used for selecting a country or differentiate one country from the other. A careful exercise to shortlist overseas markets becomes necessary since all products cannot be sold by the firm to all countries at all times. Red Bull has the largest market share in the Asian-Pacific region.

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The selection process for the international market

market selection process in international marketing

The result of positioning is the successful creation of a customer-focused value proposition. The living standard of Chinese people is also higher and better than before. A six-category classification is used: upper upper class, lower upper, upper middle, lower middle, upper lower and lower lower. It is critical for the company to follow all the policies and import restrictions in order to avoid falling gin trouble with the Chinese authorities. It is necessary to increase exports that the government sets up training institutes.

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International market selection

market selection process in international marketing

There would be a large number of markets left even after the preliminary screening. Parameters for Selection: For proper evaluation and selection of the markets, it is essential to clearly lay down the parameters and criteria for evaluation. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. The SMEs can make use of the approach for the international market selection given below: Low psychic distance: The psychic distance can be described as variances in the semantic, philosophy, level of learning, manufacturing development and political system. Kuomintagang 2011 noted that China is ranked 13th in the most favorable investment destinations.


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How to Do International Market Selection

market selection process in international marketing

Although many studies on the governance modes of the international franchise firm have been published in the last two decades, no prior study develops an integrative framework that investigates the determinants of the international governance modes by combining organizational economics and strategic management perspectives. This study develops a coherent internationalization process model, which is particularly needed for examining the internationalization of small and medium sized enterprises SMEs. Both the partners approve to pool capitals for the determination of achieving a task. Geographical proximity facilitates a firm to reach the product fast to a nearby country and service the market quickly and more effectively. At the same time, it helps the producer in assessing the overall response of the consumers from a specific market, after tested success, the production can be undertaken on a mass scale. In those same countries television sets and even radios are economically beyond the reach of most of the population, although communal television sets are sometimes available.

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(PDF) The decision process for the International Market Selection

market selection process in international marketing

A company may want to enter only one foreign market at a time or a number of markets simultaneously. In the strategic partner selection process that follows, finance, business know-how, local knowledge, a shared understanding of the business and brand, and, ultimately, chemistry between the partners are the key factors influencing partner selection. If the company positions its product as offering the best quality, it must then deliver the promised quality. Measures on these two dimensions are built up from a large number of possible variables, as listed in Table 8. The general lack of effort to innovate has led the company to rely on small product base Competing products such as iced coffee as well as hot drink presents a stiff competition to the brand. This is then followed by an elaborate international marketing objectives presentation on the basis of the SWOT analysis. Therefore, a proper analysis is necessary for selecting the proper and appropriate foreign market.

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LONT040 International Marketing : Market Selection Process

market selection process in international marketing

The consumer marketer faces a real challenge in deciding on promotional policies in these countries, and the use of visual material is more relevant. Option accessible to the global firm and its choice of market growth strategy It is significant to understand some considerations to expand operations overseas. These must be done in the language of the host nation. Step Two — Preliminary Screening At this second stage one takes a more serious look at those countries remaining after undergoing preliminary screening. A high degree of measurability and accessibility indicates more general characteristics as criteria at the top of Figure 8 and vice versa. The internal organizational structure of the export department may be based upon functions, territory, product or a combination of these.

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The international market selection process

market selection process in international marketing

They offer rapid-response services in line with customer needs. There may be some restrictions e. Finally it examines the choices obtainable to an international firm and the choice of market strategy. During the exam periods, Red Bull sends out their special group of sampling boys and girls to give free Red Bull to the students. Around 80 per cent of sales are generated outside Japan. Furthermore, the research will also analyze entry strategies implemented by a number of multinational corporations operating in different industries.

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