chapter 4 Flashcards
enumerate MARKET CHARACTERISTICS
POPULATION
INCOME
CONSUMPTION PATTERNS
must be broken down into meaningful categories in order for the marketer to take better advantage of them.
Population figures
An important variable for the international marketer is the size of the household.
POPULATION
Markets require not only people but also
purchasing power
which is a function of income, prices, savings, and credit availability.
purchasing power
is most indicative of the market potential for most consumer and industrial products and services.
INCOME
states that as a family’s income increases, the percentage spent on food will decrease, the percentage spent on housing and household operations will be roughly constant, and the amount saved or spent on other purchases will increase.
Engel’s Law / CONSUMPTION PATTERNS
is a composite measure of the level of welfare in a country.
Physical Quality of Life Index (PQLI)
PQLI has three components
life expectancy, infant mortality, and adult literacy rates.
(PQLI)
Physical Quality of Life Index
LEVELS OF ECONOMIC INTEGRATION
Economic Union
Common Market
Customs Union
Free Trade Agreement
Preferential Agreement
four different perspectives of ECONOMIC INTEGRATION & The International Marketer
- the range and impact of changes resulting from integration,
- development of strategies to relate to these changes,
- organizational changes needed to exploit these changes, and
- strategies to influence change in a more favorable direction.
