This is unit 2, which is also chapter 12. I have made notes for semester test one and I made very visual summaries of the notes for semester test 2. Although they look very summarised, I have used past papers, lecture slides, lecture notes, the textbook and online notes to create these aesthetic no...
Market Screening Approaches and Techniques
Environmental scanning: a procedure in which the firm scans the world for
changes in the environmental forces that might affect it.
Market screening: a modified version of environmental scanning in which the firm
identifies desirable markets by eliminating the less desirable ones.
Country Screening Segment Screening
A screening that uses market segments, a
within-country analysis of groups of
A screening that uses countries as the consumers, as the basis for market
basis for market selection. selection (age, income, and
psychographics can be means of
identifying market segments).
When we identify and assess segments, they must be:
Definable We must be able to identify and measure the segment
Segments should be large enough to be worth the effort needed to
Large
market to it and also have the potential for growth in the future
We must be able to reach our target segment for promotional and
Accessible
distribution purposes
We must be able to implement the 4Ps of marketing: product,
Actionable
promotion, place, and price
Capturable We must be able to compete in the market segment
Will determine if there is a need for the good or service. The basic need potential for
Basic Needs goods is influenced by various physical forces, such as climate, topography, and
Potential natural resources. The basic need potential for some goods is easy to access, while
others are more difficult.
Reduces the list of potential markets based on financial and economic forces.
Financial forces Inflation, currency exchange rates, interest rates, etc
Rates of return on similar investments, paying habits of
Economic customers, credit availability, GDP, GDP growth rate, GNI per
Forces capita, income distribution, private consumption, unit labour costs,
etc
Socio-Economic Population, population growth, population density, population and
Financial Forces age distribution, etc
and Financial and economic measures:
Economic
Forces Market Economic data used to measure relative market strength of
indicators countries and various geographic areas
Market factors Economic data correlate highly with market demand for a product
Statistical technique to estimate future values = successive
Trend analysis observations of variable at regular time intervals that suggest
patterns
A statistical technique that divides objects (market areas,
Cluster analysis individuals, customers, and other variables) into groups based on
similarity
Helps identify political and legal forces that can eliminate a market from further
consideration or make it more attractive.
Political and Barriers to entry, government controls, stability of government
Legal Political Forces
policies, political stability, limits on foreign ownership, etc
Forces
Laws governing international contracts, national laws, intellectual
Legal Forces
property rights protection, etc
Analyses local cultures and their “fit” with international company’s products and
Sociocultura service. It will reduce the remaining candidates to a list of countries for which an
l Forces industry demand appears to exist. It’s difficult because culture is subjective and
interpretive. Data is also difficult to assemble, particularly from a distance.
Help provide information on which market has the best prospects for the firm’s
products, based on the competitive forces. Number, size, and financial strength of
Competitive
the competitors, market shares, marketing strategies, effectiveness of promotional
Forces programs, quality levels of product lines, source of products, pricing policies, levels
of after-sales service, distribution channels, coverage of the market, etc.
An executive/ team should visit those countries that still appear to be good
Final Selection of prospects, having reviewed the screening data. A trip report would include
New Markets- first-hand observations on the market, including competitive activity,
Personal Visits appraisal of the suitability of the current marketing mix, and availability of
support services.
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