Welcome to class of assessing and analyzing markets by Dr. Satyendra Singh University of Winnipeg Canada
Dec 18, 2015
Welcome to class ofassessing and analyzing markets
byDr. Satyendra Singh
University of WinnipegCanada
Learning Objectives
Assessing and Analyzing Marketd Initial Screening Economic and financial screening Political and legal screening Sociocultural screening Competitive screening Challenges in screening Final selection of markets
Objectives:
Assessing and Analyzing Markets
• Market Screening A version of environmental scanning in which the firm
identifies desirable markets by using the environmental forces to eliminate the less desirable markets
Environmental Scanning A procedure in which a firm scans the world for changes in
the environmental forces that might affect it
Market Screening
Permits management to identify a small number of desirable by eliminating those judged to be less attractive
Market Screening
Two Types of Screening
Country Screening Using countries as the basis for market selection
Segment Screening Using market segments as the basis for market selection
Initial Screening…
• Basic Need Potential
If the need is lacking, then no reasonable expenditure of effort and money will enable the firm to market its goods and services
Easier for producers of specialized industrial materials or equipment than for widely consumed products
Initial Screening
Resources to establish need potential Market size (present and potential) Imports do not fully measure market potential Review reports by various embassies Department of foreign and international trade
Second Screening: Economic and Financial Forces
Measures of market demand based on economic and financial data Market indicators
Market factors
Trend analysis
Cluster analysis
Market Indicators
Market Indicators Economic data used to measure relative market
strengths of countries or geographic areas
Possibilities: Market size
Market growth rate
E-commerce readiness
Market Factors
Market Factors
Economic data that correlate highly with market demand for a product
Estimation by analogy
Trend Analysis
Trend Analysis
Statistical technique by which successive observations of a variable at regular time intervals are analyzed to establish regular patterns that are used for establishing future values
Cluster Analysis
Cluster analysis
Statistical technique that divides objects into groups so that the objects within each group are similar
Third Screening: Political and Legal Forces
Entry Barriers Import restrictions, local participation requirements,
local content restrictions, government-owned competition
Profit Remittance Barriers Undue restrictions on repatriation of earnings, limits
to FDI, inability to provide foreign exchange
Policy Stability Political climate, government stability, public unrest
Fourth Screening:Sociocultural Forces
Screening on the basis of sociocultural factors is challenging
Sociocultural factors are fairly subjective
Data are difficult to assemble, particularly from a distance
Fifth Screening: Competitive Forces…
The number, size, and financial strength of the competitors
Their market shares
Their marketing strategies
The apparent effectiveness of their promotional programs
The quality levels of their product lines
Fifth Screening: Competitive Forces
The source of their products--imported or locally produced
Their pricing policies
The levels of their after-sales service
Their distribution channels
Their coverage of the market
Final Selection of New Markets…
Personal visit to potential markets is essential
Field Trip, unhurried
Government-Sponsored Trade Missions
Trade Fairs
Final Selection of New Markets
Research in Local Market
Face-to-face interviews reveal information that would never be written
Hire local research group Person in charge of the project must have experience in that country or
culturally similar one in same geographic area
Local Research Problems
Cultural Language Literacy Social desirability bias
Technical No up-to-date maps Streets have different names Houses not numbered Only wealthy have telephones Mail delivery issues
Research in Developing Nations
• Less research performed
• Often a seller’s market• Competition is frequently less intense in developing
nations because• fewer competitors• management struggling with problems other than marketing