...imports of products into a country cannot provide an accurate market potential of the product. The market potential of a product manufactured by a firm depends on the total demand of the product and the total supply of the market. One thing to take a look at is quantity demanded. The quantity demanded of any product by customers is not constant. It varies with the price of the product. For example a decrease in price usually increases the quantity demanded. When a new product enters a new market through importation there is an increase in its price. This is due to the additional costs of shipping the product from the country it was manufactured in and the import duty and other taxes imposed by the nation. Therefore, a company could be exporting a lot of products to a new market but be losing profit margins because of increased expenses. To estimate the market potential of a product it is essential to look at the actual customers are. Another thing to consider is why they want the product and how the price affects them. Another reason is that they may be making the product domestically. Even when basic need is identified, research look for current trade flows to see what level of activity is in place. Just because goods are currently imported doesn’t mean they will be imported in specific countries. Initial screening evaluated the basic need for a product or service in a specific market. It evaluates markets relevant to product characteristics. This is a useful tool...
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...Evaluating new markets 6.1 Criteria for evaluating new markets Criteria for evaluating the geographical market in general Criteria for evaluating industry markets inside the geographical market Key figures Key figures Development of population Development of GDP Development of GDP per capita Development of quantities in total and per sub-market Development of prices in total and per sub-market Development of market volume in total and per sub- market Legal restrictions for economic activities Possible legal forms Conditions for profit repatriation Conditions for sales (e.g. local production) Operations risks Society Political system Ethnic and religious groups Languages Demographic structure Cultural distance Political risks Market system Players Flows of products and services Flows of information Producers and traders Sub-markets National and international competitors Wholesalers and retailers Competitive intensity Infrastructure Customers Telecommunications infrastructure Health care system Link between customer segments and sub-markets; industry segments Demand similarity Traffic infrastructure Customer segments © 2012 R. Grünig/D. Morschett 6. Evaluating new markets 6.2 Process for evaluating new markets 1. Producing an initial list of potential new markets 2. Eliminating the less attractive markets = usual sequence ...
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...Market Segmentation To reach different markets or to promote your products to different locations or people one has to use a method called market segmentation. "Market segmentation describes the division of a market into homogenous groups which will respond differently to promotions, communications, advertising and other marketing mix variable" (Cumming). Market segmentation is extremely important for companies around the world. If a company doesn't research the area in which they are going to market or they put a product that is either to expensive or to elaborate in an area that can't afford that then they will fail as a company. In my paper I will discussion why market segmentation is used in around the world, the types of segmentation, some techniques used to make segmentation work the best. Market segmentation is to divide the market into smaller segments. The reason for dividing the market is to make it easier to address the needs of smaller groups of customers, particularly if they have many characteristicsin common (Breen). It is easier if you find things in common that are the same such age, gender, benefits, lifestyles, etc. We also use market segmentation to find niches or to identify under-served or un-served markets. "Using niche marketing, segmentation can allow a new company or new product to target less contested buyers and help a mature product seek new buyers" (Cumming). Niche marketing can also take a normally large, identifiable group...
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...governments involved in a market economy, the government influences four main areas in the economy which are; enforcing antitrust laws, preserving property rights, providing a stable fiscal and monetary environment and preserving political stability. Also the report will cover why there can never be a truly ‘free market’ economy, where there is absolutely no government intervention. Market Economy In a market economy, the majority of a nation’s land, factories, and other economic resources are privately owned, either by individuals or businesses (Wild, Wild & Han 2010:151). It is also an economy in which prices of goods and services are freely set based on the laws of supply and demand which are unfettered by interference from a government or other outside bodies. A market economy at its basic is an economy run entirely by the market itself (McGuigan 2003:1). In contrast to a market economy is one which follows the Keynesian principals which is an economic theory which advocates government intervention, or demand side management of economy by increasing money supply or by actually buying things on the market itself, they believe that this will achieve full employment and stable prices (Web finance 2010:1). Market economy has come to be accepted as a norm across the world with many developing countries like India and China moving towards a full market oriented economy (economy watch 2010:1). The social democratic government of Australia adopted the principals of market economy after the...
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...COMMUNICATING WITH CUSTOMERS: BUSINESS MARKETS A Written Report Presented to Prof. Maria Theresa Ranquilman Pamantasan ng Lungsod ng Maynila Intramuros, Manila In Partial Fulfillment of the Requirements for the Degree Master in Business Administration By Analyn P. Deogracias October 2014 Connecting with Customers: Business Markets Organizational Buying It is a decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers. Business Market versus Consumer Market Business Markets comprises all organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit. The major industries making up the business market are agriculture, forestry, and fisheries; mining, manufacturing; construction; transportation; communication; public utilities; banking, finance, and insurance; distribution; and services. Consumer Markets is dominated by products and services designed for the general consumer. Industries in the consumer markets often have to deal with shifting brand loyalties and uncertainty about the future popularity of products and services. Differences of Business Market from Consumer Marker Market structure and demand * Business market contain Fewer but larger buyers * Business buyer demand is derived from final consumer...
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...Major Markets American Public University System Charles Town, WV Abstract Companies large and small have the same questions when considering global marketing. What location is most beneficial to the company? Will the products we offer need require alteration or presented in a different way to appeal to the target country’s culture? What are the laws or rules of that particular government? Is this a profitable market for our company? These questions are answered through identifying the three major foreign markets. Understanding the individual consumer markets, industrial markets and government markets will give a solid understanding of global business. Analysis of the major markets. The major markets within all Foreign Markets Consumer markets are products and services for the consumer. They make up about fifty percent of the gross domestic products (Gaspar, 2013). Consumer markets are divided into categories. Consumer products, food and beverages, retail such as clothing and transportation. Consumers are purchasing products and services for their individual use. They are not companies that are purchasing product to sell to people. This is important because as history has proven cultures change. Typically styles and trends tend to last a while before they move on to the newest fad. This is particularly important as the producers in consumer markets will be affected by this ever changing industry. The aesthetics and appeal to the consumer is of utmost priority in order...
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...Market failure is a concept within economic theory describing when the allocation of goods and services by a free market is not efficient. That is, there exists another conceivable outcome where a market participant may be made better-off without making someone else worse-off. (The outcome is not Pareto optimal.) Market failures can be viewed as scenarios where individuals' pursuit of pure self-interest leads to results that are not efficient – that can be improved upon from the societal point-of-view.[1][2] The first known use of the term by economists was in 1958,[3] but the concept has been traced back to the Victorian philosopher Henry Sidgwick.[4] Market failures are often associated with information asymmetries,[5] non-competitive markets, principal–agent problems, externalities,[6] or public goods.[7] The existence of a market failure is often used as a justification for government intervention in a particular market.[8][9] Economists, especially microeconomists, are often concerned with the causes of market failure and possible means of correction.[10] Such analysis plays an important role in many types of public policy decisions and studies. However, some types of government policy interventions, such as taxes, subsidies, bailouts, wage and price controls, and regulations, including attempts to correct market failure, may also lead to an inefficient allocation of resources, sometimes called government failure.[11] Thus, there is sometimes a choice between imperfect outcomes...
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...Black Market A market that operates outside of the legal system where either legal or illegal goods are sold at illegal prices or terms is known as the black market. These types of transactions normally occur when people are trying to avoid taxes or government price controls. The black market is also known for the buying and selling of illegal drugs, firearms, and stolen goods. When the demand is strong enough and gains from the trade can be had markets will develop and exchanges will occur in spite of the restrictions (Gwartney, Stroup, Sobel, & Macpherson, 2013). The Prices in the black market are determined by supply and demand just like in other markets. In some cases prices in the black market can be more costly to the consumer than the legal market. This is because the supplier takes on much more of a risk by selling these black market items and could be arrested, pay expensive fines, and even going to prison. On the other hand there are also times when it may be cheaper to purchase items in the black market; this is because the supplier does not have to pay things like taxes or the production costs on items. In August of this year black market distribution of Olympic tickets was shut down. Over 20,000 people would be denied seats into the venue because they had purchased tickets on the black market. The London Olympic tickets were only valid when purchased through authorized outlets. In this situation an unauthorized ticket trader named Euroteam was selling the...
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...1. I believe the fundamentals for the BPO market didn’t change due to the current financial crisis in US. Still, Indian outsource companies add value to the western companies by saving cost, increase process efficiency and decrease time to market. However, I feel in the short-term the BPO market may see reduction in their revenues due to financial industry consolidation and mergers. This might be a good time for them to review their employees and thin them out based on their performance, which will help them to increase their profits while still serving their customers. This time around they can also reach out to Europe, Japan, and other non outsourcing countries to market their IT and BPO services, which will reduce their dependency from US companies. 2. The problem with outsourcing and human capital is the fight between the major corporations. When one company spends a certain amount of time training and teaching an employee another company will turn around and offer that employee eight cents an hour more. Workers bounce from one company to another based on how much more they can make. The loser in this situation is the first company that spent the time and resources to train that employee. It seems that it is pointless to even train any one, just steal from the next. 3. Outsourcing plays a big part in national agenda. Indian government policies are framed in such a way that the BPO market can obtain maximum benefits while working with global companies. These policies...
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...Issues and Concerns of Commodity Derivative Markets in India: An Agenda for Research Nilanjan Ghosh 1. Introduction Commodity derivative markets have traditionally been a contentious issue at various policy forums across the world, particularly with the imbroglio created by allegations from various corners that they encourage excessive speculation and are therefore responsible for the recent commodity price escalation. While this suspicion of excessive speculation in the commodity markets has always been there among policymakers in developing nations like India, it has become more widespread since 2008 in the wake of worldwide inflationary pressures on food and energy. The sudden deflation in the value of various assets underlying different derivatives, which includes commodity derivatives, in the wake of the global meltdown has provoked greater apprehension about the economic utility of futures markets. The suspicion has reached such a high that even the U.S., the biggest proponent of market forces with the most active commodity exchanges in the world, is considering new modes of regulation, and is also investigating the role of commodity derivative trading in the steep rise in prices of wheat, rice, and crude oil. On the other hand, ever since commodity derivative trading was allowed in India in the new millennium, there has always been a hue and cry against such markets, with the alleged notion of excessive “speculation”, though there has rarely been any evidence for it. Rather...
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...Demographic: The Vancouver Aquarium attracts a wide range of demographics, “One-size-fits-all”. The bulk of visitors are Adults aged 18-49 (55%), followed by youth and seniors (25%) and then finally children with the average age around 9 years old (20%). There is no concentration toward male or female. Majority of attendees to events such as the Frogs Forever campaign, are high income families with elementary school aged children along with their grandparents. Along with families there are efforts to attract various ethnic back grounds with focus towards Asian and south Asian markets. Geographic’s: Western Canada residents make up for 2/3 of visitors to the Vancouver aquarium The majority of the western Canada visitors are BC residents living in the metro Vancouver area. These customers are visiting on a regular basis and contribute to the membership revenues which have been increasing substantially since 2009.The other third consists of various tourists that make Vancouver an overnight destination. Stats Canada states that the geographic origin of overnight visitors to the Metro Vancouver area is: United States 1,894,257, Asia/Pacific 650,689, Europe 410,409 and other international tourists 120,376. Psychographic: Psychographics attracted to the aquarium are middle to upper class residents who are interested in animals and marine life. For the most part these visitors are environmentally conscious that live an active, energetic, exciting and economical lifestyle...
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...Evaluating the Market Since the industrial revolution the role of markets in society has been heavily scrutinized. The standard market vision alludes to a market where values and relationships are external to the exchange of commodities. The foundation of this market vision is based off individual’s self-interest and the idea that individuals aspiring to obtain their own goals will create a beneficial outcome for society as a whole. Unfortunately, this early conception of markets was too primitive in its ideals and did not include influential aspects of the market in its evaluation. Friedrich Hayek and Karl Polanyi, two economists, elaborate on their beliefs of the market and how though it is the most functional system there are other variables that influence the market. Hayek discusses multiple positive traits of a free market system. For example, the idea that multiple individuals aspiring to achieve their own goals creates competition advocating the best product for society at an optimum price. Hayek elaborates that he concurs with the market vision to an extent but describes the market as not one big ambiguous entity but a catallaxy of multiple markets effecting one another. A catallaxy is “brought about by the mutual adjustment of many individual economies in a market. A catallaxy is thus the special kind of spontaneous order produced by the market through people….” (Hayek 1937, 109). Hayek displays that with this catallaxy our free market system requires little regulation...
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...Invisible hand, Market failure and Government intervention Invisible Hand Invisible Hand, term used in the book “The Wealth of Nations”, by classical economist Adam Smith, to characterize the idea that a guiding force leads individuals seeking their own economic self-interest to act in ways that also benefit society. A vindication of Adam Smith's intuition about the existence of an "invisible hand" bringing consistency and order to the chaos of individual actions - would be remarkable in them. Much of economic theory of the textbook variety is a celebration of the free market system. This celebration has two parts. First, the operation of the price system, in the context of competitive markets, leads to balance between the demand and supply of the different goods and services traded. In other words, flexible prices result in competitive markets clearing. Second, the market-clearing equilibrium - brought about through flexible prices and competitive markets - is a "good thing" in the sense that it is also a point of economic efficiency. In other words competitive outcomes are also efficient ones. The fact that competition leads to efficiency is known as the First Fundamental Theorem of Welfare Economics. The efficient outcome will have been brought about through parsimony in the use of information; the only things that individuals, in making their supply/demand decisions, need to know are the prices of the different commodities. Furthermore, since the efficient outcome...
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...Geographical Immobility * Occurs when barriers between markets prevent factors of production moving from one area to another to find employment * Land is completely immobile and certain types of capital, for examples factory buildings, can only be moved with extreme difficulty and cost. * Usually geographical immobility refers to the ease or difficulty of labour moving between different areas of the country, or between countries. Factors for geographical immobility: 1. Financial costs in moving home 2. Cost of selling house and removal expenses 3. Large regional variation in house prices which leads to a shortage of affordable housing. 4. Family and Social Ties 5. Immigration controls and language differences Occupational Immobility * Arises when workers lack the skills to move between different types of employment, and because it would be very expensive and time consuming to train workers to have the necessary skills to switch between certain jobs. * Sometimes training is not available and some workers lack the aptitude of taking on different types of employment. * For example, workers made redundant in the coal mining industry lack the specific skills that are needed in growing industries such as the provision of financial services. * All this leads to unemployment and a waste of scarce resources, and contribute to market failure in factor markets. Information Failure * Information failure occurs when people have inaccurate...
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...A justification for your choice of international market. The justification should employ specific data from research conducted. Justification of Wine in China The wine market in China is growing at an expediential rate. According to Wine into China wine market report for 2011-2012 (2012), the annual growth for the wine industry in China exceeds 10%, while the global wine industry is around 1%. Large amounts of increase in the conception of wine in China have lead to the government establishing the country’s first wine exchange. The Chinese are drinking wine with meals on a daily basis, which is a recent trend in the market place. With the high increase in demand would lead to the belief that marketing in this segment will help in the growth of Kudler Fine Foods. The market place is becoming increasingly sophisticated in their desire for finer wines (Chinese wine investment market proving 'increasingly sophisticated, 2012). Having an increased demand and growing trend in the marketplace for the product means there is a large opportunity for growth and higher revenues. If Kudler Fine Foods markets effectively the ability to enter the current marketplace will help with the revenue goals and objective of the company. Marketing the Kudler Fine Food’s wine in Supermarkets and restaurant should be the initial focus to entering the market. According to Supermarket becomes a mainstream of wine selling (2012), “It is said wine sales of supermarket shares 30% of the total sales...
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