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GM-CT-C8 the International market selection (IMS) process (Market…
GM-CT-C8 the International market selection (IMS) process
criteria of SMEs vs LSEs
SMEs
Low psychic distance
Low culture distance
Low geographic distance
LSEs
where to introduce new product
multiple feedback loops
model for international market selection
international market segmentation
The firm
Degree of internationalization and oversea experience
Size/amount of resource
type of industry/nature of the business
Internationalization goals
existing networks of relationships
the environment
International industry structure
Degree of internationalization of the market
Host country: market potential, competition, psychic/geographic distance. market similarity
International marketing segmentation
Step 1. selection of the relevant segmentation criteria -- measurability, accessibility, substantiality/profitability, actionability; PEST
Step 2: development of appropriate segments
General characteristics
: geographic location, language, political factors, demography, economy, industrial structure, technology, social organization, religion, education
specific characteristics
: cultural characteristics, lifestyles, personality, attitude/tastes/predisposition
Step 3: screening of segments to narrow down the list of markets/countries choice of target M/C
Preliminary screening --shift-share approach
fine-grained screening -- market attractiveness/competitive strength matrix; market size
Step 4: micro segmentation: develop segments in each qualified country or across countries
segment by using variables: demographic/economic factors, lifestyles, consumer motivations, geography, buyer behavior, psychographics
Market expansion strategics
Incremental (waterfall approach) vs simultaneous (shower approach) entry
waterfall approach
: a company may enter international market on an incremental or experimental basis, entering a single key market in order to build up experience in international operations, then to other.
Shower approach
: enter a number of markets simultaneously to leverage its core competence and resources rapidly across a broader market.
International product life cycle
Concentration vs Diversification
Concentration
: entering countries that are highly similar in terms if market characteristics and infrastructure to the domestic market. focus on a group of proximate countries
Diversification
: diversify risk in different environmental counties. An economic recession in one country could be counterbalanced by growth in another market.
market expansion matrix
few customer groups/segment in few countries
many customer groups/segment in few countries
few customer groups/segment in many countries
many customer groups/segment in many countries
the global product/market portfolio
product categories by regions
product categories by countries
regions by brands
countries by countries