Welcome to class of assessing and analyzing markets

Welcome to class of assessing and analyzing markets by Dr. Satyendra Singh Professor, Marketing and International Business University of Winnipeg Canada s. singh@uwinnipeg. ca http: //abem. uwinnipeg. ca www. abem. ca/conference

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

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 managementto 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 § Economic data used to measure relative market strengths of countries or geographic areas § Possibilities: § Market size § Market growth rate § E-commerce readiness

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

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 promotional programs of § The quality levels of their product lines their

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

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