International Market
Selection Process:
Market selection plays a crucial role at
the international level. Market selection is based on a thorough evaluation of
the different markets with reference to certain well-defined criteria, given
the company resources and objectives.
The following are the steps involved in
the market selection process:
(a) International Marketing Objectives: The
first step in market selection process is to determine or ascertain the export
marketing objectives of the organization. The market selected to serve a
particular international marketing objective need not necessarily be the best
suited to achieve some other international marketing objective.
(b) Parameters for Selection: For proper
evaluation and selection of the markets, it is essential to clearly lay down
the parameters and criteria for evaluation. The different parameters for the
selection of a market are firm's resources, international environment, market
situation, nature of competition, government policy, etc.
(c) Preliminary Screening: The objective
of the preliminary screening is to eliminate the markets which are not
potential. The parameters used for the preliminary screening may vary from
product to product. However, parameters like the size of population, per capita
income, structure of the economy, infrastructural factors and political
conditions are commonly used.
(d) Short Listing of Markets: Preliminary
screening enables to eliminate markets which obviously do not meet
consideration at the very outset. There would be a large number of markets left
even after the preliminary screening. They are further screened with the help
of more information than was used at the preliminary screening stage
(e) Evaluation and Selection: The short-listed
markets are further evaluated with reference to the cost-benefit analysis and
feasibility study. They are then, ranked on the basis of their overall
attractiveness. Of the markets, the best one is chosen for the launching of
product considering the company’s resources and external environment
(f) Test Marketing: Initially, the market
is tested on a smaller scale by launching the product in a part of the markets
This provides a feedback to the producer about the market. At the same time, it
helps the producer in assessing overall response of the consumers from a
specific market, after tested success, the production can be undertaken on a
mass scale.
(g) Commercial Production: Once
the product is tested "in the selected market, the company goes ahead with
mass production. Minor modifications, if any, are introduced in the product mix
during this stage.
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