...The main characteristics of emerging markets Ayame Nakagawa Submission Date: 23rd August 2013 ------------------------------------------------- ------------------------------------------------- The Main Characteristics of Emerging Markets It is frequently said that markets are getting bigger and more complicated as globalization is spreading. What are emerging markets? They can be defined as ‘a financial market of a developing country, usually a small market with a short operating history’ (InvestorWords.com, no date). For example, BRICs, such as Brazil, Russia, China, and India are common thoughts of emerging countries. These countries have improved rapidly in terms of GDP, trade and so on. This essay will introduce the four main characteristics of emerging markets. To expand the worldwide market Magnus (2010, cited in Beausang, 2012, p.3) suggests that the GDP at purchasing power parity (PPP), which puts an importance on the related cost of living, is a proper method to explain BRICs’ contribution to the global economy. He implies that when GDP in US dollars is used as comparisons with emerging and advanced countries, it would be invalid because it is included some problematic points like exchange-rate in each country. According to the research by IMF (2001 cited in Beausang, 2012, p.3), GDP in 2001 in terms of PPP, America gave at 22 % of the whole, while BRICs were slightly smaller at 21.4%. However, ten years later, IMF (2011 cited in Beausang, 2012,...
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...the main characteristics of emerging markets? In contemporary society, emerging Markets (EM) are increasingly becoming the most important strength that could promote the development of the world economy. Broadly speaking, the term "emerging market" has been used mainly to refer to the developing world in Asia, Africa, and Latin America. (Mody，2004). Narrowly speaking, EM refers to the stock markets of developing countries. The purpose of this article is to further analyze the characteristics of emerging markets, I am going to focus on the broad economic aspect of EM, which refers to some developing countries like Brazil, Russia, India, China. (BRICs). I would like to separate this article into three different parts. In the first part, I discuss the implications of emerging markets and why people choose to invest in them. The second part is the central theme of the article. In this part, I focus on the main characteristics of EM. After examining all the characteristics, I make a conclusion about the whole paper and put forward several suggestions for ways governments and investment companies can cooperate together to make contributions to making the markets more mature. Emerging market countries mainly contain dozens of developing countries, which are widely distributed in Asia, Latin America, and Eastern Europe; especially the BRICs (Brazil, Russia, India, China) Bruner et al (2003) classify the world economy in the following way: developed markets, emerging markets, frontier...
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...Differentiating Between Market Structures Simulation & Characteristics Table ECO/365 October 2, 2011 Differentiating Between Market Structures Simulation The “Differentiating between Market Structures Simulation” applied all four of the market structures to four major divisions of a fictitious transportation company called as East-West Transportation. The four divisions for the various products they transport are Consumer Goods Division, Coal Division, Chemical Division, and Forest Products Division. This paper will summarize the advantages and limitations of supply and demand, the effectiveness of structure, and will analyze how each market structure maximized their profits. The market structures represented in this paper are Perfect Competition, Monopoly, Oligopoly, and Monopolistic Competition. Perfect Competition According to the simulation the Consumer Goods Division operated in a market that perfectly competitive. There were several buyers and sellers, each of the sellers being a price taker and there were no barriers to entry. The limitations or advantages of the Consumer Goods Division are as follows. The competition is high so the demand for their service will be low. Continuing to supply this service would mean the company would have to spend more on improving the quality of its service so as to maintain and increase the demand. In the simulation, the first decision made was whether to cease operations in the Consumer Goods Division or to continue operations...
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...AN EVALUATION ON THE SOCIO ECONOMIC CHARACTERISTICS OF SOLAR LIGHTING USERS TO DETERMINE THE MARKET SEGMENT FOR SOLAR PRODUCTS AS A BASIS FOR EXPANSION A PAPER ON DESCRIPTIVE STATISTICS Submitted to; Dean Agnes Rola In fulfillment of the requirements for PAF 203 2nd sem 2011-2012 University of the Philippines College of Public Affairs CLARISSA M. DIMACULANGAN March, 2012 I. Introduction In the Philippines, until today, some remote parts of the country do not have access to electricity. According to DOE, twenty two percent (22%) in the Philippines as of the moment is still unelectrified (Table 1). This can be attributed to scattered areas in the Philippines, thereby leaving the remote areas with no plan for electrification. CARD BDSFI is currently distributing renewable energy products, specifically solar lighting, to far flung communities, those areas which are not covered by electrical installations or in regions with electricity shortage. With the distribution of solar lighting products, it is important to note the socio economic characteristics of those who have availed the products so as to identify or determine the market segment for solar products as a basis for expansion. Table 1. Unelectrified areas in the Philippines, December 2011 ELECTRIC COOPERATIVES HOUSEHOLDS % access HH without access I (ILOCOS REGION) II (CAGAYAN VALLEY) CAR (CORDILLERA ADMINISTRATIVE REGION) III (CENTRAL LUZON) IV-A (CALABARZON) IV-B (MIMAROPA) V (BICOL REGION) 844,300 660...
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...TO: Michelle Dietrich FROM: XXXX XXXXXX DATE: November 29, 2015 SUBJECT: Target Market Dear Ms. Dietrich, Given the current state of the economy, having a well-defined target market is more important than ever (Porta, 2010). As much as we would like to we cannot afford target everyone. Target marketing will allow us to direct our marketing dollars and create a brand message for our specific market that is more likely to buy from us than other markets. By doing this it will create a more inexpensive, well-organized, and effective way to reach our potential customers and generate business. Another benefit of having a clearly defined target audience is that it would be easier for us how to determine where and how to market our company. Defining our target market will be the most difficult part. Once we realize whom we plan on targeting, it will be easier to determine which media use to reach them and what marketing messages will resonate with them. We can save money and get a better return on investment by when we define our target market. We will save money by sending direct mail to those who fit our criteria instead of send them to everyone in the Zip code. Demographic Characteristics Our target market should include people who share similar demographic characteristics as our current customers. Demographics include items such as age, gender, income level and amount of education (Joseph, n.d.). For example, demographic information may show you that a likely...
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...Demographic, Geographic, Psychological and Behavioral Characteristics Terry D. Smith II Colorado Technical University Dr. Laura Pogue Applied Managerial Marketing December 3, 2013 Demographic, Geographic, Psychological and Behavioral Characteristics TO: Michelle Dietrich, President of Mobile Manufacturing, Inc. FROM: Terry D. Smith II, Founder of Marketing Consulting LLC. DATE: December 3, 2013 SUBJECT: Demographic, Geographic, Psychological and Behavioral Characteristics The demographic characteristics of my target market are individuals between 12 and 21. It is wise to target these individuals because they are the most energetic, the least frugal of all age ranges, and the other age ranges watch, learn from and sometimes purchase products for this age group. These consumers will serve as customers and word-of-mouth promoters. Demographic characteristics are important because if a marketer can learn more about consumer demographic characteristics, the message can be made more direct to a target market in order to become more effective (Colorado Technical University, 2013). Demographic characteristics define the target market. No marketer can afford to target every consumer (Porta, 2010). Knowing certain demographic characteristics allows marketers to identify a target market. Targeting a specific market allows businesses to compete effectively. My target market is located in economies where consumers are able to afford a monthly cellular phone payment. These economies...
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...Notes, IB test 1 related to the customization vs standardization debate. Traditionally, purely environmental bases (geographic, political, economic, and cultural) were used as bases for international market segmentation. Proposes that international marketers group relevant markets based on both environmental as well as marketing management bases. The marketing management bases are classified as: (1) product-related; (2) promotion-related; (3) price-related; and (4) distribution-related Compare and contrast standardization with customization of international marketing strategies. The notion of globalization - a global firm pursuing a global strategy - is very appealing to managers. (Hardy, 1994, p365). As soon as the firms decide to expand into the global marketplace, the international marketing manager should determine what strategy would be adopted to mix the four P's of marketing: product, pricing, promotion, and place in the complex environment in future. In other words, the manager must decide either the standardisation strategy or customization strategy is suitable for the particular foreign market. 1.The meanings of standardization and customization strategies Standardization became a popular buzzword in the 1980s, as proponents such as Kenichi Ohmate argued that customers in the Triad were becoming increasingly alike, with similar incomes, educational achievements, lifestyles, and aspirations. (Manoney, Trigg, Griffin, and Pustay, 1998, p612). Therefore, standardization...
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...J Real Estate Finan Econ (2013) 47:564–581 DOI 10.1007/s11146-012-9371-2 REIT Momentum and Characteristic-Related REIT Returns Paul R. Goebel & David M. Harrison & Jeffrey M. Mercer & Ryan J. Whitby Published online: 24 April 2012 # Springer Science+Business Media, LLC 2012 Abstract Recent evidence confirms that in factor-model examinations of the crosssection of REIT returns, REIT momentum emerges as the dominant driver. Acknowledging the importance of momentum, the current study explores whether and how REIT return patterns are linked to the underlying characteristics of the REITs themselves, in the manner of Daniel and Titman’s (Journal of Finance 52(1):1–33, 1997, Journal of Portfolio Management 24(4):24–33, 1998) characteristics model. Over the period 1993 through 2009, we find that after controlling for momentum, book-tomarket, institutional ownership, and illiquidity are all strongly associated with REIT returns while size and analyst coverage are not. We further extend prior research by examining the influence of changes in interest rate cycles on REIT returns, and find that the characteristic-return relationships are heavily influenced by interest rates. Keywords Real Estate Investment Trusts (REIT) . Return momentum . Characteristics models . Factor models . Monetary policy Introduction REITs as an asset class have become an increasingly important part of well diversified portfolios for both individual and institutional investors. Although...
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...SUMMARY OF REPORT I. Introduction to Four Market Structure II. Comparative Characteristics of Four Market Structures III. Four Market Structures a. Pure Competition i. Characteristics ii. Demand Curve iii. Examples iv. Summary b. Pure Monopoly v. Characteristics vi. Demand Curve vii. Examples viii. Summary c. Oligopoly ix. Characteristics x. Demand Curve xi. Examples xii. Summary d. Monopolistic Competition xiii. Characteristics xiv. Demand Curve xv. Examples xvi. Summary FOUR MARKET STRUCTURES Market structure is the selling environment in which a firm produces and sells its product The preceding chapter on the theory of production and cost made us understand the behavior of producer towards an efficient use of productive inputs because the use of inputs is associated with economic cost be it explicit or implicit cost. Efficient use of resources means proper identification of the use of the land, labor, capital and entrepreneur. These should not be underused as in 1st stage production or overused as in the 3rd stage of production, so that the cost associated to the production level can be minimized. This chapter examines a broad range of markets and explains how the pricing and output decisions of firms depend on market structure and the behavior of competitors. To determine...
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...Maximizing Profits in Market Structures Instructor: Market Structure The Market structure is the organizational and characteristics of a market. The focus on those characteristics affects the nature of competition and pricing. For example, if someone asked what brand of car or shoes they have, it is likely that the person could tell you the brand name. But if you asked them what type of milk, water, eggs that they purchased, most likely they will tell you that they don’t know and that they purchased the cheapest. How consumers view a particular product of service influences the market power and behavior of a business or producer. Markets are classified according to the number of firms in the market and by the commodity that is to be exchanged. The market models that will be discussed in this paper are Perfect Competition, Monopolies, and Oligopolies. Characteristics of a Perfect Competition Perfect competition refers to a market situation where there are a large number of buyers and sellers. They sell the product at a uniform price and enjoy the freedom of the enterprise. The price is determined not by the company but by the industry itself. There are two different meanings to the word “competition”, when it is used in everyday term, competition means competitive behavior of the firms which it rivals among themselves, however, in economics it refers to the competitive market structure. The less power that the firm has to influence the market, the more competitive...
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...PRODUCT LIFE CYCLE A product is anything that can be offered to the market (willing and able buyers) for consumption (used to satisfy their wants and needs). Product life cycle refers to the series of stages in hich a product sales revenue and profit increase or is presented. It describes the stages a new product goes through in the market place. It’s the life of a product. Just like in human growth there are stages involved in the growth of a product. Firms must be able to launch, modify, and delete products and characteristics to ensure a profitable product life. The product lifecycle is influenced by market demand. Mangers of a business should know what stage a product is in and the one it is likely to be moving to. This is so as to be able to devise a marketing program benefiting the product sales. There are about four main stages in the development of a product. These stages are: • `Introduction • Growth • Maturity • Decline Despite the main considered stages of development of a product there are two minor stages. These stages are • Product development • Product death and or deletion. PRODUCT DEVELOPMENT. This is the stage that involves the coming up/ invention of a product before it is presented to the public for consumption. This stage is invisible to the consumer or general public since it is kept in confidentiality of the firm. In rare occasions it is portrayed through earlier advertisement...
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...Market structure is defined by economists as the characteristics of the market. It can be organizational characteristics or competitive characteristics or any other features that can best describe a goods and services market. The major characteristics that economist have focused on in describing the market structures are the nature of competition and the mode of pricing in that market. Market structures can also be described as the number of firms in the market that produce identical goods and services. The market structure has great influence on the behavior of individuals firms in the market. The market structure will affect how firm price their product in the industry .For example in a competitive market the firms are price takers while the industry has the sole duty of price setting. The market structure will affect the supply of different commodity in the market. When the competition is high there is a high supply of commodity as different companies tries to dominate the markets. A market structure will affect the barrier to entry for the companies that intend to join that market. A monopoly markets structure has the biggest level of barriers to entry while the perfectly competitive market has zero percent level of barriers to entry. The other factors that influence the firm behavior under a market structure are the efficiency. Firm will be more efficient in a competitive market while firms will be least efficient in a monopoly structure. The level of competition in firms...
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...firm’s performances on a set of important characteristics are compared with a competitive benchmark (e.g., the average performance of all competing firms, or the performance of a designated competitor). If the firm’s performance on an important firm characteristic is better than the competitive benchmark, then the firm’s characteristic is a strength, relative to the competitive benchmark. Alternatively, if the firm’s performance is below the competitive benchmark, the firm’s characteristic is a weakness, relative to the benchmark. Identifying the sources of a firm’s strengths and weaknesses requires an understanding of how the performances relate back to the firm’s resources and their use. Moreover, if it is possible to obtain comparable (and often times proprietary) competitor data, the firm’s resources and use should be compared with the those of the competitive benchmark. To determine market opportunities and market threats, market conditions are compared with the firm’s mission, current objectives, intended long-term resource allocation (i.e., strategy), and short-term resource allocation (i.e., marketing plan). If the market characteristics (e.g., market desires and approaches for satisfying these desires) are (or becoming) compatible (i.e., match up well) with the firm’s mission and approach for serving the market, the a market opportunity exists (or is arising) for the firm. In contrast, if the market characteristics are (becoming) incompatible with the firm’s...
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...Plan 1) Introduction, main stages in the development of a product. 2) Growth stage. 3) Maturity stage. 4) Deletion and or death. 5) Conclusion. 6) Bibliography. PRODUCT LIFE CYCLE A product is anything that can be offered to the market (willing and able buyers) for consumption (used to satisfy their wants and needs). Product life cycle refers to the series of stages in hich a product sales revenue and profit increase or is presented. It describes the stages a new product goes through in the market place. It’s the life of a product. Just like in human growth there are stages involved in the growth of a product. Firms must be able to launch, modify, and delete products and characteristics to ensure a profitable product life. The product lifecycle is influenced by market demand. Mangers of a business should know what stage a product is in and the one it is likely to be moving to. This is so as to be able to devise a marketing program benefiting the product sales. There are about four main stages in the development of a product. These stages are: • `Introduction • Growth • Maturity • Decline Despite the main considered stages of development of a product there are two minor stages. These stages are • Product development • Product death and or deletion. PRODUCT DEVELOPMENT This is the stage that involves the coming up/ invention of a product before it is presented to the public for consumption. This stage is invisible to the consumer or general public since it...
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...The objective in this article is to discuss on the effective modes of entry for businesses that is planning to venture into international market. The entry modes methods discussed are aimed to help businesses to formulate an effective international business strategy and to position themselves to be successfully established in the global market. The central theory introduced in this article is developed based on a comprehensive framework of the entry modes choices. These modes of choices would determine the success factor of the international business strategy, and to choose these choices there are several important factors to be considered. These factors include situational firm factors, foreign environment review, and moderating factors that would directly influence the firm’s desired mode of choice. Referring to Appendix A is the mode choice of framework by Driscoll that depicts the whole concept discussed. To briefly illustrate, the firm would need to evaluate the two situational factors that would directly affect its desired level of different modes of characteristics. Subsequent from the selected desired modes, the firm would also need to determine the potential moderating influences, which would affect the desired mode. Thus, reassessment based on the moderators would take place to determine the most effective modes of entry. By selecting the right mode of entry, the firm would incorporate an effective business strategy for its international business plans. The...
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