Development Drivers
What are the two main macro factors of development discussed in the presentation?
Culture and infrastructure
An aggregate marketing system is made up of firms and what other major group?
Households.
The Bottom of the Pyramid refers to people living at what end of the income scale?
The lowest income end.
What company is used as the main case study in the presentation?
Netflix
Which UN Sustainable Development Goal is connected to your presentation?
Goal 9: Industry, Innovation, and Infrastructure.
What type of infrastructure includes roads, bridges, airports, and utilities?
Hard infrastructure.
True or False: Marketing works the same way in every country
False.
What is the major debate around the Bottom of the Pyramid?
Whether it is a real business opportunity or a mirage.
What was the main problem Netflix faced when it first entered India?
Its pricing was too high for many consumers.
What initiative mentioned in the presentation helps move countries from cash to digital payments?
Better Than Cash Alliance.
What type of infrastructure includes legal systems, financial systems, and corruption controls?
Soft infrastructure
What word describes how marketing systems are made up of many different parts and interactions?
Complexity.
Why is the Bottom of the Pyramid often called a mirage?
Because there may be many potential customers, but many still cannot afford typical products at Western prices.
What lower-cost plan did Netflix introduce in India to adjust to the market?
A mobile-only plan.
How do digital payment systems help build soft infrastructure?
They reduce corruption and improve the reliability of financial systems.
According to the presentation, why is GDP alone not enough to explain why some markets succeed?
Because development also depends on legal systems, institutions, and social values that help businesses grow.
What word means that markets are diverse and not all consumers or businesses are alike?
Heterogeneity.
What type of company is most likely to ask whether there is a “fortune” at the Bottom of the Pyramid?
A multinational enterprise, or MNE.
How does Netflix’s India strategy connect to the idea of market heterogeneity?
It shows that different markets need different pricing and product strategies.
What is one social or environmental externality of putting millions of cars into the hands of new consumers?
More pollution, traffic, fuel use, or road safety issues.
In Table 11.1, what is the name for cultures that encourage competition, progress, and long-term growth?
Progress-prone cultures
What is the term for the unexpected social or environmental side effects that happen when firms enter or grow in a market?
Unintended consequences, or externalities.
According to the presentation, why is the BOP debate such an important strategic issue for multinational enterprises?
Because many MNEs expect most future growth to come from emerging markets.
Why is Netflix in India a strong example of the “BOP as a mirage” idea?
Because even though millions wanted the product, demand alone was not enough when the original price was too expensive
True or False: For a developing country to catch up, it must grow at least 3% per year.
True.