Where in the World (1,824 words)
Richard Miller is managing partner of Market Response International, an international research and consulting firm, and the author of "Multinational Direct Marketing: The Methods & The Markets" (McGraw-Hill). He also is co-editor of "The World Guide to Direct Mail Marketing," published by the UPU and executive director of the International Mailer's Action Group, a task force of large cross-border mailers and vendors, www.the-imag.org. He can be reached at firstname.lastname@example.org.
Reduce your quest to the essential factors that
indicate whether a market truly shows potential
Test the Formula
To give this research formula relevance, let's put ourselves in the place of the director of market development for a medium-sized catalog company selling sports equipment. We need a market with discretionary income and in the 20-to-50 age bracket. After initial tests, we need to see the potential for a penetration of at least 1 million catalogs annually to achieve profitability. Our preliminary research has identified Chile as a possibility. Let's take a closer look, using the indicators we discussed earlier.
A Look at Chile
A. Population: About 15 million—approximately the size of Florida's population. That's a fairly good size. Score- 4
B. Political Stability: There have been big improvements in the last decade. Chile has a forward-thinking president and democratic institutions.
C. GDP Per Capita: $12,500 (1999), which indicates the discretionary income we need for our catalog. Score- 5
D. Distribution of Wealth: About 46 percent of the income goes to the top 10 percent of the population, with 1.5 percent going to the lowest 10 percent. That tilts quite a bit to the privileged class, but it may work for our catalog. Score- 3
E. Age Distribution: About 65 percent of the country's population is in the 15-to-64 age bracket. Only 7 percent are older than 65. This is an example of where to use your judgment, depending on your products. It's great for the prime middle years, but you may want to think twice about the senior citizen market. However, it fits our catalog profile. Score- 4