Reflection on Impact of Emerging Markets on Marketing: Rethinking Existing Perspectives and Practices
The world of business has changed in recent years. Usually, the firms of developed countries dominated the globe and developed 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 very simple; marketing is a discipline that was developed in the concept of industrialized (developed) markets meaning that most of the marketing tools are designed to work specifically in industrialized markets (Sheth, 2011). Therefore, adapting most of what is known about marketing is necessary to succeed in new markets and new marketing research approaches need to be taken.
The article Impact of Emerging Markets on Marketing: Rethinking Existing Perspectives and Practices covers some of the most important characteristics of these markets such as their growth, market heterogeneity, sociopolitical governance and comparative advantages. Also, the author suggests some changes that need to be made to the existing marketing theory, marketing strategy, marketing policy and marketing practice. Moreover, Sheth argues that companies (from developed countries as well as from the emerging countries) who succeed in the mentioned markets are becoming global competitors. The reason is that these firms have to innovate to overcome challenges such as shortages of resources, inadequate infrastructure and unbranded competition. As a result, innovation makes these firms more efficient as well as it creates a competitive advantage which allows them to compete globally.
Having grown up in Mexico, one of the so called MISTs, I can relate many of Sheth’s marketing suggestions
The article Impact of Emerging Markets on Marketing: Rethinking Existing Perspectives and Practices covers some of the most important characteristics of these markets such as their growth, market heterogeneity, sociopolitical governance and comparative advantages. Also, the author suggests some changes that need to be made to the existing marketing theory, marketing strategy, marketing policy and marketing practice. Moreover, Sheth argues that companies (from developed countries as well as from the emerging countries) who succeed in the mentioned markets are becoming global competitors. The reason is that these firms have to innovate to overcome challenges such as shortages of resources, inadequate infrastructure and unbranded competition. As a result, innovation makes these firms more efficient as well as it creates a competitive advantage which allows them to compete globally.
Having grown up in Mexico, one of the so called MISTs, I can relate many of Sheth’s marketing suggestions
References: Sheth, J.N. (2011). Impact of emerging markets on marketing: Rethinking existing perspectives and practices Levitt, T. (1983). The globalization of markets. Harvard Business Review, 61 (May/June), 92-102 Goldman Sachs (2003). "Dreaming with BRICs: The Path to 2050." Goldman Sachs. N.p., n.d. Web. 11 Dec. 2012. http://www.goldmansachs.com/our-thinking/topics/brics/brics-reports-pdfs/brics-dream.pdf Inter-American Development Bank (2008) El Economista (2011). “En El 2011, Coppel “abarató” a Liverpool”. En El 2011, Coppel "abarató" a Liverpool. N.p., 15 Mar. 2012. Web. 11 Dec. 2012. . "Coppel." Coppel. N.p., n.d. Web. 11 Dec. 2012. . Bloomberg News (2012). “Mexico’s Coppel Brothers Emerge With $16 Billion Fortune.” BusinessWeek. N.p., 15 Nov. 2012. Web. 17 Dec. 2012.