INTERNATIONAL MARKETING MANAGEMENT

1
INTERNATIONAL MARKETING MANAGEMENT
SESSION 4 ASSESSING MARKET OPPORTUNITIES AND
SELECTING COUNTRIES
1
2

• Firms Strategic Orientation
• Competitive posture
• Resources

Country 1
Country 2

• 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

Country 3
Country 4
Country 5
Competitor Market Choice Decision
Country N
Industry Structure
Competitor Strategy
2
3

• Country-Level Risk and Opportunities
• Product Market Opportunities
• Degree of Country Market Integration

3
4
EVALUATING COUNTRIES

• Country Environment
• Political and Financial Risk
• Economic Growth
• Technological Change

COUNTRY/ BUSINESS ENVIRONMENT
4
5
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

5
6
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

6
7
MARKET POTENTIAL INDICATORS FOR EMERGING MARKETS
- 2002
7
8
MARKET POTENTIAL INDICATORS FOR EMERGING MARKETS
- 2002
8
9
EVALUATING COUNTRIES

• Product Market Data
• Product Sales/Ownership
• Use of Complimentary or Substitute Products
• Competition

PRODUCT MARKET

• Market Infrastructure
• Transportation Infrastructure
• Distribution Network
• Mass Media, TV, Radio, Print

9
10
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

10
11
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

11