Emerging Markets Chapter 9. Marketing & Economic Development Economic Level of Country Economic Level of Country –Economic development Rostow’s Stages.

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