International Marketing - Market Selection
After the decision has been made to expand the business internally, a preliminary examination and analysis of the firm is done. The first question to be answered is how to select the market or markets in which to begin the transactions or functions and where should an entrepreneur’s marketing efforts be focused on.
Proper selection of the markets after completely examining the platform where we want to export our product and services is one of the most important aspects towards the achievement of the internationalization process and in some cases one can choose the future viability of the expansion strategy.
This is a basic but major decision because of the impact on resources and effort included, mainly in the case of small and medium-sized enterprises.
For a company to expand its business into every country in the world, it is suggested that the global market should be analyzed properly. The initial selection for analyzing the global market can be conducted with the help of the following criteria −
Environment and market analysis
It is an essential step in understanding the external, local, national or international forces that might affect your small business. This also ensures concentration on the target countries.
Analysis of the competition
It is very important to identify the main competitors and their description. How the competitors economically evolved over the past few years should also be analyzed. The price structure of their products, their networks, market maturity, financial position, plans and expansion strategies and development potential should also be analyzed.
Distribution channels
The entrepreneur should gain complete information regarding the supply chain of the product. From the beginning to the end, consumer should be clear about who the intermediate operators are and the rates they are charging.
Therefore, the existing sales structure in the country should be analyzed in order to select the type of distribution that best adapts to the characteristics of your product or service and the market. The choice of distribution channel will determine the expansion of the company in the market.
Demand analysis
The entrepreneur should perform an examination of the present and potential demand regarding the product and service would have in source markets. Its profile and its expected evolution, among other aspects should also be examined.
All this data should be utilized to assure that the pre-selection process was successful. The market or markets selected are suitable for launching the products and/or services of business.
