Eyeballing Emerging Markets- Breaking Down The Path To Profitable Loyalty
CHICAGO, March 11, 2013 /PRNewswire-USNewswire/ -- Everything you always wanted to know about establishing profitable customer loyalty in emerging markets is right here -- an analysis of all the what, where, how and whys of emerging markets.
Emerging markets has been on the A-list for any Multinational Company (MNC) that has been trying to expand its territories. As more companies eye for these less chartered terrains, the managerial difficulties in establishing profitable loyalty only increases multifold. So, what is it that clicks in these markets? Emerging markets are heterogeneous and diverse; a failure to capture these at the strategic level is what causes the demise of many firms like Walmart in South Korea or Tesco in Taiwan.
To establish the link between profitable customer loyalty (PCL) and emerging markets, it is important to identify the drivers of success in these markets. The identification and analysis of these drivers is emphatically captured in the forthcoming issue of the American Marketing Association's Journal of International Marketing article "Establishing profitable customer loyalty for MNCs in the emerging markets: A conceptual framework". The article provides a concise picture of these markets by proposing a framework that summarizes the various customer- (for e.g. behavioral characteristics), marketing mix-(for e.g. product, price), firm-specific-(for e.g. competition, innovation), and moderating variables (culture, infrastructure) and their role in creating PCL.
As Dr. V. Kumar, one of the authors, states, "MNCs typically implement strategies in emerging markets that are largely similar to the developed markets—which is a sure shot way to fail. Importance has to be given to the different regions and cultures; right to the basic lifestyle of the customers in each region of a country and therefore developing a more customized strategy arising out of a multitude of factors discussed in our study is critical." The amalgamation of the internal strategies with the external political and social environment of a market is the key to gaining a competitive advantage. The article also highlights the relationships between these different factors and how they are moderated by the culture, infrastructure, political and legal environment, and the regional biases of the country.
Creating PCL in emerging markets appears to be deceptively easy and presents with a false bottom. If firms fail to realize critical aspects, they will never arrive at the core of the challenges that lie beneath the false bottom. The sooner the firms are able to incorporate the proposed framework in their strategies, the faster they can succeed.
About the AMA
About the American Marketing Association:
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SOURCE American Marketing Association