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1 – 10 of over 1000Van R. Wood, Dennis A. Pitta and Frank J. Franzak
This paper aims to contend that four significant ideas must be comprehended, and their connection and interaction understood if successful marketing to the 4 to 5 billion…
Abstract
Purpose
This paper aims to contend that four significant ideas must be comprehended, and their connection and interaction understood if successful marketing to the 4 to 5 billion undeserved bottom of the pyramid (BOP) people in the world, by multinational firms is to be realized. These ideas are: the bottom of the pyramid (BOP) market itself; share of the heart versus consumer animosity; the nature and influence of global “umbrella” brands and responsible marketing as a guiding principle for all firms including those focusing on the BOP. Each of these ideas, in and of itself, represents an important dimension in today's global business environment, but taken together they offer a clearer understanding of how companies, particularly multinational companies, can do well (profit) and do good (improve humanity).
Design/methodology/approach
The paper briefly overviews the BOP literature, highlighting those parts most relevant to this work; expands upon the notion of “share of heart” and its twin components consumer affinity and consumer animosity; delineates the nature and impact of global “umbrella” brands in BOP marketing; synopsizes the notion of “responsible marketing” in the BOP context, and proposes a conceptual scheme of how these ideas are connected, how they interact in today's business world, and how they can lead to ongoing business success.
Findings
Mutlinational firms (MNFs) wishing to successfully pursue BOP markets need to blend their understanding of BOP uniqueness, with a clear understanding of the other three concepts, namely share of heart, gobal umbrella brands and responsible marketing. Tapping the potential of the BOP requires not only radicallly lowered priced products but also consumers with higher income. Marketers must address both parts of the problem since acting on either in isolation will not be effective.
Originality/value
Global umbrella brands of the rich world (BrandAmerica, EuroBrand, BrandNippon, etc.) must also play a part in successful BOP marketing. The future of such global umbrella brands lies to a great degree with BOP markets as these markets are still growing, and thus represent and will continue to represent either enormous partners or enormous rivals. MNFs that truly understand the nature, scope and potential of BOP markets, and act in concert to market responsibly to consumers in such markets, will not only garner the needed share of heart related to long‐term success in such markets, but will see their own global umbrella brand continue to thrive and prosper in the ever evolving global market arena.
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Tendai Chikweche and Richard Fletcher
The purpose of this paper is to argue that firms need to reconsider application of the conventional marketing mix at the bottom of pyramid (BOP) because variables exist that…
Abstract
Purpose
The purpose of this paper is to argue that firms need to reconsider application of the conventional marketing mix at the bottom of pyramid (BOP) because variables exist that impact differently on the interaction between firms and consumers at the BOP.
Design/methodology/approach
A mixture of qualitative data collection methods was used comprising multiple case studies using in‐depth, one‐to‐one interviews and ethnographic observations.
Findings
Key findings include the identification of social networks as an intervening variable for firms to consider when implementing the marketing mix at the BOP and the need for continuous consultative interaction between firms and customers which is facilitated by social networks.
Research limitations/implications
Firms in the sample used for research were confined to those in the fast‐moving consumer goods (FMCG) sector. The research was also restricted to Zimbabwe. Generalisation could be enhanced by using a larger sample of firms drawn from different product and service categories that catered for the BOP in a number of different countries.
Practical implications
Findings from the study provide practical insights for marketing managers to consider when developing a marketing mix to serve the BOP. Primarily, managers could implement a variety of strategies to enhance the way they engage with customers in the BOP market.
Social implications
The study provides insights into how firms can improve livelihoods of those at the BOP by providing employment and business opportunities through their partnerships with social networks.
Originality/value
The paper expands research agenda of the relatively new area of the BOP. By focusing on a BOP market in Africa, the research expands existing knowledge beyond previous areas of focus in Asia and Latin America.
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Anand Kumar Jaiswal and Shruti Gupta
This paper aims to explore the nature and degree to which marketing affects consumption behavior of bottom of the pyramid (BOP) population. The objective of the study is to…
Abstract
Purpose
This paper aims to explore the nature and degree to which marketing affects consumption behavior of bottom of the pyramid (BOP) population. The objective of the study is to examine, identify and explain aspects of consumption behavior that evidences the influence of marketing practices on the BOP consumers.
Design/methodology/approach
The study uses a long interview-based approach for an in-depth qualitative investigation of consumption behaviors of BOP consumers.
Findings
Key findings that emerged from the research are: widespread usage of international brands and expenditure on products outside of the core bundle of consumption, susceptibility to sales promotions, need to look and feel good and use “fairness” creams, susceptibility to advertising and celebrity endorsements and influence of store personnel.
Practical implications
For managers, this research suggests a careful examination of the likely consequences of their marketing actions. A set of guidelines are provided to them for doing business in a responsible manner at the BOP markets.
Social implications
Recommendations for public policymakers are offered that stress on the need for ethical marketing exchanges to address the concern over possible exploitation of this vulnerable population.
Originality/value
Extant literature on BOP has largely been conceptual in nature, relying on various case studies. This study empirically examines the nature and influence of marketing in the purchase behavior of BOP consumers. This is perhaps the first study providing empirical support to the argument that the poor consumers divert their scarce financial resources from fulfilling basic needs to purchasing non-essential discretionary products under the influence of BOP marketing.
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The purpose of this paper is to examine the reasons for firms’ continued presence in a difficult bottom of pyramid (BOP) environment, outlining the challenges of establishing a…
Abstract
Purpose
The purpose of this paper is to examine the reasons for firms’ continued presence in a difficult bottom of pyramid (BOP) environment, outlining the challenges of establishing a market orientation and required key strategic marketing requirements for effective engagement of this segment.
Design/methodology/approach
A mixed research method approach comprising, qualitative research methods approach consisting of case studies and ethnographic observations was used to collect data from two local firms and two MNC subsidiaries that manufacture food and personal hygiene products in Zimbabwe.
Findings
Key findings include identification of presence of new and previously cited diverse macro-environmental challenges cited by BOP researchers, confirmation of attraction and viability of the BOP, identification of multiple motivators for continued presence and a strategic framework for effectively serving the market is then proposed.
Research limitations/implications
The sample used is small but representative of a majority of the sales of food and personal hygiene products in a developing country and confining the focus to the food and personal hygiene sector may limit generalisation of findings to a broader population.
Practical implications
The paper provides managers with insights on identifying key strategic marketing requirements that enhance their engagement of the BOP.
Originality/value
Research into the BOP is a relatively new area of study in international business. The majority of studies have focused on Latin America and Asia ignoring the 800 million BOP consumers in Africa. The paper expands knowledge in the area thereby providing new insights on marketing to the BOP. The paper extends the discussion on potential marketing strategies for the BOP beyond the marketing mix discussion, which has been the focal point of previous studies.
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Md Rajibul Hasan, Ben Lowe and Mizan Rahman
This paper aims to explore how visual comprehensibility of a product can affect innovation adoption among the bottom of the pyramid (BOP) consumers in Bangladesh.
Abstract
Purpose
This paper aims to explore how visual comprehensibility of a product can affect innovation adoption among the bottom of the pyramid (BOP) consumers in Bangladesh.
Design/methodology/approach
This is an exploratory qualitative study based on interviews with eight managerial respondents involved in the design and marketing of innovative products targeted at BOP consumers in Bangladesh and three respondents who are consumers of these products.
Findings
One key finding from this research, in comparison to innovation adoption research in developed contexts, is the distinct importance that BOP consumers attach to visual cues in learning about and understanding a new product.
Practical implications
This research provides guidance for private and public sector organisations selling products and services to BOP consumers explaining the role of visual cues in generating better product comprehension. It also identifies the role of social relations in facilitating the adoption of new products within this segment.
Social implications
By enhancing the adoption of so-called pro-poor innovations, this research can assist in bringing about positive social change and developmental benefits in this burgeoning segment of the market.
Originality/value
This is one of the first studies to consider innovation adoption of pro-poor innovations in BOP markets and one of the first studies to collect data on the role of visual comprehensibility for consumers in BOP markets.
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Tendai Chikweche and Richard Fletcher
The purpose of this paper is to examine the use of customer relationship management (CRM) at the bottom of the pyramid (BOP).
Abstract
Purpose
The purpose of this paper is to examine the use of customer relationship management (CRM) at the bottom of the pyramid (BOP).
Design/methodology/approach
Qualitative interaction research methodology using case studies was used to conduct the research on the application of CRM at the BOP.
Findings
The key findings show that at the BOP, CRM is a key strategic tool that can be used by firms and can be facilitated by firms' relationships and connections to consumers' social networks.
Research limitations/implications
Replication of the study might be required in other BOP markets, to improve generalizability using larger samples.
Practical implications
The study provides managers with insights into the importance of CRM at the BOP and the need for proper planning and management in order for the concept to be effective.
Originality/value
This research expands knowledge in the area by extending the research context of the BOP to include Africa, and it proposes a framework that can be used for implementing CRM at the BOP.
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Ogechi Adeola and Yetunde Anibaba
The predominance of certain adverse factors has historically de-motivated firms seeking to enter into the bottom-of-the-pyramid (BoP) markets due to the perception that BoP markets…
Abstract
The predominance of certain adverse factors has historically de-motivated firms seeking to enter into the bottom-of-the-pyramid (BoP) markets due to the perception that BoP markets are impoverished and therefore unable to afford their products. However, Prahalad’s seminal study on BoP markets as potential sources of wealth may have influenced the mindset of marketers around the world to view the demographic at the BoP as prodigious product markets waiting to be mined. This chapter, therefore, explores how some multinational corporations (MNCs) may have successfully implemented BoP marketing in Nigeria against the backdrop of diffusion of innovation (DoI) theory. The DoI theory tries to explain how and why new ideas, product, structures, or phenomena (innovations), spread across users and social systems. It posits among other things that there are at least five conditions that define the rate of adoption of an innovation, including relative advantage, compatibility, complexity, trialability, and observability. The authors find in the context of case companies, MTN Communications, Promasidor (Cowbell), and Dufil Prima Foods (Indomie) Nigeria that these elements contribute to building a viable explanation for the wide adoption of their products in the Nigerian BoP markets. Regarding the economic viability of BoP markets, the authors find that MNCs may have to embrace a commitment to long-term profitability, focus on economies of scale as a basis for competitiveness, and realize that in BoP markets, defining a marketing model is a continuous process.
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May Nagy, Dag Bennett and Charles Graham
The purpose of this paper is to test the premise that brand growth can come from targeting the poorest consumers at the bottom of the economic pyramid (BOP). This study is the…
Abstract
Purpose
The purpose of this paper is to test the premise that brand growth can come from targeting the poorest consumers at the bottom of the economic pyramid (BOP). This study is the first that uses quantitative marketplace data covering BOP consumer purchase records.
Design/methodology/approach
The study uses newly available panel data from Egypt covering 15 months and 35 categories of frequently bought consumer goods. Brand penetration rates for socio-demographic tiers are established to explore brand purchasing. The metrics are: penetration, the number of buyers a brand has; and loyalty as measured by purchase frequency and share of category requirements.
Findings
Buyer behaviour patterns for the poorest consumers do not differ much from those in advanced economies; all brand performance metrics vary according to brand penetration – a double jeopardy effect, and the biggest brands are those that target the whole market, including the base.
Research limitations/implications
Data are from one country only and while the results confirm that patterns of brand buying in this BOP segment are like those in other markets, more research needs to be done to confirm the finding.
Practical implications
The biggest brands are those with the most customers, even if those customers are poor and do not buy very often. Growth can therefore be based on marketing interventions that appeal to the largest possible customer base.
Social implications
There are 2bn BOP consumers worldwide. This research shows that they may already be marginal members of modern economies and consumer culture.
Originality/value
This paper extends previous research on brand buying behaviour for the first time to the vast base of poor consumers who make up around half of the world’s population. This research shows that strategic approaches that emphasise increasing penetration are most likely to result in brand growth.
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The purpose of this paper is to explain how leading firms can profitably serve poor consumers by targeting the urban bottom of the pyramid (BOP) with appropriate marketing…
Abstract
Purpose
The purpose of this paper is to explain how leading firms can profitably serve poor consumers by targeting the urban bottom of the pyramid (BOP) with appropriate marketing practices.
Design/methodology/approach
The approach taken is an integrative analysis of existing literature and new cases.
Findings
The urban BOP market is more profitable for large firms than the rural BOP due to its density of wealth, proximity, homogeneity and modernity. While recommended tactics for BOP marketing like rock bottom pricing, innovative products and sachets never produced market leaders, multilevel channels and inclusive pricing led to dramatic BOP sales growth for respected middle‐class products.
Research limitations/implications
Theoretically, this research demonstrates that the urban‐rural divide is a good starting point for the development of context‐contingent strategies because successful urban BOP marketing practices were very different to those recommended for the rural BOP. It also makes a useful contribution to the question, “Do the poor pay more?” by demonstrating that the answer varies both with the category and the shopping occasion. Moreover, transaction cost theory prevailed: the key success factor for firms with leading products and brands was to find or develop appropriate intermediaries.
Practical implications
Firms with successful middle‐class products and brands should target the urban BOP. Others need not apply. Inclusive pricing and appropriate channels, especially multilevel marketing, can multiply sales and margins.
Originality/value
Recent criticism of the BOP proposition leads managers to believe that they must either serve the rural BOP at a loss or abandon the BOP altogether. This research demonstrates that firms can serve the very poor very profitably by targeting the urban BOP.
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Misagh Tasavori, Pervez N. Ghauri and Reza Zaefarian
The purpose of this paper is to shed light on the international market expansion of multinational corporations (MNCs) to the base of the pyramid (BoP). The authors employ the…
Abstract
Purpose
The purpose of this paper is to shed light on the international market expansion of multinational corporations (MNCs) to the base of the pyramid (BoP). The authors employ the corporate social entrepreneurship (CSE) perspective to reveal how MNCs can enter this market, the key enabling factors and the benefits they can gain. CSE is related to entrepreneurial and marketing strategies that are inspired by social responsibility.
Design/methodology/approach
An exploratory, qualitative multiple-case study has been employed. In-depth interviews were conducted with managers from three MNCs that have entered the BoP market in India.
Findings
The findings of this research confirm that successful entry into the BoP requires the pursuit of social responsibility and the adaptation of marketing strategies. In addition, MNCs should identify the key environmental factors (demand conditions and socio-political actors’ expectations) and develop organisational characteristics (management support, network orientation towards non-governmental organisations and availability of financial resources) to match. The findings of this research show that engagement in CSE in countries with considerable BoP populations can bring firms legitimacy and sustainable profitability.
Research limitations/implications
This research is based on interviews with a limited number of MNCs in India. Future studies could generalise the findings of this research to a larger number of corporations in other countries.
Originality/value
This research brings new insights to the field of international marketing by integrating the corporate social responsibility, marketing and entrepreneurship disciplines. The findings of this research offer empirical support for CSE and its role in international marketing strategies.
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