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Business


Maketing in Cuba's Economy... Want/Needs VS Ideology

As a process, in any society which the demand structure for economic goods and services is extended and satisfied by way of conception, promotion, exchange and distribution of such goods and services, marketing, generally, employs mass media to realize the desired results of such activities.

That's the theory... Expressed in practical terms; if a manufacturer or distributor hope to get his product (s) into the hands of a consumer who is ready, willing and able to purchase them, he needs to advertise, promote and sell... in market-driven economies, anyway.

On a recent visit to the Socialist Republic of (communist) Cuba, we got to see another approach to distribution of goods and services, particularly in terms of the roll [not played] by the mass media as we recognize it, in this or any of our neighbouring countries; radio, television, newspapers or [print] magazines, etc.

Cuba has four separate markets into which goods and services are distributed: Firstly is the Peso market, to which only Cuban citizens have access and in which all goods and services are priced.

In the Peso market, distribution by the Cuban government is carried out to, ideologically, ensure that commodities are shared evenly among the Cuban people. However, in this market, while one can shop only in Pesos, goods and services appear to be priced, based on dollar value and as one 35 year-old public relations manager told me: "It was okay when we were paid in Pesos and everything was priced in Pesos, in those days we could buy more and saw what we were working for. "But now we are paid in Pesos while the things we need are priced in dollars", she said.

The next distribution market, in Cuba is one, whereby, goods and services are priced in Pesos but can be paid for with dollars. Perhaps the largest of the four, this market is accessible by both visitors to Cuba and Cuban nationals who have access to

Dollars...Earned by providing services to foreign companies or individuals or as gifts sent by friends and relatives from abroad.

The third and forth distribution markets in Cuba are somewhat difficult to tell apart, or as one European diplomat serving in Cuba has suggested are now overlapping. They are made-up of foreign residents who spend three to six months on the island (similar to our "Winter Residents" at Lyford Cay) and diplomats serving in foreign embassies, who are allowed to operate Dollars bank accounts and, for the most part tend to spend their money at Dollar-only stores.

We've watched about 38 hours of Cuban television, listened to about five hours of radio and read, roughly, 15 issues of Cuban newspapers and found that despite an obvious, vibrant consumer market in Cuba, vying for the same consumer goods we in The Bahamas go to the malls (here and in Miami), there are no commercial advertising, except for those announcing government sponsored civic, cultural or events, to which the public (entire population) were being invited, free of charge.

Cuba's official newspaper, Granma, (named after the cabin cruiser, a small yacht on which, now President, Fidel Castro's 82 man military expedition arrived on a Cuban shoreline, from Mexico back in December of 1956) is conspicuously small, in size, for a national daily, serving a population of over twelve (12) million.

But unlike its counterpart of a comparable size and population, in a capitalist or market-driven economy, Granma is not a battleground for the minds of its readers, where marketers fight, fiercely, to influence their psyche.

According to a media specialist in the International Relations Department of the Cuba's Institute of Radio & Television, in Havana, "The people of Cuba is not oriented to consumerism and therefore our media is used to promote the civic social and political issues of our ideology... "This is valuable to the way we do things in Cuba, which is different", he said.

Battleground or no battleground though, consumers of Cuba's four market segments, if they can be classified as such, pursue goods and services with much the same zeal and anxiety as their relatives in Miami and in any other city, for that matter. The sociodemographics of the Cuban in Havana reveal behavioral trends, strikingly similar to members of the Cuban community in Miami, and one cannot ignore the influencing facts of marketing and its mix on Cuban-Miamians. That is, you can take any woman, between the ages of 18 and 35 from Main Street, Havana and replace her with a contemporary who has been living in Miami for the past 25 years and you will find – from all external appearances - little, if any differences in dress code, taste for fashion, jewellry and cosmetics.

Yet, the question begging loudly is: "How can this be", when one woman lives in a city, where these commodities are available in abundance and she is being reminded, constantly, of the prestige and comfort of owning and wearing them. While the other woman have lived in a social environment where, in her lifetime these comforts have always been in short supply and only to persons of special financial circumstances. Moreover, she's been encouraged to place minimum importance and value on such things?

There is a school of thought, often discussed among marketing communicators which suggests that people, throughout the world, regardless of their socio-political or ideological environment, share the same personal motivation, desires, hopes and fears and that these are the elements to which advertising must appeal if the marketer is to intensify the consumers motivation and desire to eventually come to the cash register and make the purchaser.

Could it be that the mind and heart of the consumer in Cuba is just as open to the same consumer goods as her U.S. cousins; the difference being only in the level of intensity? While mass media can deliver very larger numbers, relatively inexpensively (US companies have found for an instance, it cost $25,000 to send a salesman to 1,000 homes but reach the same number of homes for $4.69), there something called "the Talk

Factor in word-of-mouth marketing is being developed to an incredible new level of sophistication, it could very well be hard at work in a market environment such as Cuba.

On the other hand, we must consider, seriously, the comment made by one Cuban psychologist which is: "Human Beings have needs and wants. Those needs and wants, when they are intense enough, have no connection – what so ever – with ideology"

As my teacher, Mrs. Wilkinson, once told me: " You know David, I think you've got that one right."

FOOTNOTE

We salute the newest initiative, taken by the Broadcasting Corporation of the Bahamas, concerning Bahamian performing and recording artists and at the same time congratulate Bahamian artists for the persistence demonstrated in their crusade for due recognition of their contribution to our national culture and craftsmanship.

According to Earl Thompson, BCB's Deputy General Manager; Marketing & Sales/ Radio & Television Programming, all stations operated by BCB are required to carry, predominantly, Bahamian music, performed by Bahamian artists. What's more, Thompson said that his programming department will also institute a special category for what will be recognized as Bahamian "CLUTURAL music".

In saluting BCB and congratulating Bahamian artists will take into consideration the fact that there are some listeners who will be giving up some good ole favourites in this exercise endeavour to reward them with some Bahamian Ballads, in place. We could use a bit of "Stevie S" and perhaps Phil Stubbs. Perhaps too, some our vocal Artists might consider using more of their beautiful voice to express there talents and a little less of their bodies.

David A. Clarke is a practicing media consultant based in Nassau

and can be contacted at kewturks@yahoo.com or Tel. 322-4430.

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Apology

In the issue of The Guardian on Jan. 3, 2002, under the heading “PM and Ex-Governor General row” a number of allegations were made concerning the conduct of Sir Orville Turnquest, the former Governor-general of The Bahamas, detailing reports of acts amounting to improper demeanour, suggesting the wrongful use of the official motor vehicle, and preventing access to the official buildings at Government House.
The Guardian is now satisfied that these published statements were untrue and wholly unfounded, and accordingly unreservedly withdraws all imputations thereby made upon the character and conduct of Sir Orville. The Guardian desires to express its sincere regret to Sir Orville, and to apologise to him for any embarrassment and inconvenience which may have been caused to him.

© 2002 The Nassau Guardian