Two criteria used to asses a market's potential for a new product. Based on these criteria, what are the steps the managers of a global company will need to take in order to decide whether a foreign market is a viable market in which to introduce a new product?
The first criteria used to asses market potential of a product is market indicators. This is economic information on the market within a specific area of interest. These indicators measure various factors such as market size, potential growth and market readiness. Other criteria used to determine market potential is trend analysis. Based on previous growth rates a company can forecast future growth. The trend analysis observes and notes patterns used to help make future market decisions.
The first initial step is to assess the basic need potential of a product or service in the market, this is called market screening. In international business there is country screening and segment screening. In the first part a company will analyze a country to determine if the market is suitable. The next step is assessing groups or consumers in that country. An organization will only invest in providing a product or service if they think there is a demand and of course the ability to profit.
How effective is it to use trend analysis to show whether a product will do well in a market?© BrainMass Inc. brainmass.com March 4, 2021, 8:23 pm ad1c9bdddf
It is quite useful to use trend analysis to show whether a product will do well in a market in the sense that historical data presents a good overview of the demand sitution of the product. Although it cannot be used a sole indicator for prospects of a product, it can definately be used as one of the criterias to assess the relative attractiveness of the market potential of a product.
Trend analysis complements the market indicators such as market size, ...
How effective is it to use trend analysis to show whether a product will do well in a market?