Markets, Characteristics, Behavior, Process, Types, Adoption

1. International Marketing
Module II

2. Regional Market
• A regional market is a Cluster of countries which are having
similarities within the cluster & differences with other clusters.
• Generally countries are clustered according to geographical
proximity but any other relevant criteria can also be taken.

3. Major Regional Market
(According to Geographical Proximity)
• Western Europe Market
• Eastern & Central Europe Market
• North America Market
• Asia-Pacific Market
• Oceania Market
• Middle East Market
• Latin America Market
• African Market
Before entering into any market its characteristics should be
studied.

4. Characteristics of Western Europe
Market
• Generate 32% of global income consisting of 23 countries
• Income is unevenly distributed but one of the largest, most stable &
wealthiest market in this world
• 15 EU countries are following RTA
• Major languages are English, Germen, French, Spanish & major
religion is based on Christianity.
• Marketing Mix Decisions are complex

5. Characteristics of Eastern & Central
Europe Market
• Consist of around 21 countries
• Huge differences of economic development between the countries.
• Business culture is not much advanced so marketers have huge
potential, local companies don’t have developed marketing
department.
• Western European products are preferred more than domestic
products
• Distribution infrastructure is weak in CE but good in EE
• Most common language is Russian

6. Characteristics of North America
Market
• It includes The United States, Canada & Mexico
• Combination of high per capita income, large population & plentiful
natural resources.
• Innovative products always accepted by higher income group
• Close relationship between government & local companies many
time affect the marketing efforts of foreign companies negatively
• US & Canada are developed while Mexico is developing so majority
of privileges are enjoyed by developed countries but Mexico is
suitable location to establish wholly owned subsidiary.

7. Characteristics of Asia-Pacific Market
• Consists of all countries of Asia except for the Middle East, Australia
& New Zealand.
• Having 52% of the world’s population but generates only 25% of the
global income.
• Japan which has 5% population of this market generate 52% of the
total income.
• Major languages are China & Hindi but in total 365 languages are
spoken around the region. Case is same for religion.

8. Major Countries of Asia-Pacific Market
• Japan
• China
• Korea
• India
• Hong Kong
• Singapore

9. • China
• Largest populated country
• Rapidly developing economy
• Growing no. of families with increasing income
• Japan
• Generates 15% of world’s GNP still population density & geographical
location are not convenient
• Only 3% residential area is available
• Land prices are among the highest in the world
• The major barriers are non tariff barriers & custom
• A marketer should be committed to providing high qualitative products

10. • Singapore
• Extremely efficient infrastructure available
• Ranked 2nd
in the world for economic freedom
• Full employment & economic growth
• Major languages are English, Mandarin, Malay
• India
• 2nd
largest population in the world
• Income within the country is polarized
• Fastest developing sector is Information Technology
• Political environment is unstable
• Cultural diversity
• Major religion Hindu & major language Hindi

11. Characteristics of Oceania Market
• Combination of Australia & New Zealand
• Free movement of citizens across the borders & no restrictions on
trade
• Relatively high per capita income
• Asia is Australia’s largest export market
• Major cities of Australia are widely dispersed which increases the
distribution cost
• New Zealand is small & one of the most beautiful country of this
world.
• Major language is English & Major religion is Christian

12. Characteristics of Middle East Market
• It includes 16 countries
• Majority of population is ARAB
• Major business is driven by price of oil
• Social groups are divided on the basis of religion, social class &
wealth
• Authority comes with age or seniority
• Bargaining exists everywhere
• Society is male dominant
• Promotion should be done with extra care

13. Characteristics of Latin America
Market
• Having 7% of world’s wealth & 9.5% of its population
• Government emphasis on balanced budget & Privatization is under
way
• Rapidly moving to eliminate barriers to trade & investment
• Focused on developing sub regional market
• Unemployment is a challenge
• Development rate is high

14. Characteristics of African Market
• Due to large geographic area Africa can not be treated as a single
continent so it is divided into three major parts Republic of South
Africa, North Africa and sub-saharan Africa.
• Around 24% of population come under BPL
• Slow growth, big families & low investments are major problems
• North African are more developed
• Many opportunities are available with marketers to satisfy
unfulfilled needs.

15. Nature Transitional Economies &
Less Developed Countries
• Transitional Economies are those which are converting from
command economy to a free market economy
• Marketing Challenges
• Low per capita income
• High inflation
• Wide income distribution gap
• High level of tax & duties
• Lack of marketing awareness
• Fragmented communication channels
• Inadequate distribution channels

16. Marketing in Transitional Economies
& Less Developed Countries
• Don’t judge market potential on the basis of GNP figure because it is
based on averages.
• Treat these markets on collective basis
• Produce innovative products as per needs
• Do proper analysis of external environment and move ahead slowly.

17. Consumer Behavior
It is the study of how individuals make decisions to spend their
available resources (time, money, effort) on consumption related
items. It includes the study of-
-What they buy
-Why they buy it
-When they buy it
-Where they buy it from
-How often they buy it
-How often they use it

18. Buying Process
• Need recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Post purchase behavior

19. use
Information and Experience
Pre Purchase Expectation
Performance
Satisfied +ve WOM
Repurchase Intention
Dissatisfied
Complainer
•Dealer
•Court
•Manufacturer
Non-Complainer
• -ve WOM
•Brand
Switching
Satisfaction is
found
Dissatisfied
• -ve WOM
•Brand Switch
Decrease of sale
and reduction in
market share
Increase in Sale
And Market share

20. Buying Roles
• Initiator
• Gatekeeper
• Influencer
• Decider
• Buyer
• User

21. Types of Buying Behavior
High InvolvementHigh Involvement
SignificantSignificant
differencesdifferences
b/w brandsb/w brands Complex buyingComplex buying
behaviorbehavior
Low InvolvementLow Involvement
FewFew
differencesdifferences
b/w brandsb/w brands
Dissonance buyingDissonance buying
behaviorbehavior
Variety seekingVariety seeking
buying behaviorbuying behavior
Habitual buyingHabitual buying
behaviorbehavior

22. Global Buyer Value
• V = B/P
• V = Value
• B = Benefits
• P = Price
• Try to increase benefits of decrease prices.
• Keep product value greater than competitors

23. Consumer Adoption Process
• Awareness
• Interest
• Evaluation
• Trial
• Adoption

24. Adopter Categories
• Innovators (2.5%)
• Early Adopters (13.5%)
• Early Majority (34%)
• Late Majority (34%)
• Laggards (16%)

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