Understanding and Reaching Global Consumers and Markets - Essay Example

Understanding and Reaching Global Consumer Markets Globalization occurs where elimination of enforced restrictions on exchanges across borders are minimised allowing free movement of labour, goods, capital and services. A gradual decline in economic protectionism, growing economic integration and free trade, existence of global competition which have resulted to global marketing strategies and technology have been key in reaching Global consumer markets. This paper discusses how language, culture, income and wealth distribution, type of government, and major industries affect the German market.

Language In Germany 91.5% of the population speak German, 2.4% speak Turkish while the rest of the tribes make up the rest 6.1%. The official language used in Germany is German. Therefore, businesses in Germany are German based. Investors should therefore consider integration of German language in businesses located in Germany. This is because the success of such a business endeavour depends on workers, managers and consumers who speak German. Culture Most inhabitants of Germany are ethnic German.

There are however about 7 million other inhabitants from other countries most of whom are from Turkey. The Culture of Germans have been shaped by major intellectual and popular currents in Europe both religious and secular. Germany is known for its poets and thinkers who have influenced creation of about 240 theatres, hundreds of symphonic orchestras, great museums and 25,000 libraries spread all over Germany. These cultures represent the values that the German population upholds. Therefore, success of business operations primarily depends on how the businesses appeal to these values.

Brand targeting, positioning, and market segmentation should therefore be based on these important cultural values. Income and wealth distribution There is uneven distribution of wealth and income in Germany. This has come because of differences in education levels between Germans and the people who have migrated to German with no skills mainly from the Turkish community. Most of Germany labour market requires skilled labour, which therefore means that the unskilled labour is employed to do low wage work.

As a result, a difference in earnings and wealth is inevitable. This has an important market implication. Government A marketer who is seeking information about the government and political conditions of a country is interested in the business environment influenced by the two. Good governance and political stability plays a major role in thriving of any business. Germany’s corruption free economy too is a catalyst for good markets. The government of is parliamentary and has a democratic constitution that emphasizes the protection of individual liberty and division of powers in a federal structure.

Germany comprises of sixteen states. Each state has its own constitution and subdivision of each differs in terms of size and population. It has further enhanced foreign relations by creating about 229 diplomatic missions abroad and by maintaining relations of about 190 countries. This have paves way for global business integrations. Major industries According to U.S department of state journal, Germany is the leading exporter of machinery, vehicles, chemicals, and household equipments, (U.S department of state, 2011).

The country also leads the world in production of wind turbines and solar-power technology. This have enabled the country to have a social market economy with high skilled labour force, large capital market, low levels of corruption and high level of innovation. Marketing products from Germany in other countries then is easy since their fame and quality is prior known. U.S Department of State, Bureau of European and Eurasian Affairs. July 1,2011.http://www.state.gov/r/pa/ei/bgn/3997.htm