Innovating for the bottom of the pyramid 1. Why are companies such as Siemens, GE and Procter and Gamble targeting the “bottom of the pyramid”? These companies are targeting the bottom of the pyramid because this segment represents two-thirds of the world’s population (4 billion people). However, those people live on less than $2 per day and 1.5 billion people have no access to electricity. Companies such as the ones mentioned above have found out that this situation has provided an opportunity to create innovative sources renewable energy. Another reason why they are doing this is because growth in mature markets tends to slow down. Therefore, many global companies are realizing that the ability to serve the needs of the world’s …show more content…
If marketers create a substantial relative advantage over their competitors’ products in emerging markets, they are likely to gain quick acceptance and customers will start switching to their product. The understanding of Compatibility, the extent to which a products is consistent with existing values and past experience of adopters, would help marketers to introduce new products into emerging markets. In order to assess whether a product is compatible with the target market, marketers need to know what the needs and wants, and values of that market are. Complexity, the degree to which an innovation or new product is difficult to understand an use might slow down the rate of adoption. If marketers understand the degree of complexity of their products, they may be able to evaluate if a particular product is suitable for the target market or not. Divisibility, the ability of a product to be tried and used on a limited basis without great expense, might help marketers to introduce a new product into an emerging market if that product can be used on a small scale for trial purposes because it tends to facilitate adoption. Promotions that involve small samples of products often produce satisfactory trial results. Since risk is one of the major considerations in the adoption process, divisibility is an important factor. Communicability, the degree to which benefits of an innovation or the value of a product may be
For example, Sainsbury’s has target customers in the emerging countries by providing new products which customers have not purchase it before which causes the demand of product to be high. In this case, it can help the market economy to boost up, increase the brand reputation and the revenue of Sainsbury’s. In addition, diversification is an advantage of emerging market towards business. (Pendleton, n.d.) For example, diversification is an advantage of Sainsbury’s due to they can be suffering when the local economy face a downward turn.
When marketing any kind of product, the producer should take in to consideration the elements that will impact their business. If they can come up with solutions to these problems then they products are more than likely to succeed.
The first recommendation for this firm is to adopt a global policy and try and explore new markets so that market growth and market share can be expanded. In case of a firm entering an international market, it requires to analyze the nature of the market and suitably form its marketing strategies in alignment with its business strategy and decide whether it is more beneficial to adopt a global approach or use a strategy that is customized to suit the needs of the local customers.
Today, firms have to deal with a global marketplace; marketers have no other choice. Participation in global marketing has begun to shift from a mere “option” to an imperative. The world is becoming more homogeneous. Distinctions between national markets
For any innovation, a company needs to ensure it has developed good network relationships in order to obtain support for its innovation. This is because of the generic market acceptance process. The market acceptance process starts with building relationships with the adoption networks, which should start before the innovation is launched and continue after the innovation has been commercialized. Once the product has received backing from the adoption network, early adopters will be willing to purchase the product because of the technological innovation which they would be willing to access for themselves. Once a product has been accepted by the early adopters, and they give it
The development of the business environment has determined companies to develop innovative strategies in order to create competitive advantage. Some of them have identified the potential of developing markets in Asia, Africa, and Europe, and have expanded their business to such areas. These countries provide a large pool of cheap skilled workforce that can help these companies reduce their production costs, which leads to reduced prices intended to increase the number of customers. The economic development of these countries provides customers with increased incomes that can purchase companies' products and services.
The Old Market consumers are more sophisticated and price sensitive than those in the New World. The main sales channels
These challenges, awareness, availability, accessibility and affordability are the obstacles that stand in the way of a product being successful or not. If appropriately traversed, the company can expect to see huge profits. However this can only be done through a very thorough understanding of this unique market and the appropriate application of practical and pragmatic marketing strategies.
Open innovation can lead to many conflicts on what to include in innovated products and what to exclude
Marketing has evolved through a change in production and consumption due to the advent of new technology (Ranchhod, 2004). The development of technology has also driven the globalisation of communication. During this period, consumers are facing a variety of choices (Jackson and Shaw, 2009). Thus, companies need to actively embrace these changing factors to grow their business and succeed in the marketplace.
We discussed in the previous theme the development of a market and how to determine if a product fits or if it needs alteration. Now, we look at the product in the marketplace and how long it can survive.
If a producer creates a really revolutionary new product and consumers can learn about it and purchase it at a website,
real potential gains to consider when contemplating to standardize the marketing mix elements. Supporters of standardization believe that consumers’ needs, wants and requirements do not vary across various markets and countries. They believe that the world is becoming increasingly more similar in both environmental and customer requirements, and no matter where they are consumers have the same demands. As they argue, standardization of the
In contrast, some believe that renewable energy is a key factor involved in helping the economy to grow. Many jobs are created in the manufacturing and running of renewable energy plants. The renewable energy and energy efficiency technologies created 8.5 million new jobs and $970 billion in revenue in the year 2006 (Langwith, “Renewable Energy is Economically”). The American Solar Energy Society says by 2030 it could generate up to $4.5 trillion in revenue for the U.S and create 40 million new jobs. This would represent one in every four jobs (Langwith, “Renewable Energy is Economically”). This shows how vital it is to get renewable energy companies in the U.S. It is important to build a stable economy again and do it all while helping the environment.