Step 3: Identify / Select
Foreign Markets
•3 Largest markets for U.S. Products are
Canada, Japan & Mexico
–May or may not be best market for your
product
–Then how do you choose?
Market Selection Strategies
•Reactive – choose markets with demonstrated success
–Use past sales
–Past leads
–Competitive sales
–Participation in Trade shows
–Discussions with Industry Experts
•Proactive – choose market based on independent
analysis
–Global Indicators
–Trade Barriers
–Tariff Barriers
–Non tariff Barriers
Advantages/Disadvantages
Reactive Strategy
•Reactive Strategy
–Pros
•Low cost, fast, low-risk, product need established
–Cons
•May lose first mover advantage
•Competitors may mislead you
•Market may not match your product’s life cycle
Market Selection Model (Proactive)
1. Develop indicators to assess market (s)
2. Rate indicators
3. Weight each indicator
4. Compare countries Analyze results