Criteria for Market Consideration - Assignment Example

Criteria for Market Consideration (Insert Criteria for Market Consideration Businesses that are aiming to expand internationally have to research countries that might be potential markets for their products or services. The aim of the business during this research is to evaluate the credibility of as many potential markets as possible and drop the countries which may not meet the requirements of the business for its market. Basically what the business is looking for is a market that will be conducive to running its activities and at the same time provide a market for its products or services.

Cateora, Gilly, & Graham (2011) explore some of the reasons that can make a country not to be further considered as a potential market via a planning process. The planning process is divided into four phases but this paper will explore how and why a country can be dropped in the first two phases. The objective of the first phase is to match the needs of the company and its home country to those of the host country. The compatibility of the company’s character and its home country to those of the host country is the basis on which countries are either disqualified or qualified as markets.

The first thing that a business will look at when evaluating a host country is the economy of that particular country. Every business wants to be associated with and partner with a country that records substantial economic growth or has a stable economy. For example, Greece can be viewed as a potential market for commodities like electronics. However, the fact that Greece’s economy is experiencing major debt problems would disqualify it from being a potential market.

The second most important criterion that is used to evaluate a potential market is the political stability and the legal policies of the host nation. Political stability is very key if a potential market is to be considered as an actual market. This is because it ensures the safety of the business and its personnel and in most cases, it also means that the legal policies are favorable for running a business. The legal policies may include taxation brackets and the political stand of the country on trade regulating policies.

Competition is the third criterion as highlighted by Cateora, Gilly, & Graham (2011). No business wants to go into a market where it will face stiff competition and stand a risk of extinction. If the competition in a particular country is extremely high, then it is most likely to be dropped as a potential market because in most cases, competition will make a business focus more on securing a substantial percentage of the market as opposed to making profits.

The 21st century has been colored with tremendous technological innovations that are key in businesses. It’s, therefore, necessary for a potential market to have high levels of technology if it is to entice investors and manufacturers into its market. This is because technology simplifies the work needed to be done in the manufacturing process. The culture, structure of distribution, and geography are also reasons why a country may be disqualified as a potential market in the first phase.

Islamic countries would be disqualified as potential markets for pork products because their culture and faith forbid them from eating pork products. The second phase of the process aims at defining the market segments and adapting the marketing mix accordingly. In this stage, a business will look at the compatibility of the potential market with regards to the four P’s of marketing; that is, product, price, promotion, and place.

At this stage, if a potential market is not receptive to the package that a business is offering, then it would be dropped from consideration. A business will also consider the purchasing power of a country to see if it matches its price range or not. In terms of promotion, the business will evaluate what kind of product promotion strategy would be most favorable for a particular market segment. If the strategy that a business employs is not efficient in a particular country or segment, then it would be dropped off as a potential market.