Chapter 6 Consumer, Industrial, and Government Markets
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Transcript of Chapter 6 Consumer, Industrial, and Government Markets
© 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.
Chapter 6
Consumer, Industrial, and Government Markets
© 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.
Drivers of the Global Consumer
• Emergence of global consumer coincides with two important driving trends:• Globalization:
• • •
© 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.
Drivers of the Global Consumer
• Technological developments in information and communication•
•
© 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.
The Global Consumer
• Is
• Global market segments are groupings of consumers that exist in multiple countries and display similar characteristics
• Signs of global cosmopolitanism and modernity:•
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The Global Consumer
• • •
• Firms cut costs by minimizing:• • •
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The Global Consumer
• In business-to-business markets, global customers seek to centralize and standardize purchasing:• • • •
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The Global Consumer
• The existence of consumer culture is characterized by:• • • •
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The Global Consumer
• Emergence of global consumers facilitates companies' ability to:
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Influences on the Global Consumer
• Economic status –
•
• Technology level - Knowledge and usage of:• • •
© 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.
Influences on the Global Consumer
• Strongly influenced by the nature of education systems in individual countries
• Personal motive –
• Basic needs:• • • • •
© 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.
Influences on the Global Consumer
• The hierarchy of needs is relevant to international marketing•
•
© 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.
Influences on the Global Consumer
• Culture –
• Norms:
• Social factors –
© 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.
Influences on the Global Consumer
• Situational factors –
• Physical surroundings –
• Institutional 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.
Country-of-Origin (COO) Effects
• COO:
• Buyer reactions to COO are influenced by various factors:•
•
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Country-of-Origin Effects
• As the capacity of countries to perform well in industries improves, COO phenomenon varies over time
• Tendency of consumers to discriminate against foreign products varies by demographic factors
• Consumer ethnocentrism:
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Country-of-Origin Effects
• World mindedness:
• Cosmopolitan is someone who:•
•
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The Industrial Buyer
• Purchases raw materials, parts, components, and supplies in order to produce other products
• Buying is performed by professional purchasing managers who may buy enormous quantities of goods
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The Industrial Buyer
• Derived demand –
• Cost-performance –
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Influences on the Global Industrial Buyer
• Culture•
•
• High uncertainty-avoidance countries are risk averse •
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Influences on the Global Industrial Buyer
• Low uncertainty avoidance cultures are innovative and open to new approaches
• Industrial buying process is systematic as:•
• Purchasing will:• • •
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Influences on the Global Industrial Buyer
• Stages of economic development• • • • •
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Influences on the Global Industrial Buyer
• National situational factors•
•
•
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The Government Buyer
• Governments are important targets for sales of goods and services
• Aim of competitive bidding:• • •
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The Government Buyer
• Selling to governments can be bureaucratic
• Agreement on Government Procurement (GPA) –
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Marketing to Global Consumers
• Targeting global customers• Global market segment:
• International firms aim for a global positioning strategy:•
•
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Marketing to Global Consumers
• GAM benefits customers:•
•
•
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Marketing to Global Consumers
• Country-of-origin challenges• When contemplating a new marketing
venture:•
• To overcome negative stereotypes is to:• • •
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Global Customer Relationship Management
• The focus of marketing is the customer• Relationship marketing:
•
•
•
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Global Customer Relationship Management
• Customer relationship management (CRM):
• Goal of CRM is to
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Global Customer Relationship Management
• Customer service includes activities such as:• • • •
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Selling to Governments
• Infrastructure development is one of the lucrative market opportunities
• Nations need infrastructure and communication systems to:•
•
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Selling to Governments
• Tendering involves:•
•
•
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Selling to Governments
• Factors to ensure success in selling to foreign governments:• • • •