1. As a junior member of your company’s committee to explore new markets, you have received...

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Finance

1. As a junior member of your company’s committee to explore newmarkets, you have received a memo from the chairperson telling youto be prepared at the next meeting to discuss key questions thatneed to be addressed if the company decides to look further intothe possibility of marketing to the BOP segment. The ultimate goalof this meeting will be to establish a set of general guidelines touse in developing a market strategy for any one of the company’sproducts to be marketed to the “aspirational poor.” Theseguidelines need not be company or product specific at this time. Infact, think of the final guideline as a checklist—a series ofquestions that a company could use as a start in evaluating thepotential of a specific BOP market segment for one of its products.2. Marketing to the BOP raises a number of issues revolving aroundthe social responsibility of marketing efforts. Write a positionpaper either pro or con on one of the following: a. Is itexploitation for a company to profit from selling soaps, shampoo,personal computers, and ice cream, and so on, to people with littledisposable income? b. Can making loans to customers whose income isless than $100 monthly at interest rates of 20 percent to purchaseTVs, cell phones, and other consumer durables be justified? c. Oneauthority argues that squeezing profits from people with littledisposable income—and often not enough to eat—is not capitalistexploitation but rather that it stimulates economic growth.

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4.3 Ratings (595 Votes)
I do not think that marketing to the bottom of the pyramid BOP for selling soaps shampoo personal computers and ice cream and so on to people with little disposable income is in any way exploitation I believe that it would be unethical to deny products and services to people at the BOP just because the profit margins in this segment would be much slimmer than margins of products and services targeted to the middle class or to the top of the pyramid That being said I believe ethical issues can arise at the BOP depending on the strategy employed in the marketing efforts Further selling to the BOP can be a very ethical business practice Ethical issues arise when companies push products on this segment that do not improve their lives or prey on their fears and prejudices Companies need to provide products that improve living conditions and ensure that the target consumers fully understand how to get the most benefit from their very limited resources Finally governments need to align their policies to ensure that favorable treatment is given only to companies and products that will truly benefit the    See Answer
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1. As a junior member of your company’s committee to explore newmarkets, you have received a memo from the chairperson telling youto be prepared at the next meeting to discuss key questions thatneed to be addressed if the company decides to look further intothe possibility of marketing to the BOP segment. The ultimate goalof this meeting will be to establish a set of general guidelines touse in developing a market strategy for any one of the company’sproducts to be marketed to the “aspirational poor.” Theseguidelines need not be company or product specific at this time. Infact, think of the final guideline as a checklist—a series ofquestions that a company could use as a start in evaluating thepotential of a specific BOP market segment for one of its products.2. Marketing to the BOP raises a number of issues revolving aroundthe social responsibility of marketing efforts. Write a positionpaper either pro or con on one of the following: a. Is itexploitation for a company to profit from selling soaps, shampoo,personal computers, and ice cream, and so on, to people with littledisposable income? b. Can making loans to customers whose income isless than $100 monthly at interest rates of 20 percent to purchaseTVs, cell phones, and other consumer durables be justified? c. Oneauthority argues that squeezing profits from people with littledisposable income—and often not enough to eat—is not capitalistexploitation but rather that it stimulates economic growth.

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