what are the differences between marketing in a developing and a developed market

What are the differences between marketing in a developing and a developed market?

One of the sharpest distinctions in global marketing is between developed and developing markets such as Brazil, Russia, India, and China (often called “BRIC” )

The unmet needs of the developing world represent huge potential markets for food, clothing, shelter, consumer electronics, appliances, and many other goods.

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Developed nations account for about 20 percent of the world’s population . Can marketers serve the other 80 percent

Of successful marketing in developing countries

Grameenphone marketed cell phones to 35,000 villages in Bangladesh by hiring village women as agents who leased phone time to other villagers,one call at a time

Colgate-Palmolive rolled into Indian villages with video vans that showed the benefits of toothbrushing

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Corporación GEO builds low-income housing in Mexico.The two-bedroom homes are modular and expandable.

Getting the marketing equation right in developing markets can pay big dividends

Smaller packaging and lower sales prices are often critical when incomes and housing spaces are limited.

Unilever’s 2 rupee sachets of detergent and shampoo were a big hit in rural India

By developing rock-bottom-priced phones with just the right functionality,Nokia has become the market-share leader in Africa and Asia

A Western image can be helpful. Coca-Cola’s success against local cola brand Jianlibao in China was partly due to its symbolic values of modernity and affluence

Spotlight on Key Developing Markets

Low-income groups make up 87 percent of the population but earn only 53 percent of the income

25 percent of people earn less than $2 a day

In 1970,it was the world’s second-fastest-growing large economy.

PERFECT MARKETING EQUATION IN BRAZIL

Nestlé Brazil boosted sales of Bono cookies 40 percent after shrinking the package from 200 to 140 grams and lowering the price

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With illiteracy widespread,Unilever launched a brand of soap in northeast Brazil with the simple name,“Ala.”

Russia has a dwindling workforce and poor infrastructure.

The Organization for Economic Cooperation & Development (OECD) ranks Russia as one of the most corrupt countries in the world

Average Russian still earns only $700 a month

China’s emerging urban middle class is active and discerning,demanding higher-quality products and variety

China has 700 million potential consumers

Almost two-thirds of the population is under 35

3 percent of population are high-earning targets of youth lifestyle brands connoting status and affluence

Luxury cars and shiny motorbikes are the most sought-after status symbols

India still struggles with poor infrastructure and public services— education, health, and water supply

Its 28 separate states each have their own policies and tax rules