Factors Influencing International Market Selection & Segmentation

Internal Factors in Foreign Market Selection

• Personnel• Management • Customers• Capital Requirements• Social Assessment• Corporate Social Responsibility• Time and Research

External Factors in Foreign Market Selection

• Market potential• Market size• Market growth• Competitive intensity• Political environment• Legal environment• Economic environment• Culture• Infrastructure

  MARKETING DECISION

 • Go international or remain

domestic

• Which markets to enter

• How to enter target markets

• How to market in target markets

MARKETING INTELLIGENCE

• Assessment of global market and firm's potential share in it, in view of local and international competition, compared to domestic opportunities.

• A ranking of world markets according to market potential, local competition and the political situation.

• Size of markets, international trade barriers, transport costs, local competition, government requirements and political stability.

• For each market, buyer behaviour, competitive practice , distribution channels, media, company experience

International Market Selection Process

It is a process of evaluating various market segments and focusing marketing efforts on a country, region or a group of people that has significant potential to respond.

CRITERIA FOR PRELIMINARY SCREENING

• MARKET SIZE (present & future potential) Population Income• ACCESSIBILITY TO INTERNATIONAL MARKET

TARIFF NON-TARIFF BARRIERS

• PROFITABILITY

TARIFF BARRIERS

NON-TARIFF BARRIERS