Market Potential Index (MPI) - 2014
May 1, 2014
About the Index
Global marketing has become more and more important over the years with the increasing trend of internationalization. Faced with too many choices, marketers have the challenge of determining which international markets to enter and the appropriate marketing strategies for those countries.
The purpose of this study is to rank, with a U.S. focus, the market potential of 87 identified countries and to provide guidance to the U.S. companies that plan to expand their markets internationally. While the U.S. is not included in the rankings, the insights provided by the index are still applicable to companies located in other international markets.
This indexing study is conducted by the Michigan State University-International Business Center to help companies compare prospect markets on several dimensions. Eight dimensions are chosen to represent the market potential of a country on a scale of 1 to 100. The dimensions are measured using various indicators, and are weighted in determining their contribution to the overall Market Potential Index (MPI).
Since 1996, the MPI has been calculated for 26 countries identified as "Emerging Markets" by The Economist magazine. However, in order to cover a wider range of markets, a decision has been made to increase the number of countries to 87.
Please see the bottom of the page, or click the following link for the changes in effect as of 2014. Changes for 2014
Dimensions and Measures of Market Potential for 2014
|Market Growth Rate||12.5/50||
|Market Consumption Capacity||12.5/100||
Data used are those available for most recent year. All sources were accessed in April 2013.
Changes as of 2014
As of 2014, the MPI is going to be calculated for those 87 countries which have been selected according to the following criteria:
- Countries that are in the top 100 performers in terms of Total GDP
- Countries with a population of one million or more.
- Countries for which reliable data is available for the majority of the indicators used.
Also, the weighting of the dimensions used to calculate the index has been changed as follows:
|Dimension||Until 2014||After 2014|
|Market Growth Rate||12.00||12.50|
|Market Consumption Capacity||10.00||12.50|
For More Information:
For the indexing methodology, please refer to:
"Measuring The Potential of Emerging Markets: An Indexing Approach" - S.Tamer
Business Horizons, January-February 1997, Vol. 40 Number 1, 87-91: doi .
Complementary Approaches to Preliminary Foreign Market Opportunity Assessment: Country
Clustering and Country Ranking
" - S. Tamer Cavusgil, Tunga Kiyak, and Sengun
Industrial Marketing Management, October 2004, Volume 33, Issue 7, 607-617: doi .
For additional inquiries, please contact MSU-IBC.