This website uses cookies to ensure you have the best experience.

# Marketing On China's Economy Essay

1067 words - 5 pages

Marketing 5000 MBN Exercise 1: Estimating Market Demand
Aaron Binder
China and its Growing Economy
China is the most populous country in the world with approximately 1.35 billion people and is still exhibiting signs of population growth (The World Factbook, 2013). To go along with the large population size, China is also one of the fastest growing economies. The average median income throughout China has increased dramatically in recent years due to this quick market expansion. From 2000-2010 the median income quadrupled from \$760 per year to \$3,000 (Censky, 2012). Because of this influx of monetary gain the middle class of China can afford to purchase more new vehicles. Perhaps the ...view middle of the document...

This number is n in the chain ratio method equation.
The next step is to calculate the quantity purchased by an average buyer per year. The number of passenger cars purchased in 2012 is 15.1 million and many estimates put the projected number for this year to be 20 million despite potentially tight restrictions on new car purchases (Bloomberg News, 2013). Even with the newly imposed restrictions expecting to prevent 400,000 new car purchases that still leave the number at 19.6 million sales. To get q or the quantity purchased by an average buyer every year for the chain ratio method equation, the total sales number of 19.6 million must be divided by the total population of capable buyers which is 909 million. This leads to the q value being 0.0216.
Finally the average price of an average unit or p must be determined. This number is hard to determine as the market is still relatively new and buys must account for purchasing license plates. It can actually cost as much for a license plate as it does for a cheaper brand car in some parts of China because of the strict restrictions put in place to limit the number of cars. The best estimate is that of a small, compact car that is in the mid-range for intermediate priced cars. For this calculation the Volkswagen Golf 1.4 L will be used as it fits the criteria for price and size typically bought. This car is around \$24.5k brand new in China (Numbeo, 2013).
Now that we have the values needed for the chain ratio method calculation, we can plug them in and get the Q or total market demand for new car sales in China.
Q = n X q X p
Q = 909,000,000 X 0.0216 X \$24.5k
Q = \$481,042,800,000

Discussion
When one sees this astronomical value and potential car sales in China it’s not surprising that many car companies are shifting their focus to include China in marketing campaigns. With the largest population for purchasing, a quickly increasing median income, and newfound interest in Western car brands and ideals the Chinese market will be increasing for years to come despite the environmental and space struggles already exhibited (Luhby,...

## Other Essays Like Marketing on China's Economy

### Report on Disk Storage Markets in China

545 words - 3 pages April., 11, 2016, Mumbai, India: Market Reports on China presents the report, on “Report on Disk Storage Markets in China”. This new study examines China's economic trends, investment environment, industry development, supply and demand, industry capacity, industry structure, marketing channels and major industry participants. China's demand for Disk Storage has grown at a fast pace in the past decade. In the next decade, both production and

### Cervical Cancer Treatment Drugs Markets in China

556 words - 3 pages March., 25, 2016, Mumbai, India: Market Reports on China presents the report, on “Cervical Cancer Treatment Drugs Markets in China”. This new study examines China's economic trends, investment environment, industry development, supply and demand, industry capacity, industry structure, marketing channels and major industry participants. Historical data (2005, 2010 and 2015) and long-term forecasts through 2020 and 2025 are presented. Major

### Cervical Cancer Treatment Drugs Markets in China

556 words - 3 pages March., 25, 2016, Mumbai, India: Market Reports on China presents the report, on “Cervical Cancer Treatment Drugs Markets in China”. This new study examines China's economic trends, investment environment, industry development, supply and demand, industry capacity, industry structure, marketing channels and major industry participants. Historical data (2005, 2010 and 2015) and long-term forecasts through 2020 and 2025 are presented. Major

### Globalization in China

2617 words - 11 pages way to enrich national competitiveness and actively integrates itself into the international economic community. On the other hand, China tries to confine the impact of globalization exclusively within economic field, reflecting its traditional concern about the possible political impact of globalization on its regime stability. Given China's dual responses to the process of globalization, Chinese leaders seem to perceive globalization and to

### Research Report on Biotechnology Markets in China

518 words - 3 pages March., 19, 2016, Mumbai, India: Market Reports on China presents the report, on “Research Report on Biotechnology Markets in China”. The Chinese economy maintains a high speed growth which has been stimulated by the consecutive increases of industrial output, import & export, consumer consumption and capital investment for over two decades. China's demand for Biotechnology has grown at a fast pace in the past decade. In the next decade, both

### Research Report on Biotechnology Markets in China

518 words - 3 pages March., 19, 2016, Mumbai, India: Market Reports on China presents the report, on “Research Report on Biotechnology Markets in China”. The Chinese economy maintains a high speed growth which has been stimulated by the consecutive increases of industrial output, import & export, consumer consumption and capital investment for over two decades. China's demand for Biotechnology has grown at a fast pace in the past decade. In the next decade, both

### Oil and Gas Energy Markets in China

533 words - 3 pages June., 01, 2016, Mumbai, India: Market Reports on China presents the report, on “Oil and Gas Energy Markets in China”. The Chinese economy maintains a high speed growth which has been stimulated by the consecutive increases of industrial output, import & export, consumer consumption and capital investment for over two decades. China's demand for Oil and Gas Energy has grown at a fast pace in the past decade. In the next decade, both

### Arthritis Treatment Drugs Markets in China

540 words - 3 pages March., 17, 2016, Mumbai, India: Market Reports on China presents the report, on “Arthritis Treatment Drugs Markets in China”. The Chinese economy maintains a high speed growth which has been stimulated by the consecutive increases of industrial output, import & export, consumer consumption and capital investment for over two decades. China's demand for Arthritis Treatment Drugs has grown at a fast pace in the past decade. In the next decade

### Businss Plan In China

5302 words - 22 pages export goods.Accession to the WTO helps strengthen China's ability to maintain strong growth rates but at the same time puts additional pressure on its hybrid system (socialism and capitalism) of strong political controls and growing market influences.In addition, affected by the war on Iraq and the outbreak of SARS epidemic, the world economy slowed down in the first half of 2003 and performed weaker than expected. Major economies recorded

### Future of Chinese Yuan

647 words - 3 pages . With the increasing prices of these commodities, appreciating RMB will put less pressure. Accelerating industrial upgrading An revaluation of the RMB can help bring some structural adjustments to the Chinese economy, placing emphasis on growth via domestic demand rather than exports, thus stabilizing long-term growth. The increase in China's domestic competition, to promote China's manufacturing industry in order to survive and keep

### Taiwan opens market in bid for WTO membership card

433 words - 2 pages commercial aviation.Taiwan wants to maintain a ban on sales and marketing of life, accident and health insurance by nonresident companies and a requirement that foreign life insurance agents and brokers with offices in Taiwan must employ at least one person who has secured a local agent's or broker's license.But Taiwan's hopes of acceding to the organization by year's end are being stymied by its half-century rivalry with mainland China. Beijing

## Related Papers

### Wto And China Essay

4754 words - 20 pages Table of Contents1.0 Introduction 22.0 WTO and China 32.1 The Socioeconomic Aspects 42.1.1 Changes in social classification and economic diversity 52.1.2 Changes in the agriculture sector 52.1.3 Impact on heavy industry 52.1.4 Implication on Religious dynamics 62.2 The Financial Aspects 63.0 General Analysis 74.0 Conclusion 95.0 Bibliography 101.0 IntroductionThe essay will be looking at the effects on China's economy after it joined the World

### Market Research For Interphone In China 2016

552 words - 3 pages , analyzes the investment opportunities of China's interphone industry. It will provide you with a comprehensive understanding of this industry from the following aspects: market size, status in the world, product structure, company analysis of major players, etc., as well as make scientific prediction on the future development interphone industry. 1)The Aim of this report -To provide readers with comprehensive & in-depth understanding of Chinese

### Market Research Report For Lapped Wire In China 2016

577 words - 3 pages report, analyzes the investment opportunities of China's lapped wire industry. It will provide you with a comprehensive understanding of this industry from the following aspects: market size, status in the world, product structure, company analysis of major players, etc., as well as make scientific prediction on the future development lapped wire industry. 1)The Aim of this report -To provide readers with comprehensive & in-depth understanding

### Report On Respiratory Drugs Markets In China

520 words - 3 pages March., 28, 2016, Mumbai, India: Market Reports on China presents the report, on “Report on Respiratory Drugs Markets in China”. This new study examines China's economic trends, investment environment, industry development, supply and demand, industry capacity, industry structure, marketing channels and major industry participants. China's demand for Respiratory Drugs has grown at a fast pace in the past decade. In the next decade, both