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Marketing Strategies and Economic Development in Emerging Markets

This chapter explores the intersection of marketing and economic development in emerging markets. It discusses the economic levels of countries, highlighting Rostow's stages of economic growth, including traditional society, preconditions for take-off, take-off, drive to maturity, and high mass consumption. The chapter emphasizes factors that contribute to growth such as political stability, economic reforms, entrepreneurship, and infrastructure. It also examines the role of developed, developing, and newly industrialized countries in the global economy, particularly focusing on the unique marketing strategies required in diverse economic contexts.

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Marketing Strategies and Economic Development in Emerging Markets

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  1. Emerging Markets Chapter 9

  2. Marketing & Economic Development • Economic Level of Country • Economic development • Rostow’s Stages • Traditional Society • Preconditions for Take-off • Take-off • Drive to Maturity • Age of High Mass Consumption

  3. Marketing & Economic Development • United Nations • More-Developed Countries • Less-Developed Countries • Least-Developed Countries • Newly Industrialized Countries

  4. Factors for Growth • Political stability • Economic & legal reforms • Entrepreneurship • Planning • Outward orientation

  5. Factors for Growth • Factors of Production • Industries Targeted for Growth • Incentives for Saving • Privatization of State-owned Enterprises • Large, Accessible Markets with Low Tariffs

  6. Marketing & Economic Development • Information Technology • Objectives of Industrialization • Infrastructure and Development • Marketing & NIC Growth

  7. Marketing in a Developing Country • Must tailor strategy • Demand • Economic Dualism • India

  8. Developing Countries & Emerging Markets • 75% of economic growth in next 20 years • Big Emerging Markets • Importation of goods

  9. Countries & Emerging Markets • The Americas • Population= 1.5 x US • Population= EU + 100 million • Dictatorships  Democracy • Brazil’s issues • Eastern Europe & Baltic States • Marxist-Socialist  Capitalist • First movers succeeded

  10. Countries & Emerging Markets • Asian-Pacific Rim • “Four Tigers” • ASEAN • China • Fastest growing GNP in the world • WTO & legal issues • Six regions

  11. Countries & Emerging Markets • Hong Kong • British control  Chinese control • Rule of law, predictable taxes, free capital movement, transparent regulations • Taiwan • Problems with China • Interdependence

  12. Countries & Emerging Markets • India • Recently entered world market • Lowering of restrictions • Current problems • Vietnam • Trade agreement with US • South Africa • Advantages • Disadvantages

  13. Strategic Implications for Marketing • Effects of increasing incomes • Income levels and characteristics

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