Emerging Markets Chapter 9.

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Presentation transcript:

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

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 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

Countries & Emerging Markets Asian-Pacific Rim “Four Tigers” ASEAN China Fastest growing GNP in the world WTO & legal issues Six regions

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

Strategic Implications for Marketing Effects of increasing incomes Income levels and characteristics