A presentation about assessing global markets.

1. Assessing Global Markets
By: Audrey Planner

2. Criteria to Assess a Country’s Market
1. Economic Analysis Using Metrics
2. Infrastructure and Technology
3. Governmental Actions / Inactions
4. Sociocultural Analysis
Economic
Infrastructure
& Technology
Government
Sociocultural

3. Economic Analysis Using Metrics
● Three major economic factors
1. General economic environment
2. Market size and population growth rates
3. Real income
● Wealth of people in a country generally signals better opportunity for firms

4. Economic Analysis -
General Economic Environment
● Healthy economies generally provide better opportunities for global marketing
expansions
● To assess market potential for a particular product or service, companies must
evaluate multiple metrics including
○ Trade Deficit - country imports more than it exports
○ Trade Surplus - country exports more than it imports; typically more attractive to companies as
it signals greater opportunity to export products to more markets
○ Gross Domestic Product (GDP) - market value of goods and services produced
○ Gross National Income (GNI) - GDP + net income from investments abroad
○ Purchasing Power Parity (PPP) - a product in one country will cost the same in another country
(expressed in the same currency)
● Above metrics helpful to assess relative wealth of a country but may not give the
full picture of economic health because they are based solely on material output

5. Economic Analysis -
Market Size and Population Growth Rates
● Large and less developed nations
growing faster than developed nations
● Countries with highest purchasing
power today may become less
attractive because of stagnated growth
● BRIC countries (Brazil, Russia, India,
and China) with large and growing
populations
● Distribution of the population between
rural vs urban areas will determine how
products and services can be delivered

6. Economic Analysis -
Real Income
● Product affordability across markets
● Companies may need to make adjustments to products or change price for a
particular country - usually for low priced consumer goods but can occur for luxury
/ higher-priced goods as well
● Markets with low wages known as “bottom of the pyramid” - large populations
with very low incomes

7. Infrastructure and Technology
● Assess basic facilities, services, and installations needed for a community or
society to function
● Four key elements important to marketers
1. Transportation - trains, roads, etc.
2. Distribution channels - means to deliver products in an efficient and cost effective way
3. Communications - primarily media access to create and sustain awareness
4. Commercial infrastructure - banking, legal, regulatory, etc.

8. Governmental Actions
● Governmental actions can significantly impact companies - often result in laws
or regulations which promote global market growth or close off the country
● Key actions include
○ Tariffs / Duties - tax levied on imported goods; makes imports more expensive and less
competitive relative to domestic alternatives and may be used as a strategy for enforcing global
political strategies
○ Quotas - limits how much of a product can be brought into a country during a specific time
period; supports domestic producers
○ Exchange Control - regulating a country’s currency exchange rate (value of currency relative to
another); weak dollar makes imports more expensive and exports less expensive
○ Trade Agreements - agreements by the governments of specific countries to manage and
promote trade; a trading bloc refers to those countries that have signed the agreement

9. Sociocultural Analysis - Culture
● Companies must understand the culture in another
country and adapt their marketing strategies to be
successful
● Culture is the “shared meanings, beliefs, morals,
values, and customs of a group of people”
● Exists on two levels
○ Visible artifacts (e.g. behavior, dress, ceremonies) - easier
for companies to observe and recognize
○ Underlying values (e.g. beliefs, thought processes,
assumptions) - more difficult for companies to understand

10. Sociocultural Analysis -
Geert Hofstede’s Cultural Classification Scheme
● Framework for analyzing the underlying values of a culture
● Based on six cultural dimensions
1. Power Distance - willingness to accept social inequity as natural
2. Uncertainty Avoidance - extent to which society relies on orderliness, consistency, structure,
and formalized processes to address situation in daily life
3. Individualism - perceived obligation to and dependence on groups
4. Masculinity - extent to which dominant values are male oriented
5. Time Orientation - short versus long-term
6. Indulgence - extent to which society allows for the gratification of fun and enjoyment needs or
else suppresses and regulates

11. Summary
● In order to comprehensively assess global markets, a company must evaluate
several key areas including economics, infrastructure and technology,
governmental actions, and culture
● All of these areas need to be well understood to effectively develop and
execute a marketing strategy
● A quality analysis of each of these areas will enable better decision-making
and lead to a higher likelihood of success