To enter foreign markets, an international marketer must study the economy of each country of interest. There are two characteristics that determine the attractiveness of a territory as an export market.
The Impact of the Environment on International Marketing
The first characteristic is the structure of the economy. It is the needs for goods and services, income levels and much more that determine the economic structure of the country. Four main types of economic structures can be distinguished:
Countries with subsistence economies
In this model, the bulk skype data package of the population devotes its efforts to primitive agricultural production. The products generated mainly satisfy personal needs, while the rest is exchanged for necessary goods and services. In such conditions, the exporter faces limited prospects. Among the countries following this economic paradigm, Bangladesh and Ethiopia can be distinguished.
Raw Material Exporting Countries
Such states are rich in one or more natural resources but suffer from deficits in others. They depend on the export of these resources for a significant part of their income. Examples include Chile (lead and copper), Zaire (rubber), and Saudi Arabia (oil).
Such countries are promising markets for mining equipment, tools and auxiliary materials, lifting and handling equipment, and flatbed trucks. Depending on the number of permanent foreign residents and the wealth of local rulers and landowners, it can also serve as a market for Western-style mass-market goods and luxury items.
Industrializing countries
In a rapidly growing industrial economy, the share of the manufacturing sector in the country's gross national product increases to 10-20%. Examples of such countries are Egypt, the Philippines, India and Brazil. As the manufacturing industry strengthens, the nation becomes more dependent on imports of textile raw materials, steel and heavy engineering products, and less dependent on finished garments, paper products and automobiles.
Industrialization is accompanied by the emergence of a new group of wealthy entrepreneurs and a small but steadily growing middle class who demand new types of products, some of which can only be met through imports.
Industrialized countries
States that have achieved a high level of industrial development occupy leading positions among exporters of products. They trade with each other and also sell these goods to countries with a different economic structure in exchange for raw materials and semi-finished products. The diversity and scale of production activities make industrially developed states with a significant middle class important markets for a wide range of products. Examples include the United States and Western European countries.
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The second economic indicator is the nature of income distribution in the country. Their ranking depends not only on the characteristics of the economic structure, but also on the political system of the state. According to the nature of income distribution, international marketers distinguish five types of countries:
With very low levels of family income.
With a predominantly low indicator.
With very low and very high levels of family income.
With low, medium and high such indicators.
With a predominantly normal level of family income.
Let's take the Lamborghini market, which is cars priced over $50,000. In countries of the first and second types, demand for them will be limited. The most significant single market for this brand of cars is Portugal, which is a representative of a country of the third type. It is the least prosperous country in Europe, but it is home to many wealthy people who value their social status and strive to maintain the prestige of their family, which makes them able to buy such cars