What is a fundamental reason for analyzing basic needs potential in market screening?

Analyzing basic needs potential in market screening primarily serves to ensure successful market entry. Understanding the fundamental needs of consumers in a target market is crucial for determining whether there is a viable opportunity for a product or service. This analysis helps businesses assess whether they can meet those needs effectively and differentiate themselves in the market.

By identifying the basic requirements and preferences of potential customers, companies can tailor their offerings to align with local demand, which significantly increases the likelihood of acceptance and success in the new market. This strategic approach minimizes risks associated with entry, such as misalignment with local consumer behavior or unmet expectations.

While maximizing profit margins and identifying competitors are important aspects of market strategy, they are more relevant after confirming that the market has a promising potential to meet business goals. Evaluating customer feedback can also provide insights but typically occurs after entry into the market rather than during the initial screening phase. Consequently, focusing on the basic needs potential lays the groundwork for a successful entry strategy in international business.