The paper "Marketing System Issues" is a perfect example of a Management Assignment. In this case, the formation of aggregate and the motivation behind the same has been on account of a rise in market share due to market penetration up to the bottom of the pyramid. Various entities that came along to fulfill this demand were the raw material suppliers, the final product manufacturer, the marketing and distribution entity (Unilever), the certifying agency (for sustainable processes), the retailers, NGOs and Self Help Groups and the consumers across societal and demographic groups.
All the entities except the end consumer and the certifying agency were driven by sustainable economic value. The end consumers in the developing areas were driven by their personal need fulfillment and the consumer in the developed areas apart from the need satisfaction were also driven by their concern for sustainable development. Also, the certifying agencies for sustainable processes were driven by the well-being of the environment and the human race. Looking overall, the concern for sustainable development and satisfied consumer base with profitable trade are the value propositions driving the exchange process. Flows & Roles: There are various market flows associated with this case which includes information, ownership, possession, financing, promotion, and payments, etc.
However, the prominent among all these is the flow of information. The information has played a very crucial role from the perspective of the makeover of marketing channels in the context of the case. Due to the dissemination of information, there was a prevalent concern for sustainable development as well as there was a business proposition to enhance the market share by serving the untapped market.
As a result, a distinct market evolved at the bottom of the pyramid which was earlier untapped and was now able to fulfill its need. Further, in the developed areas, the distinct market was constituted by consumers who along with their need satisfaction also wanted sustainable growth. Various roles being played by the involved entities, in this case, was like supplying (raw material suppliers), sourcing & processing (Manufacturers), marketing & distribution (Unilever), possession exchange (retailers), consumer awareness (NGOs and Self help groups) and Certification. However, there are many other roles being played by entities but these are the key ones. Networks & Organizing Principle: The network in the given case seems quite complex wherein there are various entities playing each of the aforesaid roles.
The company was able to drive through this business proposition with the coordinated effort of all the involved entities. The rural sector in the developing areas was penetrated as the various NGOs and self-help groups were involved in empowering the consumer base by making them aware that they can afford to fulfill their needs in line with the mainstream consumers. On the other hand, the consumers in the developed areas were not worried only about their need fulfillment but were equally concerned about the sustainability of the whole business proposition and its governance.
In the given case, the certifying agency played a vital role in governance, which was based on the principle of sustainability. It helped in checking the suppliers and the company to adhere to the laid down norms of sourcing and processing the products. Though the company was driven by economic benefits, the certification on its products helped it to showcase its image as a corporate concerned for sustainability.
Thus, governance apparently played a role to develop a relationship of trust among the company and the end consumers.