attractiveness of a foreign market, but it cannot be the primary catalyst for entering that market. Nor can the usual data concerning GDP, population, and regulatory requirements be overemphasized; these are important to know but not necessarily sufficient to provide a go-ahead into a new market. Rather than relying on standard data such as these, it is wiser to look further and examine details that are more closely aligned with the particular market one is targeting. Marketing model drivers for the market need to be identified. For example, while some markets are brand sensitive, others are dependent on sophisticated distribution networks for success. Therefore, an analysis of the type of market is critical for matching a corporation to a specific foreign market opportunity (ôAssessing Market Potential: Estimating Market Size and Timing of Entryö).
Enabling conditionsùthe conditions necessary for the marketing model to operate effectivelyùare another factor that needs to be considered in assessing the market. To assess first-mover advantage, the cost of entry must be weighed against the cost of waiting. Traditionally, costs have been evaluated on a top-down basis, where the analysis starts at the country level and filters down to the product level. However, bottom-up market analysis, where the analysis starts with the product-market data and then proceeds up into market feasibility forecastingùis proving more reliable (ôAssessing Market Potential: Estimating Market Size and Timing of Entryö).
Good market research for assessing international markets ensures a good decision at the end, and that research depends on several criteria. Thorough research even in the face of an apparent lack of dataùwhich is often the case with emerging marketsùmust be undertaken. The type of data gathered must be tailored to the product-market characteristics. The use of multiple indicators is critical, as relying on one or two i...