How can companies evaluate and select specific foreign markets to enter

How can companies evaluate and select specific foreign markets to enter?

How Many Markets to Enter• The Company must decide how many

countries to enter and how fast to expand

• Companies’ entry strategy typically follows one of two possible approaches :

1.

Choosing Between Developed and Developing Market

Developed nations account for about 20 percent of the world’s population.

The challenge is to serve the other 80 percent, dealing with issues of affordability, equity, and infrastructural deficiency.

This imbalance is likely to get worse, as more than 90 percent of future population growth is projected to occur in less developed countries.

2.

Grameenphone marketed cell phones to 35,000 villages in Bangladesh by hiring village women as agents who leased phone time to other villages, one call at a time.

Colgate-Palmolive rolled into Indian Villages with video vans that showed the benefits of tooth brushing.

These marketers capitalized on the potential of developing markets by changing their conventional marketing practices

Selling in developing areas can’t be “business as usual”.

Economic and cultural differences abound, a marketing infrastructure may barely exist, and local competition can be surprisingly stiff.

NOTE..

Evaluating

Potential Markets3.

Many companies prefer to sell to neighboring countries because they understand them better and can control their entry costs more effectively

PROXIMITY

Psychic Proximity determines choices. Given more familiar language, laws, and culture, many U.S. firms prefer to sell in Canada, England, and Australia.

Recap :• Decide number of markets to enter• Decide between developed and developing

markets• BRIC Countries and marketing• Evaluate potential market

CREDITS :www.openaboard.comwww.channelpronetwork.comwikis.engrade.comwww.slideshare.netresearch.utep.eduNews.softpedia.comwww.clickbd.comImgsoup.com