Tahir Shahzad Yousafzai 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 capital 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 stateowned enterprises 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

Does

the Infrastructure exist?

Utilities Communications Transportation Is the Infrastructure Reliable?

Countries begin to lose economic development ground when their infrastructure cannot support an expanding population and economy

Big Emerging Markets (1 of 2)

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 (2 of 2)

5. Major political importance in their regions 6. Support growth in neighboring markets

Asia

Asia
Life Pop. expect (million) 44.2 32.7

Country Afghanistan

GDP Import Export 800 4.9 0.33

Cambodia China India Japan Laos Philippines Singapore

2,100 6,100 2,900 35,300 2,100 3,400 52,900

6.4 1,156 288 696 1.28 63.4 307

4.6 1,465 178 777 1.03 50.9 349

61.7 73.2 69.3 82 56.3 70.8 81.9

14.2 1,330 1,147 127 6.7 96 4.6

The End