THARAKA DIASMBA(USA), BBA(USA), Dip in Mgt, ACIM(UK), FAEA(Dip in AEA-UK),

FinstSMM(UK), CPM(Asia), MSLIM, PM(Sri-Lanka)

List the factors that influence consumers’ abilities to buy and explain how these affect various national markets.

Describe Maslow’s hierarchy-of-needs model and apply it to consumers in different cultures.

Give examples of how consumer behavior is similar across cultures and examples of how it may differ from one culture to another.

Describe segmentation options for consumer markets abroad.

Explain why business-to-business markets vary in buyer needs and behavior from one country to another.

List the special qualities of national and multinational global buyers.

Describe the five “screens” a foreign firm must pass through to win a government contract.

Explain the role of bribery in international contracts.

Understanding Markets and Buyers Business Markets Government Markets

Government tax policies Wealth concentration

Belgium Top 10% = 20% income Colombia Top 10% = 46% income

Informal sector = Income not reported to authorities

Peru’s informal sector = 42% construction 45% transportation 13% manufacturing

Cultural differences revisited Insurance in Muslim countries Who makes the purchase decision?▪ More joint husband-wife decisions in the U.S. than

in Venezuela

The world’s favorite color? Blue

But many colors elicit different responses Purple = Expensive (in Japan, China, South Korea) Purple = Cheap in USA

The cost-performance criterion is a key consideration for business buyers

Business buyers in developed countries choose capital intensive technologies

Capital is cheaper/ labor is more expensive Business buyers in developing countries usually

choose labor intensive technologies Labor is cheaper/ capital is more expensive

National global buyers Search the world for products used in a single market

Multinational global buyers Search the world for products used throughout their

global operations Global account management

Marketers assign special executive or teams to address demanding global buyers

The buying process Procurement processes vary by country Some contracts go to the lowest bidder More sophisticated projects demand more

complicated bidding processes

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 prevalent in emerging markets

13