Comments on: Marketing Lessons Learned From Micro-Finance In India

By: BigManWalking

BigManWalking — Fri, 04 Dec 2009 15:56:51 +0000

Thanks for messaging via Twitter! I’ll mention at 550 Plus 50.

By: Exclusive Leads

Exclusive Leads — Thu, 29 Oct 2009 19:55:07 +0000

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By: Promotional Products

Promotional Products — Sun, 25 Oct 2009 01:37:58 +0000

Good stuff Paul, I bet this was an interesting experience for you. I think that there are many opportunities to get people access to certain benefits that can improve their sense of well being. I think other countries that have a productive economy, but their citizens don’t have as many liberties and opportunities should be looked at.

By: Neil Anuskiewicz

Neil Anuskiewicz — Wed, 21 Oct 2009 00:15:32 +0000

Great post, Paul.
Give the local entrepreneurs access to capital and the multiplier effect will lift the community without swamping it.

By: Paul Barsch

Paul Barsch — Tue, 20 Oct 2009 21:13:05 +0000

Hi BK, thank you for taking time from your day to comment. One of the aspects I love about micro finance is that both parties can win from the exchange. And I believe this is something that Western financial services companies can and should learn. Yes, profit is 100% necessary, but community, altruism and reputation are also important.

By: BKMAHAPATRO

BKMAHAPATRO — Tue, 20 Oct 2009 15:14:58 +0000

Great to read you on the Socio-economic Institution of ‘microfinancing’a whole new concept (developing in this part of the Word), on a commercial scale. India being a huge country, eventhough many people or groups are woking on similar projects in different regions, and in different names,the results are are yet to be pooled for creating a knowledge bank on the subject.Only then an approach for “marketing” may be feasible
.In any case, segmentation will be a must, and may have to be region based, as the very purpose of finanacing,basically, has to address the un-defined product-market segment which varies from locality to locality. Innovative indulgence of Ace marketeres in this are may open up a huge new arena.
And one more thing Paul, it comesto my mind, that the whole approach is based on the strong desire for “how to give” (the money,the skill, the enterprenuership, creation of market,etc) to the rural poor(economically) rather than “how to get” (profit!), whether it is in India or Bangla desh,( iIdont no much about China, but againChina being a huge up comming market, the same may be true) This being the core issue , I am affraid, whether the standard (or the well-understood) B-school maketing technology will work?? ref prof Yunus clarifying the concept “return the moey when you make profit”.( ABUNDENT TRUST, HIGH TOLERENCE FOR RISK, NO IDEA OF GESTATION, NO “ROI”)
So I feel, at the moment “marketing” of microfinancing is verry challanging, innovative, risky and of long gestation.
But it is happening,happening in various names and forms.(self help group, NGO,etc,etc and in many states like UP, Andhra pradesh, may be Gujrat etc) and is bound to catchup for reasons you have rightly picked up.
Yes, all aspects may have to be factored in, as it is true for all counties including India (as you mentioned some) like cast, creed, region and religion, as it has to be marketed on a tailor made basis to a locality.
The abve is my view on your question one and three.
Reg your Q-2: it is YES, YES &YES- a big potential exists.
Great opportunity interacting you Mr Paul. Thanks and regards.
“HAPPY DEEWALI” (even President Obama has celebrated Deewali in WhiteHouse, it was reported, IT IS FESTIVAL OF LIGHTS AND PRAYERS TO THE GODESS OF WEALTH. LAKSHMI-
(celebrated in india on 17th/ 18th Oct 2009)
- Show quoted text -
On Thu, Oct 15, 2009 at 8:05 PM, Paul Barsch wrote:
Hi BK, as one of my contacts in India, I thought you might like to see my first marketing column on India.
–
BKM

By: true religion jeans

true religion jeans — Mon, 19 Oct 2009 07:43:40 +0000

I must say this is a great article i enjoyed reading it keep the good work.

By: Paul Barsch

Paul Barsch — Fri, 16 Oct 2009 23:11:20 +0000

Sonia, thank you for commenting. Correct, about the caste system, but I believe that an informal caste system still remains, especially as you note, in the rural areas of India. And while I wrote a column a few months back about an emerging middle class in China, you are right to say that India’s middle class of 200-300m should not be ignored!

By: Sonia Singh

Sonia Singh — Fri, 16 Oct 2009 22:05:35 +0000

Paul, great post as always. I just would like to clarify that India does not have a caste system any longer; it was legally outlawed decades ago though it is still practiced, often in rural areas.
You are right on target by saying the key is better segmentation. The country is simply too large with too many very distinct groups for spaghetti-against-the-wall marketing. I think in addition to language and religion, attention needs to be paid to rural and urban areas. Having been there multiple times, it is a very different experience being in a rural setting vs. urban. Urban areas especially have a burgeoning middle class – something relatively new for India. That’s another layer to the segmentation that cannot be ignored.

By: Paul Barsch

Paul Barsch — Fri, 16 Oct 2009 01:30:40 +0000

SGA, thank you for the kind words! Countries with diverse populations require innovative and diverse marketing messaging, products, campaigns, and promotions. This especially holds true for the next two goliaths (India and China). Thank you for commenting!

By: Strategic Growth Advisors

Strategic Growth Advisors — Fri, 16 Oct 2009 00:18:44 +0000

Informative, insightful and innovative post, Paul. Revolutionizing how people from third world countries view financing is a great start for development. I think this is a nice model for other struggling nations.

By: Paul Barsch

Paul Barsch — Thu, 15 Oct 2009 18:48:26 +0000

Ted, I appreciate you taking time to comment.
You said, “Your post points out, yet again, how important it is for businesses to truly understand the demographics and regions they want to do business in before trying to market to them.”
Dare I say, that this is a great point for not only marketers venturing into emerging economies, but also a solid best practice for markets at home? It seems like common sense, but how many campaigns have you witnessed over your marketing career where the basics are forgotten or glossed over in an effort to get something out the door, or utilize a fancy new tool?

By: Paul

Paul — Thu, 15 Oct 2009 18:44:43 +0000

Claire, thank you for commenting.
I am reminded of a President of a company I once worked for who said, “Profit is not a dirty word.” In the case of micro-finance, some complain the interest rates are high, but if the velocity (or turnover) of goods sold by vendors accepting a micro-finance loan is high enough, the lender can be compensated for the risk and make a profit, and the entrepreneur can profit as well. Really a win-win for both parties!

By: Ted Mininni

Ted Mininni — Thu, 15 Oct 2009 17:47:48 +0000

Your post points out, yet again, how important it is for businesses to truly understand the demographics and regions they want to do business in before trying to market to them.
Since CPG is my specialty, rather than financial services, I can speak to that. Even large consumer product companies that have a global reach don’t always get it right. Pepsi’s “Come alive with the Pepsi Generation” translated into “Pepsi brings your ancestors back from the grave”, in Chinese, for example. Coca-Cola in China was first read as “Ke-kou-ke-la”, meaning “Bite the wax tadpole” or “female horse stuffed with wax”, depending on the dialect. Coke then researched 40,000 characters to find a phonetic equivalent “ko-kou-ko-le”, translating into “happiness in the mouth”. China, like India, encompasses many regions with many dialects and traditions. So the same difficulty exists when marketing to such a diverse population. Whether marketers want to hone in on specific ones, or the general population, they’d better do their homework first. Otherwise, these kinds of gaffes will continue to occur.

By: Claire Ratushny

Claire Ratushny — Thu, 15 Oct 2009 17:39:21 +0000

Nice post, Paul. Micro lending like this is important in the third world. It affords poor people a real opportunity to feed their families and rise out of poverty. Mohammed Yunus has made it a point to loan money to poor women in Bangladesh, and they have worked hard to launch their cottage industries to make better lives for their families. They only need to be given the tools so that their hard work and initiative gives them a chance to succeed. It reminds me of the Chinese proverb: “Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.” Teaching people about credit and finances, and lending to them, even on a small scale, is vital to the future success of third world economies.