Marketing Copyright2003byTheMcGrawHillCompanies,Inc.Allrightsreserved.
Chapter
9
Local in New Growth Markets
Copyright2003byTheMcGrawHillCompanies,Inc.Allrightsreserved.
Introduction
Two
Kinds of Markets
kinds of new growth countries
that are relatively rich in natural raw materials that have turned toward Western-style capitalism more recently
Two
Markets Markets
With the help of foreign direct investment
The
Role of Trade Blocs
in trade blocs plays a very important role for two reasons
makes the country more attractive to foreign investors creates an trading region with an enlarged market potential
Membership
It It
Copyright2003byTheMcGrawHillCompanies,Inc.Allrightsreserved.
Introduction
Market
New
Segmentation
growth markets are in the growth phase of the PLC
makes them attractive for entry
This
Market
A
segmentation in these countries differs from that in the developing countries primarily in the degree to which
core middle class is developed
Product
In
Positioning
new growth markets it is easy to observe the attention given to well-known brand names
Copyright2003byTheMcGrawHillCompanies,Inc.Allrightsreserved.
Introduction
Marketing Product
Basic
Tactics
localization to make sure the product functions well is necessary in these markets, and customers can be as demanding as elsewhere is important but can largely reflect the same considerations as in the advanced marketsdemand, costs, competitive conditions is very important and warrants larger margins and more support services than elsewhere support, tie-ins with local representatives, and an open mind in regard to trusting locals will be more justified in the future
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Pricing
Pricing
Distribution
Distribution
Promotion
Promotional
Close-Up: Marketing in Latin America
Marketing
Overall
At
Environment
the region is poor
least 50 percent of the wealth is controlled by 20 percent of the people in almost all of the countries in Latin America
Copyright2003byTheMcGrawHillCompanies,Inc.Allrightsreserved.
Close-Up: Marketing in Latin America
Regional
LAIA
All
Trade Agreements
Latin American Integration Association
South American countries and Mexico
ANCOM
Andean Common Market
ANCOM
means reduced tariffs, increased intraregional trade, free factor mobility, and a political climate more favorable to foreigners
MERCOSUR
A
Southern Cone Common Market
common market consisting of Argentina, Brazil, Paraguay, and Uruguay
NAFTA
The
North American Free Trade Area
1994 ratification of NAFTA has meant that Mexico has moved closer to its northern neighbors
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Close-Up: Marketing in Latin America
Market
Segmentation
Market
segmentation in Latin America is often based on the simple distinction between urban versus rural population
Product
Positioning
Companies Marketers
targeting affluent urban buyers can generally apply the strategies used in more mature markets targeting low-income consumers need to approach this segment more cautiously
Copyright2003byTheMcGrawHillCompanies,Inc.Allrightsreserved.
Close-Up: Marketing in Latin America
Marketing
Product
Two
Tactics
Policies
factors causing Latin American markets to continually upgrade their products and services
The increased competition from foreign producers The implementation of trade agreements between Latin American countries
Pricing
As
long as the historical inequality in incomes holds in Latin America, global entrants will have to focus on the urban markets, leaving the lower-price end of the range to local companies
Copyright2003byTheMcGrawHillCompanies,Inc.Allrightsreserved.
Close-Up: Marketing in Latin America
Marketing
Tactics
Distribution
Distribution
in Latin America is moving toward the larger integrated units and the chain concept
Common in European and North-American markets
Promotion
Among
urban consumers
Research has shown that adult Latin Americans want detailed product information in advertising and tend to reject image-oriented ads Marketing communications are dominated by the need to overcome illiteracy
In
rural areas
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Close-Up: Marketing in Latin America
Major
Country Markets
Argentina
The
currency crisis of Argentina at the beginning of 2002 has thrown the country with its 36 million people and the highest standard of living in Latin America into turmoil
However, its membership in Mercosur has served to attract foreign companies such as IBM and General Motors looking for entries into the larger region
Brazil
Brazil
is the largest of the Latin-American million countries
163 people. Generates a third of South Americas economic output and is a major consumer of its exports
Copyright2003byTheMcGrawHillCompanies,Inc.Allrightsreserved.
Close-Up: Marketing in Latin America
Major
Country Markets
Chile
Chile
with its 15 million people is perhaps the most vigorous example of recent Latin American growth 99 million people of Mexico make the country the second-largest market (after Brazil) in Latin America
Mexico
The
The Mexico City metropolitan area provides a major market for global brands and upscale consumer goods
Pan-Regional
Some
Marketing
observers argue that a marketing strategy aimed at the Latin-American region overall will be effective
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Close-Up: Marketing in Latin America
Pan-Regional
Burger
Marketing
King in Latin America
Burger
Kings expansion in Latin America has taken the form of joint ventures, franchise agreements, and alliances with U.S. consumer products companies such as Coca-Cola
IBM
in Latin America
long-term strategy for Latin America
Includes spending millions of dollars to bring computer technology to local schools in 11 countries This program is intended to enhance the companys image and also create a market with loyal future customers for its products and services
IBMs
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Close-Up: Marketing in the New Asian Growth Markets
Market
Environment
Several
of these countries are ethnically homogeneous while others are populated by several racial groups
Regional
The
Trade Agreements
Association of South East Asian Nations (ASEAN) was created in 1967
APEC In
(Asia-Pacific Economic Cooperation) is a large association that spans both sides of the Pacific 1992, ASEAN countries met to formalize a far-reaching trade agreement forming the ASEAN Free Trade Area (AFTA)
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Close-Up: Marketing in the New Asian Growth Markets
Market
The
Segmentation
economic upswing in the Asian high-growth markets has led to the emergence of a significant middle class in Thailand known as the have somes justified from an economic perspective, avoiding the rural areas where people tend to be less well off can create some political problems
However
Product
The
Positioning
Asian markets desire for global identification has made many multinationals with more mundane products use global standardization in their positioning strategies
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Close-Up: Marketing in the New Asian Growth Markets
Marketing
Product
The
Tactics
Policies
emphasis on these markets as followers of global mature markets makes standardized product policies natural
Product
The
Design
Asian consumer...