Entering the international market is a challenging activity. Its inhabitants not only speak differently, but have different lifestyles and do business differently (Kautz, 2004, p. vii). However, if this market is approached in a methodical way, the resulting sales can be very rewarding. Part of the G20, Argentina is a popular target for global business. With a strong agricultural sector, abundance of natural resources, diversified industrial base, and a large middle class, Argentina provides many oppourtunities as a potential foreign market (Meyskens, 2009). This report will analyse the demographic and wealth characteristics in Argentina, how they affect the marketing mix and the overall potential of the nation as a foreign market for Australia.
Limitations to Research
As the Argentine census data used for the purpose of this research was collected in 2001, limitations within the research must be recognised as statistics could potentially be outdated. Information in regards to demographics and income are constantly altering, and as it’s been eleven years since the last survey was carried out, it is almost certain that data has changed.
Demographics (Age and Education)
Maximising marketing oppourtunities requires understanding the changes in attitudes, values, lifestyles and demographic trends (Kerin et al, 2008, p. 70). Argentina has a well-educated and highly skilled population. The nation has a very young demographic, with more than a quarter of the population being under the age of 14, while approximately 63% of the population are aged between 15-64 (Link & McCarthy, 2004, p. 103). Age frequently determines consumers’ needs and wants for a specific product, brand or service (Heibing, 2012, p. 75). When targeting the mass-market, products under consideration to be marketed in Argentina should be for a younger demographic as they have a large market share. Whether it is technologically advanced, or for educational or communication purposes, the selected product should be reflective of its target audience’s wants and needs. Because of this, price should also be indicative of a young demographic. With a literacy rate estimated to be 96 percent, comparable to the U.S. rate of 97 percent, Argentina provides complimentary education throughout primary, secondary and even university level teaching (Dougherty, 2004, p. 60). A young demographic with high levels of education indicates no real limitation for promotion and marketing, due to no verbal communication barriers. Advertisements can be conveyed through a variety of means including print, television, and the Internet. Argentina’s official language is Spanish, but is heavily distinctive on the continent because it has been heavily influenced by Italian (Morrison & Conaway, 2012, p. 12). Because of this, verbal and written advertisements would have to be addressed accordingly, and any translations would have to be done so carefully.
The economical influences a country and its people pose have the power to influence the marketing mix. A country’s income distribution is important because it gives a more reliable picture of a country’s purchasing power (Kerin et al, 2008, p. 150). The average wage of a person living and working in Argentina is approximately 3500 pesos per month (about $674.00AUD) and highly dictates the amount of disposable income people are able to spend. Due to the majority of the population being classified as Middle Class with a relatively low disposable income, there is no place for high end luxury products in the Argentine market. As income can predict in broad terms what a family’s lifestyle will be like, products marketed in Argentina should be reflective of Middle Class wants and needs (Heibing, 2012,...