International Marketing: Chapter 9Key Concepts

Stages of economic development Economic dualism Modern vs. Traditional Sector Big emerging markets Common traits of big emerging markets Issues to consider for marketing in

emerging markets

Stages of Economic Development(Rostow’s Model)

1. The Traditional Society

2. The Pre Conditions for Take-off

3. The Take-Off

4. The Drive to Maturity

5. The Age of High Mass Consumption

SOURCES: Walt W. Rostow, The Stages of Economic Growth 2d ed. (London: Cambridge University Press, 1971), p.10.

Economic Dualism in Emerging Markets

Modern Sector (Emerging Elite):–Middle Class Income– College Education– Urban Residents

Traditional Sector:– Poverty Level Income– Little or No Education– Rural Residents

Big Emerging Markets

ASIA China, Indonesia, India, South Korea, Singapore, Brunei, Hong Kong, Taiwan, Thailand, Vietnam

LATIN AMERICA Mexico, Argentina, Brazil, Columbia, Venezuela

AFRICASouth Africa

EUROPEPoland, Turkey

Common Traits of Big Emerging Markets

Physically large

Significant populations

Considerable markets

Strong growth rates

Significant economic reform

Regional political drivers

Regional economic drivers

Foster expansion in neighboring countries

Marketing in Emerging Markets:Issues to Consider

Existing Levels of Marketing

Physical infrastructure

Marketing infrastructure

Consumer Demand

Literacy level

Poor health standards

Economic dualism

Emerging middle class