Chapter 9

Emerging Markets
Countries such as China,
South Korea, Poland,
Argentina, Brazil, Mexico,
and India are undergoing
extensive changes in their
economies and emerging as
vast markets.
Marketers must consider
Levels of economic development
GDP per capita
Levels of income and wealth
Non-economic factors


Newly Industrialized Countries (NICs)
Countries that are
experiencing rapid
economic
expansion and
industrialization.
NIC Growth Factors
1. Political stability in
development policies
2. Economic and legal reforms
3. Entrepreneurship
4. Planning
5. Outward orientation

NIC Growth Factors
6. Factors of production
7. Industries targeted for
growth
8. Privatization of state-
owned enterprises (SOEs)
9. Accessibility of large
markets
Development of Information Technology
Investment in information technology
(IT) is important for economic growth.
Leapfrog technology
Wireless technology reduces the need
for infrastructure
The Internet allows for
inexpensive services
Marketing Needs Infrastructure
Countries begin to lose economic development
ground when their infrastructure cannot support an
expanding population and economy
Does the Infrastructure exist?
Utilities
Communications
Transportation
Is the Infrastructure Reliable?
Marketing in a Developing Country

Level of market development
Distribution channels
Facilitating agencies

Level of Demand
Economic Dualism
Traditional
Modern

Big Emerging Markets
Traits of Big Emerging Markets:
1. Physically large
2. Significant populations
3. Considerable markets for a wide
range of products
4. Have strong rates of growth or the
potential for growth
Big Emerging Markets

5. Have undertaken economic reform
6. Are of major political importance in
their regions
7. Are regional economic drivers
8. Support growth in neighboring
markets
The Americas
Eastern Europe
Country GDP Import Export
Life
expect
Pop.
(million)
Albania 6,400 4.8 1.5 77.8 3.6
Czech Rep. 26,800 145.1 150.5 76.6 10.2
Poland 17,800 213.9 190.5 75.4 38.5
Slovenia 30,800 38.1 34.3 76.7 2.0
Turkey 12,900 204.8 141.8 73.1 71.9
Ukraine 7,800 82.5 64.9 68.1 46.0
Eastern Europe and the Balkans
www.cia.gov/library/publications/the-world-factbook/
Asia
Country GDP Import Export
Life
expect
Pop.
(million)
Afghanistan 800 4.9 0.33 44.2 32.7
Cambodia 2,100 6.4 4.6 61.7 14.2
China 6,100 1,156 1,465 73.2 1,330
India 2,900 288 178 69.3 1,147
Japan 35,300 696 777 82 127
Laos 2,100 1.28 1.03 56.3 6.7
Philippines 3,400 63.4 50.9 70.8 96
Singapore 52,900 307 349 81.9 4.6
Asia
www.cia.gov/library/publications/the-world-factbook/
Africa
Africa
Country GDP Import Export
Life
expect
Pop.
(million)
Burkina Faso 1,300 1.7 0.8 52.6 15.3
Egypt 5,500 56.4 33.4 71.9 81.7
Nigeria 2,200 46.4 83.1 46.5 146
Sierra Leone 700 0.56 0.22 40.9 6.3
South Africa 10,400 87.3 81.5 48.9 48.8
www.cia.gov/library/publications/the-world-factbook/

Strategic Implications for Marketing
As a country develops:
incomes rise
population concentrations shift
expectations for a better life lead to higher
standards
new infrastructures evolve
social capital investments are made
When incomes rise, new demand is generated
New market segments are created.
Strategic Implications for Marketing

Knowledge of the stage of market
development is important in helping to
develop marketing strategies that are tailored
to the level of economic development.
Country Population
(millions)
GDP
per
capita
Cars
per 1000
TVs
per 1000
PCs
per 1000
Canada 33.4 35,700 581 655 460
China 1,321.9 7,800 8 306 19
India 1,129.8 3,800 8 58 6
Kenya 36.9 1,200 13 22 6
Mexico 108 10,700 151 241 69
Strategic Implications for Marketing
A person earning $250 annually in a
developing country can afford Gillette razors
At $1,000 a year he or she can become a
Sony television owner
A Nissan or Volkswagen could be possible
with a $10,000 income
Whirlpool estimates that in Eastern Europe a
family with an annual income of $1,000 can
afford a refrigerator, and with $2,000 they can
buy an automatic washer as well.
It is suggested that
At the $5,000 per capita mark, people are
more brand conscious and forego local
brands for foreign brands they recognize
At $10,000, they join those with higher
incomes who are exposed to same global
information sources. They join the Club of
consumers with homogeneous demands
who share a common knowledge of
products and brands.
They become global consumers
It is suggested that
The End
Country Land Lines Cell phones Land line
/ Cell
Ukraine 12,858,000 55,240,000 0.23
Canada 21,000,000 18,749,000 1.12
Turkey 18,413,000 61,976,000 0.30
South
Africa
4,642,000 42,300,000 0.11
Cambodia 37,500 2,583,000 0.01
https://www.cia.gov/library/publications/the-world-factbook/index.html