Chapter Nine Local Marketing in New Growth Markets

Raw materials (authoritarian) vs FDI (capitalistic) markets Market analysis trade blocs, introduction/growth stage of PLC, emerging middle class segments favorable view of foreign products Product strategy localization required, adaptation optional, brand support, foreign origin Pricing status pricing, tempered with need to build loyalty in low income markets Promotion build brand image for long term potential, intellectual property problems Distribution nurture relationships, invest in channel structure and loyalty

Marketing in Latin America Concentration of wealth is common Regional trade groups - NAFTA, Mercosur, LAIA Urban/rural segmentation Family oriented, traditional segment Major markets are Argentina, Brazil, Mexico, Chile Pan-regional marketing strategies

Marketing in Asian New Growth Markets Ambivalence toward Japan Variations in size and ethnic composition In recovery from economic crisis which reversed the trend of rapid economic growth Global identification of consumers, especially in emerging middle class Desire for “harmonious whole” creates brand loyalty Leading markets for emerging economies Major markets are South Korea, Taiwan, Hong Kong Pan-regional marketing strategies possible, but risky

Chapter Terms and Essay Terms Authoritarian political regimes, colonial domination, newly industrialized economies, pan-regional Latin American/Asian marketing, urban vs rural population Essay How do new growth mature markets differ from emerging and mature markets. Using one of the two areas discussed in the text as an example, explain the challenges involved in competing in mature markets.

Modern China Video How have economic reforms affected the lives of the Chinese people? Explain. How does this impact vary in different geographic areas of the country? Explain. How do you think the process of economic reform will influence the course of political reform? Explain.

Chapter Nine Local Marketing in New Growth Markets