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How Multinational Companies are Managing Challenges in Product Development for BOP Markets
I have noted that multinational companies can use several avenues to capture a niche market in BOP populations. To begin with, they can use direct marketing. This is where the company initiates direct contact with consumers in the market with the intention of establishing a long-term relationship. In many instances, direct marketing enhances loyalty among customers. For instance, some multinational companies constantly communicate with their customers concerning prevailing situations.
Secondly, multinational companies may use interactive marketing as a way of reaching the BOP markets (Kotler & Keller, 2012). I have noted that many companies use Internet and other electronic platforms to communicate and interact with their customers. This is a perfect way of getting a niche market due to a number of reasons. First, the advancement in technology is making companies shift from traditional marketing. Secondly, many people are communicating and interacting with each other over the Internet. For example, Bank of America uses mobile phones to communicate to their customers. Similarly, customers use their mobile phones in their banking.
Lastly, word-of-mouth marketing is a perfect way of approaching BOP markets. I suggest that multinationals engage social media as a way of conveying their information. For instance, Blendtec used this as a marketing tool in expanding its market.
Ethical and Strategic Implications of Marketing or Not Marketing to BOP Populations
These two options have ethical and strategic implications. To begin with, a multinational company that markets its products will have its presence felt in its intended market, and the demand for its products and services will grow.
Secondly, through marketing, the multinational companies get a chance to inform the market about its products and services. As such, the population will have concrete information about these products. This is important to the company as it will help get rid of any stereotypes in the market.
Thirdly, marketing a product will have an impact on information search (Kotler and Keller, 2012). Many multinationals engage with customers through marketing, especially in fact-finding missions. As such, the multinational will gather information on preferences, needs, and demands in the market. This will make them better prepared to tackle the situation beforehand. In addition to this, marketing will help any company to forecast its sales and profitability.
On the other hand, I have noted that companies that do not market in such a population will have a hard time making sales. The population hardly knows the products, which affects the demand. Secondly, the market may have unresolved stereotypes about the product. Thirdly, it will be impossible for the company to forecast its sales.
How BOP Marketing Differs From International Marketing
In BOP marketing, the multinational identifies a particular market (London, Hart, & Kacou, 2011). As such, the focus of the company is on this particular market as it optimizes on the market demand. On the other hand, international marketing involves crossing borders from one country to another. In such a situation, international marketing involves communication to different markets with different characteristics.
Secondly, this type of marketing focuses on limited methods of communication (Kotler & Keller, 2012). Since the marketing is based on a particular market structure, the use of simpler methods of communication will be prudent. On the other hand, international marketing involves different avenues of communication since the market is wide and modified.
Thirdly, BOP marketing requires particular dynamics due to its focus market. On the other hand, international marketing involves a wide range of dynamics used in enhancing performance. For instance, Heineken uses international marketing, where the marketing is done across borders. However, the modes of communication are dependent on the particular market. On the other hand, BOP marketing uses a single mode of marketing since the niche market is in a particular place.
References
Kotler, P., & Keller, K. (2012). Marketing Management. Upper Saddle River, NJ: Pearson Prentice Hall.
London, T., Hart, S. L., & Kacou, E. (2011). Business Strategies for the Bottom of the Pyramid (Collection). New York, NY: FT Press.
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