International Marketing: Chapter 9 Key Concepts What does the stage of economic growth impact? Evolution of the market process Stages of economic growth (United Nations) Role of information technology in economic development Educational level of women & impact on economic progress Role of infrastructure Important considerations for marketing in a developing country Big emerging markets (BEMs) Important traits of BEMs American market regions Latin American Economic Cooperation Opportunities & challenges presented by BEMs (strategic implications)
Transcript
International Marketing: Chapter 9 Key Concepts
What does the stage of economic growth impact? Evolution of the market process Stages of economic growth (United Nations) Role of information technology in economic development Educational level of women & impact on economic progress Role of infrastructure Important considerations for marketing in a developing country Big emerging markets (BEMs) Important traits of BEMs American market regions Latin American Economic Cooperation Opportunities & challenges presented by BEMs (strategic implications)
Marketing and Economic Development
The stage of economic growth affects:– Attitudes toward foreign companies– Demand for goods– Distribution systems– Entire marketing process
Evolution of Marketing Process
Stages of Economic Growth(United Nations Categories)
Information Technology and Economic Development
The Internet accelerates economic development
Speeds diffusion of new technologies
Allows for innovative services at a relatively inexpensive cost
Wireless technologies circumvent lack of infrastructure
Objectives of Developing Countries
Industrialization
Economic growth
– Better education
– Better and more effective government
– Elimination of many social inequities
– Improvements in moral and ethical responsibilities
Infrastructure and Economic Development
Infrastructure must support expanding population and economy
Paved roads, railroads
Seaports
Communication networks
Important Considerations:Marketing in a Developing Country
Level of market development
– Physical infrastructure
– Specialized marketing institutions
– How much adjustment is necessary
Level of market demand
– Literacy, income, living conditions?
– What kind of market? Traditional rural/agricultural sector
Modern urban/high-income sector
Transitional sector (with urban slums)
Big Emerging Markets (BEMs)
The U.S. Department of Commerce projections for the next two decades
Developing and newly industrialized countries
75% of expected growth in world trade
50% of the world’s population
50% of world’s gross domestic product
India, China, Brazil, Mexico, Poland, Turkey, South Africa +
Important Traits of Big Emerging Markets
All geographically large
Significant populations
Sizeable markets for many products
Strong growth rates
Significant programs of economic reform
Regional political drivers
Regional economic drivers
Engender expansion in neighboring markets
American Market Regions
North American Free Trade Agreement (NAFTA)
United States-Central American Free Trade Agreement-Dominican Republic Free Trade Agreement (DR-CAFTA)
Southern Cone Free Trade Area (Mercosur)
Latin American Economic Cooperation
Latin American Integration Association (LAIA)
Carribean Community and Common Market (CARICOM)
Strategic Implications for Marketing
Stage of economic development is important
Big emerging markets present opportunities and challenges
Opportunities:– Large consumer markets– Rapid rates of economic growth– Increasing demand for consumer products
Challenges:– Lack of infrastructure– Unequal income distribution– Low rate of literacy among the poor
