PRESENTATION ON INTERNATIONAL MARKETING

ENVIRONMENTOF GULF REGION PRESENTED TO

PROF SATISH KUMAR

PRESENTED BY MD NEHAL

KHAN

What is International Marketing?

Needs, Market, Marketing, International Marketing

Text book definition:”…the process of planning and conducting transactions across national borders to create exchanges that satisfy the objectives of individuals and organizations.”

2004 American Marketing Association definition: “Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.”

Marketing and the Environment

ProductPricePromotionPlace

International Marketing Basics

Basics of marketing (in international context) Target Market Selection

Marketing Management

The Marketing Process

Geographical Perspectives Location matters in business and trade

Climate, terrain and topography

Population and demography

A global village in the making?

Analyzing Market Characteristics

Population/demographics Age distribution

Life expectancy

Household size

Urbanization

Income Distribution of low,

medium, and high incomes

Gross domestic product per capita

Inflation and debt

Consumption patterns

Income spent on necessities and luxuries

Product saturation or diffusion

Consumer Price Index Availability and

quality of infrastructure

Distribution infrastructure

Internet Availability of

electricity

GULF REGION

GCC COUNTRIES

•SAUDI ARABIA

• KUWAIT

• BAHRAIN

• QATAR

•SULTANATE OF OMAN

• UNITED ARAB EMIRATES•ABU DHABI •DUBAI.•SHARJAH.•AJMAN.•UMM AL QAIWAIN.•RAS AL KHAIMAH .•FUJAIRAH

NON GCC COUNTRIES

•ALGERIA

•DJIBOUTI

•EGYPT

•IRAQ

•JORDAN

•LEBANON

•LIBYA

•MAURITANIA

•MOROCCO

•SUDAN

•SYRIA

•TUNISIA

•WEST BANK/GAZA

•YEMEN

Climatic Conditions of Gulf

• SAUDI ARABIA :ONE OF THE DRIEST COUNTRIES IN THE WORLD. WITH RAINFALL AVERAGING IS LESS THAN 5 INCHES PER YEAR.

• BAHRAIN : MOST OF THE YEAR THE CLIMATE IS VERY HOT AND ALSO VERY HUMID BECAUSE OF THE ARABIAN GULF SEA SURROUNDING THE ISLAND

• KUWAIT :LITTLE RAINFALL, HIGH TEMPERATURES AND LOTS OF SUNSHINE.

• U.A.E : CLIMATE IS SUBTROPICAL. RAIN OCCURS IN WINTER AND AMOUNTS TO 13CM A YEAR ONLY.

• OMAN: CLIMATE IS VERY COMPLICATED. HOT AND DRY IN THE INTERIOR, HOT AND HUMID ALONG THE COAST. RAINFALL THROUGHOUT THE COUNTRY IS MINIMAL, AVERAGING ONLY ABOUT 4 INCHES (100 MM) PER YEAR, ALTHOUGH PRECIPITATION IN THE MOUNTAINS IS HEAVIER.

Customs and Traditions of Gulf Region

• THE TRADITIONAL CLOTHES IS THE THOBE , ON

THEIR HEADS THEY’D WEAR THE GAHFIA ,ON TOP OF

THAT WOULD BE THE IGA THE SHAILA AND ABAYA

FOR THE WOMEN.

• SWORD DANCE IS FAMOUS IN SAUDI ARABIA.

• TRADITIONAL ACTIVITIES LIKE FALCONRY& PEARL

DIVING ARE FAMOUS IN KUWAIT

Population:24,573,000

Capital: Riyadh

Language: Arabic

Religion: Muslim

Currency: Saudi riyal

Life Expectancy:72

GDP : U.S. $11,400

Literacy Percent:79

Location & Geographical Features

SAUDI ARABIA IS BORDERED BY

• JORDAN ON THE NORTH-WEST.• IRAQ ON THE NORTH AND

NORTHEAST.• KUWAIT, QATAR, BAHRAIN.• UNITED ARAB EMIRATES TO

EAST. • OMAN ON THE SOUTHEAST.• YEMEN ON THE SOUTH.

• GEOGRAPHICAL FEATURES

• THE SOUTHWESTERN REGION HAS MOUNTAINS AS HIGH AS 3,000 M, AND IS KNOWN FOR HAVING THE GREENEST AND FRESHEST ATMOSPHERE IN ALL OF SAUDI ARABIA.

• THE RED SEA LIES TO THE WEST OF SAUDI ARABIA.

Population: 4,618,000

Capital: Abu Dhabi

Language: Arabic, Persian,

English, Hindi, Urdu

Religion: Sunni and Shiite

Muslim, Christian, Hindu,

Currency: Emirati dirham

Life Expectancy:74

GDP :U.S. $22,100

Literacy Percent:78

Location & Geographical Features

• THE UNITED ARAB EMIRATES WHICH IS ALSO KNOWN AS THE U.A.E.

• THE COUNTRIES SURROUNDING THE U.A.E ARE

• QATAR

• SAUDI ARABIA

• OMAN

• IRAN

• GEOGRAPHICAL FEATURES

• UNITED ARAB EMIRATES IS ALMOST COMPLETELY A DESERT, EXCEPT FOR DUBAI, WHICH IS A REALLY IMPROVED CITY, WITH GREAT TECHNOLOGY AND BEAUTIFUL SKY SCRAPERS.

Burj Dubai

Abu Dhabi

Dubai

Sharjah

Ajman

Umm Al Qaiwain

Ras Al Khaimah

Fujairah

Economy of Gulf Region

• SAUDI ARABIA :PETROLEUM SECTOR ACCOUNTS FOR

ROUGHLY 75% OF BUDGET REVENUES, 45% OF GDP, AND

90% OF EXPORT EARNINGS. ABOUT 40% OF GDP COMES

FROM THE PRIVATE SECTOR

• BAHRAIN : PETROLEUM PRODUCTION IS THE MOST

IMPORTANT RESOURCE. IT IS 60% OF THE EXPORTS, 60%

OF THE GOVERNMENT REVENUES AND 30% OF THE

COUNTRIES GDP.

• KUWAIT : IT OWNS ABOUT 10 PERCENT OF THE WORLDS

PROVEN OIL RESERVES. ITS CRUDE OIL RESERVES OF

ABOUT 95% OF EXPORT REVENUES, AND 80-90% OF

GOVERNMENT INCOME.

• OMAN HAS A PRETTY LOW GPD PER CAPITA OF ABOUT

8,300, WHICH IS SLIGHTLY LOWER THAN THE WORLD’S

AVERAGE

• U.A.E HAS BEEN LARGELY FUNDED BY OIL REVENUES,

THE GDP OF UAE ECONOMY IS THE FASTEST GROWING

1st January 2008

• AT THE END OF THE 28TH GULF SUMMIT IN DOHA,

• THE WEALTHY SIX GULF STATES HAVE TAKEN A STEP CLOSER TOGETHER ECONOMICALLY WITH THE FORMATION OF A COMMON MARKET AS GULF COMMON MARKET.

• AIM GULF COMMON MARKET : TO BUILD ON LOCAL STRENGTHS WHERE ALL

GULF NATIONALS WILL BE CONSIDERED EQUAL CITIZENS AND WILL ENJOY THE SAME RIGHTS IN THE FIELDS :• TRAVEL• EMPLOYMENT • EDUCATION • ECONOMIC• FINANCIAL & INVESTMENT OPPORTUNITIES.

• MAIN CHALLENGES FOR THE GULF COMMON MARKET • MONETARY POLICIES IN THE GCC STATES• INFLATION RATES • LAWS AND REGULATIONS RELATED TO INVESTMENT .

• PROBLEMS AND OBSTACLES : SOME MEMBER STATES HAVE SIGNED BILATERAL ECONOMIC AGREEMENTS WITH NON-GCC COUNTRIES.

• REAL IMPLEMENTATION OF THE GCC COMMON MARKET : REQUIRES MONTHS AND THAT THIS PERIOD WAS NEEDED TO HAVE THE LOCAL RULES AND REGULATIONS AMENDED TO MATCH THE REQUIREMENTS OF THE COMMON MARKET.