Chapter 6 Consumer, Industrial, and Government Markets

1. Chapter 6 Consumer, Industrial, and Government Markets

2. Drivers of the Global Consumer • Emergence of global consumer coincides with two important driving trends: • Globalization:

3. Drivers of the Global Consumer • Technological developments in information and communication

4. 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:

5. The Global Consumer • Firms cut costs by minimizing:

6. The Global Consumer • In business-to-business markets, global customers seek to centralize and standardize purchasing:

7. The Global Consumer • The existence of consumer culture is characterized by:

8. The Global Consumer • Emergence of global consumers facilitates companies' ability to:

9. Influences on the Global Consumer • Economic status – • Technology level - Knowledge and usage of:

10. Influences on the Global Consumer • Strongly influenced by the nature of education systems in individual countries • Personal motive – • Basic needs:

11. Influences on the Global Consumer • The hierarchy of needs is relevant to international marketing

12. Influences on the Global Consumer • Culture – • Norms: • Social factors –

13. Influences on the Global Consumer • Situational factors – • Physical surroundings – • Institutional environment –

14. Country-of-Origin (COO) Effects • COO: • Buyer reactions to COO are influenced by various factors:

15. 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:

16. Country-of-Origin Effects • World mindedness: • Cosmopolitan is someone who:

17. 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

18. The Industrial Buyer • Derived demand – • Cost-performance –

19. Influences on the Global Industrial Buyer • Culture • High uncertainty-avoidance countries are risk averse

20. 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:

21. Influences on the Global Industrial Buyer • Stages of economic development

22. Influences on the Global Industrial Buyer • National situational factors

23. The Government Buyer • Governments are important targets for sales of goods and services • Aim of competitive bidding:

24. The Government Buyer • Selling to governments can be bureaucratic • Agreement on Government Procurement (GPA) –

25. Marketing to Global Consumers • Targeting global customers • Global market segment: • International firms aim for a global positioning strategy:

26. Marketing to Global Consumers • GAM benefits customers:

27. Marketing to Global Consumers • Country-of-origin challenges • When contemplating a new marketing venture: • To overcome negative stereotypes is to:

28. Global Customer Relationship Management • The focus of marketing is the customer • Relationship marketing:

29. Global Customer Relationship Management • Customer relationship management (CRM): • Goal of CRM is to

30. Global Customer Relationship Management • Customer service includes activities such as:

31. Selling to Governments • Infrastructure development is one of the lucrative market opportunities • Nations need infrastructure and communication systems to:

32. Selling to Governments • Tendering involves:

33. Selling to Governments • Factors to ensure success in selling to foreign governments: