Abstract
Marketing is a critical part of the
business process. This means that it is inevitable for any company trading in
goods and services. There is a ranging debate concerning marketing approaches
in developing and developed nations. On one side, there is the argument that
that marketing to consumers in emerging nations differs from approaches taken
in developed countries. The opponents argue that marketing follows the same
principles and practices in any country in the world. This paper discusses both
sides of the debate taking side in support of the argument that marketing to
consumers in emerging nations differs from approaches taken in developed
countries.
Introduction
Marketing refers
to the process that is used in the determination of the products or services
that may be attractive to consumers, as well as the strategy to utilize in
selling, communicating with the customers and business development. Marketing
develops the strategy that motivates marketing techniques, business
developments and communications. Marketing is a crucial part of a company. This
is because it determines how and when the products or services get to the end
user. It is part of the business process (Kotler and Keller, 2009). This paper
presents a critical discussion of the debate: It is argued that marketing to
consumers in emerging nations differs from approaches taken in developed
countries whilst others say that marketing follows the same principles and
practices in any country in the world.
Differences in marketing approaches
Unlike developed
nations, developing or emerging nations are those countries in which the
process of development has started. They are less developed as compared to the
developed nations in as far as the gross national product is concerned. Other
factors that differentiate these two kinds of economy include per capita
income, infrastructure facilities, industrial development, and attitudes and
motivations of people among other factors (Oxfam International, 2004). Otherwise
stated, developing economies are those that are seeking to attain development
in the gross national product via creation of extra income in different areas
of economy like industry agriculture, mining, industry, and trade. From this
point of view, it is evident that there are various economic differences
between the developing and developed economies. This supports the argument that
marketing to consumers in developing countries differs from approaches taken in
developed countries (Sen, 1999).
There are
marketing strategies that are designed specifically for markets in the
developing nations and cannot be applicable to developed nations. This is due
to the argument that markets in the developed nations are fundamentally
different from markets in the developing nations (Nil and Shultz II, 1996). In
the developing nations, the products or services being marketed should be affordable
to the people in these countries with a consideration of the budget. The budget
for most marketers in the developing nations cannot compare to marketing
budgets for marketers in the developed nations (Prahalad and Hammond, 2002). The
fundamental idea of wealthier and poorer nations cannot be ignored in
marketing. As a result, most of the channels and approaches that are used in
the developed countries cannot be applied in the developing nations as a result
of budgetary constraints. It is important to develop means of marketing that
cost less with different functions according to the culture of the developing
nations. This means that the marketing cultures between these two economic
worlds are different (Kotler and Keller, 2009).
Different
marketing functions are performed in different levels of development. This
means that the functions that are performed in developing nations are
completely different from those that are applied in developed nations. In the
underdeveloped nations some of the marketing functions that are performed
include barter trading, central marketing, lack of specialization and lack of
marketing activity. In the less developed nations, where the orientation is
self-sufficiency, there is a degree of specialization, small-scale industries, limited
entrepreneurship, labor-intensiveness and the producer also acts as the
marketer (Wilkie and Moore, 2003). In the developing nations, there is a higher
level of specialization; there is separation of production and marketing; sellers’
market; and marketing activities are limited. In developed nations, there is
total specialization in production and marketing, total market orientation, well
developed markets and marketers, and large-scale distribution practices. From
the discussion of marketing functions in different levels of economic
development, it is clear that marketing in these stages differ. It is not
possible for marketing approaches used in developing countries to be similar to
those that are used in developed nations. Marketing approaches and channels are
more developed in developed nations as compared to developing nations. This is
the same case with the infrastructure and the distribution channels. These
limit marketing to consumers in developing nations. These two economies cannot
compare in different economic aspects and so is marketing to consumers. Just as
economic development in developing nations has started, so is development of
other aspects of the economy such as marketing of products and services (Shultz
and Morris, 1999).
Similarity in marketing
Human beings have
a lot in common. It is common knowledge that all people demand products and
services equally regardless of their economic placing. This supports the
argument that marketing follows the same principles and practices in whichever
country all over the world. Marketing is the process that is involved in
getting products and services to the consumers. All consumers in all countries
require the products and services to be delivered to them in a way that is
convenient. This is the driving principle behind marketing whether in developed
or developed nations. Marketing is a part of the entire business effort. One of
the most important roles of marketing is it stimulates demand and therefore
extends the market. This role is not limited to any country or economy
regardless of the differences in economic development (Adcock, Halborg and
Ross, 2001).
Regardless, the
argument that every company and country markets its products or services
differently, they all utilize a foundation of marketing principles and
practices. Marketing refers to all the activities that are done leading to
sales funnel. There are specific practices that should be followed in marketing
and are not limited to companies or countries. Being honest and transparent are
some of these practices. The four Ps in
the marketing mix apply to both developed and developing economies (Adcock,
Halborg and Ross, 2001). This is because they are the factors behind the
success if marketing. Product, Price, Promotion, and Place are the factors
behind the success of every company in as far as marketing is concerned.
Product is what the company is marketing. Price is what the product sells for.
Promotion is how the company makes its real and potential customers aware of
the product. Place is where the product is sold. Marketing strategies are
developed from the understanding of the four Ps. Marketing strategies developed
from the understanding and analysis of the four Ps is fundamentally the same in
developing and developed nations (Kotler and Keller, 2009).
The fundamental
similarity in marketing strategies out of the similarity in marketing
principles and practices has led to the development of globalization. In
globalization, both developed and developing nations are made to compete in the
same arena through the opening up of free market. In order to compete from the
same level, it has necessitated similar marketing strategies in developed and
developing nations (Jameson, 2000). The use of electronic media such as the
internet in marketing has become prevalent in both developing and developed
nations. Use of technology in marketing has applied to both economies.
Marketing is thus fundamentally the same in developing and developed nation
(Joshi, 2005).
Discussion
It is true that
marketing take fundamentally similar principles and practices in all nations of
the world. However, there are other factors that affect marketing including
these principles and practices that cause a major difference. Developing
nations are in a lower level of economic growth than developed nations. This
makes all the difference. Marketing functions in developing nations are
different from those in developed nations. Marketing and distribution channels
are also different in the two levels of economic development. The whole
difference is cause by budgetary constraints evident in developing nations. The
four Ps, of marketing mix might be fundamentally the same, but they apply
differently as a result of the limitations. Products are fundamentally
different, prices differ due to the bargaining power, promotion channels are
different due to cost and lower technological development and markets for the
products are limited in the developing nations.
Conclusion
This paper
presents a critical discussion of the debate: It is argued that marketing to
consumers in emerging nations differs from approaches taken in developed
countries whilst others say that marketing follows the same principles and
practices in any country in the world. Difference in the levels of economic
development and the difference in the marketing functions that take place in
the different stages, budgetary constraints, and poor infrastructures and
distribution channels are some of the factors in support of the difference in
marketing in the two economies. On the other hand, the fundamental similarity
in marketing principles and practices is the key argument in the similarity in marketing
in the two economies. The support for this discussion is in support of the
argument that marketing to consumers in emerging nations differs from
approaches taken in developed countries.
References:
Adcock, D. Halborg, A. & Ross,
C. (2001). Marketing: Principles and
Practice, New York:
Financial Times/
Prentice Hall.
Jameson, F. (2000), Globalization
and Strategy, New Left Review, (July–August), 49–68.
Joshi, R. M. (2005). International
Marketing, Oxford University Press, New Delhi and New
York
Kotler, P., & Keller, K. L.
(2009). "1". A Framework for Marketing Management (4th ed.).
Pearson Prentice
Hall.
Nil, A. & Shultz II, C. J.
(1996). The Scourge of Global Counterfeiting, Business Horizons, 39
(November–December),
37–42.
Oxfam International (2004). Toward
Global Equity: Strategic Plan, 2001-2004, available on
September 9, 2011 at
http://www.oxfam.org/eng/about.htm.
Prahalad, C.K. & Hammond, A.
(2002). Serving the World’s Poor, Profitably, Harvard Business
Review, 8
(September), 48–57.
Sen, A. (1999). Development as
Freedom, New York:
Anchor Books.
Shultz, C. J. & Morris B. H.
(1999). Marketing and the Tragedy of the Commons: A Synthesis,
Commentary, and Analysis
for Action, Journal of Public Policy & Marketing, 18 (Fall), 218–29.
Wilkie, W. L. & Moore, E. S.
(2003). Scholarly Research in Marketing: Exploring the ‘4 Eras’
of Thought Development,
Journal of Public Policy & Marketing, 22 (Fall), 116–46.
No comments:
Post a Comment