Business Management
Customers need in the developing markets goes beyond prices to include brands, durability and whether the products match their environment. The environment part refers to the infrastructure available in these countries. These customers are not just simplistic even though their needs can be referred as basic (Anderson & Vandermerwe, 2007). When customers are buying products such as machinery, they place much consideration on infrastructures such as roads that would enable them to maintain their efficient operating needs. This means that even if products sell at competitive prices, the customers would prefer machines that offer more reliability and maximum utilization using the available infrastructure. The needs of customers in the developing markets are influenced by poor infrastructure and vast distances in case of vehicles (Gudlavalleti et al. 2013). The buying behavior of the customers is informed by features or design of the product that would their specific needs that are unique to their environment. In developed countries, the nature of customer needs is that they are defined by issues such as loyalty to brands, focus on environmental impact and health of the consumer. These aspects define the needs in the mature markets. The customers look to innovation of the product in comparison with substitutes in the market and are always hopping that their buying decision was right which may cause anxiety (Moschis et al. 1997). This means that customers are more focused in product results after the purchase.
Firms in the developed countries have to pay enough attention to these differences and obtain the necessary customer insights so that to serve their specific needs. The companies need to look at every opportunity available to understand these needs. In the emerging markets, firms need to employ improved market research that focuses on the variations in infrastructure, cultures and brand recognition and tailor their offerings to much the needs. The firms need to look past the conventional pricing strategies and designs employed by competitors and focus on reaching to the specific needs that have been observed in a given country (Gudlavalleti et al. 2013). An important aspect is to know how best products can be differentiated so that they meet the needs of different customers in the developing markets. In the developed markets, the firms need to pay close attention to the customers concerns relating to after use of the product (Moschis et al. 1997). This involves focusing on customers’ attention to environment, health and after purchase anxiety.
A sole focus on the customizing products may not fully address the needs of customers. In the developing countries, customers are becoming more informed and their needs are changing with changes in the market environments. The best strategy should go beyond the design, development and manufacturing of products to meet the needs of customers and instead include anticipating such needs even before the market is aware. With advancement in information technology, gathering of data and data analysis, it is possible to offer something that surpasses the needs and advices of customers. Also, clean slate innovation can go a long way in determining the needs of customers (Govindarajan & Trimble, 2012). The reassessment of customer needs means that the development of the products starts from scratch and then reversing how firms approach innovation. The innovation can involve anticipating what customers want and then offerings them products that will meet their needs.
References
Govindarajan, V., & Trimble, C. (2012). Reverse innovation: Create far from home, win everywhere. Harvard Business Press.
Anderson, J., & Vandermerwe, S. (2007). Connecting to Customers in Developing Markets. ESMT Working Paper" 2007, April.
Gudlavalleti, S., Gupta, S., & Narayanan, A. (2013). Developing winning products for emerging markets. McKinsey Quarterly, 2(2013), 98-103.
Moschis, G. P., Lee, E., & Mathur, A. (1997). Targeting the mature market: opportunities and challenges. Journal of Consumer Marketing, 14(4), 282-293.
