CHP 12 Flashcards
What is Environmental scanning?
firms scans world for changes in environmental forces that might affect it
How do firms display environmental scanning?
staying on top of current event and how they affect individual/company/economy
What is used for spreading news or supporting particular causes?
social media
What do firms us to asses market screening?
Firms use environmental forces to identify desirable markets
What is Market screening?
How to select a location for investment
What are the 2 different types of firms assisted by market screening?
- Domestic firms seeking overseas sales opportunities
2. MNCs not wanting to miss new foreign market potential
T/F is Market screening a subtype of Environmental scanning?
True
What are the 5 processes for selection of foreign Markets?
- Basic needs potential
- Financial and economic forces
- Political and legal forces
- Sociocultural forces
- Competitive forces
What is looked for in the initial screening?
Asses if there is a basic needs potential for its goods/services
What is easier to market for the basic needs potential?
producers of specialized industrial materials/equipment
ex air conditioners
What is more difficult to market for basic needs potential?
Specialized consumer products
ex: chocolate, video games
What is Financial and economical forces?
Reduces potential markets through analysis of financial and economical forces
What are some factors to look into for financial and economical forces?
inflation trends, currency exchange rate, interest rates, credit availability, paying habits of customers, rates of return on similar invesments
What are some Market indicators?
economic data used to measure relative market strengths of countries/ geographical areas
What are the 3 market indicator tools used?
- Market Size
- Market growth rate
- E-commerce readiness