Slide 5.

Chapter 5
Market selection: definition and
strategies

Albaum et al., International Marketing and Export Management, 8e © Gerald Albaum, Edwin Duerr, Alexander Josiassen 2017
Slide 5.2

Market selection

Market definition and segmentation

Export market segmentation

Albaum et al., International Marketing and Export Management, 8e © Gerald Albaum, Edwin Duerr, Alexander Josiassen 2017
Slide 5.3

Bases for evaluation of the decision to segment

Measurability: The degree to which segments can be identified and

to which the size and purchasing power of the segments can be
measured.

Accessibility: The degree to which the resulting segments can be

effectively reached and served.

Profitability: The degree to which the resulting segments are large

and/or profitable enough to be worth considering for separate
marketing attention.

Actionability: The degree to which effective programs can be

formulated for attracting and serving the segments.

Albaum et al., International Marketing and Export Management, 8e © Gerald Albaum, Edwin Duerr, Alexander Josiassen 2017
Slide 5.4

Table 5.2 Bases for export market segmentation

Albaum et al., International Marketing and Export Management, 8e © Gerald Albaum, Edwin Duerr, Alexander Josiassen 2017
Slide 5.5

Figure 5.3 Export market selection: a market screening procedure

Albaum et al., International Marketing and Export Management, 8e © Gerald Albaum, Edwin Duerr, Alexander Josiassen 2017
Slide 5.6

• Physical geography of the country (e.g., area, topography, and

climate)
• Population characteristics and purchasing power (e.g., total
population, gender and age distributions, income, and wealth)
• Cultural factors (e.g., religion, languages, habits, customs,
preferences, values, and attitudes)
• Resources

• Industries (e.g., major ones, location, and importance)

• Foreign trade patterns and partners (exports, imports, and patterns

of development)
• Competition (local and foreign)

• Basic infrastructure including transportation and communication

facilities
Exhibit 5.5 Detailed foreign market analysis

Albaum et al., International Marketing and Export Management, 8e © Gerald Albaum, Edwin Duerr, Alexander Josiassen 2017
Slide 5.7

• Financial matters and credit conditions (currency, exchange rates,

availability of capital, and interest rates)

• Marketing channels and business customs

• Government and its restrictions and regulations on trade

• Legal factors (e.g., copyright, trademark and patent protection, and

contract negotiations)

Exhibit 5.5 Detailed foreign market analysis (Continued)

Albaum et al., International Marketing and Export Management, 8e © Gerald Albaum, Edwin Duerr, Alexander Josiassen 2017
Slide 5.8

Figure 5.4 Sales response functions: low share versus high market share strategies

Albaum et al., International Marketing and Export Management, 8e © Gerald Albaum, Edwin Duerr, Alexander Josiassen 2017
Slide 5.9

Table 5.6 Dimensions of country attractiveness and competitive strength

Albaum et al., International Marketing and Export Management, 8e © Gerald Albaum, Edwin Duerr, Alexander Josiassen 2017