Consumption Characteristics & Disposal

Consumption Characteristics

Services Sector Underdeveloped services

sector Services sector on average

accounts for 30% of GDP Huge opportunities in

Telecom, Tourism & travel, Financial services

Consumer Goods Industry Poor product quality &

Mediocre Marketing Demand for products like

toiletries, Cars, Health Care Products, Processed foods etc likely to go up.

Products sold in LDC & W. Europe must have balance between technological sophistication & Affordability.

The west should not treat western Europe and LDC as the dumping ground for obsolete Products

Consumption Characteristics

Cultural Orientation ( Traditional Vs Modern) Most Cultures Fall In Traditional-Modern Dimensions There is a segment of consumers who Believe in

traditional life style & do not share western consumer values

Very persuasive techniques are required to overcome strongly entrenched believes & values.

Young Population of these countries are inclined towards modernity.

Differences among countries of LDC must be taken in to consideration.

Consumption Characteristics

Social Class/Reference Group Influences Social Class is important Variable in marketing strategy Social classes in developing country have triangular

distribution. Product appealing to all social classes will have greater

chances of success in LDCs. Middle class is the main target of Marketers in LDCs. The middle class is more traditional while the upper

middle class and upper class are more westernized. The upper class is portrayed in most advertising for

trickle down effect

Consumption Characteristics

Rural Consumption The population in rural areas of LDC is high. Changing consumption trends in Villages;

0- Increased Amount spent on Durable Goods

0- Buying goods manufactured in Urban sector. These changing trends represent big opportunities for

marketers.

Disposal

Disposal of product is important because the people cannot afford to discard used durable goods

Resale Value is important consideration in product purchase.

Reliability and low repair frequency of the product is encouraged by buyers of LDCs.

Providing adequate repair services and spare parts should be components in any marketing strategy targeting LDCs.

Disposal

Recycling Environment at present in not a

prominent issue in LDCs but its gaining importance.

Goods from Europe can be recycled in LDCs that can generate new opportunities.

Remanufacturing It involves bringing existing

equipment to new like condition.

Benefits involve lower capital investments, improved cash flows, use of semi-skilled labor & energy conservation.

Strategy of remanufacturing extends life of durable goods & make them affordable.

Disposal

Social Responsibility and Environmental implication Of Product Developing countries are increasingly becoming sensitive to this

issue. Lack of education prevents the people to understand the hazards of

plastics & other waste materials. The companies should ensure safe disposal of waste materials to

avoid tragedies. The government steps for reducing pollution will increase demand

for innovative products. Disposal of the product is the most neglected area of marketing

strategies in LDCs.