Abstract
The authors address the issue of portfolio management in the context of an international marketing problem. Screening, identification, and selection characterize the three stages in the evaluation of potential foreign markets. The proposed methodology is used for identifying potential foreign markets. This article contributes to the existing literature in four ways: (a) it integrates the past research on international market evaluation into a comprehensive framework, (b) it fills a gap in this area, by offering a flexible, cost efficient methodology that is easy to comprehend and adopt, (c) it simultaneously considers the objectives of the firm, its resource constraints, and expansion strategies while identifying potential foreign markets, and (d) it introduces a multicriteria methodology for solving problems of multiobjective decision models, to the international marketing managers.
Journal Information
Journal of International Marketing is an international, peer-reviewed journal that is dedicated to advancing international marketing practice, research, and theory. Contributions addressing any aspect of international marketing are welcome. The journal presents scholarly and managerially relevant articles on international marketing. Aimed at both international marketing/business scholars and practitioners at senior- and mid-level international marketing positions, the journal's prime objective is to bridge the gap between theory and practice in international marketing.
Publisher Information
Sara Miller McCune founded SAGE Publishing in 1965 to support the dissemination of usable knowledge and educate a global community. SAGE is a leading international provider of innovative, high-quality content publishing more than 900 journals and over 800 new books each year, spanning a wide range of subject areas. A growing selection of library products includes archives, data, case studies and video. SAGE remains majority owned by our founder and after her lifetime will become owned by a charitable trust that secures the company’s continued independence. Principal offices are located in Los Angeles, London, New Delhi, Singapore, Washington DC and Melbourne. www.sagepublishing.com
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Successful new product development starts with identifying good product or service ideas. You will have to carefully evaluate each idea to determine which are worth pursuing and which you should discard.
Idea screening
When screening or selecting your ideas, it might help to assess them against an objective set of criteria. For example, the criteria may include:
- the needs of your market and your customers
- details of your customer behaviours and expectations
- the affordability of your idea, including resources needed for research and development
- the technical feasibility of your idea
- the market potential of your idea
- the profitability of your idea and the return on investment
- relevancy and desirability of your new products or product improvements
- your competition and their existing products
You may also want to consider doing a SWOT analysis for each of your ideas to identify their strengths and weaknesses.
Find detailed guidance on idea selection from Innovate NI and watch their short animation to learn how to complete the selection process correctly.
Successful new product development (NPD) starts with identifying good product ideas and using reliable criteria to decide which ideas to pursue.
You should take the following steps before you allocate funds to new product development.
Idea generation
Write a customer needs list based on the information you gather from the sources identified below. You should try to identify existing weaknesses in your products, gaps in your product range and areas for product improvement.
Brainstorm product issues
Work with your existing team members to brainstorm product issues. Your sales and service staff speak to your customers daily, hearing feedback about your products and the customers' needs. Capture the feedback, product observations and ideas from your team. Make sure you recognise their ideas and promote a shared culture of innovation.
Use your research and development (R&D) processes
Use your business's existing R&D processes. Identify modifications you could make to existing products, or adaptations for new products, consistent with feedback from your market and customers.
Review your quality assurance (QA) processes
Note any issues in your products and identify potential ideas for addressing gaps in quality.
Review your customer complaint records
Identify common weaknesses in your existing product range, and look for areas where improvement is most needed. Learn about managing customer complaints.
Review your research
Review your customer research and market research, and plan further market and customer surveys if you identify research gaps. What are your customers telling you they're looking for? What do they find frustrating or limiting about your products? How do they use your products most?
Talk to your suppliers and other business partners
Talk to manufacturers, retailers and sales reps to capture their knowledge of your products and thoughts for improving them.
Research and understand your competition
Try to understand your competition. Review your competitors' product range and consider how the market is responding to them. Do any of their products seem to be meeting needs that yours aren't?
Study catalogues and product information
Make sure you have a comprehensive understanding of existing products available in your market.
Idea screening
With your list of potential new product ideas, you now need to decide which ideas to pursue and which to discard. Consider your competition, your existing products, their shortcomings, and the needs of your market. Draw on the customer needs list you have developed, and the areas for product improvement you have identified.
Develop a set of criteria to evaluate your ideas against. Your criteria might include:
- most prominently identified customer needs
- product improvements most needed
- the benefits to your target market
- the technical feasibility of the idea
- the level and scope of research and development required
- the profitability of the idea. What is its potential appeal to the market? How would you price it? What are the costs in bringing it to market – overall and per unit?
- where the product fits in the market. Is there a gap? How close is it to competitor products?
- the resources it will require in development
- the marketing potential of the idea
- the fit with your business profile and business objectives.
SWOT analysis
A SWOT analysis can help you to identify the strengths and weaknesses of each idea.
Innovation support
Your innovative approach and your steps to foster innovation in your team will help you realise your new product goals. Find out about innovation advice, grants and support.
Read more about becoming an innovative business.
Also consider...
- Find out about product commercialisation events.