Market is the key mechanism in determining the success of any commercial venture. But the mere presence of a market will not necessarily ensure to the producers a demanding market if the consumers are poor and cannot meet the asking price. Supply naturally rely on demands and demand comes from the consumers. So long as there are consumers, there will be demand and with demand comes supply. That is how markets operates.
Now the issue to be dealt here is on the kind of a market in operation. Market may be thriving but a producer may not get consumers for his product/products. This is because the consumers are unable to pay the asking price for the product/products though the demand is there. In such a market counterfeit goods at cheaper rates will flood the market. These goods meet their demand at their purchasing capability. Inability to afford never diminishes the need and black marketeers bank on this aspect of the market and thrive at the cost of genuine products in the market. A serious analysis of this trend will show that it is in the poor and impoverished places that such activities thrives on the demand of poor consumers.
It has been observed that Companies and marketing analyst focus on the large market base in the rural areas. But these teeming customers are poor and cannot afford the goods and services available in the market. Therefore they become prey to black market operatives with their counterfeit goods at a much cheaper rate. Thus not only the companies suffers but it also breeds anti-socials and gives them control of the market.
The onus of responsibility for development of rural areas does not only falls on the shoulders of the government and the poor themselves but is the responsibility of all recognised institutions in a given society.
The companies also with their concept of corporate responsibility invest in creating a huge market base by committing and shouldering the responsibility of rural development but without interfering in the established structure of the rural institutions. Companies needs to understand that a vast market with poor and impoverished customers will do their business no good. Rural areas are potentially a vast market base with the largest consumers but poor consumers are no good customers.
The best option for all is in building up the economy of the rural poor and raise their purchasing power capacity. Rural areas needs to be made producers of agro-based and organic products for the urban consumers (a market mechanism needs to be evolved which cannot be shouldered by the poor). This will convert this teeming poor customers to richer customers. Thus the economic development of the rural areas is not only the basic foundation of a nations growth and development but it is also a boon and an opportunity for individuals and companies to thrive too.
AARON KIKON
Now the issue to be dealt here is on the kind of a market in operation. Market may be thriving but a producer may not get consumers for his product/products. This is because the consumers are unable to pay the asking price for the product/products though the demand is there. In such a market counterfeit goods at cheaper rates will flood the market. These goods meet their demand at their purchasing capability. Inability to afford never diminishes the need and black marketeers bank on this aspect of the market and thrive at the cost of genuine products in the market. A serious analysis of this trend will show that it is in the poor and impoverished places that such activities thrives on the demand of poor consumers.
It has been observed that Companies and marketing analyst focus on the large market base in the rural areas. But these teeming customers are poor and cannot afford the goods and services available in the market. Therefore they become prey to black market operatives with their counterfeit goods at a much cheaper rate. Thus not only the companies suffers but it also breeds anti-socials and gives them control of the market.
The onus of responsibility for development of rural areas does not only falls on the shoulders of the government and the poor themselves but is the responsibility of all recognised institutions in a given society.
The companies also with their concept of corporate responsibility invest in creating a huge market base by committing and shouldering the responsibility of rural development but without interfering in the established structure of the rural institutions. Companies needs to understand that a vast market with poor and impoverished customers will do their business no good. Rural areas are potentially a vast market base with the largest consumers but poor consumers are no good customers.
The best option for all is in building up the economy of the rural poor and raise their purchasing power capacity. Rural areas needs to be made producers of agro-based and organic products for the urban consumers (a market mechanism needs to be evolved which cannot be shouldered by the poor). This will convert this teeming poor customers to richer customers. Thus the economic development of the rural areas is not only the basic foundation of a nations growth and development but it is also a boon and an opportunity for individuals and companies to thrive too.
AARON KIKON
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