International Marketing

Developing markets and their behavior

Guillermo Berlioz
 Consumerism

• When economies grow and markets evolve beyond

subsistence levels, the range of tastes and/or preferences of
the products/services sought is extended, their consumers
demand more variety and quality.

• As countries thrive, new patterns of behavior arise in relation

to habits and trends of consumption.
 Marketing and economic development

• The economic level of a country is the most important indicator and

element that a foreign company must adjust its marketing strategy.

• In static economies, consumption patterns become rigid and marketing is

nothing more than a supply effort.

• In a dynamic economy these patterns change rapidly, it is imperative to

constantly detect and provide elements for new proposals and market
niches.
Stages in economic development
 Stage 1
Traditional society: Countries at this stage lack the capacity to significantly
increase productivity, there is a marked absence in modern technology, under
literacy and high rate of informal underemployment.
 Stage 2
Pre-takeoff conditions: Includes societies in transition, some
technological advances are being applied in agro-industry,
communication, transportation, energy, education and health.
 Stage 3
• Takeoff: Countries achieve a pattern of relevant growth in social and
economic indicators through agricultural and industrial modernization,
leading to rapid expansion in productivity and competitiveness. Although the
country is heavily dependent on imported goods.
 Stage 4
The impulse towards maturity: sustained progress is maintained and the
economy seeks to extend modern technology to all fronts of the economic
activity (manufacturing of finished goods, intermediates, services), export is a
key element in this stage.
 Stage 5
The era of high mass consumption: changes in the main economic sectors,
especially to durable consumer goods and services. The economy increases
due to a large export capacity, subcontracting and FDI, real per capita income
increases to the extent that large numbers of families have significant amounts
of discretionary income.
 Classification
• Developing countries fall into the first 3 categories, emerging
markets in the 4th and developed in the 5th category.
 Infra structure and Development

• A reference indicator is the degree of capital or social infrastructure within

the economy.

• The infrastructure refers to capital goods that serve the activities of many
industries, paved roads, modern rail networks, seaports, airports, customs
logistics, communication networks and supplies of energy.
Infra structure
 Chile – Production/ Exportation
• Top copper producer and exporter worldwide
• 2nd Salmon Exporter
• 6th in wine production
Santiago de Chile
Farellones – Chile
Panamá – Adaptation / Innovation
Adapts to load capacity
Panama Canal
Tocumen - Panamá
Project – New Logistics Center
New terminal - Tocumen
Panama City
Internationalize
Cartagena - Colombia
Cultural Heritage
Walled City
 Strategy

• "Increase the capacity for maritime and port services to

increase frequencies and destinations, lower freight costs
contribute to the competitiveness of the country in the"
international markets ", said Alfonso Salas Trujillo, manager
of the Port Society

• http://www.eltiempo.com/archivo/documento/CMS-16191275
Modern Cranes – Cartagena
Competitiveness - Productivity
Internacionalize
Wind Project - Honduras
Dry Canal - Honduras
Ways and roads ( TGU – SPS )
 Costa Rica
The country with the highest per capita GDP of C.A. and better
level of competitiveness in indices of education and quality of
life.
Juan Santa María - CRC
Internacionalize
 France
Country with the highest ranking in international currency
acquisition by tourism.
PARIS
 Spain
European country, with higher FDI growth
Valencia
 Level of Marketing development
They will always depend on technological changes, fiscal and monetary policy,
social and cultural development cause deviations in favor or against the
economic growth of a market.
 Benefits of growing economic development

Markets have more levels of distribution specialized in the value chain in its
operational and commercial logistics.

The functions of the manufacturer, wholesaler and retailer are separate.

The financial function of wholesalers is reduced and the gross profit margin is
increased.

The number of small retailers is reduced and the SMES begin to develop

The role of the street vendor and itinerant trader decreases.

They improve the margins of the retailer.

 Demand in developing countries

• Estimating it implies challenges as a result of economic

dualism, i.e. the coexistence of modern sectors with
traditional ones within the economy.

• The fastest growing potential is in the traditional sector. This

requires a significant investment to produce future benefits.
 Emerging Markets
The trade liberalization, rapid and continuous development of
regional market alliances (FTAs), the transfer of public-to-private
enterprises, are changing the way countries market and thrive.
 Objectives of privatization

• Better use of national resources.

• A broader base of shareholders and investors.
• A reduction in public debt.
• Recapitalization of State property activities.
 Economic cooperation

• Most countries reduce tariffs and work to create an

environment for attracting foreign direct investment and
capturing currencies.

• The globalization of trade has made us understand the urgency

of forming a regional block.
 Bilateral framework agreements (5 principles)

• The benefits of open trade and investment.

• The growing importance of market development of services.
• The need for adequate protection of intellectual property
rights.
• The desirability of resolving trade and investment problems.
• The importance of observing and promoting the rights of
employees.
The Asian Tigers
 The economy of Knowledge
"I understood Latin America better when I compared it with Asia, more determined to
the development of science and to the impulse of education“

Korea, Hong Kong, Singapore, and Taiwan achieved regional development so quickly
that they were called Asian "tigers" or "dragons." A 2004 study, with World Bank
indicators, compared the growth of these countries with that of Argentina.

The study shows that in 44 years of implementing the economy of knowledge, the
"tigers" had an increase in their GDP between 1.700% and 2.500%; Argentina grew in
the same period 125%

While the increase in per capita income of Asians, after 20 years of applying the
aforementioned economy, was between 800 and 1.400%, that of Argentina reached
59% also in 20 years.
Group of Allied Powers
 Change in market behavior and market segmentation

As a country develops, profound changes take place that benefit its people:

1. Revenues change, as are population concentrations.

2. Life expectancy conforms to higher standards.
3. New infra structures evolve, social capital investments are made.
4. Foreign and domestic companies are looking for new markets.
 "Markets do not exist, they are made"

• They are not static, they are constantly

moving.
 Have a nice day

“I’ve learned that people will forget what you said, people will
forget what you did, but people will never forget how you made
them feel.” – Maya Angelou