Globalization Continues to Shape the World Markets
Market Nature and Effectiveness
First is to recognize the key factors that affect the business the most and then is to uncover how they could shape the business over the long-term.
To understand a nation’s market nature and effectiveness begins with drawing attention to the core factors that are the most important and affect once business the most.
Market nature and effectiveness is an analytical process to understand, evaluate and put weight on the current and the future business opportunities. Foremost to discover the target focus groups key behaviors and observations with the objective to turn consumer insight information into new breakthrough business opportunities.
It is common that Marketers merge company sales and business information with the market economical and demographic information and trends. The information that are the most often assessed can be categorized into few groups as follows:
The legal system framework in a market reflects the political system structure and business industry freedom. The objective is to obtain understanding of the political influence magnitude in a market. The economical geography of the politics national power stretches its angles all the way down to the local authority mandatory systems.
The Macroeconomics Environment
Economical performance and fluctuations of markets affects business directly or indirectly. Consistent and strong economy reflects stable business environment resulting in less external risk factors. Country economic policy and regulatory system affect the business outcome in many areas. Consistent economic growth increases and stimulates the quality of life in a market, and so on.
Demographic information and socioeconomic factors (social and economic factors)
These factors are considered having large impact on sales and marketing development in a local market environment. The demographic information are related to total population, split, as of births, deaths, age split, gender split, marriages, immigration and diseases. The socioeconomics information are related to factors such as income levels, family status, household, educational levels, health systems, social systems, profession split, labor market, public finances, industrial activities, price index, ethnicity, religion and general censuses. Understanding the underlying trends of these factors provides Marketers with excellent information to predict the current and the future business trends. Declining population could for example translate into dropping target group size. The information is then merged with the company sales shares to understand current and future affects on the business.
These are personality factors such as nations or geographical markets mind-sets, historical background, believes, cultures, behaviors and attitudes, opinions and interests. How nations set their minds to things can be important i.e. in ethical context. Emphasizing equal rights focus between gender and environmental awareness focus, corruption and the importance of education are part of the psychographics factors.
The country information is public and generally provided by governmental units such as the Statistical Office in each country. Though the governmental information can be up to five years old, i.e. general census studies, they can be useful to explore the current and the future trends of a business. Scale sizing the target focus groups is an analysis process with the objective to understand the dynamics of the current and potential customers, consumers and shoppers in selected geographical areas. This is achieved by putting a weight on the target focus group; behavior, size, income, conditions, accessibility and needs trends, over the long-term.