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    978 3 319 16946 0 - 128

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    The document discusses the important role that marketing plays in stimulating economic growth and development in developing countries. It argues that traditional approaches to economic growth have neglected the importance of marketing in integrating rural and urban areas. Effective marketing can increase productivity, purchasing power, and standards of quality for small farmers, which comprises the majority of the population in most developing countries. By linking producers and consumers efficiently, modern marketing systems can help transition countries from static to dynamic economies and achieve a breakthrough in agricultural development.

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    978 3 319 16946 0 - 128

    Uploaded by

    yagana
    16 views1 page
    The document discusses the important role that marketing plays in stimulating economic growth and development in developing countries. It argues that traditional approaches to economic growth have neglected the importance of marketing in integrating rural and urban areas. Effective marketing can increase productivity, purchasing power, and standards of quality for small farmers, which comprises the majority of the population in most developing countries. By linking producers and consumers efficiently, modern marketing systems can help transition countries from static to dynamic economies and achieve a breakthrough in agricultural development.

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    978-3-319-16946-0_128

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    The document discusses the important role that marketing plays in stimulating economic growth and development in developing countries. It argues that traditional approaches to economic growth have neglected the importance of marketing in integrating rural and urban areas. Effective marketing can increase productivity, purchasing power, and standards of quality for small farmers, which comprises the majority of the population in most developing countries. By linking producers and consumers efficiently, modern marketing systems can help transition countries from static to dynamic economies and achieve a breakthrough in agricultural development.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    16 views1 page

    978 3 319 16946 0 - 128

    Uploaded by

    yagana
    The document discusses the important role that marketing plays in stimulating economic growth and development in developing countries. It argues that traditional approaches to economic growth have neglected the importance of marketing in integrating rural and urban areas. Effective marketing can increase productivity, purchasing power, and standards of quality for small farmers, which comprises the majority of the population in most developing countries. By linking producers and consumers efficiently, modern marketing systems can help transition countries from static to dynamic economies and achieve a breakthrough in agricultural development.

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    of 1

    THE ROLE OF MARKETING IN ECONOMIC DEVELOPMENT

    Tuncer Arif, University of Wisconsin-Whitewater


    The Role of Marketing
    Abstract
    The role marketing can play within this framework is
    Most writings on economic growth have focused on indus- very important for both the short-run and long-run
    trialization and increasing industrial productivity. considerations. In the short-run not only productivity
    This traditional approach neglects the role of market- and incomes are low among transitional and traditional
    ing in stimulating economic growth via increasing pro- farmers, there is not also an effective use of whatever
    ductivity in all sectors of the economy and in inte- is available. The present day developing country market-
    grating segmented markets in developing areas. Market- ing techniques, as well as institutions, are archaic and
    ing by integrating the large rural sector into the inefficient. The diversity and limited nature of market-
    national market converts a static system into a dynamic ing outlets in the form of middlemen, government instit·-
    system. utions and local markets produce a high per unit cost of
    marketing due to waste, spoilage and accumulation of
    Background of the Problem unusable inventories. The long-run problem is to create
    mass markets out of these 80 percent of farmers, which
    First of all we should distinguish between economic is a formidable task and cannot be achieved unless pro-
    growth and economic development. Economic growth ductivity and purchasing power of these farmers are in-
    refers to quantitative changes in the economy such as creased.
    increases in GNP, physical goods, investment, etc. On
    the other hand economic development is a process of To achieve this farmers should be aided in increasing
    improvement with respect to a set of values and the productivity via the supply of modern inputs, credit,
    values in question relate to desired conditions in the technical know-how, extension services and indirectly by
    society. making consumer goods available. All these should be
    effectively channeled to a vast majority of small pro-
    Second, one should be clear in what constitutes develop- ducers. Precisely, it is here where marketing comes in
    ment or underdevelopment. This is easier said than and assumes importance.
    done. No matter where we start from, the end results
    The breakthrough in agriculture can be done by effic-
    of underdevelopment are low incomes, poverty and star-
    vation, for the majority of the population living in iently linking rural areas to urban areas, and vice-
    versa, through effective and efficient channels of
    these countries.
    marketing. Marketing in this sense implies more than
    the traditional trader approach that most developing
    Third, the problems created by underdevelopment are not
    only national, but they are also international. At the countries do tend to have. It rather implies the cre-
    national level there is a clear contradiction between a ation of a system that links economic resources, capac-
    small rich minority that enjoys life standards as high ities and capabilities present in the economy for effic-
    as those enjoyed by the upper middle class of developed ient production that is geared towards satisfying indi-
    countries and the majority of the poor that hardly sub- vidual needs and wants.
    sist. A similar dualism is visible at the international
    level where developed countries, excluding communist The limited nature of present day marketing outlets in
    countries, constitute about 25 percent of the world developing countries - in the form of commercial inter-
    population and control around 65 percent of the world mediaries, government institutions, and local markets -
    puts the farmer in a weak position in trying to fix his
    GNP.
    price. Present day marketing outlets enjoy an oligop-
    Economic development clearly is the only viable alter- sony situation vis a vis the farmer, and oligopoly situ-
    native to this explosive situation which is a threat to ation vis a vis the consumers in the city. Modern
    mankind. If economic development is to be set in marketing with its distribution and information systems
    motion and sustained, then the agricultural sector and should demonstrate to the farmers that there is latent
    marketing functions assume a very important role. demand and that markets can be easily expanded. In
    short, the small farmers should be made to realize that
    Structure of Markets in Developing Economies the market demand conditions facing them are elastic.

    With some exceptions, most developing countries embarked An efficient and effective marketing system not only
    on a process of growth via import substitution indus- stimulates production and economic growth through inte-
    grating markets, but at the same time imposes standards,
    trialization and creation of basic infrastructure. The
    emphasis given to these two components led to a system- specifications and quality on the producers. As such,
    it tends to renumerate the efficient and penalize the
    atic neglect of agriculture and creation of organiza-
    inefficient. Development of standards, specifications
    tions that bring together economic resources and needs
    and quality are not only important for the domestic
    in the most efficient way possible.
    markets, but assume much more importance in international
    The neglect of agriculture has caused a decline in per markets.
    capita food consumption in the majority of developing
    areas over the past decade. This constant decline in The channels that supply the small farmer with inputs,
    food production coupled with a high population increase credit, warehousing and industrial goods also help to
    in these countries is creating a potential danger to train and create small businessmen and entrepreneurs,
    mankind. Even in those countries where food production which are in short supply in developing countries and
    has increased, this was achieved only by a small minor- are badly needed. Integration of the markets, activa-
    tion of economic resources, increasing wants all will
    ity of modern farmers, while the great majority of
    farmers are left outside ·the process of this growth. intensify each other to produce economic growth.
    As such, agriculture is not a homogeneous sector. It is
    made up of a small modern and commercial sector, a large
    sector.
    536

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