Opportunities in the Developing World


Examination of opportunities in developing countries is appropriate for two reasons. First, more and more developing countries are pursuing the growth path. The developing world is beginning to rely on the market mechanism to attract investment and technology and become industrialized. Second, government plays a significant role in business decisions. The bureaucrats approach foreign investment with much less sophistication and confidence than to private sector executives.

 

These characteristics suggest that in analyzing opportunities in the developing countries, a company should be willing to lay more emphasis on long-term potential than on short-term gains. In addition, adequate treatment should be given to political and social variables. Further, business condition vary so much from one country to the other that a comparative (i.e., multi-country) analysis may be difficult. Availability of reliable and timely information makes the opportunity analysis more difficult in developing countries. Thus, there is no way to systematically evaluate such factors as sociopolitical conditions. Instead, a general feel for the situation is necessary, for which a trusted native could be of immense help.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight

Advertisements

Reinterpreting Products


Product is not what the engineer explicitly says it is, but what the consumer, implicitly demands that it shall be. Thus the consumer consumes not things, but expected benefits—not cosmetics, but the satisfactions of the allurements they promise; not quarter-inch drills, but quarter-inch holes; not stock in companies, but capital gains; not numerically controlled milling machines, but trouble-free and accurately smooth metal parts; not low-cal whipped cream, but self-rewarding indulgence combined with sophisticated convenience.

The product does not exist as a separate entity. The product is what the consumer perceives it to be. Consumer perceptions are strategically important at all stages of product development, from initial conceptualization to concept testing, to positioning, to designing, manufacturing, packaging, pricing, delivering, advertising, selling, financing, and servicing. Product analysis, therefore, embraces systematic research at all stages. The focus of such research is not on the product itself, but on the consumers and how they respond to the various alternatives at each stage.

To simplify the exposition I am drawing examples primarily from the field of consumer products, such as the tangible items found on the shelves of supermarkets, in department stores, appliances shops, and automobile showrooms. In doing so I am not overlooking the importance of the field of services, such as airlines, insurance companies, banks, and travel agents; or the field of industrial goods, such as computers, chemicals, textiles, and lift trucks. While there are some differences in marketing strategies from one category to the next, the underlying principle of delivering customer satisfaction is the same.

Therefore, the producer should analyze actual or potential product or service in terms of its ability to meet a consumer need or want. It is axiomatic that consumers cannot draw the blueprints or provide detailed specifications for producers. It is up to the business person to experiment with new products or services, or modifications of old ones, and test their acceptance in the marketplace. Advertising can then be used to point out their presumed need/want satisfying properties to would-be users.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight