Mapping the Market Maze - Choosing Where to Do Business

MAPPING THE MARKET MAZE - CHOOSING WHERE TO DO BUSINESS How's it going, global marketers? Today we'll navigate the complex world of international market selection and market profiling. Strap in as we explore how companies narrow down where to do business from a huge array of options. Grab your coffee and let's go! Too Many Markets, Too Few Resources With over 200 countries out there, the global marketplace is vast and diverse. No company can realistically operate everywhere, especially from the start. You've got limited money, people, and time. And let's be honest - some markets just aren't worth the hassle or risk. So market selection means evaluating many potential countries to identify the most promising targets for your business. This aligns your expansion with core strengths and objectives. You avoid spreading yourself too thin across marginal opportunities. Prioritization prevents paralysis! Mapping the Selection Process Intelligent market selection involves several key steps: First, get clear on your international marketing goals. What are you trying to achieve? Different aims guide different choices. Next, define selection criteria. Parameters like market size, risks, costs, and profitability potential. Align these with your objectives. Conduct initial screening to weed out obviously bad options. Why chase tiny markets if you need scale? Shortlist the most promising markets for in-depth evaluation. Dig deeper into information. Finally, thoroughly score and rank markets on your criteria. Select target(s) based on highest overall attractiveness. Ongoing research provides insights to inform decisions each step of the way. Company Characteristics Shape Choices Your specific situation heavily influences which markets you target. Key firm-related factors include:  Business objectives and strategies - are you seeking quick profits or long-term growth?  Resources and capabilities - large firm versus small startup has different options.  Current product range - markets ideal for one product may not suit another.  International experience and orientation - new global players make different choices than veterans.  Management philosophy and risk preferences - conservative vs. bold thinkers pick differently. Consider your unique goals, strengths, and style as you evaluate markets. What matches well? Sizing Up Country Attractiveness Of course, market traits also matter hugely. You must assess general country factors like:  Economic health, growth, trade policies, and currency stability.  Business regulations and incentives for investment.  Political stability and government supportiveness.  Infrastructure quality and development.  Tax rates, bureaucracy, and procedural complexities.  Cultural/ethnic dynamics and harmony.  Potential as a hub/gateway for regional expansion. Plus evaluate industry-specific factors:  Market size and growth trends.  Competitive forces at play.  Relevant infrastructure.  Supply conditions.  Technical standards and regulations.  Pricing dynamics.  Channel structures. Weigh it all to gauge overall attractiveness! Crunching the Numbers A scoring matrix helps compare and rank market options. List relevant criteria, assign weights based on importance, score each market on every factor, and tally weighted scores. The higher the total, the better the choice. Scoring matrices make it easy to crunch numbers on many complex variables consistently across markets. The math helps guide your strategic thinking. Profiling Prime Prospects Once you've selected target country markets, develop detailed profiles to inform marketing plans. A market profile covers key characteristics, trends, and nuances. It typically includes a general country overview then dives into industry- and productspecific details like:  Production, demand, and trade forecasts.  Customer analysis and segmentation.  Competitor assessment.  Channel structures and practices.  Pricing dynamics.  Relevant regulations and policies.  Cultural factors.  And more! Armed with rich profiles, you can craft strategies tailored to each market's unique needs and dynamics. Segment Spotting Within broader country markets, specific customer segments also warrant attention. Which niches or segments should you prioritize entering? Assess factors like:  Your resources and capabilities - large firm vs. small startup options differ.  Product innovation vs. "me-too" offering - innovative products can attack major segments more directly.  Competitive dynamics in each segment - avoid segments with entrenched rivals initially.  Size and growth prospects of each segment. When resources are limited, look for promising but underserved niches where large players may overlook gaps. Gain footholds in less competitive segments, then expand from there once established. Ok, we've covered a ton of ground on selecting and profiling markets! Let's recap the key points quickly:  Market selection is crucial for focusing resources on best opportunities.  It requires data-driven characteristics. analysis of company situation and market  Objective scoring models help rank and choose most attractive country markets.  In-depth profiling then provides insights to tailor strategies.  Prioritizing market segments smartly when entering new markets is also key.