0. International Marketing: Chapter 11 Key Concepts
Economic growth areas for Asia Pacific region
Bottom-of-the-pyramid markets (BOPMs)
Opportunities & challenges of marketing in Asia Pacific LDCs and LLDCs (as discussed)
Multinational market regional groups in Asia Pacific region

1. Dynamic Economic Growth in the Asia Pacific Region
Opening Side
Greater China
People’s Republic of China (PRC)
Taiwan--Republic of China (ROC)
Hong Kong
Japan
India
The Four Asian Tigers
Hong Kong, Singapore
South Korea, Taiwan
Vietnam

2. Greater China: People’s Republic of China (PRC)
Strained political relationship with ROC
Dual economic system (socialism/capitalism)
Economic boom since 1970s
Admission to World Trade Organization
Re-established normal trade relations with U.S.
Entry barriers eroding rapidly
Needs to improve human rights & legal system

3. Greater China: Hong Kong
155 years of British rule
Reverted to China in 1997
SAR of PRC (special administrative region)
High degree of autonomy
Free society with legally protected rights

4. Greater China: Taiwan
Billion dollar investments into Chinese factories
Increasing bilateral trade with China
Access to limitless pools of cheap Chinese labor

5. Japan Amazing economic growth in 1970s and 1980s
Economy stalled drastically in 1990s
Faulty economic policies
Stock market crisis (Nikkei Index)
Entrenched political bureaucracy
Shrinking population
Now following slow-growth policy

6. Four Asian Tigers
After Japan, first four countries in Asia to move from developing country to NIC status
Rapid industrialization
Important economic leaders for other Asian countries

7. Vietnam Poised for significant growth
Educated and motivated population
Government committed to economic growth
Historical constraints:
Poor infrastructure
Onerous government restrictions
Minimal industrial base
Competition for resources from China
Lack of capital technology

8. India: Historical Constraints
Traditional, insular policies
Widespread corruption and bribery
High import tariffs
Poor protection of intellectual property rights
Anti-business attitude

9. India: Five Point Agenda
Improve investment climate
Develop comprehensive WTO strategy
Reform key industries
Agriculture
Food processing
Small scale industry
Eliminate red tape
Institute better corporate governance

10. India: Significant Opportunities
Massive market
Cheap and qualified labor
English language fluency
Large, educated middle class (250,000 million)
Supplier and exporter expertise in IT
Competitive time zone (to conduct business with U.S.)
Ignored “bottom-of-the-pyramid” market (BOPM)

11. Bottom-of-the-Pyramid Markets (BOPMs)
Opening Side
Four (4) billion people across the globe with incomes of less than $1200
Not defined by national borders
Defined by pockets of poverty across countries
Concentrated in LDCs and LLDCs
Relatively ignored by international marketers
Misconceptions about their lack of resources
Lack of appropriateness of products and services usually developed for more affluent consumers

12. Dynamic Transformation of BOPM Clusters

13. Level of market development
Important Considerations: Marketing in a Developing Country (from Chapter 9)
Level of market development
Physical infrastructure
Specialized marketing institutions
How much adjustment is necessary
Level of market demand
Literacy, income, living conditions?
What kind of market?
Traditional rural/agricultural sector
Modern urban/high-income sector
Transitional sector (with urban slums)

14. Level of market development
Important Considerations: Marketing in a Developing Country (from Chapter 9)
Level of market development
Physical infrastructure
Specialized marketing institutions
How much adjustment is necessary
Level of market demand
Literacy, income, living conditions?
What kind of market?
Traditional rural/agricultural sector
Modern urban/high-income sector
Transitional sector (with urban slums)

15. Asia Pacific Trade Associations
Opening Side
Association of South East Asian Nations (ASEAN)
ASEAN+3
ASEAN members plus ministers from China, Japan, and South Korea
Asia-Pacific Economic Cooperation (APEC)

16. Association of South East Asian Nations (ASEAN)
Opening Side
Result of Asian financial crisis of
Consists of foreign and finance ministers of each country
Meet annually to deal with trade and monetary issues facing Asia
ASEAN
+ China
+ Japan
+ South Korea

17. Asia-Pacific Economic Cooperation (APEC)
Opening Side
Established in 1989
Includes all major economies of the region
Common goals and commitment:
Open trade
Increase economic collaboration
Sustain regional growth and development
Strengthen the multilateral trading system
Reduce barriers to investment and trade