Developing Countries

Developing country is a term generally used to describe a nation with a low level
of material well-being. Since no single definition of the term developing country is
recognized internationally, the levels of development may vary widely within so-
called developing countries. Some developing countries have high average
standards of living.

Countries with more advanced economies than other developing nations, but which
have not yet fully demonstrated the signs of a developed countries, are
categorized under the term newly industrialized countries.

Defination:

Kofi Annan, former Secretary General of the United Nations, defined a

developed country as follows. "A developed country is one that allows
all its citizens to enjoy a free and healthy life in a safe environment."

Individuals residing in one of the developing countries listed below qualify for
a special, low dues rate for the year 2010 or 2011 of US$16.

  Afghanistan   Central African Republic

  Albania   Chad
  Algeria   China
  Angola   Côte d'Ivoire
  Antigua and Barbuda   Costa Rica
  Argentina   Republic of the Congo
  Armenia   Democratic Republic of the Congo
  Azerbaijan   Colombia
  The Bahamas   Comoros
  Bahrain   Cape Verde
  Bangladesh
  Belarus
  Belize
  Benin
  Bhutan
  Bolivia
  Botswana
  Bosnia and Herzegovina
  Brazil
  Bulgaria
  Burkina Faso
  Burma
  Burundi
  Cameroon
Authored by Saygin Celen

Developing Countries as a Center for Marketing Innovation

Mostly the news is filled with the developed countries selling their developed products
to other developed countries because that´s where the majority of the world economy
and therefore the attractivity is. However, we hardly hear anything about the markets of
the developing countries. Just as starters, China and India themselves are just 2
developing countries consisting of almost 2.5 billion people, which is almost the 2/5 of
the total world population. Add South American, African, East Eeuropean and Middle
Eastern Countries to this and you will have more than 80% of the world population as
part of the developing countries category.
How about the marketing strategies especially designed for the developing countries
(DCs)? I´d like to mention about the main criteria to market products in theDCs.
•
The products/services should be affordable with a concern on budget.
•
The products should meet the basic needs of a major proportion of DCs.
•
• It is critical to find ways to cost less with multiple functions according to the
culture of the DC.
•The distribution should be easy.
•There should not be a major need of maintenance.
•The product should be able to be sold in masses to cost much less with the
economies of scale.
Competing heavily in the developed countries already, quite a number of major
companies have already widely entered into the developing countries with their
affordable, basic and functional products.
•The OLPC joint project ofIBM/MIT has been a success story for marketing (inpart a humane project
to provide the technology and information to the childrenin the DCs). It was marketed as$100 Laptop
Project and has been a symbol of
affordable products to be provided to the DCs

• The EEE PC of ASUS has also been a landmark for the affordable, more
functional and potentially developing-country-marketable laptops. It has created
such excitement that a new name for its category was created asNetbook, which
offers basic office program functions with fast access to the internet. The name
refers to easy to learn, work and play. It is literally 1/3 of the laptop price and if
you are into design etc., it would be functional and satisfactory
enough.Acer has surpassed ASUS in 2008 in the Netbook market.
• Nokia 1202 is the cheapest phone ofNokia especially developed for the DCs. It
has an integrated flash light, which makes the phone ideal for developing
countries because it is cheaper to have Nokia 1202 rather than having a seperate
flash light and change the batteries of it. Also, 5 members of the family may
use it with the feature of 5 address books.

• Wireless internet connection and networks are also to rise due to more open
economies and more development in technology resulting with more affordable
solutions. Mobile phone users have risen from 1 billion in 2001 to a number of 4
billion people. Therefore, it is a good indication for the near future of the
wireless internet.
• Moladi possesses a construction technology and unique lightweight reusable

patented injection moulded formwork system that has been developed to

streamline the cumbersome qualities, and the many inefficiencies, associated

with traditional timber and steel formwork as well as other alternative building

methods.This refers to simplifying the process of assemblythrough

industrialisation, modularisations, standardisation, and continuous flow
processes.

• The reduction of operations required for a production process means less chanceof the occurrence of
errors, waste and rework. This follows from the same logicthat the fewer the number of operations,
the higher the quality of the product anda predictive timeline, resulting in cost savings. Therefore,
the six key
challenges faced in the developing countries with respect to the low-cost

housing shortages, which are the lack of resources, insufficient funds, the

shortage of skills, time constraints, work flow control and waste can be

overcome. Here is astudy to explain the inefficiency of the diffusion of

construction technologies into the developing countries.

•Coca Cola also gained and increased its market share with its larger choice
drinks and with the remarkable steps it took in the developing countries even
though there was a global downturn last year.

The list of the abovementioned innovative marketing strategies for the developing world

may go on. However, the point is that however, the rules of the game are different, the

unseen potential of the developing world is tremendous.

Six Potential Areas of Marketing in the DCs
• Technology (Phone, internet, netbook, accesories..)
• Construction (new materials, ikea-like furniture,
prefabric structures..)
• Basic Households (multifunctional kitchen accesories,
dishes..)
• Health (pills, basic diagnosis, fitness equipment..)
• Self-Employment (instructional cds, microcredit for
basic machinery..)
• Food (basic nutritional needs that don´t go stale as
rice, cereals, salt, sugar..)
Basic Strategies to Tackle the Innovative Marketing in the DCs
• Market Research (Focus groups, polls, market stats..)
• Marketing Strategy (starting locally, with a group of varieties, oartnering with
locals, defining the image of the product, finding multiple uses, opening a local
office, distribution network..)

The dynamics of a developing country market is extremely different from the developedcountries.

Therefore, to have an educated decision about where to take the first steps asthe choice of the product

and the location to start, enough research should be made tohave a satisfactory payback period. The

world is getting smaller and surely, especially

with the recession in the process, the alternative seekers will find their ways in the
developing world.
Measure and concept of development

The development of a country is measured with statistical indexes such

as income per capita (per person) (GDP), life expectancy, the rate
of literacy, et cetera. The UN has developed the HDI, a compound
indicator of the above statistics, to gauge the level of human
development for countries where data is available.

Developing countries are in general countries which have not achieved

a significant degree of industrialization relative to their populations,
and which have, in most cases a medium to low standard of living.
There is a strong correlation between low income and
high population growth.

The terms utilized when discussing developing countries refer to the

intent and to the constructs of those who utilize these terms. Other
terms sometimes used are less developed countries (LDCs), least
economically developed countries (LEDCs), "underdeveloped nations"
or Third World nations, and "non-industrialized nations". Conversely,
the opposite end of the spectrum is termed developed countries, most
economically developed countries (MEDCs), First World nations and
"industrialized nations".

To moderate the euphemistic aspect of the

word developing, international organizations have started to use the
term Less economically developed country (LEDCs) for the poorest
nations which can in no sense be regarded as developing. That is,
LEDCs are the poorest subset of LDCs. This may moderate against a
belief that the standard of living across the entire developing world is
the same.

The concept of the developing nation is found, under one term or

another, in numerous theoretical systems having diverse orientations —
for example, theories of decolonization, liberation
theology, Marxism, anti-imperialism, and political economy.

Criticism of the term 'developing country'

There is criticism of the use of the term ‘developing country’. The

term implies inferiority of a 'developing country' compared to a
'developed country', which many countries dislike. It assumes a desire
to ‘develop’ along the traditional 'Western' model of economic
development which a few countries, such as Cuba, have chosen not to
follow.

The term 'developing' implies mobility and does not acknowledge that
development may be in decline or static in some countries, particularly
in southern African states worst affected by HIV/AIDS. In such cases,
the term developing country may be considered a euphemism. The
term implies homogeneity between such countries, which vary widely.
The term also implies homogeneity within such countries when wealth
(and health) of the most and least affluent groups varies widely.[citation
needed]

In general, development entails a modern infrastructure (both physical

and institutional), and a move away from low value added sectors such
as agriculture and natural resource extraction. Developed countries, in
comparison, usually have economic systems based on continuous, self-
sustaining economic growth in the tertiary sector of the
economy and quaternary sector of the economy and high material
standards of living. However, there are notable exceptions, as some
countries considered developed have a significant component
of primary industries in their national economies, e.g. Norway,
Canada, Australia. The USA and Western Europe have a very important
agricultural sector, both are major players in international agricultural
markets. Also, natural resource extraction can be a very profitable
industry (high value added) e.g. oil extraction.