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Market Potential Index (MPI) for Emerging Markets - 1998

October 17, 1997

You are currently viewing an old version of the Market Potential Index (MPI).

Global marketing is becoming more and more important along the years with the increasing trend in internationalization. Having too many choices, marketers face the challenge of determining which international markets to enter and the appropriate marketing strategies for those countries.

The focus of this study is ranking the market potential of countries identified as "Emerging Markets" by The Economist magazine. These emerging economies comprise more than half of the world's population, account for a large share of world output, and have very high growth rates; all indicators of enormous market potential.

This indexing study is conducted by MSU-IBC to help companies compare the Emerging Markets with each other on several dimensions. Eight dimensions are chosen to represent the market potential of a country over a scale of 1 to 100. Each dimension is measured using various indicators, and are weighted in determining their contribution to the Overall Market Potential Index.

Notes:
  1. The most recent version of the Market Potential Index can always be found on globalEDGE at: /mpi/
  2. The report for previous years can be reached through the Market Potential Index (MPI) Archive table on the right column.
  3. To sort by any dimension, click on the name of the dimension.

Dimensions and Measures of Market Potential for 1998

Dimension Weight Measures Used
Market Size 10/50
  • Urban population (thousands) - 19951
  • Electricity production (million kwh) - 19942
Market Growth Rate 6/50
  • Average annual growth rate of commercial energy use (%) - between years 1980-19952
  • GDP real growth rate (%) - 19953
Market Intensity 7/50
  • GNP per capita estimates using PPP (US Dollars) - 19952
  • Private consumption as a percentage of GDP (%) - 19952
Market Consumption Capacity 5/50
  • Percentage share of middle-class in consumption/income2
Commercial Infrastructure 7/50
  • Telephone mainlines (per 1000 persons) - 19922
  • Paved road density (km per million people) - 19953
  • Internet hosts (per million people) - 19974
  • Population per retail outlet - (latest year available)5
  • Television sets (per 1000 persons)2
Economic Freedom 5/50
  • Economic Freedom Index - 19976
  • Survey of political freedom - 19957
Market Receptivity 6/50
  • Per capita imports from US (US Dollars) - 19959
  • Trade as a percentage of GDP (%) - 19952
Country Risk 4/50
  • Country risk rating - 19978
Data used are those available for most recent year.
  • 1 Source: World Resources Institute 96-97
  • 2 Source: World Bank, World Development Indicators - 1997
  • 3 Source: CIA, World Factbook - 1996
  • 4 Source: Network Wizards (http://www.nw.com/)
  • 5 Source: Euromonitor, European Marketing Data and Statistics- 1997
  • 5 Euromonitor, International Marketing Data and Statistics - 1996
  • 6 Source: Johnson, B.T. and T. Sheehy, The Index of Economic Freedom, The Heritage Foundation - 1997
  • 7 Source: Freedom House (http://www.freedomhouse.org/)
  • 8 Source: Euromoney - March 1997
  • 9 Source: IMF, Direction of Trade Statistics Yearbook - 1996 and CIA, The World Fact Book

For More Information:

For the indexing methodology, please refer to:

"Measuring The Potential of Emerging Markets: An Indexing Approach" - S.Tamer Cavusgil,
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 Yeniyurt
Industrial Marketing Management, October 2004, Volume 33, Issue 7, 607-617: doi .

For additional inquiries, please contact MSU-IBC.

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