Welcome to class of
assessing and analyzing markets
by
Dr. Satyendra Singh
University of Winnipeg
Canada
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
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
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




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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