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Chapter 9Emerging Market  By: Maria MechaellaDoromal
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.
Marketing and Economic Development ,[object Object]
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.
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 Rostow Stage 1: The traditional society Stage 2: The precondition for take off Stage 3: The take off Stage 4: The drive to maturity Stage 5: The age of high consumption
Consumer Spending			     Health and Education
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.
NIC Growth Factor ,[object Object]
Economic and legal reforms
Entrepreneurship
Planning
Outward Orientation
Factors of Production
Industries targeted for growth
Incentives of force a high domestic rate of savings and to direct  capital to update the infrastructure, transportation, housing, education and training.
Privatization of state-owned enterprises (SOEs) that placed a drain of national budget.,[object Object]
 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.,[object Object],[object Object]
Evolution of the Marketing Process
Marketing in a Developing Country Level of market development ,[object Object]
The more developed economy, the greater the variety of marketing function demanded.Demand in a developing country ,[object Object],[object Object]
have significant population
represent considerable markets for a wide range of product
have strong rates of growth or the potential for significant growth

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International Management

  • 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.
  • 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 Rostow Stage 1: The traditional society Stage 2: The precondition for take off Stage 3: The take off Stage 4: The drive to maturity Stage 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.
  • 15. Incentives of force a high domestic rate of savings and to direct capital to update the infrastructure, transportation, housing, education and training.
  • 16.
  • 17.
  • 18. Evolution of the Marketing Process
  • 19.
  • 20.
  • 22. represent considerable markets for a wide range of product
  • 23. have strong rates of growth or the potential for significant growth
  • 24. have undertaken significant programs of economic reform
  • 25. are of nature political importance within their regions
  • 27.
  • 28.
  • 29.
  • 30. 5th largest country by geographical area.
  • 31. 5th most populous country in the world.
  • 32.
  • 33. Nominal per capita GDP has surpassed US$10,500 in 2008, due to the strong and continued appreciation of the real for the first time this decade.
  • 34. 10th largest economy in the world, 2nd largest in the Americas measured by purchasing power parity, in the Americas, after the United States.
  • 35.
  • 36.
  • 38. Fastest increases in income levels
  • 39. World’s factory- World’s #1 Exporter of IT Goods
  • 41.
  • 42. China has entered the global markets by joining the WTO . Foreigners can invest money there to build plants and take advantage of the cheap labor.
  • 43.
  • 44. 2 nd most populous country.
  • 45. 4 th largest economy in purchasing power.
  • 46. Worlds 12 th largest economy at market exchange rates.
  • 47.
  • 48. Since 1991: India has gradually opened up its markets through economic reforms and reduced government controls on foreign trade and investment.
  • 49. Privatization of publicly owned companies and the opening of certain sectors to private and foreign participation has continued amid political debate.
  • 50.
  • 51.
  • 52. Difficulty to develop a product market
  • 53.
  • 54. The quality of talent is hard to ascertain.
  • 55.
  • 56.
  • 57. Like investors, creditors don't have access to accurate information on companies
  • 58. Businesses can't easily assess the creditworthiness of other firms or collect receivables after they have extended credit to customers
  • 59.