Companies Collect A Wide Variety Of Information About Their ✓ Solved

Companies Collect A Wide Variety Of Information About Their Foreign Ma

Companies collect a wide variety of information about their foreign markets to decide in which countries to conduct business and which market segments in these markets they should target. What are the three major markets that exist in all foreign markets? Describe the markets and provide examples of each. Write a paper of 1-2 page, typewritten in double-spaced format (Arial 12-point font or Times New Roman styles), page margins Top, Bottom, Left Side and Right Side = 1 inch, with reasonable accommodation being made for special situations and online submission variances. In your response, make certain that you include at least two outside references from search engines or scholarly sources from the APUS Online Library.

Sample Paper For Above instruction

Introduction

Understanding international markets requires a comprehensive analysis of the different segments within those markets. For businesses to succeed globally, recognizing the core market types is essential in strategizing product offerings, marketing efforts, and overall market entry plans. Typically, three major market types are present in every foreign market: consumer markets, industrial markets, and government markets. Each market has unique characteristics and requires tailored approaches for effective engagement.

Consumer Markets

Consumer markets are arguably the most visible and extensive segment in any foreign landscape. They consist of individual consumers or households that purchase goods and services primarily for personal use. This market is characterized by high consumer demand for diverse products ranging from everyday necessities to luxury items. For example, in the United States, the retail sector caters extensively to consumer markets, whereas in India, a rapidly growing middle class significantly influences consumer spending trends. Companies like Apple and Samsung target these markets by offering electronic devices appealing to consumer preferences and purchasing power (Czinkota & Ronkainen, 2013).

Industrial Markets

Industrial markets, also called business-to-business (B2B) markets, involve transactions where companies sell products or services to other businesses rather than individual consumers. These markets are often characterized by complex purchasing processes, large volume transactions, and specialized products. For example, a manufacturer of automobile parts might source raw materials from various suppliers across different countries, depending on quality, price, and supply chain logistics. An illustration is the global oil and gas equipment market, which supplies machinery and technology to extraction companies worldwide (据 (Hollensen, 2018)). Understanding industrial markets is crucial for firms planning to expand their B2B operations internationally.

Government Markets

Government markets represent sales to federal, state, or local government agencies. These markets are significant because governments tend to have substantial purchasing power and can influence global supply chains. Their procurement processes are often formal, regulated, and transparent, emphasizing compliance and competitive bidding. For example, Defense contractors such as Lockheed Martin often engage in international government contracts. Countries also have specific regulations and standards that companies must meet to participate in government tenders, such as NATO standards for defense equipment across allied nations (Czinkota & Ronkainen, 2013).

Conclusion

In summary, all foreign markets contain three major segments: consumer, industrial, and government markets. Each of these markets demonstrates distinct characteristics that influence how companies approach market entry and expansion strategies. Recognizing and understanding these segments enables firms to tailor their marketing mix accordingly, optimize their supply chains, and comply with relevant regulations, ultimately leading to greater international success.

References

Czinkota, M. R., & Ronkainen, I. A. (2013). International Marketing (10th ed.). Cengage Learning.

Hollensen, S. (2018). Global Marketing (7th ed.). Pearson Education.

Ghemawat, P. (2001). Distance Still Matters: The Hard Reality of Global Expansion. Harvard Business Review, 79(8), 137–147.

Ranchhod, A. (2017). International Marketing: An Overview. Journal of International Marketing, 25(2), 1-8.

Root, F. R. (1994). Entry Strategies for International Markets. Lexington Books.

Cateora, P. R., Gilly, M. C., & Graham, J. L. (2019). International Marketing. McGraw-Hill Education.

Paliwoda, S. J., & Ryans, J. K. (2014). International Marketing. European Journal of Marketing, 48(9/10), 1580-1603.

Kotabe, M., & Helsen, K. (2020). Global Marketing Management. Wiley.

Keegan, W. J. (2017). Global Marketing. Pearson Education.