Lecture 10

Emerging Markets and Market Behaviour

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Learning Objectives
Understand the connection between the economic level of a country and the marketing task How marketing contributes to the growth and development of a countrys economy Understand the new development in market behaviour in these new markets To evaluate the growth of developing markets and their importance to regional trade
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Marketing and Economic Development The stage of economic growth within a country affects; attitudes towards foreign business activity, demand for goods, distribution system

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Marketing and Economic Development

In static economies, consumption patterns become rigid and marketing is no more than a supply effort. In dynamic economy, Consumption pattern change rapidly, Marketing is constantly faced with challenges of detecting & providing new level of consumption, Marketing efforts must be matched constantly with market needs & wants.
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Infrastructure of selected countries

Exhibit 8.4
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Classifying Countries

Developed Country Highly industrialized, highly efficient, and whose people enjoy a high quality of life Emerging Market Newly industrialized countries plus those with potential to be newly industrialized Newly Industrialized Recently greater national production and Country exports from industrial operations Developing Country Poor infrastructure and extremely low personal income
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Chapter 4 - 6

Emerging Markets a World Bank definition and the conventional wisdom to be challenged

The World Bank classifies member economies according to gross national income (GNI) per capita

Low Income Emerging Markets: USD 975 or less Lower Middle Income Emerging Markets: USD 976USD 3,855 Upper Middle Income Emerging Markets: USD 3,856USD 11,905 Developed Economies: USD 11,906 or more

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Emerging Markets
Emerging markets are nations with social or business activity in the process of rapid growth and industrialization. Currently, there are around 28 emerging markets in the world, with the economies of China and India considered to be the largest. Emerging Markets have attracted attention because of their dynamic growth, therefore developing a leading role in the global economy
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Emerging Economies

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Big Emerging Markets

China India Indonesia South Korea Brazil Mexico Argentina South Africa Poland Turkey

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Big Emerging Markets (BEMs)

BEMs are countries that have experienced rapid economic growth and represent significant marketing opportunities (Keegan and Green, 2005: 588). Each of these economies has unique economic, market, and industry characteristics, that, in turn present opportunities and challenges for local policy makers, businesses and the international business and economic community
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Common Traits of Large Emerging Markets

Are geographically large Have significant populations Represent considerable markets for a wide range of products Have strong rates of growth or the potential for significant growth Have undertaken significant programmes of economic reform
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Common Traits of Large Emerging Markets (continued)

Are of major political importance within their region Are regional economic drivers Will engender further expansion in neighbouring markets as they grow
The BRICs are among the top ten economies in the world. The BRIC: Brazil, Russia, India, and China

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Emerging Markets sustainable achievements are undisputable and globally recognized

ARGENTINA, BRAZIL, CHINA, INDIA, INDONESIA, MEXICO, RUSSIA, SAUDI ARABIA, SINGAPORE, SOUTH AFRICA AND TURKEY ARE ALL G-20 MEMBERS

ARGENTINA, BRAZIL, CHINA, INDIA, INDONESIA, MEXICO, RUSSIA, SAUDI ARABIA, SINGAPORE, SOUTH AFRICA AND TURKEY ARE ALL G-20 MEMBERS

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Conclusion
With the increasing economic scope the standards of living has risen as well Marketers need to devise marketing plans that respond to the economic developments. Anticipate the new trends within the evolving market segments.

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Conclusion

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