Assessing Global Market Opportunities
Assessing Global Market Opportunities
Assessing Global Market Opportunities
OPPORTUNITIES
EMERGING MARKETS
1. Political stability in
development policies
2. Economic and legal reforms
3. Entrepreneurship
4. Planning
5. Outward orientation
6. Factors of production
7. Industries targeted for
growth
8. Privatization of stateowned enterprises (SOEs)
9. Accessibility of large
markets
Utilities
Communications
Transportation
Is the Infrastructure Reliable?
Countries
Countries begin
begin to
to lose
lose economic
economic development
development
ground
ground when
when their
their infrastructure
infrastructure cannot
cannot support
support an
an
expanding
expanding population
population and
and economy
economy
Emerging Markets
Emerging markets are nations with social or business
activity in the process of rapid growth and
industrialisation. Based on data from 2006, there are
around 28 emerging markets in the world (data from
2010 says there are 40 emerging markets
The economies of China and India are considered to be
the largest. According to The Economist, many people
find the term outdated, but no new term has yet to gain
much traction.
The ASEAN China Free Trade Area, launched on
January 1, 2010, is the largest regional emerging market
in the world.
The Americas
Eastern Europe
GDP
Import Export
Life
expect
Pop.
(million)
6,400
4.8
1.5
77.8
3.6
145.1
150.5
76.6
10.2
Poland
17,800
213.9
190.5
75.4
38.5
Slovenia
30,800
38.1
34.3
76.7
2.0
Turkey
12,900
204.8
141.8
73.1
71.9
Ukraine
7,800
82.5
64.9
68.1
46.0
Albania
www.cia.gov/library/publications/the-world-factbook/
Asia
Asia
Country
GDP
Import Export
Life
expect
Pop.
(million)
800
4.9
0.33
44.2
32.7
Cambodia
2,100
6.4
4.6
61.7
14.2
China
6,100
1,156
1,465
73.2
1,330
India
2,900
288
178
69.3
1,147
Japan
35,300
696
777
82
127
Laos
2,100
1.28
1.03
56.3
6.7
Philippines
3,400
63.4
50.9
70.8
96
Singapore
52,900
307
349
81.9
4.6
Afghanistan
www.cia.gov/library/publications/the-world-factbook/
Africa
Africa
Country
GDP
Import Export
Life
Pop.
expect (million)
Burkina Faso
1,300
1.7
0.8
52.6
Egypt
5,500
56.4
33.4
71.9
15.3
81.7
Nigeria
2,200
46.4
83.1
46.5
146
700
0.56
0.22
40.9
6.3
10,400
87.3
81.5
48.9
48.8
Sierra Leone
South Africa
www.cia.gov/library/publications/the-world-factbook/
As a country develops:
1. incomes rise
2. population concentrations shift
3. expectations for a better life lead to higher
standards
4. new infrastructures evolve
5. social capital investments are made
2. When incomes rise, new demand is generated
3. New market segments are created.
Country
Canada
Population
(millions)
GDP
Cars
per
capita
per 1000
33.4 35,700
TVs
PCs
581
655
460
China
1,321.9
7,800
306
19
India
1,129.8
3,800
58
Kenya
36.9
1,200
13
22
Mexico
108 10,700
151
241
69
It is suggested that
1. A person earning $250 annually in a
developing country can afford Gillette razors
2. At $1,000 a year he or she can become a
Sony television owner
3. A Nissan or Volkswagen could be possible with
a $10,000 income
4. Whirlpool estimates that in Eastern Europe a
family with an annual income of $1,000 can
afford a refrigerator, and with $2,000 they can
buy an automatic washer as well.
It is suggested that
1. At the $5,000 per capita mark, people are more
brand conscious and forego local brands for
foreign brands they recognize
2. At $10,000, they join those with higher incomes
who are exposed to same global information
sources. They join the Club of consumers
with homogeneous demands who share a
common knowledge of products and brands.
3. They become global consumers
Country
Ukraine
12,858,000
55,240,000
0.23
Canada
21,000,000
18,749,000
1.12
Turkey
18,413,000
61,976,000
0.30
South
Africa
4,642,000
42,300,000
0.11
37,500
2,583,000
0.01
Cambodia
Land
line / Cell
https://www.cia.gov/library/publications/the-world-factbook/index.html
Objectives of
Developing Countries
Industrialization is the fundamental objective of most
developing countries
Economic growth is seen as the achievement of
social as well as economic goals
Better education
Better and more effective government
Elimination of many social inequities
Improvements in moral and ethical responsibilities
Marketings Contributions
Marketing (or distribution) is not always considered
meaningful to those responsible for planning
Marketing is an economys arbitrator between
productive capacity and consumer demand
The marketing process is the critical element in
effectively utilizing production resulting from
economic growth
Marketing is instrumental in laying the groundwork
for effective distribution
Marketing in a
Developing Country (1 of 3)
Marketing efforts must be keyed to each situation
and custom tailored to each set of circumstances
A promotional program for a population that is 50%
illiterate is vastly different from a program for a
population that is 95% literate
Marketing in a
Developing Country (2 of 3)
Level of market development
Marketer must evaluate existing level of market
development and receptiveness
The more developed an economy, the greater the
variety of marketing functions demanded, and the
more sophisticated and specialized the institutions
become to perform marketing functions
Part of the marketers task when studying an
economy is to determine what in the foreign
environment will be useful and how much adjustment
will be necessary to carry out stated objectives
Marketing in a
Developing Country (3 of 3)
Demand in developing countries - Three distinct
kinds of markets in each country
Traditional rural/agricultural sector
Modern urban/high-income sector
Transitional sector usually represented by lowincome urban slums
A maquiladora plant
Hong Kong
After 155 years of British rule, Hong Kong reverted
to China in 1997, when it became a special
administrative region (SAR) of the PRC
Hong Kong is given a high degree of autonomy. It
negotiates bilateral agreements (which are then
confirmed by the PRC0 and makes major
economic decisions on its own
Hong Kong is a free society with legally protected
rights as the PRC continues to pursue a generally
noninterventionist approach to economic policy that
stresses the private sector
Japan
Japans fast growth in the 1970s and 1980s amazed
the world. Then came the early 1990s, and Japans
economy produced a stunning surprise: it slowed,
sputtered, and stalled
Four explanatory themes have emerged:
Global Circumstances
Japanese population is shrinking faster than the
U.S. In 2005, while American baby boomers were at
their peak of productivity, the Japanese were about
10 years ahead to population declines and graying
hair
Serious disadvantage in the information age: its
complex language (three alphabet system) hindered
software innovations
With historically low real prices of oil and the U.S.
peak consumption level of SUVs, Japan was late to
tap this market
India
The following steps have already been taken:
Privatizing state-owned companies ; reducing stake to
about 51%
Recasting the telecom sectors regulatory authority and
demolishing the monopolies enjoyed by SOEs (Stateowned enterprises)
Signing a trade agreement with the U.S. to lift all
quantitative restrictions on imports
Maintaining momentum in the reform of the petroleum
sector
Planning the opening of domestic long-distance phone
services, housing, and real estate and retail trading
sectors to foreign direct investment
India
India still presents a difficult business environment
Tariffs are well above those of developing world
norms
Inadequate protection of intellectual property rights
Anti-business attitudes of Indias federal and state
bureaucracies continue to hinder potential investors
and plague their routine operations
Delay by policymakers on selling money-losing SOEs,
making labor laws flexible, and deregulating banking
Widespread corruption and ingrained bribery
India
But India presents a lot of opportunities
Massive market (over 1 billion, second in size only to
China)
Cheap and qualified labor
Knowledge of English
Educated middle class numbering 250 million (college
graduates, scientists, engineers, etc)
Supplier and exporter of expertise in all areas of
information technology
Time zone puts India in a competitive position with
their European counterparts (they work while
Americans sleep)
Asia-Pacific Economic
Cooperation (APEC)
APEC was formed in 1989
Provides formal structure for major governments to discuss
mutual interests in open trade and economic collaboration
Includes all major economies of the region and the most
dynamic, fastest-growing economies in the world
Open trade
Increase economic collaboration
Sustain regional growth and development
Strengthen the multilateral trading system
Reduce barriers to investment and trade without detriment to
other economies
Marketing Opportunities in
Greater China
Across this vast land of opportunity, there are extreme
differences in economic wellbeing, cultures, and
political structures
The following sectors are great for American exporters:
Automotive components, cleaner coal, construction
equipment, education and training services, machine
tools, marine industries, healthcare, water and
wastewater treatment, rail equipment, renewable energy,
and green building