Emerging MarketsEmerging Markets
Chapter 9Chapter 9
Marketing & Economic Marketing & Economic DevelopmentDevelopment
• Economic Level of CountryEconomic Level of Country– Economic developmentEconomic development
• Rostow’s StagesRostow’s Stages– Traditional SocietyTraditional Society– Preconditions for Take-offPreconditions for Take-off– Take-offTake-off– Drive to MaturityDrive to Maturity– Age of High Mass ConsumptionAge of High Mass Consumption
Marketing & Economic Marketing & Economic Development Development
• United NationsUnited Nations– More-Developed More-Developed
CountriesCountries– Less-Developed Less-Developed
CountriesCountries– Least-Developed Least-Developed
CountriesCountries
– Newly Industrialized Newly Industrialized CountriesCountries
Source: http://erikkrantz.wordpress.com/
Factors for GrowthFactors for Growth
• Political stabilityPolitical stability
• Economic & legal reformsEconomic & legal reforms
• EntrepreneurshipEntrepreneurship
• PlanningPlanning
• Outward orientationOutward orientation
Factors for GrowthFactors for Growth
• Factors of ProductionFactors of Production
• Industries Targeted for GrowthIndustries Targeted for Growth
• Incentives for SavingIncentives for Saving
• Privatization of State-owned Privatization of State-owned EnterprisesEnterprises
• Large, Accessible Markets with Low Large, Accessible Markets with Low TariffsTariffs
Marketing & Economic Marketing & Economic DevelopmentDevelopment
• Information TechnologyInformation Technology
• Objectives of IndustrializationObjectives of Industrialization
• Infrastructure and DevelopmentInfrastructure and Development
• Marketing & NIC GrowthMarketing & NIC Growth
Marketing in a Developing Marketing in a Developing CountryCountry
• Must tailor strategyMust tailor strategy
• DemandDemand– Economic DualismEconomic Dualism
• IndiaIndia
Developing Countries & Developing Countries & Emerging MarketsEmerging Markets
• 75% of economic growth in next 20 75% of economic growth in next 20 yearsyears
• Big Emerging MarketsBig Emerging Markets– Importation of goodsImportation of goods
Countries & Emerging Countries & Emerging MarketsMarkets• The AmericasThe Americas
– Population= 1.5 x USPopulation= 1.5 x US– Population= EU + 100 Population= EU + 100
millionmillion– Dictatorships Dictatorships
DemocracyDemocracy– Brazil’s issuesBrazil’s issues
• Eastern Europe & Eastern Europe & Baltic StatesBaltic States– Marxist-Socialist Marxist-Socialist
CapitalistCapitalist– First movers succeededFirst movers succeeded
Source:http://0.tqn.com/d/goeasteurope/1/0/Z/L/-/-/EasternEuropeMap.jpg
Source: www.usfunds.com
Countries & Emerging Countries & Emerging MarketsMarkets• Asian-Pacific RimAsian-Pacific Rim
– ““Four Tigers”Four Tigers”– ASEANASEAN
• ChinaChina– Fastest growing Fastest growing
GNP in the worldGNP in the world– WTO & legal issuesWTO & legal issues– Six regionsSix regions
Source: http://libraryeuroparl.files.wordpress.com/2013/02/fig-1.png
Source: asean.or.jp
Countries & Emerging Countries & Emerging MarketsMarkets
• Hong KongHong Kong– British control British control Chinese control Chinese control– Rule of law, predictable taxes, free Rule of law, predictable taxes, free
capital movement, transparent capital movement, transparent regulationsregulations
• TaiwanTaiwan– Problems with ChinaProblems with China– InterdependenceInterdependence
Countries & Emerging Countries & Emerging MarketsMarkets• IndiaIndia
– Recently entered world Recently entered world marketmarket
– Lowering of restrictionsLowering of restrictions– Current problemsCurrent problems
• VietnamVietnam– Trade agreement with Trade agreement with
USUS
• South AfricaSouth Africa– AdvantagesAdvantages– DisadvantagesDisadvantages
Source: www.rediff.com
Strategic Implications for Strategic Implications for MarketingMarketing
• Effects of increasing incomesEffects of increasing incomes
• Income levels and characteristicsIncome levels and characteristics