MBA presentation of marketing in a developing country. A brief presentation on how companies enter a market in developing country.

1. Harison Xavier
Corporate BBA MBA
Global Marketing

2. Marketing In a Developing
Country
Topic:

3. Marketing in a Developing Country
❖ Marketing efforts must be keyed to
each situation, tailored for each set of
circumstances in a developing country.
❖ Marketer must make an assessment of
market development and openness
within the country as well as firm’s
circumstances.
❖ Marketer cannot superimpose a
sophisticated marketing strategy on
an underdeveloped economy.

4. Level of Market Development
❖ Level of marketing development is roughly parallel to economic
development.
❖ Economic cooperation and assistance, technological change, and political,
social, and cultural factors do cause significant deviations in this
evolutionary process.
❖ The more developed an economy, the greater the variety of marketing
functions demanded, and the more sophisticated and specialized the
institutions become to perform marketing functions.
❖ As countries develop, the distribution and channel systems develop.

5. Demand in Developing Countries
Estimating market potential in less developed countries involves additional
challenges:
The coexistence of three distinct kinds markets in each
❖ The traditional rural/agricultural sector,
❖ The modern urban/high-income sector
❖ The often very large transitional sector usually represented by low-income
urban slums.

6. ❖ One of the greatest challenges of the 21st century is to manage and
market to the transitional sector in developing countries.
❖ The companies that will benefits in the future from emerging markets are
the ones that invest when it is difficult and initially unprofitable.
❖ The marketer will institute the very foundations of a modern market
system, thereby gaining a foothold in an economy that will someday be
highly profitable.

7. Bottom of the Pyramid Markets (BOPMs)
“The Low income consumers have been ignored by international
marketers because of misconceptions about their lack of resources and
the lack of appropriateness of products and services usually developed
for more affluent consumers.”
- According to the findings of C K Prahalad
(University of Michigan)

8. CEMEX, a Mexican cement company with global operations, pioneered
a profitable program to build better housing for the poor that includes
innovative design, finance.

9. Aravind Eye Care system began with the problem of blindness among the poor
and developed an innovative organization of workflow from patient identification
to postoperative care that has yielded better vision for consumers and profits for
the company.

10. Q&A

11. Thank you.

12. Stage Substage Example Marketing
Functions
Marketing
Institutions
Agri & Raw
Materials
Manufacturing
Marketing
Self-sufficient
Surplus
commodity
product
Small scale
Mass
production
Commercial
transaction
Mass
distribution
Cottage
Industry
U.S economy
1885-1914
U.S economy
1915-1929
U.S economy
1950 to
present.
Nomadic or
hunting tribes
Agricultural
economy
Such as
banana, coffee
None
Exchange
Exchange physical
distribution
Demand creation
Physical
distribution
+ Market
Information
Market and
Product planning,
development.
None
Small-Scale
Merchants
Traders,fairs,ex
port-import
Merchants,
Wholesalers.
Specialized
institutions
Large-Scale and
chain retailer
Integrated
channels of
distribution.