1. Welcome to class of assessing and analyzing markets by Dr
Welcome to class of assessing and analyzing markets by Dr. Satyendra Singh Professor, Marketing and International Business University of Winnipeg Canada

2. Learning Objectives 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

3. 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

4. Market Screening
Permits management to identify a small number of desirable by eliminating those judged to be less attractive

5. 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

6. 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

7. 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

8. Second Screening: Economic and Financial Forces
Measures of market demand based on economic and financial data
Market indicators
Market factors
Trend analysis
Cluster analysis

9. 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

10. Market Factors Market Factors
Economic data that correlate highly with market demand for a product
Estimation by analogy

11. 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

12. Cluster Analysis Cluster analysis
Statistical technique that divides objects into groups so that the objects within each group are similar

13. 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

14. 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

15. 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

16. 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

17. Final Selection of New Markets…
Personal visit to potential markets is essential
Field Trip, unhurried
Government-Sponsored Trade Missions
Trade Fairs

18. 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

19. 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

20. 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

21. Finally Segment Screening Definable: identify and measure
Large: to be worth the effort needed
Accessible: for promotion and distribution
Actionable: have control of marketing programs
Capturable: potential exists