The US Market

According to The World Factbook, the US market can be defined as follows:

“The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $49,800. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II.”

The United States has a population of approx. 316 million people and ranks third largest after China and India. The life expectancy lies at 78,62 years and the population’s age structure shows that 40,2% of the population is aged between 25 and 54.
With a literacy rate of 99% the degree of consumer sophistication is very high, which allows marketers to use even the most complex advertising-messages.

Taking into account the same economic factors as when analysing the Chinese market, the GDP and GDP per capita as well as the urbanization rate are important indicators for the economic environment of the US market.
With a GDP of $15,94 trillion and a GDP per capita of $50,700, the United States has a middle-class that is very attractive to advertisers due to the high income. Other aspects like already existing distribution, communication and transportation networks also provide a good foundation for successful marketing (Mueller 2011, p. 93).

With an urbanization rate of 82%, the country is much more urbanized than China, which supports the aspect of well-established transportation and distribution networks mentioned before. With an open and stable political system in place, advertisers can also plan long-term without having to fear political or business risks.

Sources:
Mueller, Barbara, Dynamics of International Advertising, Peter Lang Publishing, Inc., New York, USA, 2010