ASSIGNMENT ON AMM

SUBMITTED BY :

AKASH KUMAR

COURSE : MBA (2021-2023)

ENROLLMENT NUMBER: 21BSPDD01C308

SUBJECT: ADVANCED MARKETING

MANAGEMENT
1. BOTTOM OF PYRAMID:
The poorest two-thirds of the economic human pyramid, a group of more
than four billion people living in abject poverty, are referred to as the
bottom of the pyramid (BOP), sometimes known as the base of the
pyramid. BOP, in a broader sense, refers to a market-based economic
development strategy that aims to alleviate widespread poverty while also
generating growth and profits for multinational firms (MNCs).

Firms in a variety of industries are increasingly adopting this notion (e.g.,

household goods, energy). The United Nations Millennium Development
Goals have made eradicating global poverty a primary concern. Unlike
traditional aid-based economic development models, BOP methods portray
poverty as a business opportunity for multinational corporations. There are
three premises in the fundamental argument:

(1) MNCs should play a leading role in unlocking the economic potential of
such difficult-to-access markets,

(2) Bringing the poor into the global economy will simultaneously generate
fortunes for MNCs while solving the world's problems, and

(3) Bringing the poor into the global economy will simultaneously generate
fortunes for MNCs while solving the world's problems.

Critics of BOP approaches point to two major issues: governance and

sustainability, both of which are currently unaddressed. To control,
supervise, and oversee the growth of markets and effective competition (as
well as police corruption), effective governance processes and bodies are
required, and they, like MNCs, must transcend national sovereignties. To
avoid catastrophic impacts on Earth's ecosystems, raising the consumption
levels of the world's poor requires radically new business models and
technologies; governance mechanisms are required to enforce the adoption
of radical resource efficiency measures and clean technologies across a
multinational playing field. However, other academics believe that the
effects of pollution and other environmental problems around the world
could be mitigated by using developing countries as low-cost testing
grounds for ecologically sustainable technologies.

2. RURAL ECONOMIC CHARACTERISTICS:

Main characteristics of rural economy are as follows:

1. The Village is a Primary Institution: The village is a primary

institution that meets nearly all of the needs of the rural community. The
people of the countryside have a strong sense of belonging and solidarity
with one another.

2. Agriculture Dependence: The rural economy is heavily reliant on

nature and agricultural operations. In rural areas, agriculture and related
activities are the most common occupations.

3. Villagers' Lifestyles: Villagers' lifestyles are quite simple. Education,

housing, health and sanitation, transportation and communication,
banking, roadways, and marketplaces are among the public services that
are limited and unavailable. Faith, superstitions, and traditional cultural
customs are important to rural people. The bulk of rural inhabitants have
poor and pitiful living conditions. The rural sector is exceedingly
underdeveloped and poor in terms of production methods, social
organisation, and political mobilisation. The consumption of alcoholic
beverages has increased in recent years.

4. Population Density: The population density, as defined by the number

of people living per square kilometre, is extremely low, and residences are
dispersed throughout the communities.

5. Unemployment, seasonal unemployment, and underemployment

are all problems in rural areas. Unemployment refers to persons who are
eager and capable of working but are unable to find work.
Underemployment, often known as disguised unemployment, refers to
those who are employed in excess of their needs. The term "disguised
unemployment" refers to a situation in which individuals work but there is
no rise in output. In rural settings, both of these scenarios are typical.

6. Poverty: Poverty is a state in which people's basic requirements, such as

food, clothing, and shelter, are not met. According to estimates from 2011-
12, around 22 crore people in rural areas are poor and live below the
poverty line.

7. Rural Income: Rural people's income is limited since the rural economy
is not vibrant enough to provide them with jobs or self-employment
options.

A large number of workers and skilled workers are underemployed, and

their options for boosting their earnings are limited.

8. Dependency: Rural households are largely dependent on social grants.

9. Inequality: Income, wealth, and asset distributions are substantially

skewed among rural residents. Inequality exists for a variety of causes,
including historical, social, economic, and political factors. Rural activities
are dominated by landlords and landowners. A few people own land,
animals, and other goods.

10. Migration: In order to find meaningful job, rural people are obliged to
migrate from their villages to urban areas. The emergence of cities is a
result of this type of development. People are also pushed to migrate to
urban regions by enmity and a lack of basic services in rural communities.
Schumacher refers to this as'double poisoning,' where one side villags and
the other side villags.nd remittances from family members working in urban
areas and cities.