Selling to Newly Emerging Markets

Selling to Newly Emerging Markets

Selling to Newly Emerging Markets

Selling to Newly Emerging Markets

Synopsis

Significant sales opportunities exist in newly emerging markets around the globe--and many of them are missed. Because sales and marketing executives lack familiarity with the structure of the markets and the risks of working in them, Miller says, they often have little understanding of how to enter them. In this unusually well-researched book by an experienced international marketer, Miller concentrates on the unique characteristics, opportunities, and sales methods associated with newly emerging markets. He pays special attention to economies in transition in the newly independent states in Russia and the rapidly expanding markets throughout Eastern Europe. His book will be essential for organizations contemplating expansion internationally and for executives and scholars in educational and multilateral institutions with important interests in understanding new markets and how to benefit from them.

Excerpt

Technological advances in transportation, telecommunications, and computing have effectively reduced distances that previously separated countries and their markets from one another. As the technological revolution intensifies, it is creating globally dependent economies. in creating greater interdependence among nations, globalization is also placing increasing importance on the ability of individual companies to participate in the international arena.

One of the principal benefits of developing overseas markets is the opportunity to achieve increased sales volumes. As the combined domestic and international unit volumes increase, individual manufacturing costs decrease. This economy of scale will normally result in increased profits that enable a company to better compete in all its commercial sectors. Without expanded volumes it is very difficult to achieve the competitive cost levels that are available to other companies engaged in multiple market activity.

At one time it was possible for a business to restrict its efforts to a single domestic market and compete effectively with other similarly focused organizations. With the intervention of foreign competitors and their usually lower production costs, such a singular approach is no longer feasible. International market development can provide a necessary venue for increased volumes and the associated economies of scale that will automatically enhance a firm's competitive posture.

Most foreign competitors entering the United States and Western European markets rely on product pricing significantly lower than the pricing offered by domestic companies. This price advantage is often possible because of substantially lower labor costs in less developed countries. Organizations operating in the more advanced economies are unable to reduce prevailing labor rates without experiencing major operating disruptions. As a result, domestic companies are forced to resort to other methods of cost reduction, which may include down-

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