Marketing Strategy- Entering a Country
Mary Madison, Director of Market Research at U.S. Agricultural Tractor (USAT), has just come from an important meeting at which it had been decided to initiate a study a study of export opportunities for the firm’s tractors. Since she had no experience in global marketing, she was rather concerned about how best to approach this task.
U.S demand for tractors had stagnated due to a recession in the farming industry. Because of lower demand for its big, high-performance machines, USAT has weathered the recession better than had some of its larger competitors. However, during the past year, the order backlog had been completed considering export opportunities, and Mary had been asked to …show more content…
Thus, whether consumers are willing to purchase the more expensive imported tractors or just choose the local made products will depend on how much money they have in their pockets. Therefore, assessing GDP per capita is equivalent to assessing the purchasing desire of customers looking for imported tractors.
MARKET SUSTAINABILITY –
The above factors can tell you the pros and cons of each country at the present moment. Exporters can make their decisions and pick up the countries look favorable. However, the equally important consideration like whether it is a growing or a sustainable market should also be considered. It will greatly affect the long term profit of the company and their competitiveness. The result can be explained by the recession in U.S. farming industry which gives a difficult time to USAT. Since a lot of effort has to be spent to expand an overseas market, if the market is not a growing market. Exporters may not only find it is not justify with the large amount effort spent, but also lost the opportunities in other markets. Therefore, sustainability is a vital issue. The date in agricultural growth can give you a better view of how “healthy” of the market in the future.
POLITICAL, ECONOMICAL and SOCIAL ENVIRONMENT –
Doing business overseas is very different from doing business locally. The government