Chapter 9 Economic Development and the Americas

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Chapter 9 Economic Development and the Americas
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MARKETING IN DEVELOPING COUNTRIES

• Relationship between marketing and economic
  development-how the 4Ps change at different
  stages of economic development
• Marketing in a developing country-issues to
  consider
• Level of market development
• Demand, market size and growth
• Infrastructure
• Marketing mix
• Internet is changing the market characteristics

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COUNTRY CLASSIFICATION

• Rostows Stages of Economic Growth
• Country Classification or Grouping
• United Nations or World Bank Classification
• MDC (more developed countries)
• LDC (less developed countries)
• LLDC (least developed countries)
• Emerging Markets-Big Emerging Markets (BEM)
• Waheeduzzaman (2011)-article on emerging markets

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ROSTOWS STAGES OF DEVELOPMENT

• The traditional society
• The preconditions for take-off
• The take-off
• The drive to maturity
• The age of high mass consumption
• The information society (not in Rotows
  classification, I added it)

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(BIG) EMERGING MARKETS

• Who are they? Why did they grow fastreasons for
  growth or their characteristics?
• Democracy and political stability (?)
• Economic and legal reforms-liberalization
• Entrepreneurship-privatization
• Governmental supporttargeting
• Openness and globalization
• Internet-bringing the nations closer?

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INTEGRATION IN THE AMERICAS

• North American Free Trade Agreement
• USA, Canada, and Mexico
• Ratified and became effective in 1994
• Second largest integrated trade bloc
• US-Central American Free Trade Agreement
• Signed in August 2005
• USA, Costa Rica, Dominica Republic, El Salvador,
  Guatemala, Honduras, and Nicaragua
• MERCOSUR (Southern Cone Trade Area)
• Argentina, Bolivia, Brazil, Chile, Paraguay and
  Uruguay
• Signed in 1991
• Second largest group in the Americas

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DISCUSSION QUESTIONS

1. Explain the relationship between economic
   development and marketing.
2. What are the different ways we classify markets
   or countries? How does such classification help
   marketers?
3. Who are the emerging markets? Explain their
   characteristics, reasons for growth and the role
   they may play in a globalized world.
4. Discuss the economic integration in the Americas
   and explain how this will affect international
   business/marketing.

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THE AMERICAS
9-8
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EASTERN EUROPE AND BALTIC STATES
BalticSea
BlackSea
Adriatic Sea
TyrmenianSea
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10
ASIA
9-12
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