Question

10 points Read the overview below and complete the activities that follow. Perhaps the most significant environmental factor affecting the international market for industrial goods and services is the degree of industrialization. Although generalizing about countries is almost prudent, the degree of economic development can be used as a rough measure of a country's industrial market. In this activity we focus on the stages of economic development and their relationship to business-to-business marketing, Industrial (business to business) marketing requires close attention to the exact needs of customers. Basic differences across various markets are less than those for consumer goods, but the motives behind purchases differ enough to require a special approach. Special attention must be given to economic and technological development of each market to determine the buyer's assessment of quality. Companies that adapt their products to these needs are the ones that should be most effective in the marketplace. Read the hint and match each stage of economic development to the corresponding item. Stage 1 A The Traditional society: The most important industrial demand will be associated with natural resources extraction - think parts of Africa and the Middle East. V Stage 2 Stage 3 B. Takeoff: Manufacturing of both semi durable and nondurable consumer goods has begun. Goods demanded relate to equipment and supplies to support manufacturing Stage 4 Stage 5 C. The age of mass consumption: These are countries where design activities are going on and manufacturing techniques are being developed, and they are mostly service economies. D. Drive to maturity: These are industrialized economies and their focus is more on low-cost manufacturing of a variety of consumer and some industrial goods. E. Preconditions for takeoff: Manufacturing is beginning, Primary needs will be related to infrastructure development

Answer 1

Stage 1 - (A) The traditional society which is more concerned with natural resource extraction.

Stage 2 - (E) Preconditions for takeoff: Manufacturing is starting so primary need is related to infrastructure developement.

Stage 3 - (B) Takeoff: Manufacturing starts and demand for goods related to equipment and supplies is more.

Stage 4 - (D) Drive to maturity: Industrialized economies where low-cost manufacturing is taking place.

Stage 5 - (C) The age of mass consumption: Countries where design activities are going on and manufacturing techniques are being developed, essentially service economies.