Chapter 6 Consumer, Industrial, and Government Markets

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Chapter 6

Consumer, Industrial, and Government Markets


Drivers of the Global Consumer

• Emergence of global consumer coincides with two important driving trends:• Globalization:

• • •


Drivers of the Global Consumer

• Technological developments in information and communication•

•


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:•


The Global Consumer

• • •

• Firms cut costs by minimizing:• • •


The Global Consumer

• In business-to-business markets, global customers seek to centralize and standardize purchasing:• • • •


The Global Consumer

• The existence of consumer culture is characterized by:• • • •


The Global Consumer

• Emergence of global consumers facilitates companies' ability to:


Influences on the Global Consumer

• Economic status –

•

• Technology level - Knowledge and usage of:• • •



• Strongly influenced by the nature of education systems in individual countries

• Personal motive –

• Basic needs:• • • • •



• The hierarchy of needs is relevant to international marketing•

•



• Culture –

• Norms:

• Social factors –



• Situational factors –

• Physical surroundings –

• Institutional environment –


Country-of-Origin (COO) Effects

• COO:

• Buyer reactions to COO are influenced by various factors:•

•


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:


Country-of-Origin Effects

• World mindedness:

• Cosmopolitan is someone who:•

•


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


The Industrial Buyer

• Derived demand –

• Cost-performance –


Influences on the Global Industrial Buyer

• Culture•

•

• High uncertainty-avoidance countries are risk averse •



• Low uncertainty avoidance cultures are innovative and open to new approaches

• Industrial buying process is systematic as:•

• Purchasing will:• • •



• Stages of economic development• • • • •



• National situational factors•

•

•


The Government Buyer

• Governments are important targets for sales of goods and services

• Aim of competitive bidding:• • •


The Government Buyer

• Selling to governments can be bureaucratic

• Agreement on Government Procurement (GPA) –


Marketing to Global Consumers

• Targeting global customers• Global market segment:

• International firms aim for a global positioning strategy:•

•



• GAM benefits customers:•

•

•



• Country-of-origin challenges• When contemplating a new marketing

venture:•

• To overcome negative stereotypes is to:• • •


Global Customer Relationship Management

• The focus of marketing is the customer• Relationship marketing:

•

•

•



• Customer relationship management (CRM):

• Goal of CRM is to



• Customer service includes activities such as:• • • •


Selling to Governments

• Infrastructure development is one of the lucrative market opportunities

• Nations need infrastructure and communication systems to:•

•



• Tendering involves:•

•

•



• Factors to ensure success in selling to foreign governments:• • • •

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Chapter 6 Consumer, Industrial, and Government Markets