zMarket Selection

Stage screening approach

Involves analysis of each country on the basis of

Domestic issue
Macro environmental issues
Competitive environments

Response to marketing
activities
Firm objectives

Progressively eliminate markets stage

by stage

Small number of markets selected at

last stage

 Stage 1
1) Which international markets are of no interest to the firm regardless of their apparent
potential?
- Could be perceived very foreign or odd by senior management

2) Which remaining international markets should be excluded because of regulations

initiated by or involving support of the home government?
- Restrictions are constantly changing and need to be tracked
Stage 2
Questions relating to macro-environmental factors in international markets & initial
assessment of prospects
1) Which remaining overseas markets have the least attractive political and social
environments?

2) Which remaining overseas market are least attractive because of their nature &
potential size?

There is tension between the current & recent political instability and its perceived
attractiveness of a country
Stage 3

1) Which remaining markets have substantial entry barriers to protect domestic industry
or prohibitive trade regulations with other countries?
2) Which remaining markets should be avoided because competitors (domestic & foreign)
are already well entrenched in them?
Challenger competitive strategy of a firm tend to face competition rather than avoid it

Stage 4
Degree to which markets are unlikely to respond to, or prohibit, certain market activities:
1) Which markets are not large enough?
2) Which markets prohibit the form of presence?
3) Unattractive because of costs and problems of reaching them from home market?
Stage 5
Internal trade-off analysis (matching firms resources & objectives to foreign market
opportunities and requirements)

1) Extent which resources need to be committed and changes to existing resources

2) Which markets fail to meet companys objectives/ match its competitive advantage?
Apparently very attractive market may not be a good targets for its large size & resource
needs