NonMarket Factors Crucial in Emerging Markets

This is an interaction between the prospective customers and business partners which include forging alliances with the local production units.The second core area constitutes the non-market factors that have a direct and indirect impact on the overall performance and operation of the firm. ‘These are characterized by 4Is: issues, institutions, interests, and information’1 (Baron, p2). Broadly they are the socio-political environment within which the firm has to operate and would be discussed later. The role of government regulations and the legalities involved play a very important part in establishing a firm especially if it is a foreign company. Political dynamics combined with the media, public opinion, and stakeholders are few other institutions that make up non-market factors. These are behind the scene elements that become very hot issues if not dealt judiciously and sensitively with foresight. Non-market factors, in emerging markets, become all the more crucial because of the sensitive nature of the new market potential and the volatility of the market forces.Emerging markets can be defined as the new area with high income and where the demand for the product can be created with relative success. Cases of developing economies can be cited as an example. We would be analyzing these factors for their role and impact on the company’s marketing policies and strategies in such market conditions because market strategies need to be tailored according to the environmental conditions of the place.In the strategy planning, the relevance of 4Is is due to the fact that they form the four pillars of market strategy for non-market factors. Issues, which might clash with the operations and performance of the company, must be addressed urgently. The institutions are defined as bodies that are affected by the issues, which may be local or national in character. Interests are the personal stake of the individual or groups, in the issues.