The Global Economy May Be Viewed As A Pyramid Essay

2075 Words Dec 14th, 2016 9 Pages
1. The global economy may be viewed as a pyramid. The top of the pyramid consists of one billion people with per capita annual income of $20,000 or higher. The second tier consists of another billion people making $2,000 to $20,000 a year. The vast majority of the world 's populations, representing approximately five billion people, live at the base of this pyramid, making less than $2,000 a year.
Marketers have focused on the top two levels and end up ignoring the bottom tier. An increasing number of countries located in this bottom tier are demonstrating economic and marketing opportunities as they move from low- to middle-income levels. It is much easier to market to consumers with higher incomes. In the emerging world, marketing is different. There is no guarantee media choices will be available or that one’s product will be a success.
The challenges in the bottom of the pyramid require innovation, such as identifying special price points, as well as long-term commitment. Many consumers at the base of the pyramid may be illiterate, but they are brand conscious. Companies need to think outside the box and identify win-win strategies for this emerging consumer market.
Although individuals living in developing economies have less purchasing power than their counterparts living in the developed countries, they still have needs and wants. Global firms capable of fulfilling these needs will make a profit and emerge as global marketers.

2. Globalization is generally seen in…

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