Welcome to

final class of

Emerging Markets

Dr. Satyendra Singh

Objectives• To understand

– The concept of emerging markets trading blocks

– The difference between EM and developed markets

– The changing consumers’ preferences and developing products and services to satisfy the preferences

– The strategies to market the products and services using the knowledge of economics, culture and religion

Course Outline

• Term test • Class participation • Research-based group project• Individual presentations on Journal articles• Group presentation• Final exam• Websites…

Others• Reviewed/rapid feedback/main points• Available for you-- readily• Sensitive students needs• Clarity/editing skills• Interesting/practical examples• Encouraged to speak• Learn to mark presentations

Introduction to EM

DefinitionsBottom of the pyramidCharacteristicsTrading blocksInternational agenciesUnfair trade

Eco and Medical Tourism

Its importance

Types of ecotourism

Examples of ecotourism

Medical tourism

Genetically Modified FoodsCrops using molecular technique

– Advantages and disadvantages

Criticism of GMO– Governments and publics

GM food labeling requirements– Europe vs. Canada

GM food distribution

Human Rights and Businesses• UN Global Compact

– Four dimensions• Human rights

– Support, respect and protect HR– Businesses are not involved in HR abuses

• Labor standards– Uphold freedom of association– Eliminate forced and compulsory labor– Abolition of child labor– Elimination of discrimination

• Environment– Support environmental challenges– Promote environmental responsibility– Develop and diffuse environmentally friendly technologies

• Anticorruption– Work against all form of corruptions

Misleading MarketingNegligent consumer behavior, Product misuse

Misleading marketing

Economics of Information Model– Search, Experience, and Credence claims– Literal versus implied claims

Criteria to test claims Schechter’s approach– Credibility vs. Verifiability

Islamic BankingNo deception and no ribaIjara mortgages Lease to own

– Bank purchases it for you– Pay over 25 years– Rent ↓ over time

Murabha Mortgages Less popular– Bank purchases and resells it to you and ↑higher price– Pay < 15 years

Credit Cards– Mudharabha partnership bank $, customer benefit

Microcredit and Microfinance• Microcredit No profit motive

– Sustainability– Poverty reduction

• Microfinance– Social return– Economic return– Psychological component

• Conscious-driven microfinance

• Three kinds of entrepreneurs– Traditional capitalist– Philanthropic organizations– Microfinance enterprises financial return cannot be negative

Philanthropy as a StrategyIndividual, Corporate, and Strategic

– combine social and economic benefits to develop distinct competitiveness

Where to focus

How to create value– Select the best grantees/purpose/organization– Signal other funders – matching grants– Improve performance of grant recipients– Advance knowledge

Luxury Marketing

Difference b/w luxury and traditional marketing

Luxury and comfort

Wealth and Status Luxury marketing

Luxury consumption situation and strategies

It was my honor to teach you.

--Sat