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Chapter Ten
Local Marketing in Emerging Markets
Local Marketing in Emerging Markets
Market analysis
marketing infrastructure, income levels, currency
convertibility
Product strategy
simplified, low-cost line; some high-end opportunities
Pricing
balance between skimming/penetration, innovation
required
Promotion
limited media, less clutter, importance of visual images
Distribution and Service
key factor, imagination required, personal service
Emerging Markets: Success Strategies
Seek compatible objectives
Help develop local industry
Be sensitive to local cultures and
values
Provide training across functional
areas
Contribute to social development
Document contributions
Adopt long term perspective
Local Marketing
in Russia and Eastern Europe
Common conditions
basic needs satisfied, education & social control, new
free market
Political and legal factors
commercial law developing, political risk, view of free
market
Market analysis
Ethnic divisions, emerging segments
Local Marketing
in Russia and Eastern Europe (cont_)
Product and price
ambivalence about local products, low price Vs first
mover decisions
Promotion
media availability, education for new products,
credibility
Distribution
weak marketing and skills infrastructure, educational
role
Marketing in China
Entry barriers
import licenses, tariffs, currency controls, trading
companies
Role of Hong Kong’s trading companies
Joint ventures encouraged
Special economic zones
Importance of personal contacts
Marketing in India
Socialist era (1950-80) of market control
Liberalization (1980-present), political risk
Dual market, large emerging middle class
Resurgence of domestic brands
Chapter Terms and Essay
Terms
Ethnic market segmentation, dual income distribution,
Special Economic Zones, Hong Kong traders,
counterfeit products, educating middlemen
Essay
How do emerging markets differ from mature and new
growth markets. Using one of the three areas
discussed in the text as an example, explain the
challenges involved in competing in mature markets.
This Bud’s for You video
What firm-specific advantages are at issue
here for Anheuser Busch? for Budejovice
Budvar?
What entry method did Anheuser Busch
attempt to employ in this situation? Why did
the firm select this approach?
How did Budejovice Budvar respond to this
effort? Why?
Chapter Ten
Local Marketing in Emerging Markets