Consumption Characteristics & Disposal


Published on

Published in: Education, Business, Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Consumption Characteristics & Disposal

  1. 1. Consumption Characteristics & Disposal
  2. 2. Consumption Characteristics <ul><li>Services Sector </li></ul><ul><li>Underdeveloped services sector </li></ul><ul><li>Services sector on average accounts for 30% of GDP </li></ul><ul><li>Huge opportunities in Telecom, Tourism & travel, Financial services </li></ul><ul><li>Consumer Goods Industry </li></ul><ul><li>Poor product quality & Mediocre Marketing </li></ul><ul><li>Demand for products like toiletries, Cars, Health Care Products, Processed foods etc likely to go up. </li></ul><ul><li>Products sold in LDC & W. Europe must have balance between technological sophistication & Affordability. </li></ul><ul><li>The west should not treat western Europe and LDC as the dumping ground for obsolete Products </li></ul>
  3. 3. Consumption Characteristics <ul><li>Cultural Orientation ( Traditional Vs Modern) </li></ul><ul><li>Most Cultures Fall In Traditional-Modern Dimensions </li></ul><ul><li>There is a segment of consumers who Believe in traditional life style & do not share western consumer values </li></ul><ul><li>Very persuasive techniques are required to overcome strongly entrenched believes & values. </li></ul><ul><li>Young Population of these countries are inclined towards modernity. </li></ul><ul><li>Differences among countries of LDC must be taken in to consideration. </li></ul>
  4. 4. Consumption Characteristics <ul><li>Social Class/Reference Group Influences </li></ul><ul><li>Social Class is important Variable in marketing strategy </li></ul><ul><li>Social classes in developing country have triangular distribution. </li></ul><ul><li>Product appealing to all social classes will have greater chances of success in LDCs. </li></ul><ul><li>Middle class is the main target of Marketers in LDCs. </li></ul><ul><li>The middle class is more traditional while the upper middle class and upper class are more westernized. </li></ul><ul><li>The upper class is portrayed in most advertising for trickle down effect </li></ul>
  5. 5. Consumption Characteristics <ul><li>Rural Consumption </li></ul><ul><li>The population in rural areas of LDC is high. </li></ul><ul><li>Changing consumption trends in Villages; </li></ul><ul><li>0- Increased Amount spent on Durable Goods </li></ul><ul><li>0- Buying goods manufactured in Urban sector. </li></ul><ul><li>These changing trends represent big opportunities for marketers. </li></ul>
  6. 6. Disposal <ul><li>Disposal of product is important because the people cannot afford to discard used durable goods </li></ul><ul><li>Resale Value is important consideration in product purchase. </li></ul><ul><li>Reliability and low repair frequency of the product is encouraged by buyers of LDCs. </li></ul><ul><li>Providing adequate repair services and spare parts should be components in any marketing strategy targeting LDCs. </li></ul>
  7. 7. Disposal <ul><li>Recycling </li></ul><ul><li>Environment at present in not a prominent issue in LDCs but its gaining importance. </li></ul><ul><li>Goods from Europe can be recycled in LDCs that can generate new opportunities. </li></ul><ul><li>Remanufacturing </li></ul><ul><li>It involves bringing existing equipment to new like condition. </li></ul><ul><li>Benefits involve lower capital investments, improved cash flows, use of semi-skilled labor & energy conservation. </li></ul><ul><li>Strategy of remanufacturing extends life of durable goods & make them affordable. </li></ul>
  8. 8. Disposal <ul><li>Social Responsibility and Environmental implication Of Product </li></ul><ul><li>Developing countries are increasingly becoming sensitive to this issue. </li></ul><ul><li>Lack of education prevents the people to understand the hazards of plastics & other waste materials. </li></ul><ul><li>The companies should ensure safe disposal of waste materials to avoid tragedies. </li></ul><ul><li>The government steps for reducing pollution will increase demand for innovative products. </li></ul><ul><li>Disposal of the product is the most neglected area of marketing strategies in LDCs. </li></ul>