1. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 4 The Economic Environment

2. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Characteristics Population Household:

3. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Characteristics The degree of urbanization dictates the nature of marketing task the company faces, in terms of: Income

4. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Characteristics Income-distribution can be classified as: Purchasing power parities (PPPs):

5. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Characteristics Income figures are useful in the initial screening of markets Consumption patterns Sophistication of a country’s data collection systems

6. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Characteristics Engel’s laws state that as a family’s income increases: Data on product saturation or diffusion:

7. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Characteristics General consumption figures must be cautiously viewed as critical product-form differences may be concealed Inflation:

8. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Characteristics Infrastructure The facilitating functions of marketing:

9. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Characteristics Transportation networks by land, rail, waterway, or air are essential for distribution Communication systems for marketing include:

10. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Characteristics The more extensive the firm’s international involvement:

11. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Impact of the Economic Environment on Social Development Factors impeding economic growth: Social indicators:

12. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Impact of the Economic Environment on Social Development Physical Quality of Life Index (PQLI):

13. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Impact of the Economic Environment on Social Development PQLI is composed of: Emotional well-being may be determined by:

14. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Regional Economic Integration Economic integration Success of blocs depend on:

15. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. European Integration It results in economic growth Sources of growth being: Operations from one country can be freely expanded to other countries

16. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. European Integration Goal of free movement of goods has been achieved due to the move from a “common standards approach” to a “mutual recognition approach”

17. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Levels of Economic Integration North American Free Trade Agreement The ratification of the North American Free Trade Agreement (NAFTA) created the world’s largest free market:

18. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Levels of Economic Integration Distinctive feature of NAFTA is the two-side agreements to correct perceived abuses in labor and in the Mexican environment Maquiladoras:

19. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Regional Economic Integration Other economic alliances Integration in Latin America – MERCOSUR has three objectives: Integration in ________ Integration in __________________

20. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Emerging Market Is a country making an effort to change and improve its economy:

21. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Emerging Market Strategies adopted by marketers to thrive in emerging markets:

22. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Developing Markets Five elements of success for an international marketer to thrive in developing markets

23. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Economic Integration and the International Marketer Economic integration creates opportunities and potential problems for the international marketer Decisions regarding integrating markets must be assessed from: