INTERNATIONAL

MARKET
SEGMENTATION
AND POSITIONING
Unit - II
 SCREENING AND SELECTION OF
MARKETS
Discussion Points:

 What is STP?

 International Market selection process

STEPS IN MARKET SELECTION
(a) International Marketing Objectives
(b) Parameters for Selection
(c) Preliminary Screening
(d) Short Listing of Markets
(e) Evaluation and Selection
(f) Test Marketing
(g) Commercial Production
 INTERNATIONAL MARKETING
OBJECTIVES

 Determine or ascertain the export marketing

objectives of the organization.

 The market selected to serve a particular

international marketing objective need not
suit other objectives.
PARAMETERS FOR SELECTION

 Firm's resources
 International environment
 Market situation
 Nature of competition
 Government policy
 Exchange rate
PRELIMINARY SCREENING
Eliminate the markets which are not potential
based on:

 Size of population
 Per capita income
 Structure of the economy
 Infrastructural factors
 Political conditions
SHORT LISTING OF MARKETS
 Large number of markets will be left even
after the preliminary screening.

 They are further screened with the help of

more information than was used at the
preliminary screening stage.
 EVALUATION AND SELECTION
 Markets are further evaluated with reference
to the cost-benefit analysis and feasibility
study.

 Ranked on the basis of their overall

attractiveness.

 The best one is chosen for the launching of

product considering the company’s resources
and external environment
 TEST MARKETING
 Initially, the market is tested on a smaller
scale by launching the product in a part of
the markets.

 This provides a feedback to the producer

about the market.
 COMMERCIAL PRODUCTION

 Once the product is tested in the selected

market, the company goes ahead with mass
production.

 Minor modifications, if any, are introduced in

the product mix during this stage.
Questions?
INTERNATIONAL MARKET ENTRY
STRATEGIES
Discussion Points:

 Various entry strategies

 Advantages and disadvantages of each

strategy

 Joint ventures in detail