2. AGENDA
What is the basic of Market
Selection
What is Market Selection
Process
What are the determinants
of Market Selection
What are the factors which
determine market selection
3. of International
Marketing focuses
on Market
Selection which is
highly influenced
by culture
80%
Marketing has always been recognized as an
economic activity involving the exchange of goods
and services.
Only in recent years, however, have socio-cultural
influences been identified as determinants of
marketing behavior, revealing marketing as a
cultural as well as economic phenomenon.
Because our understanding of marketing is
culture bound, we must acquire knowledge of
diverse cultural environments in order to achieve
successful international marketing.
One must, remove their culturally tinted glasses
to study foreign markets.
4. Market Selection Process
5. Evaluation
and
Selection
4. Detailed
Investigation
and Short-
Listing
2. Determine
parameter for
Market
Selection:
1. Determine
International
Marketing
Objective:
P
3. Preliminary Screening
5. Competition
and Customer
Market Volume
and demands
How Strong is
the
Organization
Finances
Determinants
of Market
Selection
Firm Related Factors
Market Selection Decision
Market related factors
6. Firm related Factors
1. A Firm whose export objective is
only to sell a marginal surplus
will select this purpose.
2. The Planned Business Strategy
may also influence the market
selection
3. The market selection is also
influenced by the international
orientation of the company
7. Economic Factor Economic Policy Business
Regulations
Market Hub
Currency Stability
General Factors
25% 10% 10% 20%1010% 15%
Ethnic Factors
8. Specific Factors
Market Selection
1. Trends in domestic production and
consumptions
2. Trends in imports and exports and
estimates for the future
3. Nature of competition
4. Government policy and regulations
pertaining to the industry.
5. Trade practices and Customs
6. Cultural factors and consumer
characteristics
9. Market selection decision
Evaluation Matrix
1. An Evaluation Matrix is often used for ranking
the markets with reference their attractiveness
for the company.
2. The evaluation Matrix will include the relevant
general and specific factors.
3. The Countries to be evaluated may be listed on
the horizontal axis and the factors on the
vertical factors.
4. Each factors is assigned a raw score and a
weightage
5. The Weighted Score is obtained by multiplying
the raw score with respective weightage.
6. Markets are ranked by comparing the total
weighted scores.
www.example.com
10. Market selection decision
Market Profiles
1. The market profile of product is a
fairly detailed account of relevant
market characteristics.
2. It provides those information which
are needed for the formulation of
the marketing strategy.
3. A market profile will, help in the
formulation of appropriate
marketing strategy, pricing strategy,
distribution strategy and
promotional strategy.
www.example.com
11. Content of Market
Profiles
1. Trends in the domestic production.
2. Competitive Characteristics- SWOT
3. Global Market Segment Characteristics- the
number of segments and their size, the success
factors in each segment, determinants of
demand in each segment.
4. Global Customer Characteristics including tastes
and preferences, attitudes, buying habits etc..
5. Global Promotional Characteristics.
6. Factors relevant to global laws.
12. Summary
The important steps in the market selection process involves-
1. International Marketing objectives,
2. Parameters of selections,
3. Preliminary screening,
4. Short- Listing of markets,
5. Evaluation and Selection.
6. The market selection is based on two sets of factors- Firm related and Market
related factors
7. Since Culture has a deep influence on product choice, motivation and life style
of customers the marketers need to do their market selection based on that.
Thus, there is a need to redesign the marketing strategies of a product which
goes GLOBAL.
