Marketing Strategies Developed by Informal Production Units

The informal economy, a parallel market, has unique marketing characteristics. Consumers are attracted by the low prices of products available in these markets, while suppliers benefit from low production costs and can offer products tailored to consumer needs. Pricing strategies used in the informal economy include setting prices according to supply and demand, negotiating with customers and using psychological pricing. The products on offer are diversified, with the ability to adapt to demand requirements, low production costs and adaptability to consumer needs. Informal businesses use a variety of promotional strategies, ranging from traditional techniques to the use of formal sector advertising. However, buying on parallel markets can entail risks such as higher prices in some places, inferior product quality and health and safety hazards. Ultimately, the informal economy presents unique marketing challenges and opportunities for both consumers and suppliers.