Running head: ASSIGNMENT 4
Assignment 4
NMSU: MKTG 317
July 14, 2019
ASSIGNMENT 4
2
a. Note the dimensions of market potential, eight in all. For example, market size is
measured by the urban population and electricity consumption – it is given a weight
of .20 or 20% [10/50 = .20]. What does the criteria for Market Intensity measure?
What does it indicate for marketing managers, if anything?
Over the years, international marketing has become more popular for businesses. Before
engaging in international marketing, marketers for the business need to determine whether the
market has potential for high profitability. They need to learn which markets to enter and what
are the marketing strategies for the country of choice. To aid companies with these decisions,
The Market Potential Index (MPI) was created. The MPI is “an indexing study conducted
annually by MSU-CIBER, helps companies rank emerging markets on eight dimensions. It then
combines the dimensions to create an overall market potential index” (globalEDGE, MSU-
CIBER: Market Potential Index (MPI), 2019). The eight dimensions are, Market Size, Market
Intensity, Market Growth Rate, Market Consumption Capacity, Commercial Infrastructure,
Market Receptivity, Economic Freedom, and Country Risk. It gives each dimension of the
Market Potential Index a weighted average. The combined total should always add up to 1 or
100%. Market Size is measured by electricity consumption and urban population. At its given
weight of 25% (25/100), and market Size is the highest ranked and market intensity follows as
