ABSTRACT
Association of Southeast Asian Nations (ASEAN) product markets are highly segmented owing to the unequal distribution of income of consumers as well as firms. If market-separating factors can by and large be ruled out as determinants of declining European Community (EC) trade shares in ASEAN markets, competitive disadvantages of European suppliers have to accrue from either higher costs of production or deficient marketing strategies. Appropriate marketing and distribution channels may even be a more essential ingredient to export success in ASEAN countries than elsewhere since markets of ASEAN member countries have remained separated from each other by substantial trade barriers. The positioning of products within a specific market in terms of prices and quality is a key variable in marketing. Japanese manufacturers have generally responded more intensively than US and European firms to the demand in the large and fast growing transitional and traditional market segments.
