Transcript Emerging Markets - University of Rio Grande

Emerging Markets
Chapter 9
Marketing & Economic
Development
• Economic Level of Country
– Economic development
• Rostow’s Stages
– Traditional Society
– Preconditions for Take-off
– Take-off
– Drive to Maturity
– Age of High Mass Consumption
Marketing & Economic
Development
• United Nations
– More-Developed
Countries
– Less-Developed
Countries
– Least-Developed
Countries
– Newly Industrialized
Countries
Source: http://erikkrantz.wordpress.com
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Factors for Growth
• Political stability
• Economic & legal reforms
• Entrepreneurship
• Planning
• Outward orientation
Factors for Growth
• Factors of Production
• Industries Targeted for Growth
• Incentives for Saving
• Privatization of State-owned Enterprises
• Large, Accessible Markets with Low Tariffs
Marketing & Economic
Development
• Information Technology
• Objectives of Industrialization
• Infrastructure and Development
• Marketing & NIC Growth
Marketing in a Developing Country
• Must tailor strategy
• Demand
– Economic Dualism
• India
Developing Countries & Emerging
Markets
• 75% of economic growth in next 20 years
• Big Emerging Markets
– Importation of goods
Countries & Emerging Markets
Source:
http://0.tqn.co
m/d/goeasteuro
pe/1/0/Z/L/-//EasternEurope
Map.jpg
• The Americas
– Population= 1.5 x US
– Population= EU + 100
million
– Dictatorships  Democracy
– Brazil’s issues
• Eastern Europe & Baltic
States
– Marxist-Socialist 
Capitalist
– First movers succeeded
Source: www.usfunds.com
Countries & Emerging Markets
• Asian-Pacific Rim
Source: asean.or.jp
– “Four Tigers”
– ASEAN
• China
– Fastest growing GNP
in the world
– WTO & legal issues
– Six regions
Source: http://libraryeuroparl.files.wordpress.com/2013/02/fig-1.png
Countries & Emerging Markets
• Hong Kong
– British control  Chinese control
– Rule of law, predictable taxes, free capital
movement, transparent regulations
• Taiwan
– Problems with China
– Interdependence
Countries & Emerging Markets
• India
– Recently entered world
market
– Lowering of
restrictions
– Current problems
• Vietnam
– Trade agreement with
US
• South Africa
– Advantages
– Disadvantages
Source:
www.rediff.com
Strategic Implications for Marketing
• Effects of increasing incomes
• Income levels and characteristics