• To begin to develop an strategy for global markets, a firm must first consider the type of markets which it competes.

• Markets can comprise (cover) consumers, businesses or Government's

Global Markets

Consumer Markets To Understand a consumer market, have to

follow three aspects

•The Consumers ability to buy

•Consumer needs

•Consumer Behavior

Ability to buy To Purchase a Product, a consumer must have the ability to buy

Important indicator of total consumer potential is Gross National Production (GNP), Because it reflects the generation of wealth in a country, which is an indictor of market Size

E.g.-One of the main reason why Starbucks was attracted to Mexico was its increasing income per capita

Consumer Needs

Consumer Behavior

E.g. – Similarities and differences in consumer behavior in attitudes towards color

Black and Red Signify happiness to the Chinese but in Sri Lanka and India those colors use as most sacred

colours

SEGMENTING MARKETSSegmenting is important for two reasons

You do not need every consumer in a country to buy your Product in order to be successful in that market

but you just need a large enough segment of the market to be willing and able to buy

How and How Much You Adapt your marketing mix (4P’s) in a national market will depend on the segment you target in that market

Business MarketsBusiness Buyers around the world are much more predictable and similar than consumers in their purchasing behavior.

More Influenced by the economic consideration of costs and product performances and less affected by social and cultural factors

Global Buyers National global buyersSearch the world for products used in a single market

Multinational global buyersSearch the world for products used throughout their global operations

Global Account ManagementMarketers Assign Special Executive Or Teams To

Address Demanding Global Buyers

Government Markets Government Buying Processes tend to be highly

administrative

Negotiating with Foreign governments can be a very long and formal process

Some contracts go to the lowest bidder

More sophisticated projects demand more complicated bidding processes

Global marketers must pass through to secure large government contracts in developing countries

Bribery and Government Markets

Bribery is giving something of value to an individual in a position of trust to influence judgment or behavior

Government employees are trusted to do what’s best for the public good

Government corruption is more established in emerging markets

Thank You

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