Chapter 5Market Selection               International Marketing              Chapter-5 Market Selection
Objectives What is the basis of market selection What is market selection process What are the determinants of market sele...
IntroductionOne of the most important decision in IM ismarket selectionA company which wants to enter manymarket should do...
Market Selection Process1.   Determine international marketing     objectives2.   Determine parameters for market     sele...
Determinants Of MarketSelection1.   Firm related factors2.   Market selection decision3.   Market related factors         ...
Firm related Factors A firm whose export objective is only to sell a marginal surplus will select a foreign market to suit...
General Factors1.   Economic factors2.   Economic policy3.   Business regulations4.   Currency stability5.   Political fac...
Specific Factors1.   Trends in domestic production and     consumption and estimates for the     future of the products co...
5.   Infrastructure relevant to the industry6.   Supply conditions of raw materials and     other inputs7.   Trade practic...
Evaluation Matrix An evaluation matrix is often used for ranking the markets with reference to their attractiveness for th...
Each factor is assigned a raw score anda weightageThe weighted score is obtained bymultiplying the raw score with therespe...
Evaluation Matrix Table 5.1              International Marketing             Chapter-5 Market Selection
Market Profile The market profile of product is a fairly detailed account of relevant market characteristics It provides t...
Contents of Market Profile1.   Trends in the domestic production,     demand, imports and exports and the     forecasts of...
3.   Market segment characteristics – the     number of segments an their size, the     success factors in each segment,  ...
5.   Channel characteristics including trade     practices6.   Promotion characteristics7.   Factors relevant to pricing, ...
Market Segment Selection A firm has to make strategic decision about the segment of the foreign market that it should ente...
A firm with an innovative product andmarketing strength may choose themost lucrative segment/segments.Small and new firms,...
Summary The important steps in the market selection process involves: international marketing objective, parameters of sel...
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Market Selection

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The important steps in a market selection process involves setting up an international marketing objective, outlining parameters of selection, preliminary screening, short-listing of markets, evaluation and selection. Market selection is done on firm-related factors and market-related factors.

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Market Selection

  1. 1. Chapter 5Market Selection International Marketing Chapter-5 Market Selection
  2. 2. Objectives What is the basis of market selection What is market selection process What are the determinants of market selection What are the contents of market profile What are the factors which determine market selection International Marketing Chapter-5 Market Selection
  3. 3. IntroductionOne of the most important decision in IM ismarket selectionA company which wants to enter manymarket should do it systematicallyMarket selection is based on a thoroughevaluation of the different markets withreference to certain well defined criteriaIt is also necessary to prepare a profile ofthe selected markets to help the company toformulate the marketing strategy. International Marketing Chapter-5 Market Selection
  4. 4. Market Selection Process1. Determine international marketing objectives2. Determine parameters for market selection3. Preliminary screening4. Detailed investigation and short listing5. Evaluation and selection International Marketing Chapter-5 Market Selection
  5. 5. Determinants Of MarketSelection1. Firm related factors2. Market selection decision3. Market related factors International Marketing Chapter-5 Market Selection
  6. 6. Firm related Factors A firm whose export objective is only to sell a marginal surplus will select a foreign market to suited to serve this purpose The planned business strategy may also influence the market selection The market selection is also influenced by the international orientation of the company International Marketing Chapter-5 Market Selection
  7. 7. General Factors1. Economic factors2. Economic policy3. Business regulations4. Currency stability5. Political factors6. Ethnic factors7. Infrastructure8. Bureaucracy and procedures9. Market hub International Marketing Chapter-5 Market Selection
  8. 8. Specific Factors1. Trends in domestic production and consumption and estimates for the future of the products concerned2. Trends in imports and exports and estimates for the future3. Nature of competition4. Government policy and regulations pertaining to the industry International Marketing Chapter-5 Market Selection
  9. 9. 5. Infrastructure relevant to the industry6. Supply conditions of raw materials and other inputs7. Trade practices and customs8. Trade practices and customs9. Cultural factors and consumer characteristics International Marketing Chapter-5 Market Selection
  10. 10. Evaluation Matrix An evaluation matrix is often used for ranking the markets with reference to their attractiveness for the company The evaluation matrix will include the relevant general and specific factor The countries to be evaluated may be listed on the horizontal axis and the factors on the vertical axis International Marketing Chapter-5 Market Selection
  11. 11. Each factor is assigned a raw score anda weightageThe weighted score is obtained bymultiplying the raw score with therespective weightageMarkets are ranked by comparing thetotal weighted scores International Marketing Chapter-5 Market Selection
  12. 12. Evaluation Matrix Table 5.1 International Marketing Chapter-5 Market Selection
  13. 13. Market Profile The market profile of product is a fairly detailed account of relevant market characteristics It provides those information which are needed for the formulation of the marketing strategy A market profile will, help in the formulation of appropriate marketing strategy, pricing strategy, distribution strategy and promotion strategy International Marketing Chapter-5 Market Selection
  14. 14. Contents of Market Profile1. Trends in the domestic production, demand, imports and exports and the forecasts of the same for the future.2. Competitive characteristics – the competitors, their competitive strategies and weakness of the competitors International Marketing Chapter-5 Market Selection
  15. 15. 3. Market segment characteristics – the number of segments an their size, the success factors in each segment, determinants of demand in each segment , competitive characteristics of each segment, growth potentials of the segments etc.4. Customer characteristics including tastes and preferences, attitudes, buying habits, usage characteristics, etc. International Marketing Chapter-5 Market Selection
  16. 16. 5. Channel characteristics including trade practices6. Promotion characteristics7. Factors relevant to pricing, laws related to product, price, promotion, distribution, imports etc. International Marketing Chapter-5 Market Selection
  17. 17. Market Segment Selection A firm has to make strategic decision about the segment of the foreign market that it should enter. The segment that a firm may enter depends on a number of factors like the firm related factors, product related factors, competitive factors, and other market related factors. International Marketing Chapter-5 Market Selection
  18. 18. A firm with an innovative product andmarketing strength may choose themost lucrative segment/segments.Small and new firms, often look forniches for an entry into the market. International Marketing Chapter-5 Market Selection
  19. 19. Summary The important steps in the market selection process involves: international marketing objective, parameters of selection, preliminary screening, short- listing of markets, evaluation and selection. The market selection is based on two sets of factors: the firm-related factors and the market related factor. International Marketing Chapter-5 Market Selection
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