Launch your PollEV session: Text : UWMBUSINESS to 37607

1. Launch your PollEV session: Text: UWMBUSINESS to 37607 *Text LEAVE at the end of class* Alternate #: (747) 444-3548

4. B2B Buying Process The CONSUMER Buying decision process

5. Polleverywhere notice: important! • Nicholas Nimtz • Catrice Robinson • Jacob guagliardo • Amanda Boehm • Felishiamccall • Trevor peterson

6. Understanding the Marketplace – Global Marketing Ref: Text, chapter 8

10. Global marketing • “Globalization” – the processes by which goods, services, capital, people, information, and ideas flow across national borders

12. Complex supply chains

13. Necessary backdrop to understanding global marketing • Standardization of laws across borders • Elimination of trade barriers by governments

14. Understand Globalization better?

16. Assessing Global Markets • They need to assess the market in order to make informed decisions about whether a country possesses the necessary characteristics to be a viable market for the firm’s products

17. Assessing Global Markets

18. I. Economic Analysis using Metrics • Evaluating the General Economic Environment: healthy economies provide better opportunities • Trade deficit – the relative level of imports and exports. Trade surplus • Gross domestic product (GDP) • Purchasing Power Parity (PPP)

20. I. Economic Analysis using Metrics • Evaluating the General Economic Environment: healthy economies provide better opportunities • Trade deficit – the relative level of imports and exports. Trade surplus • Gross domestic product (GDP) • Purchasing Power Parity (PPP)

21. $20+Trillion • Citation: By Zach Vega - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=49064021

22. I. Economic Analysis using Metrics “equality” • Evaluating the General Economic Environment: • Purchasing Power Parity (PPP) – a theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one country will cost the same in the other (if expressed in the same currency)

23. $6.76 $5.30 $1.64

24. I. Economic Analysis using Metrics • Evaluating Market Size and Population Growth Rate • The populations of North and South America are expected to shrink, relative to other countries’ • Booming middle class in many developing countries

26. I. Economic Analysis using Metrics • Evaluating Market Size and Population Growth Rate • The populations of North and South America are expected to shrink, relative to other countries’ • Booming middle class in many developing countries; youthful population  enormous markets for consumer goods • How is the population distributed? (Urban – rural split).

28. I. Economic Analysis using Metrics • Evaluating Market Size and Population Growth Rate • The populations of North and South America are expected to shrink, relative to other countries’ • How is the population distributed? (Urban – rural split). Long supply chains. • Booming middle class in many developing countries; youthful population  enormous markets for consumer goods

29. I. Economic Analysis using Metrics • Evaluating Real Income • The income of individuals after adjusting for inflation – indicates the amount of goods and services that can be purchased with the income • Can the incomes of the target markets support the prices of the products?

30. (US Per Capita = $58,000) Per capita income: $1751 $10 838 taka (Bangladesh)

31. Single-use shampoo

33. Assessing Global Markets

34. II. Analyzing Infrastructure and Technological Capabilities • Infrastructure – the basic facilities, services, and installations needed for a community or society to function • Transportation • Communications systems • Distribution channels • Commercial infrastructure

35. Assessing Global Markets

36. III. Analyzing Government Actions • government actions can significantly influence firms’ ability to sell products; • they can result in laws or regulations that promote growth of the global market or inhibit growth by closing off the country

37. III. Analyzing Government Actions • Tariffs (“duty”) • A tax levied on a product imported into a country • Intended to make imported goods more expensive and thus less competitive with domestic products

38. Tariffs make imported goods costly

39. Tariffs & Reciprocal tariffs

40. Tariffs & reciprocal tariffs

42. III. Analyzing Government Actions • Quotas • A quota designates the maximum quantity of a product that may be brought into a country in a given time period

45. III. Analyzing Government Actions • Quotas • A quota designates the maximum quantity of a product that may be brought into a country in a given time period

47. Tariffs Quotas • Both benefit domestically made products because they reduce foreign competition • Tax • Artificially raises prices • Lowers demand • Maximum limit • Reduces availability of imported goods

48. III. Analyzing Government Actions • Exchange Control • This refers to the regulation of a country’s currency exchange rate (the measure of how much one currency is worth in relation to another)

50. A strong US$ = Happy Tourists, Sad Exporters