What are some of the pitfalls in assessing market potential and choosing target markets or segments?

Question

What will be an ideal response?

Answer 1

After segmenting a market, the next important step is to assess the attractiveness of the identified segments. This is an important part when assessing emerging country markets as potential targets. Several potential pitfalls in assessment should be taken into account. In general, there is a tendency to overstate the size and short-term attractiveness of individual country markets. This can happen if estimates are based primarily on demographic data such as income and population. For example, the population figures in India and China can create a bloated image. Short-term profitability may be hard due to prevailing conditions in these emerging markets. Persistence and long-term outlook often pays off in new markets. A second pitfall may originate from pressures placed on marketers by shareholders or competitors. The possibility of missing out on entering a condition is in itself a stress-causing factor. Marketers may find themselves overwhelmed at times by such pressures and the urge to react quickly. Another factor may be the decisions made based on convenience or opinion of persons/advisors not residing in the home country. The right representatives or distributors should be selected in order to be successful.