(1) Market demand (commercially determined) Cost or availability of internal distribution (degree of market dispersion, market organization, credit facilities, insurance, transport costs, special storage and handling facilities); advertising and promotion facilities and effectiveness Key question: Can the firm get its product or service to the customer at reasonable cost relative to other products and services for which there is also effective demand?
(2) Specific demand: sales potential (competitively determined) Appropriateness of the firm's and competitors' product or service in terms of quality, design, sizing, packaging, and pricing; credit terms; currency accepted (source of product); delivery time; service and warranties offered. Key questions: Can the firm meet the terms offered by competitors in the supply of the same or similar products and services? What is its likely market share?
SOURCE: Adapted from R. Robinson, Internationalization of Business: An Introduction (Chicago: The Dryden Press, 1984), 37.
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