Exam (elaborations)
International Marketing
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International Marketing June Exam 2021
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Student IDInternational Marketing for December 2020
Section I
Question 1
1.
Emerging economies is a relatively new term which IMF used as a classification for a group of
countries that comprise more than 40% of the world’s population and nearly 30% of Global GDP. At
first, it included BRICS as in Brazil, Russia, India, China and South Africa but later grew (BEM big
emerging markets) to include more countries around the world like Egypt, KSA, Korea, Hungary,
Mexico and many more.
These countries are not content with their situation and underwent rapid industrialisation, rising
productivity and rising discretionary income. For example, Egypt has developed the Suez Canal zone
logistic and industrial area and assigning Port-Said (a city at the top of Suez Canal and Mediterranean
Sea) as a duty-free area to encourage and facilitate global trade. UAE has a number of Free trade
zones as well. These emerging markets have realized the positive effect of foreign investment and
facilitating trade has on their economy (South Korea for e.g.) and are keen to seduce foreign
investors with their large customer base (billions in the case of China and India), low cost of human
resource and manufacturing costs and rising economic conditions. This is to improve their standards
of living.
Rostow’s classification would classify these markets as in the take off and drive to maturity stage.
They are adopting better education and facilitating technological advancement especially in the
industrial and agricultural sectors.
Countries belonging to emerging markets are known to be influential within their region. Have large
potential for growth and will facilitate further expansion in nearby markets as they grow.
People in these countries are prone to spending on luxury items to communicate their social status.
Country of origin effect is strong in these countries.
, Student ID
Shellies team might want to exploit the opportunities in these qualities. Position the award-winning,
upmarket, Scottish brand to customers who would associate quality and Country of origin effect to
the products of the brand and would be attracted to it to enhance their social image. Being a Dubai
based business might give them an insider insight that would help them defeat competition. For
example, advertising that all their meat is Halal (i.e., prepared the Islamic way, quite similar to the
Jewish way)
Middle-class households are rising and with large households come large discretionary income.
Furthermore, Shellies team might want to target young working-aged people tend to live in with their
families till they marry which means they have more discretionary income to spend. They might even
target broader segments. They have one of two choices:
• Target customers within a country’s borders
• Target customers within a group of countries borders
I would hazard a guess that they might prefer to target customers in a group of countries (middle-
east for e.g.) to lower cost and increase ROI. As can be noticed, even neighbouring nations can have
many differences. The Arabic dialect used in UAE differs from the dialect used in Egypt. The team
would have to focus on similarities; standard Arabic, common heritage or common desires to
stimulate adequate response to the marketing approach. Furthermore, Dubai is a hot spot with more
than 10 million tourists every year! They would be able to increase their brand visibility
internationally, provide a familiar place for expats and facilitate expansion into neighbouring
countries as they grow.
It would be important to keep in mind when selecting segments to target:
1. Segment must be identifiable
2. Reachable: Might be hard in emerging markets as the infrastructure might not be developed
enough creating what is known as dual economies which is the coexistence of:
• Modern sector (cities): It might be easier to reach this segment with marketing
strategies.
• Traditional sector (rural): requires different products and marketing program.
3. Have homogenous characteristics
4. It should also be large enough to be profitable.
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