Impact of Emerging Markets on Marketing - 15122 Words

Jagdish N. Sheth Impact of Emerging Markets on Marketing: Rethinking Existing Perspectives and Practices The core idea of this article is that five key characteristics—market heterogeneity, sociopolitical governance, chronic shortage of resources, unbranded competition, and inadequate infrastructure—of emerging markets are radically different from the traditional industrialized capitalist society, and they will require us to rethink the core assumptions of marketing, such as market orientation, market segmentation, and differential advantage. To accommodate these characteristics, we must rethink the marketing perspective (e.g., from differential advantage to market aggregation and standardization) and the core guiding strategy concepts†¦show more content†¦Therefore, the fundamental question to consider is this: Will the emerging markets be driven by marketing as we know it today, or will the emerging markets drive future marketing practice and the discipline? Several factors are responsible for the growth of the emerging markets. First, economic reforms in Brazil , Russia, India, and China (BRIC) have unlocked markets protected by ideology and socialism. As a result, some of the best capitalist markets today are ex-communist or ex-socialist countries. This policy change has resulted in creating altogether new markets for branded products and services. Second, all advanced countries are aging, and aging very rapidly. As a consequence, their domestic markets are either Journal of Marketing Vol. 75 (July 2011), 166–182  © 2011, American Marketing Association ISSN: 0022-2429 (print), 1547-7185 (electronic) 166 stagnant or growing very slowly. Their future growth seems more destined to come from emerging markets. Third, worldwide liberalization of trade and investment, bilateral trade agreements, and regional economic integrations such as the ASEAN, Mercosur, and the European Union have resulted in global competition and global product and service offerings with unprecedented choices of branded products, especially in emerging markets. Finally, the emergence of the new middle class, especially in large population markets such asShow MoreRelatedImpact Of Emerging Markets On Marketing : Rethinking Existing Perspectives And Practices1074 Words   |  5 Pages CHAPTER 1 INTRODUCTION Research on emerging markets is not just a â€Å"nice thing to do†; it is increasingly becoming a necessity. (Jagadish N Seth, 2011). In his article titled, â€Å"Impact of Emerging Markets on Marketing: Rethinking Existing Perspectives and Practices† published in Journal of Marketing, 2011 he has specified the importance of academic research for understanding Emerging Markets. Emerging markets are those lower-incomes but rapid-growth countries that are using economic liberalizationRead MoreReflection on Impact of Emerging Markets on Marketing: Rethinking Existing Perspectives and Practices1858 Words   |  8 Pagesdeveloped countries’ markets were the most attractive. However, new attractive markets and new players have emerged from areas outside the developed world. These new markets such as the BRICs and the MISTs have large populations, high economic growth and increasing demands for goods. Also, they are expected to surpass the developed economies by 2050 (Goldman Sachs, 2003). According to Jagdish N. Sheth, the emerging markets have impacted both the theory and the practice of marketing. The reason is veryRead MoreGlobalization and Analysis of Lenovo in an International Market1297 Words   |  6 Pagescooperate to solve. In the multipolar world , the BRIC (Brazil, Russia, India and China) ,G20 such emerging economics have an more impact to th e world. 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