MARKETING IN A DEVELOPING ECONOMY

Marketing in a developed economy is somewhat different from a developing economy like India. All the advantages of a matured marketing system as found in a developed economy, may not be realised in a developing economy. Some characteristics of marketing in a developing economy are as follows:




1)    Most of the markets remain seller’s markets. The seller is in a dominating position and can influence the pattern of consumption, prices and quality of goods and services to his advantage. Many of the manufacturers may believe in the selling concept and bother less about consumer satisfaction.

2)    The variety of goods and services available are limited and even their quality may require improvement. Lack of effective competition may enable the manufacturers to sell whatever they produce. The consumers may have to accept and buy whatever is available in the market.

3)    In a developing economy, due to lower  per capita income, people spend most  of their income on necessities and little money is available for discretionary spending. People may not be able to buy many goods and services within the limited income. As income determines consumption patterns, the scope for marketing is also determined by income.

4)    The consumers knowledge and awareness about their rights is also limited because they do not have more exposure to marketing activities. It is difficult to know about higher quality, better service and wider choice unless one has an exposure in these terms. The consumers of the developing economies, therefore, appear to be content with whatever is available in their country.

5)    The supporting services such as departmental stores, credit facilities, packing and delivery systems, after sales services, product guarantee, money back guarantee etc., may also be less in developing countries.

All the developing countries are in a process of gradual evolution and in the normal course of events must grow into developed systems.

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