Exercise questions using the three types of ''Local Marketing Environments''
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Answer exercise questions using the three types of ''Local Marketing Environments'':
a) Emerging markets have insufficient infrastructure to support full-fledged market systems and marketing activities, little product availability, low incomes and purchasing ability, inexperienced and uneducated consumers, and weak domestic competition. Most typically, tariff and other barriers to foreign products are high as is political instability and risk. Industrial markets show the most promise for development.
b) New growth markets in newly industrialized economies (N I E s) have high income and purchasing levels and their consumers are more savvy. Demand for specific brand has outpaced an emphasis on demand for the generic product categories, and economies of scale become possible as the number of customers increase. As such, greater choice is available. Some trade barriers remain but domestic competition is strong, needing less protection. The infrastructure is sound, with distribution systems lagging slightly, and foreign competitors have a forceful presence. Some political risks linger.
c) Mature markets show less growth but more stability of demand. Trade barriers are generally low while both domestic and foreign competition is fierce, battling for market share in saturated but highly demanding consumer markets. Infrastructure systems are well developed and political risk is low.
1) Provide no less than three (3) examples of counties fitting into each market environment and explain why?
2) For each of the counties selected in response to question (1) discuss the ''cultural'' issues that may exist in each of those countries when marketing Coca-Cola or Hondas.
3) Select a product of your choice and one (1) country of each environment and discuss :
a) Would you introduce the product in that country? If yes, why? If no, why?
b) Would you introduce the product in all three (3) counties selected in 3(a) at the same time or at different times? If at different times select an order of induction. Explain your answer.
4) Do you believe that your selected product in (3) would be advertised the same way in all three (3) environments of countries or differently? Explain your answer.
5) Describe each of the following trade agreements:
a. LAIA
b. ANCOM
c. MERCOSUL
d. NAFTA
e. ASEAN
f. APEC
6) Why are trade agreements important in global marketing?
7) Why might a successful North American marketer not be the best one to head the company's marketing effort in Latin America? What about in Asia? What kind of person is needed, and how would he or she be trained?
8) What are some items referred to as '' market barriers''? Describe each and how it can affect ''market entry''?
9) How do consumers in the various environments of countries (Mature or Growth or Emerging) and lean about new product features?
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Here is just a sample of what you'll find in this solution:
"They needed to find four Chinese characters whose pronunciations approximated the sounds "ko-ka-ko-la" without producing a nonsensical or adverse meaning when strung together as a written phrase. The Chinese people understand that their market boasts two attractions irresistible to U.S. business interests: a market of 1.2 billion consumers and a vast land full of natural resource."
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1) Provide no less than three examples of countries fitting into each market environment and explain why?
I chose three Asian countries; China as an emerging market economy, Taiwan as a new growth market and Japan as a mature market environment. Below are the reasons of choosing each country as example:
China: China is an emerging market with a great deal of potential. During the past three years, the market and the demand for information have grown rapidly. China is the manufacturing hub of the world. With a workforce of over 700 million people, a middle class of over 140 million, and a population of 1.27 billion, China has proven capabilities of low cost manufacturing. Much of the world's hardware needs, electronics and industrial goods are outsourced to China. With an economic growth rate of over 7%, China is the second largest economy based on purchasing power parity and one of the fastest growing GDP in the world. The pace of financial sector development in China has accelerated as a result of membership in the World Trade Organization (WTO), but capital market reform continues to lag behind developments in the real economy. Within capital markets, debt markets lag behind equity markets. However it's not an easy market to access. So many restrictions and regulations apply, that it's crucial to know.
Taiwan: Taiwan is a new growth market in the world economy. Taiwan has a dynamic capitalist economy with gradually decreasing guidance of investment and foreign trade by government authorities. In keeping with this trend, some large government-owned banks and industrial firms are being privatized. Exports have provided the primary impetus for industrialization. The trade surplus is substantial, and foreign reserves are the world's third largest. Agriculture contributes 2% to GDP, down from 32% in 1952. Most of the consumers have a high income and willingness to spend money.
Japan: The Japanese economy is the second largest market economy in the world. With the aim of creating a more efficient economy, the Japanese government currently is carrying out administrative reforms along with extensive deregulation of various sectors of the economy. Japanese economy is highly efficient and competitive in areas linked to international trade, but productivity is lower in areas such as agriculture, distribution, and services. After achieving one of the highest economic growth rates in the world from the 1960s through the 1980s, the Japanese economy slowed dramatically in the early 1990s, when the "bubble economy" collapsed. Its reservoir of industrial leadership and technicians, well-educated and industrious work force, high savings and investment rates, and intensive promotion of industrial development and foreign trade has produced a mature industrial economy. Japan has few natural resources, and trade helps it earn the foreign exchange needed to purchase raw materials for its economy. While Japan's long-term economic prospects are considered good, Japan is currently in its worst recession since World War II.
2) For each of the counties selected in response to question (1) discuss the ''cultural'' issues that may exist in each of those countries when marketing Coca-Cola or Hondas.
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- BSc, Dokuz Eylul University
- MBA, Texas A&M University-Kingsville
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