Market Potential Index (MPI) for Emerging Markets - 2003 >> globalEDGE: Your source for Global Business Knowledge

September 29, 2003

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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:

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

Dimensions and Measures of Market Potential for 2003

Dimension	Weight	Measures Used
Market Size	10/50	Urban population (million) - 2002¹ Electricity consumption (billion kwh) - 2001²
Market Growth Rate	6/50	Average annual growth rate of commercial energy use (%) - between years 1996-2000¹ Real GDP growth rate (%) - 2001¹
Market Intensity	7/50	GNI per capita estimates using PPP (US Dollars) - 2001¹ Private consumption as a percentage of GDP (%) - 2001/2002¹
Market Consumption Capacity	5/50	Percentage share of middle-class in consumption/income (latest year available)¹
Commercial Infrastructure	7/50	Telephone mainlines (per 100 habitants) - 2002³ Cellular mobile subscribers (per 100 habitants) - 2002³ Number of PC's (per 100 habitants) - 2002³ Paved road density (km per million people) - 2000¹ Internet hosts (per million people) - 2002³ Population per retail outlet - (latest year available)⁴ Television sets (per 1000 persons) - 2001¹
Economic Freedom	5/50	Economic Freedom Index - 2003⁵ Political Freedom Index - 2003⁶
Market Receptivity	6/50	Per capita imports from US (US Dollars) - 2002⁷ Trade as a percentage of GDP (%) - 2001¹
Country Risk	4/50	Country risk rating - 2003⁸
Data used are those available for most recent year. ¹ Source: World Bank, World Development Indicators - 2002 ² Source: U.S. Energy Information Administration, International Energy Annual - 2001 ³ Source: International Telecommunication Union, ICT Indicators - 2002 ⁴ Source: Euromonitor, European Marketing Data and Statistics - 2003 ⁴ Source: Euromonitor, Asian Marketing Data and Statistics - 2002 ⁵ Source: Heritage Foundation, The Index of Economic Freedom - 2003 ⁶ Source: Freedom House, Survey of Freedom in the World - 2003 ⁷ Source: U.S. Census Bureau Foreign Trade Division, Country Data - 2002 ⁸ Source: Euromoney, Country Risk Survey - 2003

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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