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International marketing - Module 2
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- 2. Regional Market • Aregional 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 (Accordingto 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 WesternEurope 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 NorthAmerica 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-PacificMarket • 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 ofAsia-Pacific Market • Japan • China • Korea • India • Hong Kong • Singapore
- 9. • China • Largestpopulated 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 • Extremelyefficient 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 OceaniaMarket • 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 MiddleEast 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 LatinAmerica 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 AfricanMarket • 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 TransitionalEconomies & 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 isthe 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 • Needrecognition • Information search • Evaluation of alternatives • Purchase decision • Post purchase behavior
- 19. use Information and Experience PrePurchase 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 BuyingBehavior 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%)
- 25. 25 Visit us onlineat www.TheStockker.com