This book has a very pragmatic approach since most of the chapters offer guidelines of how to deal with the unique situations and challenges in third world economies. Most importantly, how to succeed in markets that are most often neglected by practitioners and scholars: second, third, or fourth tiers of world markets; that is, poor people and population with scarce resources. Global giants have traditionally ignored these markets and therefore huge opportunity exists, especially for small and medium size western companies.
In all honestly, when I first began reading the book it seemed very idealistic to me: in order to be competitive in these markets you must come up with an excellent product that has unique features, durable, with excellent performance, service, delivery, and the like, and offered at a low price. Fine, but we are speaking of small and medium size companies here! They don't have the resources! Seems very difficult to achieve! What about domestic competitors? We can logically think that if products were domestically produced, their prices would be less! They have greater advantages! I believe that these forgotten markets have a great potential, but can these small and medium size companies efficiently and profitably reach them? Not sure! Nevertheless, as I went on and read each chapter, I slowly became convinced that the author had great ideas and ways of overcoming what I thought were insurmountable hurdles. Being a developing country native and an international marketing professor, I realized that this book offered a unique point of view that very few international marketing textbooks had. As such, I am sure that this approach will be an “eye opener” to every reader. I am convinced that the multiple checklists and tips illustrated in this book will provide entrepreneurs from small or medium size firms guidance in a step‐by‐step fashion on how to deal with situations only confronted in these economies.
The book is organized in to 15 chapters. Chapter 1 is about what the author refers to as “the second wave of globalization” which deals with neglected economies of the world as potential markets. In order to be successful in these markets we must begin by having a support system that has two components: a home‐front alliance and a target market alliance. The home‐front alliance can include the Chamber of Commerce, a local branch of the Department of Commerce, a local export management company, a local or regional bank, and the like. By the same token, this chapter offers an excellent guide to identify partnership. The prospective exporter may not have enough resources, but with the help of a partner in the domestic market, this limitation is easily overcome. It started to make sense to me!
Chapter 2 focuses on what the small and medium size western companies have to offer to these neglected economies, emphasizing the disadvantage of global or giant size companies in this regard. It provides examples of how these small and medium size companies have taken advantage in satisfying market needs by offering better satisfactors in terms of innovativeness, flexibility, closeness to the market and participation in joint activities. I liked the way the author analyzed these issues from a strategic global marketing point of view.
Market behavior and consumer needs are different in third world economies. This is discussed in chapter 3. Furthermore, once again the author not only brings out these notions but also offers ways by which firms can satisfy their needs. I enjoyed the way he begins reviewing the most important notions of culture, its classification by different authors (Hall, Hofstede, etc.), and relating it to marketing strategies in third world economies. Chapter 4 is somewhat related to these issues since he mentions how negotiations and marketing segmentation have to follow the special consumer behavior patterns of third world economies.
Now comes the interesting part: how can small and medium size western companies profit from the neglected markets of the third world economies? As mentioned previously, finding the correct partner is critical. Chapter 5 offers excellent guidelines of how to do so. Chapter 6 continues with this subject and offers details of how to select partnerships for convenience versus strategic alliances. Great ideas and very well discussed recommendations! My transformation about believing that a small and medium size company could actually profit in these poor countries was on its way!
Chapters 7‐10 deal with the notions of how to adjust the traditional 4 P's to these neglected markets. Low levels of literacy, limited mass media exposure, scarce resources and traditionally high‐context cultures make these markets rather unique. Owing to these factors, personal relationship and communication between buyers and sellers is extremely important. For example, in distribution, this concept is known as high‐context distribution. A company should enter these markets using low‐end mass marketing strategies.
The last chapters, from 11 to 14 are concerned with strategic issues: What specific competitive strategies to apply. In this case, the author recommends bypass and guerilla warfare, which makes a perfect sense. The following chapters include recommendations of how to organize the new entity that will satisfy these markets and how to be more efficient in controlling the company and its functions. The author finalizes the book by offering ideas for further research and the importance of keeping track of these markets.
In conclusion, I think this is a book that has to be read by any consultant, academician, entrepreneur and researcher that is seriously studying the international marketing. There is no question in my mind that, if entrepreneurs from developed countries take the emerging countries seriously, not only will they benefit with their huge potential but also the population from these neglected markets would have their needs better satisfied by these companies. We would have a better world altogether!
Overall, Entering and Succeeding in Emerging Countries: Marketing to the Forgotten Majority is an excellent source for the reader looking to have a different perspective about emerging countries and wishes to succeed in doing business with them.
