International Market Selection Process:
Market selection plays a crucial role at the international level. Market selection is based on a thorough evaluation of the different markets with reference to certain well-defined criteria, given the company resources and objectives.
The following are the steps involved in the market selection process:
(a) International Marketing Objectives: The first step in market selection process is to determine or ascertain the export marketing objectives of the organization. The market selected to serve a particular international marketing objective need not necessarily be the best suited to achieve some other international marketing objective.
(b) Parameters for Selection: For proper evaluation and selection of the markets, it is essential to clearly lay down the parameters and criteria for evaluation. The different parameters for the selection of a market are firm's resources, international environment, market situation, nature of competition, government policy, etc.
(c) Preliminary Screening: The objective of the preliminary screening is to eliminate the markets which are not potential. The parameters used for the preliminary screening may vary from product to product. However, parameters like the size of population, per capita income, structure of the economy, infrastructural factors and political conditions are commonly used.
(d) Short Listing of Markets: Preliminary screening enables to eliminate markets which obviously do not meet consideration at the very outset. There would be a large number of markets left even after the preliminary screening. They are further screened with the help of more information than was used at the preliminary screening stage
(e) Evaluation and Selection: The short listed markets are further evaluated with reference to the cost-benefit analysis and feasibility study. They are then, ranked on the basis of their overall attractiveness. Of the markets, the best one is chosen for the launching of product considering the company’s resources and external environment
(f) 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. At the same time, it helps the producer in assessing overall response of the consumers from a specific market, after tested success, the production can be undertaken on a mass scale.
(g) 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.
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