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What is Geography?. Study of the earth’s surface, climate, continents, countries, peoples, industries and resources. Geography influences…. Customs Products Industries Needs and methods of satisfying needs. Geography impacts…. Country’s attractiveness to do business
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What is Geography? • Study of the earth’s • surface, • climate, • continents, • countries, • peoples, • industries and • resources
Geography influences… • Customs • Products • Industries • Needs and methods of satisfying needs
Geography impacts… • Country’s attractiveness to do business • Marketing • Location of manufacturing, distribution centers, retailers • Shipping / distribution • Feasibility of Importing parts, materials, goods • Practicality of Distribution within country, to neighboring countries • Methods, costs • Availability of local suppliers • Impact on product design, maintenance
Considering geography, how easy would it be to locate a Dominos Pizza & Delivery in Venice?
Market Potential Matrix – Method • Market Potential Matrix - compare market potentials for any number of countries. • Source:Center for International Trade Development Website http://www.citd.org/startup/eb/page.cfm?chapter=2&sec=9 • Identify relevant screening criteria • Rate Factor • Compare countries
Market Potential Matrix • Key: Columns/Criteria - Geography • Transportation – Modes, Usage • Communication Systems • Size of Land Mass • Population Size, Growth, Distribution • Age Distribution • Climate • “On a scale of 1 to 5, with 5 being the most attractive, how attractive will this country be for successful marketing? Justify.
Geographic Factors Influencing Country Attractiveness • Location Continent, Hemisphere • Boundaries • Capital (population), Largest cities (population) • Area Total • Area Land • Coast Line • Average Daily Temperature • Annual Rainfall
Population • Population Growth rate, live births, birth rate • Distribution of • Age • Gender • Urban vs. rural • Geographical areas • Ethnic groups
Transportation and Communication Modes of surface transport, usage rates Ports Communication systems, types, availability, usage rate
Sources of Country Information • TradePort Click on Country profiles http://www.tradeport.org/countries/index.html • Global Edge MSU Ciber Website Click on Country Insights http://globaledge.msu.edu/ibrd/ibrd.asp • Access Country Watch Stat USA website Globus NTDB accesses through Cal Poly Library • U.S. State Department http://www.state.gov/r/pa/ei/bgn/
Considering primarily geography, which of the these two countries do you think would be more attractive to do business in?
Which Marketing Decisions Will Be Affected by Geography for Starbuck’s, Krispy Kreme? (Sample) • Where to locate? Urban or rural? Which Cities? • Which part of the city? Central? Suburb? • Should products be reformulated for climate, altitude? E.g. icing on donuts, baking temperatures • Should hot or cold beverages be added, featured depending on climate?
Which Marketing Decisions Will Be Affected by Geography for Frito Lay Potato Chips? (Sample) • Is climate, terrain suitable for growing potatoes? Any potato diseases? Farmland available? • Should products be reformulated for climate, altitude? E.g. baking temperatures • Are there sources for vegetable oil? • Will products be distributed nationwide or only major cities? Which cities? • Are roads adequate for distribution?
Which Marketing Decisions Will Be Affected by Geography for XBox? (Sample) • What is the age distribution of population? How many in target market (12 – 35)? • Are ports available to ship in product? • Will products be distributed nationwide or only major cities? Which cities?