Question

Companies collect a wide variety of information about their foreign markets to decide in which countries to conduct business and which market segments in these markets they should target. What are the three major markets that exist in all foreign markets? Describe the markets and provide an example of each.

For this discussion question, you must support your analysis with a peer-reviewed article.

Answer 1

Three major markets that exist in all foreign markets are as follows:

• Consumer Markets These markets deal into buying and selling of regular use goods. They are also called as retail markets. The buyers in these market have to choose from wide variety of products. There are branded products, products of lesser known brands. E.g clothing, groceries, electronics, furniture. The sellers of the products have to face huge competition and high operating costs. The consumer market in United States is the largest. So, all the foreign firms are eager to enter the consumer market of United States.
• Industrial Markets These include those firms and corporations which spend money to finance and expand their business operations and sales and marketing activities. The money spent is necessary to expand the operations and capture large market share. Expenditure relates to Business to Business. E.g Money spent on research and development of marketing activities, plant, machinery, equipment, lubricants, raw materials, advertising campaigns.
• Government Markets Government Markets gives more importance to infrastructural projects like roads, bridges, dams, government offices, airports, military operations, ports, supply of clean air and water, health facilities of the citizens.Government Markets consist of local, state, central and other small bodies. Normally Request for Proposal is used popularly known as RFP and on the basis of bidding and other parameters it is decided who will be given the contract.