Developing Productive Customers in Emerging Markets
By Charles Spinosa, Maria Flores Letelier and Fernando Flores
Most companies believe that successful entry into lower income, emerging markets requires price slashing by subtracting product features. Moreover, companies generally believe that it is appropriate to appeal to potential customers strictly as consumers who want their needs satisfied. Demonstrates that companies can appeal to customers as productive agents who want to build and transform their lives. Offering customers productivity-enhancing systems coupled with culturally appropriate offerings allows companies to charge appropriately and succeed in lower income, emerging markets. Provides examples of such successful competitive differentiation in the global marketplace.
Emerging markets, Market entry, Market positioning, Product differentiation.
First published in the California Management Review, Vol. 45, No. 4.
The full article is available for download from Harvard Business Review Online