How can companies

evaluate and select

specific foreign
markets to enter?
1. How Many Markets to Enter
• The Company must decide how many countries to
enter and how fast to expand

• Companies’ entry strategy typically follows one of

two possible approaches :
2. Choosing Between Developed and Developing Market

Developed nations account for about 20 percent of the world’s

population.

The challenge is to serve the other 80 percent, dealing with

issues of affordability, equity, and infrastructural deficiency.

This imbalance is likely to get worse, as more than 90 percent of

future population growth is projected to occur in less developed
countries.
Grameenphone marketed cell phones to 35,000
villages in Bangladesh by hiring village women as
agents who leased phone time to other villages, one
call at a time.
Colgate-Palmolive rolled into
Indian Villages with video vans
that showed the benefits of tooth
brushing.
NOTE..
These marketers capitalized on the potential of developing
markets by changing their conventional marketing practices

Selling in developing areas can’t be “business as usual”.

Economic and cultural differences abound, a marketing

infrastructure may barely exist, and local competition can be
surprisingly stiff.
 o t e n t i a l
a t i n g P
3. Ev a l u
k e t s
Ma r
Many companies prefer to sell to neighboring countries
because they understand them better and can control their
entry costs more effectively
 PROXIMIT
Y
Psychic Proximity determines choices. Given more familiar
language, laws, and culture, many U.S. firms prefer to sell in
Canada, England, and Australia.
Recap :
• Decide number of markets to enter
• Decide between developed and developing markets
• BRIC Countries and marketing
• Evaluate potential market
CREDITS :
www.openaboard.com
www.channelpronetwork.com
wikis.engrade.com
www.slideshare.net
research.utep.edu
News.softpedia.com
www.clickbd.com
Imgsoup.com