“Marketing to the Bottom of the Pyramid” case study help

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Business Finance

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Read Case 3-3: “Marketing to the Bottom of the Pyramid” provided on the student resource site (http://highered.mcgraw-hill.com/sites/007352994x/student_view0/cases.html)

Respond to Question #2 at the end of the case:

Marketing to the B.O.P. raises a number of issues revolving around the social responsibility of marketing efforts.  Write a position paper, either pro or con, on one of the following:

  • Is it exploitation for a company to profit from selling soaps, shampoo, personal computers, ice cream, etc., to people with little disposable income?
  • Can making loans to customers whose income is less than $100 monthly at interest rates of 20 percent to purchase TVs, cell phones, and other consumer durables be justified?
  • One authority argues that squeezing profits from people with little disposable income – and often not enough to eat – isn’t capitalist exploitation, but rather that it stimulates economic growth.

Conclude with action steps a company can take to suppor


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Explanation & Answer

Attached.

1

Can making loans to customers whose income is less than $100 monthly at interest rates of
20 percent to purchase TVs, cell phones, and other consumer durables be justified?

Such loans cannot be justified because the interest rates are too high given that these are
low income earners. From the side of the financiers, they will improve their marketing through
advanced technology because the loans will conn...


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