ROLE OF MARKETING IN A

DEVELOPING ECONOMY


BY:
PRERNA YADAV (75)
AANCHAL GUPTA (82)
WHAT IS MARKETING?
According to Philip Kotler, marketing is a
human activity directed at satisfying needs
and wants through exchange process.

Markets are the context, both physical and
conceptual, where exchange takes place.
Marketing includes all activities from the
producer to the final including processing
and distribution systems.
The term Producer includes farmers and
the manufacturers of production inputs
when they produce the commodity being
marketed.
MARKETING TERMS
The term Consumer is used for anyone
who is the final consumer of a product or
the final user of a production

The Retailer is the final link in the chain
from producer to consumer.
ECONOMIC DEVELOPMENT
Economic development can be referred to as
the quantitative and qualitative changes in
the economy. Such actions can involve
multiple areas including development
of human capital, critical infrastructure,
regional competitiveness, environmental
sustainability, social inclusion, health,
safety, literacy, and other initiatives.
External Environment



1. Competitors
2. Social and Ethical Forces
3. Political and Legal Forces
4. Market Demand
5. Technology
6. Distribution Structure
Internal Environment




1. Product Range
2. Price Structure
3. Promotional Activities
4. Geographical Reach &
Location
MARKETING ENVIRONMENT
FUNCTIONS
PRICING
SELLING
FINANCING
PROMOTING
DISTRIBUTION
PRODUCT MANAGEMENT
MARKETING INFORMATION MANAGEMENT
Marketing is central to economic development.
Marketing can be defined as a means by which
an economy can be integrated. In general, this
integration is between buyers and sellers, as
well as different regions and sectors of the
economy.
Many economists hold the view that integration
is the chief aim of marketing, especially in less-
developed states.
FUNCTIONS OF MARKETING IN A
DEVELOPING ECONOMY
Marketing stimulates the aggregate demand
thereby enlarges the size of market.

Marketing in basic industries, agriculture,
mining and plantation industries helps in
distribution of output without which there is
no possibility of mobilization of goods and
services which is the key point for economic
growth. These industries are the back bone of
economic growth.

It also accelerates the process of monetizing
the economy which in turn facilitates
the transfer of investible resources

Intermediate industrial goods and Semi-
industrial products etc. essentially marketed for
industrial purpose in order to develop the
industrial sector with a view to economic
growth.

In Export trade and services like tourism and
banking, marketing plays eminent role in order
to grow the economy
WHY MARKETING SYSTEMS ARE NOT DEVELOPED
IN DEVELOPING ECONOMIES
PRODUCTION ORIENTATION OF THE ECONOMIC
PLANNERS:
There is a strongly held opinion that an economic
system must first have the capacity to produce
before the level of consumption and distribution
becomes a problem.
INTANGIBLE NATURE OF MARKETING:
Marketing is difficult to quantify compared to
production, where as accurate quantitative
information is important for planning purposes.

THE INFLUENCE OF IMPORT ORIENTATION:
A strong dependence upon imported
manufactured goods normally is reflected in his
structure of the market and general business
practices

SIGNIFICANCE OF MARKETING IN
A DEVELOPING ECONOMY
GENERAL IMPROVEMENTS
make the product capable of being brought to markets
instead of perishing.
make the consumer capable of discrimination.
improves the life-style and well being of the people in
the economy
upgrades world markets
Increases the purchasing power

Increased economic activity leads to enlarged
markets which set the stage for economies of scale
in distribution and production .

GROWTH OF MONEY ECONOMY
With money instead of barter as a medium of trade,
a society can develop a wider choice in consumption
opportunity.
UTILISATION BY THE ENTREPRENEUR
Its the entrepreneur and manager who alone can
convey to the people of the country an
understanding of what economic development
means and how it can be achieved.

DEVELOPER OF STANDARDS
Developer of standards for product and service as
well as standard of conduct, integrity etc and basic
long range impact of decisions on customers,
suppliers etc.

DISCIPLINE OF MARKETING
Marketing has become systemized over the years, it
is now both learnable and teachable. Marketing
practices have been in a form in which we can
express it as general concepts, as valid principles
and to a substantial degree, as quantifiable
measurements.
SIGNIFICANCE
RECOMMENDATIONS
An actual system of matching production
capacity and resources with consumer needs,
and purchasing power to eliminate some of
the inefficiencies that exist in the economy of
our country.
ROLE OF MARKETING IN DEVELOPING
ECONOMY
Marketing and trade play vital roles in the economic
growth and overall development of a nation. The
major roles of marketing and trade in the national
economy can be thought of in terms of:

Specialisation in activities of comparative advantage
Enhanced resource-use efficiency and trade
Advances in marketing with economic growth

SPECIALISATION IN ACTIVITIES OF COMPARATIVE
ADVANTAGE



In the presence of a market, an individual can specialise in one activity
and sell the surplus in order to purchase other needed goods. The
individual is likely to specialise on the basis of a comparative
advantage in that activity for which he or she has some special
resource or ability.
A comparative advantage exists when an individual or region can
produce a good, relative to the price of other goods, more cheaply than
another individual or region.

ENHANCED RESOURCE USE EFFICIENCY AND TRADE



Through specialisation and trade, a community is better able to utilise its
limited resources. Specialisation and the resulting efficiency of
resource-use is the basis for economic growth and development.
As markets and economies develop, surpluses occur more frequently in
profitable activities, creating new wealth, while products are moved
greater distances than before.
Thus, trade is a necessary ingredient for economic growth. Marketing is
simply the means by which trade occurs.
ADVANCES IN MARKETING WITH
ECONOMIC GROWTH

As economic growth proceeds, several changes in marketing take
place. With economic development, the activities and tasks of
marketing increase. Activities such as storage and processing,
packaging and retail distribution become more important.
More activities move away from the site of production and
towards marketing. This, in turn, creates employment
opportunities and further specialisation (diversification of the
community).
With development, more economic agents may enter trade,
helping to improve marketing services and, in some cases,
allowing the market to capture external economies of
scale. This refers to a situation where the presence of many
agents allows each one to operate at a lower cost.
Marketing plays a vital role in economic
growth in the present global world. It
ensures the planned economic growth in the
developing economy where the scarcity of
goods, services, ideas and excessive
unemployment, thereby marketing efforts
are needed for mobilization of economic
resources for additional production of ideas,
goods and services resulting in greater
employment.