Chapter 4 The Economic Environment
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Chapter 4 The Economic Environment. Market Characteristics. Population Household :. Market Characteristics. The degree of urbanization dictates the nature of marketing task the company faces, in terms of: Income. Market Characteristics. Income-distribution can be classified as: - PowerPoint PPT Presentation
Transcript of Chapter 4 The Economic Environment
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Chapter 4The Economic Environment
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Market Characteristics
• Population• • • Household:
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Market Characteristics• The degree of urbanization dictates the nature
of marketing task the company faces, in terms of:• • •
• Income•
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Market Characteristics• Income-distribution can be classified as:
• • • •
• Purchasing power parities (PPPs):
•
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Market Characteristics• Income figures are useful in the initial
screening of markets• Consumption patterns•
• Sophistication of a country’s data collection systems•
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Market Characteristics• Engel’s laws state that as a family’s income
increases:• • •
• Data on product saturation or diffusion:• •
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Market Characteristics• General consumption figures must be
cautiously viewed as critical product-form differences may be concealed
• Inflation:
•
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Market Characteristics
• Infrastructure• The facilitating functions of marketing:
• • • •
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Market Characteristics • Transportation networks by land, rail,
waterway, or air are essential for distribution• Communication systems for marketing
include:• • • • • •
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Market Characteristics • The more extensive the firm’s international
involvement:•
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Impact of the Economic Environment on Social Development
• Factors impeding economic growth:• • • • • •
• Social indicators:•
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Impact of the Economic Environment on Social Development
• • • • •
• Physical Quality of Life Index (PQLI):
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Impact of the Economic Environment on Social Development
• PQLI is composed of:• • •
• Emotional well-being may be determined by:• • • •
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Regional Economic Integration
• Economic integration• • Success of blocs depend on:
• • •
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European Integration
• It results in economic growth• Sources of growth being:
• • •
• Operations from one country can be freely expanded to other countries
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European Integration• Goal of free movement of goods has been
achieved due to the move from a “common standards approach” to a “mutual recognition approach”
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Levels of Economic Integration
• North American Free Trade Agreement•
• The ratification of the North American Free Trade Agreement (NAFTA) created the world’s largest free market: •
•
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Levels of Economic Integration• Distinctive feature of NAFTA is the two-side
agreements to correct perceived abuses in labor and in the Mexican environment
• Maquiladoras:
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Regional Economic Integration
• Other economic alliances• Integration in Latin America – MERCOSUR has
three objectives:• • •
• Integration in ________• Integration in __________________
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Emerging Market
• Is a country making an effort to change and improve its economy: •
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Emerging Market
• Strategies adopted by marketers to thrive in emerging markets:• • • •
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Developing Markets
• Five elements of success for an international marketer to thrive in developing markets• • • • •
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Economic Integration and the International Marketer
• Economic integration creates opportunities and potential problems for the international marketer
• Decisions regarding integrating markets must be assessed from:• • • •
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