The Major Markets in Foreign Markets

Gasper (2014) explains that within each foreign market, there are three major markets which purchase products and services: government markets, the industrial market, and consumer market. The industrial market comprises of companies that buy services and products like machinery and equipment, advertising, cleaning services, semi-finished products, raw materials, marketing research, consulting services, supplies, lubricants, and others. The industrial market work is exclusively different because all the market forces affect the industrial demand. Industrial marketers face various unique marketing conditions which are not experienced by the consumer market.

According to Brown (2012), in foreign markets, the industrial market is the backbone of high living standards experienced by consumers after industrial revolution at a global level. The marketing concept of an industrial buyer’s business enterprise defines a target market needs and modifies the product and service of an organization to satisfy its needs than its competitors successfully. The industrial market consists of the activities that are involved in product and service marketing to the organizations that use these products and services during the production of industrial and consumer goods and services that facilitate the enterprise operations.

The government markets according to Gasper (2014) mostly involve similar services and products like that in industrial markets.  However, this type of market primarily emphasizes on the primary infrastructure like airports, communication lines, dams, roads, clean water bridges, mining operations and health care services. Most of the emerging markets like sub-Saharan Africa, infrastructure programs and projects are leading. In countries like Netherlands and Belgium, the biggest percentage of the national GDP is set for the expenditures of the government.  The majority of these government outlays, domestic and foreign companies, are required to surrender to competitive bids.

The largest purchaser of goods and services in the world according to Brown (2012), is the U.S federal government. Any business indulging in this business should understand the customers in this type of market. There are three types of customers in this market: influencers, procurers, and end users.  Procurers select the procurement methods as well as conducting procurement. This group has an enormous influence on the purchasing process. However, influencers steer them- to whom they often act as gatekeepers. Influencers are the high-level decision makers and program managers who generate the requirement of services and product. Lastly, are the end users who are influential in getting the most competent contractors involved in the bid.

According to Gasper (2014), in developed countries, consumer markets account for more than 50% of the GDP of the countries. This type of market purchases a broad range of products like entertainment, food, credit services, clothing, banking services and transportation. In Western Europe and North America, consumption is still concentrated. However, consumers in the emerging markets are in large numbers stepping onto the world stage. The American consumer is no more the chief driver of the economic growth of the world. This fact has held profound implication for supply chain dynamics and international trade patterns.

The new consumers from the emerging markets according to Gasper (2014) are creating a conspicuous impression to the multinational corporations that always view them as “low-hanging fruit” in comparison to their frugal and fatigued counterparts in developed countries. Undeniably, retailers progressively view the sluggish Western Europe and the U.S consumer markets as a combat zone for market share, whereas they see the emerging markets as a more attractive growth opportunity due to the fast growing consumer demand. Most of the large US corporations have taken notice of the global rebalancing where for example they consider the booming middle class in the Chinese market as a centerpiece for their growth strategies.

Reference

Brown, K. (2012). INDUSTRIAL MARKET ANALYSIS. Center For Real Estate Quarterly, 6(1). Retrieved from https://www.pdx.edu/realestate/sites/www.pdx.edu.realestate/files/08%20Industrial.pdf

Gaspar, J. E. (2014). Introduction to global business: Understanding the international environment and global business functions.