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Submitted by triptrip on June 25, 2008
Category: Business
Words: 801 | Pages: 4
Views: 38
Popularity Rank: 116,082
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This chapter discusses Emerging Markets and developing countries…but focuses on “Newly Democratized Countries” NDCs
In NDCs markets generally were the product of centralized planning economy which means that marketing activities are suspect, marketers need to be legitimized and there is traditional supremacy of producers over consumers.
Marketing in these countries goes against the old order and the old ways with puts people’s mindsets under stress…which is NOT what marketers want to do!
-There is a lot of education on the FREE MARKET SYSTEM that needs to be done in these markets.
Some of the Emerging Markets the book discusses are Russia, China, India, and other developing countries….some of the DEVELOPING COUNTRIES the book discusses are poor nations in Africa, Asia, and Central America (Nicaragua, Guatemala). These DEVELOPING COUNTRIES are primarily defined by Low Per Capita Income Levels and they are included in the realm of the NDCs, from a marketing standpoint, because both of these types of countries have a huge Lack Of Marketing Infrastructure.
LOCAL MARKETING IN DEVELOPING COUNTRIES
Some of the problems faced in these countries are:
-poor economic conditions
-low educational levels
-high illiteracy rate
-general overall apathy of the populace
Local Marketing in these types of countries is challenging.
Microenvironment in these countries are characterized by UNCERTAINTY which is why “environmental scanning” becomes necessary in these markets for local marketers.
Other problems in these NDCs are:
-radical political change can happen quickly and abruptly
-financial risks tend to be great
-value of revenues tends to be lessened due to convertibility problems, black markets, and exchange rate fluctuations
-there are risks for sudden changes in tariff rates and other trade-impeding...
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