Quiz 7: Global Marketing
Global marketing: Global marketing is a process of marketing a product or service on a worldwide scale. It shows the ability of firm to the market. It is also termed as international marketing. Benefits of global marketing to firm: The following are the major benefits to firm who engage in global marketing: • Market expansion • Global networking • Improved brand reputation • Future opportunities • Enhanced sales
Consumer behavior of Person H, Person A, and Person B were similar as they were focused towards building the environment-friendly green homes. Despite of above similarity, consumer behavior of all three persons varied as elaborated below: • Person H had left the construction for contractors and decorated his house on his own. • Person A didn't hire any contractor for the construction work of his house. He performed all the functions of a contractor on his own viz. sourcing the material, hiring crews and managing the budget. • Person B was a contractor. Hence, he was a customer for the vendors providing supplies of construction materials. He used to build relationships with its vendors unlike Person H and Person A. B2B Buyer: B2B buyer represents a business firm that purchases its products and services from other business firms. Person A didn't hire any contractor for the construction of his house and performed all the functions of a contractor on his own namely sourcing the material, hiring crews and managing the budget. Although he sourced the construction materials directly from the vendors; however, it was not done for any business purpose. Person A had procured the materials for construction of his own house. Hence, it is concluded that Person A was a regular customer; not a B2B buyer. Company C was required to maintain good relationship with its vendor viz. Company B as they enabled the company to serve their customers in a better way. Residents of City G wanted to build environment-friendly homes. However, sourcing of such building materials was impossible in the city. Company C could procure these materials with the help of Company B. Thus, Company C could get the competitive advantage and customer loyalty in the market with the help of Company B. Alongside, this relationship would also help Company B to increase its business and market share. Increasing business of Company C would help to increase the sales and revenue of Company B. Hence, it is concluded that good buyer-seller relationship helps to benefit both the organizations. Advantages of working with customers who act as their own contractors are listed below: • The customer could not get advantage of economy of scale unlike the contractors. Contractors work on larger scale. Therefore, they order a larger volume of products and service. Hence, they would demand for higher discounts and offers. Customers working as contractor could not avail such offers and discounts. It would increase the revenue of vendors. • Vendors working with the customers who act as their own contractor would get creative and innovative ideas as the customers would design their home in their own unique way. Disadvantages of working with the customers who act as their own contractor are listed below: • Customers would ask for more customized products. It would be difficult for the vendors to source them. • Direct involvement of customers would increase the complexity of work. Besides this, it would also increase the time duration required for the completion of a project as the customer does not possess expertise on contracting a project. They would take more time and energy to complete a project.
"G Company taking advantage of the untapped market was a right move." The company took the right decision to focus on the Chinese market when the U.S market was down. This decision has resulted in good growth in sales for the company. The company has experienced 67 percentage of growth in overall sales; and in certain car brands, there was a triple digit sales growth from the previous year sales. For years, G Company invested heavily in the Chinese market to the tune of $1billion annually. Today, the company holds about 13 percent of market share. The Chinese market growth has helped the company to expand its business in the heavy vehicles segment. Hence, the strategy of using bailout money received from the U.S government in the Chinese market is a right move.
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