Chapter 6
Consumer, Industrial, and Government Markets
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Drivers of the Global Consumer
• Emergence of global consumer coincides
with two important driving trends:
• Globalization:
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Drivers of the Global Consumer
• Technological developments in information
and communication
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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:
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The Global Consumer
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• Firms cut costs by minimizing:
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The Global Consumer
• In business-to-business markets, global
customers seek to centralize and
standardize purchasing:
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The Global Consumer
• The existence of consumer culture is
characterized by:
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The Global Consumer
• Emergence of global consumers facilitates
companies' ability to:
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Influences on the Global
Consumer
• Economic status –
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• Technology level - Knowledge and usage
of:
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Influences on the Global
Consumer
• Strongly influenced by the nature of
education systems in individual countries
• Personal motive –
• Basic needs:
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Influences on the Global
Consumer
• The hierarchy of needs is relevant to
international marketing
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•
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Influences on the Global
Consumer
• Culture –
• Norms:
• Social factors –
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Influences on the Global
Consumer
• Situational factors –
• Physical surroundings –
• Institutional environment –
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Country-of-Origin (COO) Effects
• COO:
• Buyer reactions to COO are influenced by
various factors:
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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:
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Country-of-Origin Effects
• World mindedness:
• Cosmopolitan is someone who:
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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
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The Industrial Buyer
• Derived demand –
• Cost-performance –
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Influences on the Global
Industrial Buyer
• Culture
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• High uncertainty-avoidance countries are risk
averse
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Influences on the Global
Industrial Buyer
• Low uncertainty avoidance cultures are
innovative and open to new approaches
• Industrial buying process is systematic as:
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• Purchasing will:
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Influences on the Global
Industrial Buyer
• Stages of economic development
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Influences on the Global
Industrial Buyer
• National situational factors
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The Government Buyer
• Governments are important targets for
sales of goods and services
• Aim of competitive bidding:
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The Government Buyer
• Selling to governments can be
bureaucratic
• Agreement on Government Procurement
(GPA) –
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Marketing to Global Consumers
• Targeting global customers
• Global market segment:
• International firms aim for a global
positioning strategy:
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Marketing to Global Consumers
• GAM benefits customers:
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Marketing to Global Consumers
• Country-of-origin challenges
• When contemplating a new marketing
venture:
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• To overcome negative stereotypes is to:
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Global Customer Relationship
Management
• The focus of marketing is the customer
• Relationship marketing:
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Global Customer Relationship
Management
• Customer relationship management
(CRM):
• Goal of CRM is to
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Global Customer Relationship
Management
• Customer service includes activities such as:
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Selling to Governments
• Infrastructure development is one of the
lucrative market opportunities
• Nations need infrastructure and
communication systems to:
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Selling to Governments
• Tendering involves:
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Selling to Governments
• Factors to ensure success in selling to
foreign governments:
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