Int. marketing – emerging markets

UN classificstion
Countries stage of economic development on basis of level of industrialization (ag to manufacture of goods)
3 categories of emerging markets
MDC (more developed countries)
LDC (Less developed countries)
LLDC (Least developed countries)
MDC
industrialized, high capita per income

Canada, UK, France, Germany, US

LDC
industrially developing, just entered world trade, realistically low capita per capita

ASIA and Latin America

LLDC
Industrially underdeveloped, agrian (ag based), rural population, very low vapid per income, little world trade involvement, violence potential
Factors in a rapid growing economy
-political stability
-economic and legal reforms
-property rights
-entrepreneurship
-economic planning
Infrastructure
Capital goods that serve activists of society
-paved roads, electricity and energy supply,railroads, seaports, financial networks
Emerging market
Development and reforms to open up a countries market and emerge into the global scene
Objectives of developing countries
Industrialization***
-Better education
-better more effective government
-elimination of social lack of fairness and justice
-privatization (company going from public to private~business for profit)
Big emerging market traits
-geographically large
-significant population
-sizable markets for wide range of products
-strong rates of growth or potential
-undertaken significant problems of economic reform
-major political importance in country
-facilitates further expansions in neighbor markets
Ten emerging markets
China, South Korea, Thailand, Czech Republic, Malaysia, Russia, Peru, Indonesia,Brazil, Mexico, Poland, turkey, South Africa
Developing countries vs. emerging markets
They import more than smaller markets but have economies of similar size
Emerging market groups
Eastern Europe (free market systems) Asia (Japan for technology), Latin America(huge population, govt change)
BRICS
Brazil Russia India China and South Africa ~ 5 major emerging economies

Mobile phones, passenger cars, washing machines

3 distinct markets in each country
-traditional rural ~ag sector
-modern urban – high income sector
-transitional sector ~ low income in urban slums
Traits Marketing needs to adjust to in emerging markets
-level of market development
-product features
-limited infrastructure and availability of distribution chains
-dispersed structure in rural populations
Level of market development
-evaluate existing level of market development
-more developed economy= more sophistication, greater variety of marketing
-study economy and determine what is useful and what needs to be adjusted
Strategic assumptions
-population of emerging market are viable customers with expanding income
-country develops- higher standards, concentration shifts, new infrastructure
-increased income is new disposable income which is more demand whether it be in soap or cars