In nowadays world, more and more firms are beginning to be more internationalized. Marketing helps companies to find the right market, the right target, the right price for a product. It also provides information to companies to avoid market errors, and gives directions to enter in a new market. That’s why market identification, screening and selection is acritically point for all companies. Internationalization involves many countries. The problem for firms is to catch the market differences between industrialised and less-developed country, which could influence the development of marketing programmes.
In the following study, we will try first to evaluate the effectiveness of planned approaches to market identification, screening and selection; andsecondly, we will try to know what are the market differences between industrialised countries and less-developed countries; which can affect the development of marketing programmes.
The international market selection is considered as different in SMEs and LSEs. Concerning the SMEs the normal international market selection is based on a market stimulus provided by a changing market agent mostlyrepresented as institutions changes. Those changes can involve a foreign attraction. But in case of this theory is not a base of internationalisation, Johanson and Vahlne (1977) have established criteria of foreign entrance on a market. Concerning SMEs, the authors introduce the idea of the “psychic distance”. They define the “psychic distance” as languages, culture, political and level ofindustrialised development, and argue that this psychic distance has to stay at a low level to favour integration of international firms in new countries. Johanson and Vahlne also explain the importance of a low geographic distance. But on a critical side, a lot of theoreticians have minimized the impact of a geographic and cultural impact on market selection. For example Robertson and Wood (2001) havefind that there were no impact of culture or geographic distance at all in the international market selection process. The example we can use to justify this last idea is that there are no much distances (cultural and geographical) between European countries. The cultures of European countries have some common point and they are geographically close to each other; that’s certainly why we can observea regionalisation of economy. The market selection process does not suffer the consequence of psychic and geographic distance in Europe. The cross cultural management also has his part in the internationalisation of a company. In this way of thinking, we can easily demonstrate the importance of the Hofstede’s cultural dimensions. This theory can be considered as useful when the firms need to knowwhich are the cultural distance (psychic distance) between the home country and the host one.
Next the previous theories the Uppsala school’s work, the international market selection is based on a model. This model is divided in tow different parts: the first one is the Firm, and the second one is the environment of the market. The first group (“the firm group”) includes the degree ofinternationalisation and overseas experience, the amount of resources, the nature of the business and the goals of an internationalisation. The environment group includes the international industry structure, the degree of internationalisation of the market and the host country facts (market potential, competition, psychic/geographic distance…). Next to the analysis of the tow first groups, we are faced tothe international market segmentation, which implies the international market selection.
Next to the previous ideas, we are now focusing on international market identification. This market identification can be considered as the market segmentation. This segmentation is supposed to be divided in 4 steps. The first one is the selection of relevant segmentation criteria, and then the second step...