Two Criteria to Assess a Market's Potential for a New Product

Quite possibly the most important criteria would have to be whether or not there is even a market for said product, research whether or not the country has the necessary populous or desire among the people to made such a product profitable and worth the company expanding or opening or what have you. I think you could also need to determine whether or not the market would have sufficient long-lasting profitability. This can be done using market analysis and can really be helpful in determining the value of the product.

As stated I believe that managers would have to utilize analysis software, research possibly even hire the right people to do this. Whether the foreign market is viable for the new product will much of the time depend upon the product and the findings of your research. There are more steps however I am unsure as of yet which way I want to go with this, maybe after some input from my fellow students I can better elaborate.

To assess a market's potential for a new product two criteria used are as follows:

Market screening: is a method of a series of screenings in a particular market that is based on environmental forces such as basic needs, economic/financial, political/legal, sociocultural and competitiveness. This method allows management to identify the markets that are desirable for the distribution of a particular product or service.

Second Screening - Financial and economic factors: is the process in which financial factors are analyzed such as credit availability, paying habits of customers, and rates of return on similar investments. This allows management to review the economic data of a particular market and depending on their market indicators and market factors they can eliminate some markets that have financial concerns.

In order for managers to determine whether a foreign market is a viable market in which to introduce a new product the managers must review the research carefully especially, the market factors and market...