3. Learning Objectives
Become familiar with different regional markets
Learn how transitional & developing markets
differ from developed countries
Understand the customer value & the value
equation
Discuss diffusion theory
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4. Western Europe
Smaller than Australia
32 % Global Income
460 million population
7% World Population
23 Countries
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5. Product Strategies in the EU
Harmonization in product
standards
Common patenting & branding
Harmonization in packaging
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6. Pricing Strategies in the EU
More competitive
Withdrawal of restrictions on foreign
products
Anti-monopoly measures
Widening of public procurement market
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7. Distribution Strategies in the EU
Simplification of transit
documents & procedures
Elimination of customs formalities
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8. Promotion Strategies in the EU
Common guidelines for TV
broadcasting
Deregulation of national
monopolies
Uniform standard for TV
commercials
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9. Eastern & Central Europe
Balkans: Albania, Bosnia-Herzegovina,
etc.
Baltics:Lithuania, Latvia & Estonia
Commonwealth of Independent States
Poland, Hungary, etc.
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10. Eastern & Central Europe
Before – After Market Economy
Before
% World GNP
After
6.9%
2.5%
GNP per Capita $3,665
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$2,219
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11. Marketing in Eastern & Central
Europe
Wide range in economic development
Young people have “unlearned” the
communist past
Needs business and distribution
infrastructure
Familiar with Western Brands
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12. North America - NAFTA
$9,254 trillion GNP
30% of Global Income
407 million population
7% world population
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13. Asia-Pacific
$8,230 billion Global Income
25% of Global Income
2.8 Billion population
52% World Population
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14. Traditional Western & Asian Marketing
Values
Western
•Brand segmentation; personal
choice & self expression
through brands
•Presenters/testimonials important
but more to draw attention to
brands
•Seeding & diffusion from
leading edge
•“Understatement” of wealth
•Environmentalism
Asian
•Popular famous brands;
confidence in brand &
corporate names
•Imitation,emulation,use of
presenters as role models
•Rapid adoption of
successful brands
•Display of wealth and
status
•Confidence in technology
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15. JAPAN
•Home of most demanding customers
•Home market of global customers
•Home market of global competitors
•Significant market of global competitors
•Major source of industry innovation.
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16. China
$1,179 Billion GNP
3.9% Global Income
1.27 Billion population
21% world population
$930 GNP per Capita
Nearly 10% annual growth in GNP
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17. India: A Closer Look
Per capita income
$330
Per capita GDP
$310
Population
950m
Literacy rate
<50%
Telephones
6m
Television Sets
35m
Access to clean sanitation*
14%
Population with income>$2500
2.3%
Average household size
5.2
Growth Rate
3.5%
* One of the lowest rates of access in the world
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18. Latin America
Consists of South and Central
America & Caribbean
Mexico is economically part of
NAFTA
7% of global Income
510 million population
9.5% world population
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19. Africa
3.5 times size of US
3 Regions: North Africa, SubSahara and Republic of South
Africa
1.3% Global Income
730 million population
12% of world population
Average per capita = $536
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20. Transitional Economies & Less
Developed Countries
1. Low per capita income - under $4000
2. High inflation – 10 to 30% annually
3. Wide gap in income distribution
4. High level of taxes, duties &
bureaucratic
hurdles
5. Lack of marketing awareness
6. Fragmented communications &
distribution
7.
Inadequate infrastructure
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21. To Enter or Not to Enter?
Look beyond per capita GNP
Consider LDCs collectively
Weigh the benefits of being first
Set realistic deadlines
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22. Middle East
16 countries
2% of Global Income
260 million population
4% of world population
Predominately Muslim
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25. Summary
% Population is not related to % GNP
Major regions differ by income and
population
Diffusion of innovation varies around
world
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