What is Geography?
• Study of the earth’s
– surface,
– climate,
– continents,
– countries,
– peoples,
– industries and
– resources
Geography influences…
• Customs
• Products
• Industries
• Needs and methods
of satisfying needs
Geography impacts…
• Country’s attractiveness to do business
• Marketing
– Location of manufacturing, distribution centers,
retailers
– Shipping / distribution
• Feasibility of Importing parts, materials, goods
• Practicality of Distribution within country, to neighboring
countries
• Methods, costs
– Availability of local suppliers
– Impact on product design, maintenance
• Considering geography, how easy would it
be to locate a Dominos Pizza & Delivery in
Venice?
Venice
Venice
• How easy would it be to transport goods?
Venice
Market Potential Matrix – Method
• Market Potential Matrix - compare
market potentials for any number of
countries.
– Source:Center for International Trade Development Website
http://www.citd.org/startup/eb/page.cfm?chapter=2&sec=9
1. Identify relevant screening criteria
2. Rate Factor
3. Compare countries
Market Potential Matrix
1 2 3 4 5 6
Country 1 2 2 4 4 5 3
Country 2 4 5 1 2 3 3
Country 3 4 5 4 5 3 3
Key: Columns/Criteria - Geography “On a scale of 1 to 5, with 5 being
1. Transportation – Modes, Usage the most attractive, how attractive
will this country be for successful
2. Communication Systems
marketing? Justify.
3. Size of Land Mass
4. Population Size, Growth, Distribution
5. Age Distribution
6. Climate
Comparing Las Vegas Cost of Living -4th Q 2004 Source: Las Vegas Review
Journal – 4-18-04
Criteria Total Grocer Housin Utilities Transpo Health Misc Avg Avg.
y g rtation Rent Home
Price
Las 103.0 113.6 96.6 83.2 111.8 126.7 104.4 $739 $240,384
Vegas
Phoenix 98.5 100.8 88.9 91.5 111.2 112.3 102.6 $703 $216,774
Los 148.8 121.9 228.6 140.0 115.3 105.5 108.2 $1,428 $594,308
Angeles
Geographic Factors Influencing
Country Attractiveness
• Location Continent, Hemisphere
• Boundaries
• Capital (population), Largest cities (population)
• Area Total
• Area Land
• Coast Line
• Average Daily Temperature
• Annual Rainfall
• Population
• Population Growth rate, live births, birth
rate
• Distribution of
– Age
– Gender
– Urban vs. rural
– Geographical areas
– Ethnic groups
• Transportation and Communication
– Modes of surface transport, usage rates
– Ports
– Communication systems, types, availability,
usage rate
Sources of Country Information
• TradePort Click on Country profiles
http://www.tradeport.org/countries/index.html
• Global Edge MSU Ciber Website Click on
Country Insights
http://globaledge.msu.edu/ibrd/ibrd.asp
• Access Country Watch Stat USA website
Globus NTDB accesses through Cal Poly Library
• U.S. State Department
http://www.state.gov/r/pa/ei/bgn/
• Considering primarily geography, which of
the these two countries do you think would
be more attractive to do business in?
Assessing Geography for Doing Business in…
Geographic Factor Denmark Norway
Natural Resources Wind, natural gas Oil, hydroelectric power
Terrain Low & flat to gently rolling Glaciated; fjords; highest
planes; highest peak 173 point 2469 meters; long
meters; controls Danish coastline; 2/3rds mountains;
Straits linking Baltic and strategic location adjacent to
North Seas sea lanes & air routes in
North Atlantic
Area 42,394 sq km (2X size of 324,220 sq km (slightly
Massachusetts) (#132) larger than New Mexico)
(#67)
Population 5,352,820 (#105); ¼ of pop. 4,503,440 (#115);
Lives in greater
Copenhagen
Climate Jan (35 F) Aug (63F) Jan (25F) Aug (64F)
Population Density (per sq. 124 14 sparsely populated
Km)
Highways 71,474 km (#48) 91,180 (#40)
Scenes from Norway
Scenes from Denmark
Which Marketing Decisions Will Be Affected by
Geography for Starbuck’s, Krispy Kreme?
(Sample)
• Where to locate? Urban or rural? Which
Cities?
• Which part of the city? Central? Suburb?
• Should products be reformulated for
climate, altitude? E.g. icing on donuts,
baking temperatures
• Should hot or cold beverages be added,
featured depending on climate?
Which Marketing Decisions Will Be Affected by
Geography for Frito Lay Potato Chips? (Sample)
• Is climate, terrain suitable for growing
potatoes? Any potato diseases?
Farmland available?
• Should products be reformulated for
climate, altitude? E.g. baking temperatures
• Are there sources for vegetable oil?
• Will products be distributed nationwide or
only major cities? Which cities?
• Are roads adequate for distribution?
Which Marketing Decisions Will Be Affected
by Geography for XBox? (Sample)
• What is the age distribution of population?
How many in target market (12 – 35)?
• Are ports available to ship in product?
• Will products be distributed nationwide or
only major cities? Which cities?