Bottom of Pyramid
1.0 INTRODUCTION
This section will go through the definition of marketing management and its ethical concerns towards Bottom of Pyramid (BOP) group of people. Besides, the element of Corporate Social Responsibility (CSR) also included in this introductory paragraphs.
Marketing is growing and keep on changing with time and age. To manage marketing, one must be knowledgeable and really understand regarding the marketing concept to be applied when doing a particular business. Wikipedia has defined marketing management as a business discipline which is focused on the practical application of marketing techniques and the management of a firm 's marketing resources and activities. To create an effective, cost-efficient marketing management strategy, firms must possess a detailed, objective understanding of their own business and the market in which they operate. However, marketing must adapt with ethical concerns mainly when dealing with Bottom of Pyramid (BOP) group of people since physiological and sensitivity of this poor people must be at the first place to be concerned.
Bottom of pyramid has been recognised as the largest, but poorest socio-economic group of people who live and spend less than US$2.50 per day. Ever since BOP was defined by Professors C.K. Prahalad from University of Michigan, and Stuart Hart from Cornell University, which issued a healthy debate question whether there is really ‘fortune’ at the bottom of the pyramid. Otherwise, Aneel Karnani added to argue that there is no fortune at the bottom and for most multinational companies the market is very small and hard to be reached. Karnani propounds that the only way to alleviate poverty is to focus on the poor as producers, rather than as a market of consumers. Even though they are poor as business partners and innovators rather than producers or consumers, an alternative approach proposed by Professor Stuart Hart and his colleague Erik Simanis have led to the development of the
This section will go through the definition of marketing management and its ethical concerns towards Bottom of Pyramid (BOP) group of people. Besides, the element of Corporate Social Responsibility (CSR) also included in this introductory paragraphs.
Marketing is growing and keep on changing with time and age. To manage marketing, one must be knowledgeable and really understand regarding the marketing concept to be applied when doing a particular business. Wikipedia has defined marketing management as a business discipline which is focused on the practical application of marketing techniques and the management of a firm 's marketing resources and activities. To create an effective, cost-efficient marketing management strategy, firms must possess a detailed, objective understanding of their own business and the market in which they operate. However, marketing must adapt with ethical concerns mainly when dealing with Bottom of Pyramid (BOP) group of people since physiological and sensitivity of this poor people must be at the first place to be concerned.
Bottom of pyramid has been recognised as the largest, but poorest socio-economic group of people who live and spend less than US$2.50 per day. Ever since BOP was defined by Professors C.K. Prahalad from University of Michigan, and Stuart Hart from Cornell University, which issued a healthy debate question whether there is really ‘fortune’ at the bottom of the pyramid. Otherwise, Aneel Karnani added to argue that there is no fortune at the bottom and for most multinational companies the market is very small and hard to be reached. Karnani propounds that the only way to alleviate poverty is to focus on the poor as producers, rather than as a market of consumers. Even though they are poor as business partners and innovators rather than producers or consumers, an alternative approach proposed by Professor Stuart Hart and his colleague Erik Simanis have led to the development of the
References: BBC NEWS. (2013). .Is it China a Poor Country?. Available at http://news.bbc.co.uk/2/hi/asia-pacific.stm. Retrieved on 21 September 2013. H. Reisen. (2011). China 's Exchange Rate and Poor Country Growth. Available at http://www.voxeu.org/article/china-s-exchange-rate-and-poor-country-growth. Retrieved on 21 September 2013. Index Mundi. (2012). Indonesia Population-Demographic. Available at http://www.indexmundi.com/indonesia/population.html. Retrieved on 21 September 2013 V.K. Rangan & M.Chu. (2008). Business Innovations at The Base of Pyramid. The Global Business Summit. Available at http://www.hbs.edu/centennial/businesssummit/business-society/business-innovations-at-the-base-of-the-pyramid.html. Retrieved on 21 September 2013. Karnani, A.(2009). The Bottom of the Pyramid Strategy for Reducing Poverty: A Failed Promise, Desa Working Paper No.80, Journal of Economics and Social Affairs, pp. 6-7 R. Hahn (2009). The Ethical Rational of Business for the Poor – Integrating the Concepts Bottom of the Pyramid, Sustainable Development and Corporate Citizenship. C.K. Prahalad. (2004). The Fortune at The Bottom of Pyramid: Eradicating Poverty Through Profits. Available at http://knowledge.wharton.upenn.edu/article/the-fortune-at-the-bottom-of-the-pyramid-eradicating-poverty-through-profits. Retrieved on 25 September 2013. Dhaval Chada. (2009). Thoughts of the bottom of the pyramid. Available at http://skollworldforum.org/2009/11/14/thoughts-on-the-bottom-of-the-pyramid-bop. Retrieved on 25 September 2013.