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Stages of Market Development

Part 6. International Marketing

  1. Peter Magnusson1,
  2. Stanford A. Westjohn2

Published Online: 15 DEC 2010

DOI: 10.1002/9781444316568.wiem06032

Wiley International Encyclopedia of Marketing

Wiley International Encyclopedia of Marketing

How to Cite

Magnusson, P. and Westjohn, S. A. 2010. Stages of Market Development. Wiley International Encyclopedia of Marketing. 6.

Author Information

  1. 1

    Northern Illinois University, DeKalb, IL, USA

  2. 2

    University of Toledo, Toledo, OH, USA

Publication History

  1. Published Online: 15 DEC 2010

Abstract

The article discusses classifications of market development by various international organizations, such as the World Bank, the United Nations, the International Monetary Fund, and the Economist Intelligence Unit. There are several methods for measuring market development but there is no universal standard. Traditionally, market development is based on economic development (i.e., GDPcapita), but more recent measures attempt to incorporate additional dimensions (i.e., social and political development). Notably, the popular “emerging markets” label is largely absent from official categorizations, with the exception of IMF, which labels one category as “emerging and developing” markets. Furthermore, while economic growth indicates expanding commercial opportunities, the Economist Intelligence Unit found that economic growth is not related to a population's level-of-life satisfaction. Given the inconsistent labeling of stages of development, researchers must carefully assess what is being measured when comparing more than one report or study. In making stand-alone evaluations of market development, researchers should select a classification scheme that best suits the question being asked.

Keywords:

  • developed markets;
  • developing markets;
  • emerging markets;
  • development indices;
  • market development