Marketing In Emerging Markets Essay
“Superior marketing in emerging market is all about tapping into the most affluent tier of customers in emerging-market-cities such as Delhi, Shanghai, Rio de Janerio and Moscow.”
By
TONG KAR HEI JENNY
More than 20,000 multinationals which are operating in emerging markets nowadays. [1] They spend a huge sum of budget in the emerging markets marketing campaigns to raise the brand awareness and to boost the sales. The trend is expected to continue to thrive for the coming decades due to the expanding consumption of the people in various emerging markets, including the most well known countries BRICS and other emerging and potential economies just like the Philippines, Turkey etc. According to the Mckinsey report, the annual consumption in emerging markets will reach $30 trillion in 2025, which is the biggest growth opportunity in the history of capitalism. [2] Therefore, it is sensible that companies to be aggressive to capture the emerging markets through different marketing means including the traditional advertising as well as other social media platforms.
Someone say that marketing in emerging market is all about tapping into the most affluent tier of customers in emerging-market-cities such as Shanghai, Rio de Janerio and it can lead to the success of the whole company in the development in emerging markets. However, this idea is unjustifiable and the marketing should also focus on lower tier cities such as Tianjin, Hanoi and Ahmedabad. Three reasons with diverse real life examples will be given to explain why it is also significant to have marketing in lower tier cities and to target the lower customer segments. They will be discussed in the following paragraphs in the perspective of market size and growth, level of competition as well as customer needs.
First and foremost, the GDP growth in lower tier cities especially the second tier ones is fast. It means they consume more with the growth of GDP. Second tier emerging market cities are the fastest
By
TONG KAR HEI JENNY
More than 20,000 multinationals which are operating in emerging markets nowadays. [1] They spend a huge sum of budget in the emerging markets marketing campaigns to raise the brand awareness and to boost the sales. The trend is expected to continue to thrive for the coming decades due to the expanding consumption of the people in various emerging markets, including the most well known countries BRICS and other emerging and potential economies just like the Philippines, Turkey etc. According to the Mckinsey report, the annual consumption in emerging markets will reach $30 trillion in 2025, which is the biggest growth opportunity in the history of capitalism. [2] Therefore, it is sensible that companies to be aggressive to capture the emerging markets through different marketing means including the traditional advertising as well as other social media platforms.
Someone say that marketing in emerging market is all about tapping into the most affluent tier of customers in emerging-market-cities such as Shanghai, Rio de Janerio and it can lead to the success of the whole company in the development in emerging markets. However, this idea is unjustifiable and the marketing should also focus on lower tier cities such as Tianjin, Hanoi and Ahmedabad. Three reasons with diverse real life examples will be given to explain why it is also significant to have marketing in lower tier cities and to target the lower customer segments. They will be discussed in the following paragraphs in the perspective of market size and growth, level of competition as well as customer needs.
First and foremost, the GDP growth in lower tier cities especially the second tier ones is fast. It means they consume more with the growth of GDP. Second tier emerging market cities are the fastest
References: [1] Matthew EyringMark W. JohnsonHari Nair. 2011. New Business Models in Emerging Markets. [ONLINE] Available at: https://hbr.org/2011/01/new-business-models-in-emerging-markets. [Accessed 01 December 14]. [2] McKinsey&Company, McKinsey&Company, 2012. Winning the $30 trillion decathlon. McKinsey and Company report, 1, 47. [3] Deloitte, Deloitte, 2011. Securing the next level for growth Second Tier Emerging Markets. Deloitte, 1, 4-6. [4] Bloomberg News [5] Hubbis. 2014. Driving insurance growth in Indonesia. [ONLINE] Available at: http://www.hubbis.com/articles.php?aid=1415078661. [Accessed 02 December 14]. [6] Deloitte, Deloitte, 2011. Securing the next level for growth Second Tier Emerging Markets. Deloitte, 1, 4. [10] Martin Rapaport. 2012. Chow Tai Fook: The Inside Story. [ONLINE] Available at: http://www.diamonds.net/Magazine/Article.aspx?ArticleID=39992&RDRIssueID=90. [Accessed 01 December 14]. [12] Adobomagazine. 2011. Tier 5 cities overtaking tier 1 in China Internet consumption. [ONLINE] Available at: http://www.adobomagazine.com/tier-5-cities-overtaking-tier-1-china-internet-consumption-0. [Accessed 30 November 14].