A set of slides that can be used alongside the Facilitator Guide to train practitioners in how to conduct Market System Selection. The Facilitator Guide can be found at http://www.slideshare.net/pmsd-map/step1training-guide

1. TRAINING MATERIALS
Module 1
Market System Selection
Purpose: Participants are aware of the importance
of rigorous market system (subsector) selection, and
understand different selection criteria and how to
apply the selection process
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2. Why is it important?
Why is the process of selecting a market system to
work in so important?
If the right market is chosen, the PMSD process has the potential to:
Include a large number of poor and marginalised producers in the
market
Sustain market transformations beyond the life of the project
Be scaled up or replicated elsewhere
If the wrong market is chosen, the PMSD process has the potential to:
Waste time and resources
Encourage poor producers to invest in a product that has no market
Cause conflict or unsustainable use of natural resources
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3. Selecting markets – key steps
 Brainstorm list of market systems
 Select key criteria
 Collect relevant information
 Narrow down the list /make final selection
 Deeper analysis of shortlist, leading to final
selection (optional)
 Conflict screening of shortlist (optional)
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4. Market System Selection Criteria
CATEGORY EXAMPLE CRITERIA
• Market growth
Economic
• Unmet market demand
opportunity
• Small producers’ competitiveness
• Potential increase in poor people’s incomes
Poverty • Number of beneficiaries (current and potential)
impacts • Participation of socially excluded (e.g. women
and youth)
• Environment (e.g. impact on natural resource
Other – management)
context/project • Synergy with government/donor priorities
specific • Conflict vulnerability
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5. Example market selection grid
Criteria (with weighting) Dairy NTFPs Vegetables
Unmet Market demand (x2) 5 (10) 4 (8) 3 (6)
Number of poor producers (x2) 5 (10) 3 (6) 4 (8)
SSP competitiveness 4 3 3
Gender 4 4 4
Climate change 2 4 3
Total weighted score 30 25 24
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6. Types of information
CRITERIA EXAMPLE INDICATORS
Growth • Current trends in consumption
Potential • Investment of large firms
Unmet market • Number and type of buyers (Size of markets)
demand and • Buyers have ready market for products but are
market linkage unable to meet demand
Potential to • Potential for increased revenues at rural areas
increase income • Income distribution and opportunity for
and employment employment
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7. Sources of information
 Secondary sources - donor reports etc.
 econ.worldbank.org
 www.fao.org
 Interviews with key informants
 Government reports
 Trade association reports
 www.intracen.org (for import/export data)
 Research institutes
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8. Blank market selection grid
MS 1 MS2 MS3 MS4 MS5
Criteria (with
weighting)
Total weighted score
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