Introduction
Marketing relationships are shaped by market characteristics that shape companies’ overall strategy and goals. Different types of markets create conditions for companies to develop within their capabilities. Emerging Markets are evaluated as markets with fluid risks and available business conditions that only allow for forming a market institution. Emerging Markets focus on a set of opportunities driven by country conditions and the characteristics of its core industry predisposition to achieve positive results.
Emerging Markets: Opportunities
Emerging Markets (EM) have potential in the long term, which explains the benefits derived in such an economic arena. In contrast to a developed market, the path can be varied, and new alternatives arise and fade out quickly (Business insights on emerging markets in 2021, 2021). These variations determine the competitiveness of companies that plan to enter and settle in a new niche. If, at first, it will be just two companies offering one product, then gradually, the market grows, and already many organizations will compete with each other (Sakarya, Eckman, and Hyllegard, 2007). An EM is conducive to multilateral cooperation and interaction, as it creates an environment with easy access and facilitates the formation of supply and demand parameters.
EM has opportunities to create a specific cultural environment in which companies will exist. A country’s domestic environment and culture can shape the politics of the market, but it also influences the image of the economy in the international arena (Yeniyurt and Townsend, 2003). An EM has the potential to express a cultural diversity of goods, as niches are just beginning to be filled and acquire a recognizable image. The market can demonstrate the social and moral values of those companies that will be the first to occupy it and continue to manage it until competition grows.
Along with cultural opportunities, EMs are open to creating an image based on a few specific industries. For example, some countries initially have potential in agriculture because of the climate. In that case, companies coming to EM predominantly supply products or sell agricultural machinery. In EM, companies have the advantage of quickly adapting to regional needs and conditions, thereby clearly imagining the competition in this sector (Business insights on emerging markets in 2021, 2021). EM can be a better playground than the developed market for trade because it can still change direction slightly within the industry. Industry differentiation between markets allows EM to implement marketing strategies faster and easier and reduce the effects of market challenges.
EMs are relatively closed sectors in the early stages, so their potential depends on buyer dynamics. Such markets are willing to keep buyers away from foreign goods, creating the best conditions for domestic trade (Iwasaki, 2020). Low buyer receptivity to foreign business is a massive advantage for EMs seeking to retain and increase their existing audience. Companies will be willing to grow in an EM environment because it provides them with better opportunities in systems to retain customers and attract new ones.
Conclusion
Thus, Emerging Markets are dynamic markets that are just beginning to form a systemic principle of trade. EM companies have several capabilities that allow them to fill economic niches and shape countries’ industry trends. These include long-term capacity in planning, cultural creation, management of industry sectors, and consumer involvement in shaping the market. These capabilities allow EM to strengthen, reduce business risks, and promptly manage the effects of challenges.
Reference List
Business insights on emerging markets in 2021. OCED. Web.
Iwasaki, I. (2020) ‘Meta-analysis of emerging markets and economies: an introductory note for the special issue’, Emerging Markets Finance and Trade, 56(1), pp. 1-9.
Kwan, C.Y., Yeung, K.W. and Au, K.F. (2003) ‘A statistical investigation of the changing apparel retailing environment in China’, Journal Of Fashion Marketing & Management, 7(3), pp. 87-100.
Sakarya, S., Eckman, M. and Hyllegard, K. H. (2007) Market selection for international expansion: assessing opportunities in emerging markets. International Marketing Review.
Yeniyurt, S. and Townsend, J.D. (2003) ‘Does culture explain acceptance of new products in a country’, International Marketing Review, 20(12), pp. 377-96.