International Marketing: Chapter 9 Key Concepts

1. 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) International Marketing: Chapter 9 Key Concepts

2. Marketing and Economic Development • The stage of economic growth affects: • Attitudes toward foreign companies • Demand for goods • Distribution systems • Entire marketing process

3. Evolution of Marketing Process

4. Stages of Economic Growth(United Nations Categories)

5. 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

6. 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

7. Infrastructure and Economic Development • Infrastructure must support expanding population and economy • Paved roads, railroads • Seaports • Communication networks

8. 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)

9. 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 +

10. 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

11. 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)

12. Latin American Economic Cooperation • Latin American Integration Association (LAIA) • Carribean Community and Common Market (CARICOM)

13. 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