Most emerging markets are Greenfield investment platforms for the developed nations. Foreign investors, therefore, use a number of product policies to capture such markets for instance. They carry out market research and develop specific products that meet specific demands of the consumers. They ensure that the buyer obtains the benefits they are seeking to find in the product. They ensure the products are of good quality; design and the physical characteristics of the product are truly reflected. They ensure that the products are properly branded since this contributes to its perceived values and personality, properly packaged to reach the buyers in good condition, and properly labeled which differentiates their products from those of their competitors . At every step in the commodity life cycle, the investors ensure that the needs of the consumers are put forth.
Companies employ different promotion mix to ensure successful launch and publicizing of the various products. Most advertisements ensure that the aim for which it is conducted is effectively, whether to inform, sell, improve the image or produce listings. The adverts are target specific, in that, they specify the sector they are meant to reach, the customers, age, gender, social class, and so on. The choice of advertising media is also important as the most suitable media which give details with a suitable coverage must be chosen, such as, magazine articles, newspapers, periodicals, and other forms of print media used. The company also considers the actions of their competitors when choosing the form of advertisement to make. In developing the advertisements, they use attractive images to draw the reader or viewer’s attention, create interest, desire and spurs action in the consumer. They also ensure that the advertisement is legal in part and as a whole
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Different pricing policies are adopted for different products such as cost-plus pricing, value-based pricing, demand-oriented pricing, promotional pricing, and competition-oriented pricing policies. Banks, for instance, use competition-oriented pricing where the bank rates in most commercial banks range about the same value. Oil prices are standardized throughout the country in most of these countries showing lower variations between different geographical regions. Most commonly used pricing policies are the demand-oriented, value-based and cost-plus pricing for common goods in the market.
There are several entry modes that can be used to capture such emerging markets. The main method used to penetrate such markets is through export trade. The foreign company undertakes aggressive exporting through clearly developed product, promotion, pricing and distribution plans. A foreign company may also use licensing, that is, permitting a company in the target country to use the its trademarks, processing and manufacturing techniques and know-how in return for a fee . Joint ventures can also be used by foreign companies to acquire a stake in emerging markets. This is where investors share control and ownership of operations and property rights. Acquisitions of companies in such regions by foreign companies can also facilitate the market penetration. However, this method is expensive and requires huge investments .
- Food and Agriculture Organization. (2014, October 12). Market entry strategies. Retrieved from FAO Corporate Document Repository: http://www.fao.org
- Kotler, P. (2000). Marketing Management. New Delhi: Prentice Hall.
- Small Business Development Corporation. (2014, October 12). Marketing-Promotion Strategy. Retrieved from Business in WA: hppt://www.smallbusiness.wa.gov.au
