CHAPTERS

The marketing mix in

developing countries
Contents

INTRODUCTION 109
PRODUCT POLICY, PLANNING AND DEVELOPMENT 113
PROMOTION 118
DISTRIBUTION 126
PRICING 132
USE OF THE MARKETING MIX BY ELECTRONICS FIRMS IN
INDIA 136
THE MARKETING MIX IN THE MIDDLE EAST 137
CONCLUSION 139

Introduction

The marketing mix, like marketing research, needs more careful consider-
ation in a developing country context. Not only is the external environ-
ment more difficult, but also the internal constraints which affect the
formulation of the marketing mix are likely to be more numerous and
harder to overcome.
In the broader marketing environment the complexity of cultural, legal,
political, economic and financial frameworks results in a need for more
marketing mixes to be formulated to suit individual segments of the
population. In broad terms the rich urban sub-culture will normally
require one mix (more akin to that used in developed countries) while the
rural segment will require another completely different one. Here

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© Joanna Kinsey 1988
110 The Issues in Marketing in Developing Countries

processed, instant foods, labour saving devices and retail outlets in the
form of supermarkets will be replaced by traditional foodstuffs, greater
resistance to new products and more emphasis on personal selling by
market traders. On top of this dualism, there will usually be a need to
formulate many more mixes to correspond to different ethnic groups,
languages, religions, non-indigenous minorities or even certain profes-
sional groups. For example, as mentioned in Chapter 3, in some parts of
Africa public officials of newly-independent states have taken over the
symbols and houses of their previous European imperialist masters.
In any context the external marketing environment will influence the
way in which each marketing mix variable is used. But because many
more factors have to be taken into consideration in developing countries,
extra complications are evident. For example, colonial and historical
effects may have resulted in attitudes and values which require certain
(sometimes unexpected) adjustments to promotional themes and strat-
egies. Themes involving health, strength and vitality are usually success-
ful for promoting a wide range of products in newly independent African
states. Conversely, the product itself may not need to be changed, even if
it appears inappropriate at first sight. Nivea cream, for example, is
acceptable especially if promotion stresses the whiteness of skin, since an
African is more likely to reject a product he/she feels has been created
specially for him/her.
Finally external factors also often determine how certain marketing mix
elements can be used. The distribution system and its organisation, the
availability of media, the extent of competition and the level and structure
of disposable income and education, as discussed in Chapter 2, will put
certain constraints on the scope of each marketing mix element. Generally
less sophistication will be possible and many modifications will have to be
made. Some questions which need to be asked are summarised in Table
5.1. Further, on-going complications resulting from perpetual change
and an increasingly active role by Government - especially in the
distribution and pricing areas - need constant monitoring and call for
additional responses.
Although marketing research, if effectively carried out, can indicate the
right marketing mix to mitigate successfully the limitations which result
from the external, uncontrollable factors, the internal organisational
constraints are often more difficult to overcome and result in self-imposed
sub-optimal marketing mixes. This is particularly true of the indigenous
and governmental marketer.
In terms of the indigenous marketer, the very conditions which
characterise the typical external environment, such as strained communi-
cations, a sellers' market, no price competition, a monopoly or cartel
situation and tied distribution systems, breed certain attitudes and
practices. Complacency and an inability and/or an unwillingness to