Marketing Assignment - Brazil market, business environment and factors influencing the market and consumer behavior

Marketing Assignment - Brazil market, business environment and factors influencing the market and consumer behavior

Brazil market, business environment and factors influencing the market and consumer behaviorhttp://writers-corp.net

            Brazil has been a developing economy for many years, and has raised itself, from a traditional agriculture and market economy to one, which is not only market driven. The republic of Brazil has raised to become the largest economy in Latin America. The nation has a culture that enables it to be open for development as it accommodates different ethnicities, which is very beneficial for business. According to the World Bank and the IMF, Brazil’s economy is the sixth largest in the world in terms of the purchasing power and the largest among the Latin American Nations. Brazil is among the fastest-growing world major economies, with an average annual GDP growth proportion of over 5 percent (Baer 2001, p. 176).

Brazil market and business environment

            Brazil is among the world’s emerging markets, attaining a classification, among countries such as India, China and Russia, currently accounting for 38% of the world gross domestic product (GDP) (Dhanaraj & Khanna 2011, p. 684).  Brazilian market in highly populated with customers, who understand the use of technology to acquire information regarding any products or services that they require. As a result, Brazil has ended up being one of the largest IT markets, within the emerging economies. Brazil IT end-user capability of spending is projected to increase up to $134 billion by the year 2014. This can be sub-divided in to different spending share, with the largest being on telecom equipment, as it will be representing 72% of the market; IT services will take 13.3%, while the computing hardware will be at 11.9%. This presents a major opportunity for investors seeking a continuously expanding market to start their businesses.

Factors influencing the market and consumer behavior

            Consumer behavior is the reaction of the target market towards products or services being offered (Li 2011, p. 182). There are different factors that affect the consumer behavior in Brazil and they include.

Culture - Brazil culture consists of people of mixed ethnicity with most of the people being educated and able to acquire information concerning different products. This highly affect the way they behave toward different products due to the ability to choose

Economy – Brazil’s economy is well performing with the nation being among the BRIC nations, controlling 38% of the world’s GDP.  This growth offers the consumer a higher purchasing power.

Technology and attitude – The growth in technology in the country has availed information about companied and products, making them more informed. With the projection of further increase in technologically related spending, Brazil will be a highly competitive market for companies seeking to impress customers online.

References

Baer, W 2001, ‘The Brazilian economy: growth and development’, Westport, Conn: Praeger,         p. 176. 

Dhanaraj, C, & Khanna, T 2011, 'Transforming Mental Models on Emerging Markets', Academy    Of Management Learning & Education, 10, 4, pp. 684-701, Business Source Complete,          EBSCOhost, viewed 26 November 2012.

Li, G 2011, 'A Research on Influencing Factors of Consumer Purchasing Behaviors in        Cyberspace', International Journal Of Marketing Studies, 3, 3, pp. 182-188, Business       Source Complete, EBSCOhost, viewed 26 November 2012.