INTERNATIONAL MARKETING MANAGEMENT SESSION 4: ASSESSING MARKET OPPORTUNITIES AND SELECTING COUNTRIES 1.

INTERNATIONAL MARKETING MANAGEMENT

SESSION 4:

ASSESSING MARKET OPPORTUNITIES AND

SELECTING COUNTRIES

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Firm’s Strategic Orientation

Competitive posture

Resources

Market Characteristics

Country Risk/Opportunities

Product Market Potential

Degree of market integration/location

Choice of Markets

Incremental vs. Simultaneous

Concentration vs. Diversification

Proactive vs. Follower

Competitor Market Choice Decision

Competitor Strategy

Country N

Country 5

Country 4

Country 3

Country 2

Country 1

Industry Structure

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EVALUATING OPPORTUNITIES

Country-Level Risk and Opportunities

Product Market Opportunities

Degree of Country Market Integration

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EVALUATING COUNTRIES

Country Environment

Political and Financial Risk

Economic Growth

Technological Change

COUNTRY/

BUSINESS

ENVIRONMENT

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COUNTRY ENVIRONMENTAL FACTORS (Illustrative Examples)

Political/Legal Factors

Internal political stability State ownership & regulation Host government attitudes to foreign investment Import-export restrictions (tariffs/quotas, etc.) Restrictions on foreign ownership

Economic/Financial Factors

GNP per capita, GNP size Growth of GNP Rate of inflation Capital flow restrictions Foreign exchange fluctuations External debt

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COUNTRY ENVIRONMENTAL FACTORS (Illustrative Examples)

Socio-Cultural Factors

Ethnic diversity Religion Age structure and composition Rate of population growth

Technological Factors

Education levels, literacy Production and consumption technology Scientific/technological skills

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MARKET POTENTIAL INDICATORS FOR EMERGING MARKETS - 2002

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MARKET POTENTIAL INDICATORS FOR EMERGING MARKETS - 2002

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EVALUATING COUNTRIES

Product Market Data

Product Sales/Ownership

Use of Complimentary or Substitute Products

CompetitionPRODUCT

MARKETMarket Infrastructure

Transportation Infrastructure

Distribution Network

Mass Media, TV, Radio, Print

PRODUCT SPECIFIC INDICATORS (Illustrative Examples)

Product Usage Sales Volume Ownership Growth Rate

Usage of Complimentary/Substitute Products Sales/Ownership of Complimentary Products Sales of Substitute Products

Competition Number of Firms/Size Market Share Growth Rate of Competing Firms

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SUMMARY

Select Countries to Enter in Context of Long-run Growth Strategy

Importance of Systematic Assessment of Opportunities Worldwide

Assess Potential At:

Country/Macroeconomic Level Product/Market Level Degree of Market Integration

Use Secondary Data As Low-cost, Quick Option