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Launch your PollEV session: Text : UWMBUSINESS to 37607. *Text LEAVE at the end of class*. Alternate #: (747) 444-3548. B2B Buying Process. The CONSUMER Buying decision process. Polleverywhere notice: important!. Nicholas Nimtz Catrice Robinson Jacob guagliardo Amanda Boehm
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Launch your PollEV session: Text: UWMBUSINESS to 37607 *Text LEAVE at the end of class* Alternate #: (747) 444-3548
B2B Buying Process The CONSUMER Buying decision process
Polleverywhere notice: important! • Nicholas Nimtz • Catrice Robinson • Jacob guagliardo • Amanda Boehm • Felishiamccall • Trevor peterson
Understanding the Marketplace – Global Marketing Ref: Text, chapter 8
Global marketing • “Globalization” – the processes by which goods, services, capital, people, information, and ideas flow across national borders
Necessary backdrop to understanding global marketing • Standardization of laws across borders • Elimination of trade barriers by governments
Assessing Global Markets • They need to assess the market in order to make informed decisions about whether a country possesses the necessary characteristics to be a viable market for the firm’s products
I. Economic Analysis using Metrics • Evaluating the General Economic Environment: healthy economies provide better opportunities • Trade deficit – the relative level of imports and exports. Trade surplus • Gross domestic product (GDP) • Purchasing Power Parity (PPP)
I. Economic Analysis using Metrics • Evaluating the General Economic Environment: healthy economies provide better opportunities • Trade deficit – the relative level of imports and exports. Trade surplus • Gross domestic product (GDP) • Purchasing Power Parity (PPP)
$20+Trillion • Citation: By Zach Vega - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=49064021
I. Economic Analysis using Metrics “equality” • Evaluating the General Economic Environment: • Purchasing Power Parity (PPP) – a theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one country will cost the same in the other (if expressed in the same currency)
$6.76 $5.30 $1.64
I. Economic Analysis using Metrics • Evaluating Market Size and Population Growth Rate • The populations of North and South America are expected to shrink, relative to other countries’ • Booming middle class in many developing countries
I. Economic Analysis using Metrics • Evaluating Market Size and Population Growth Rate • The populations of North and South America are expected to shrink, relative to other countries’ • Booming middle class in many developing countries; youthful population enormous markets for consumer goods • How is the population distributed? (Urban – rural split).
I. Economic Analysis using Metrics • Evaluating Market Size and Population Growth Rate • The populations of North and South America are expected to shrink, relative to other countries’ • How is the population distributed? (Urban – rural split). Long supply chains. • Booming middle class in many developing countries; youthful population enormous markets for consumer goods
I. Economic Analysis using Metrics • Evaluating Real Income • The income of individuals after adjusting for inflation – indicates the amount of goods and services that can be purchased with the income • Can the incomes of the target markets support the prices of the products?
(US Per Capita = $58,000) Per capita income: $1751 $10 838 taka (Bangladesh)
Single-use shampoo
II. Analyzing Infrastructure and Technological Capabilities • Infrastructure – the basic facilities, services, and installations needed for a community or society to function • Transportation • Communications systems • Distribution channels • Commercial infrastructure
III. Analyzing Government Actions • government actions can significantly influence firms’ ability to sell products; • they can result in laws or regulations that promote growth of the global market or inhibit growth by closing off the country
III. Analyzing Government Actions • Tariffs (“duty”) • A tax levied on a product imported into a country • Intended to make imported goods more expensive and thus less competitive with domestic products
III. Analyzing Government Actions • Quotas • A quota designates the maximum quantity of a product that may be brought into a country in a given time period
III. Analyzing Government Actions • Quotas • A quota designates the maximum quantity of a product that may be brought into a country in a given time period
Tariffs Quotas • Both benefit domestically made products because they reduce foreign competition • Tax • Artificially raises prices • Lowers demand • Maximum limit • Reduces availability of imported goods
III. Analyzing Government Actions • Exchange Control • This refers to the regulation of a country’s currency exchange rate (the measure of how much one currency is worth in relation to another)