This document discusses emerging markets and their economic development. It begins by defining emerging markets and listing some of the largest ones, including China and India. It then discusses how marketing must adapt to changing consumer needs during economic development. Several models of economic development are presented, followed by classifications of countries by level of development. Key factors in the growth of newly industrialized countries are outlined. The role of infrastructure and information technology in development is also examined. Characteristics and recent economic histories of some large emerging markets like Brazil, China, and India are provided. Finally, some of the challenges multinational companies face when marketing in emerging markets are summarized.

1. Chapter 9Emerging Market By: Maria MechaellaDoromal

2. Emerging markets - is used to describe a nation's social or business activity in the process of rapid growth and industrialization. Currently, there are approximately 28 emerging markets in the world, with the economies of China and India considered to be by far the two largest.

3. Marketing and Economic DevelopmentMarketing is constantly faced with the challenge of detecting and providing for new levels of consumption, and marketing efforts must matched with ever changing marketing needs and wants.

4. Economic development presents a two double sided challenge.A study of the general aspect of economic development is necessary to gain empathy regarding the economic climate within developing countries.The state of economic development must be studied with respect to market potential including the present economic level and economy’s growth potential.

5. Economic Development – is generally understood to mean an increase in national production that results in an increase in the average per capital gross domestic product or GDP.Stages of Economic Development by Walt RostowStage 1: The traditional societyStage 2: The precondition for take offStage 3: The take offStage 4: The drive to maturityStage 5: The age of high consumption

6. Consumer Spending Health and Education

7. MDCs – More Developed Countries – industrialized countries with high per capital incomes, such as: Canada, England, France, Germany, Japan and the United States.LDCs – Less Developed Countries – industrially developing countries just entering world trade, many of which are in Asia and Latin America, with relatively low per capital incomes.LLDCs – Least Developed Countries – industrially underdeveloped, agrarian, subsistence societies with rural populations, extremely low per capital income levels, the little world trade involved. LLDCs are found in central Africa and parts of Asia.NICs – Newly Industrialized Countries – countries have rapid industrialization of targeted industries and have per capital incomes that exceeded other developing countries. These countries are Chile, Brazil, Mexico, South Korea, Singapore and Taiwan.

8. NIC Growth Factor Political stability in policies affecting their development

9. Economic and legal reforms

10. Entrepreneurship

11. Planning

12. Outward Orientation

13. Factors of Production

14. Industries targeted for growth

15. Incentives of force a high domestic rate of savings and to direct capital to update the infrastructure, transportation, housing, education and training.

16. Privatization of state-owned enterprises (SOEs) that placed a drain of national budget.Information Technology, the Internet, and Economic DevelopmentThe information technology (IT) is an important key to economic growth. The cellular phone, the Internet, and other advances in IT for emerging economies to catch tainable future for developing nations.

17. The Internet accelerates the process of economic growth by speeding up the diffusion of new technologies to emerging economies. Unlike the decades it took before many developing countries such as: Asia, Latin America, and Easter Europe.- The economic development and marketing should begin with a brief review of the basic facts and objectives of economic development.Objectives of Developing CountriesIndustrialization is the fundamental objective of most development of most developing countries see in economic growth. The economic growth is not measured solely in economic goals but also in social achievements.Infrastructure and Development Infrastructure represent those types of capital goods that serve many activities of many industries. Included in the country’s infrastructure are paved roads, railroads, seaports, communications networks and energy supplies.Marketing Contribution’s Marketing is an economy’s arbitrator between productive capacity and consumer demand. The marketing process is the critical element in effectively utilizing production resulting from economic growth.

18. Evolution of the Marketing Process

19. Marketing in a Developing CountryLevel of market development The level of market development roughly parallels stages of economic development.

20. The more developed economy, the greater the variety of marketing function demanded.Demand in a developing country Economic dualism - the countries with dual sectors, there are at least two different market segment each can be profitable, but each requires its own marketing program and products appropriate for its marketing characteristics.Developing and emerging MarketsBEMs – Big Emerging MarketsBig emerging markets share a number of important traits.are all physically large

21. have significant population

22. represent considerable markets for a wide range of product

23. have strong rates of growth or the potential for significant growth