1. IDENTIFYING AND SELECTING INTERNATIONAL MARKETS

2. INTRODUCTION Before making an entry in the international market, a firm has to identify those markets in which it can sell its products easily. A proper analysis is necessary for selecting the proper and appropriate foreign market. It is important for the firm entering the world market to segment them in such a way that it is able to effectively meet their requirements.

3. CLASSIFICATION BASIS CLASSIFICATION BASIS INDUSTRIAL DEVELOPMENT INDUSTRIALLY DEVELOPED ECONOMIES RAW MATERIAL EXPORTING ECONOMIES MORE DEVELOPED COUNTRIES SUBSISTENCE ECONOMIES POPULATION GROSS NATIONAL INCOME OTHER CHARACTERISTICS

4. INDUSTRIAL DEVELOPMENT 1.INDUSTRIALLY DEVELOPED ECONOMIES:- These countries provide a large world market as they have no restrictions on import. They lay more emphasis on the production of more sophisticated products and on research and development.

5. 2. RAW MATERIAL EXPORTING ECONOMIES:- These types of economies are very much rich in minerals and other raw materials but there is lack of production technique, capital, labour etc., for performing productive functions. So these type of economies are exporters of raw material and importer of finished goods.

6. 3. MORE DEVELOPED COUNTRIES:- These economies are growing fastly. Their infrastructure is not very sophisticated but they are progressing by adopting methods like technical advancement to set up their manufacturing units.

7. 4. SUBSISTENCE ECONOMIES:- This type of economy is found in the least developed countries. They produce nothing and depend on imports. As these countries lack infrastructures, there is a much scope for the developing countries to export their products in these countries.

8. POPULATION A smart exporter will always search market in a country where population is high. Because commodities are mainly used by the people living in the country. Therefore, higher the population of the country, higher will be the market potential. Segments of population can be made on the basis of age, sex,social class, educational background etc.

9. GROSS NATIONAL PRODUCT Gross National Product, growth rate of economy and standard of living of population tell us that what we should produce and what type of price of product will run here.

10. OTHER CHARACTERISTICS Markets can be classified on the basis of per capita income, market characteristics,variables like socio- economic variables, cultural groupings and other behavioral patterns.

11. REQUISITES OF EFFECTIVE SEGMENTATION EFFECTIVE SEGMENTATION IDENTIFIABLEMEASURABLEPROFITABLEACCESIBLEDIFFERENTIABLESTABLE

12. PROCESS FOR SELECTING OF FOREIGN MARKET FIRST STAGE:- While selecting foreign markets, it is necessary that we should analyze the market and following factors must be studied Geographical factors Economic environment Social and Cultural environment Political environment

13. SECOND STAGE:- Following factors must be considered Market Size Growth Rate of other products Government policies and Tax Procedures Acceptability

14. THIRD STAGE:- This stage focuses on micro level considerations which includes Competition Cost of entry Possibility of Profit Reliability of information Cost of Test-Marketing

15. FOURTH STAGE:- The last step of the screening process is an evaluation of potential market which include Target Market Strategies

16. CRITERIA FOR ELIMINATING THE MARKET GOVERNMENT RESTRICTIONS TECHNICAL ACCESSIBILITY COMPETITION LEVEL TARIFF BARRIERS NON TARIFF BARRIERS

17. CRITERIA FOR SELECTING THE MARKET CRITERIA MARKET SIZE SOCIAL AND CULTURAL ENVIRONMENT LEGAL ENVIRONMENT POLITICAL ENVIRONMENT

18. PREFERENCES AVAILABLE TO INDIAN EXPORTERS 1.THE GENERALISED SYSTEM OF PREFERENCES:- Under this system developed countries, which allow duty free export from developing countries. If exporter want to avail benefits of above preferences he should have full knowledge about it and know whether his goods lies under this system or not. 2.EXCHANGE OF PREFERENCES AMONG DEVELOPING COUNTRIES:- 16 developing countries, including India, have been exchanging preferences among themselves on 93 products under 1972 agreements. 3.IMPORT PROMOTION CENTRES IN SOME COUNTRIES:- These centres are those which are opened in developing countries to encourage imports. 4.OTHER ADVANTAGES:-Existence of rupee payment agreement, Trade dominated by persons of Indian origin, Existence of shipping facilities

19. SOURCES OF INFORMATION AVAILABLE TO EXPORTERS Libraries maintained by foreign embassies in India. Reserve Bank of India Bulletin. Export-Import Bank Commercial banks and Export Credit Guarantee Corporation of India.

20. SUGGESTIONS FOR ENCOURAGING INDIA’S EXPORT  Govt should set up control room in the trade ministry.  Govt should set up training institutes.  Govt should arrange for the production of goods that are in demand abroad.  Govt should give priority to the export sector.

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