Lesson 3-5
Marketing In North Korea
THIS IS NOT A TEXTBOOK LESSON but some of the answers could be found in chapter 3-1 of the textbook.
LESSON SUMMARY
North Korea, often regarded as a marketing time capsule, remains largely devoid of advertising and modern digital interactions. Laura Ashton recounts her experience teaching marketing to engineers and scientists in the country, highlighting the unique landscape of consumerism, which is emerging despite strict governmental control and international sanctions. Although North Koreans are unfamiliar with foreign brands and traditional advertising, there is a growing curiosity for consumer goods, with small businesses beginning to flourish under governmental support for entrepreneurship. This shift indicates a subtle change in the North Korean economy, where citizens are beginning to access products through local markets and channels.
In the context of retail, Ashton observed a curious mix of North Korean and Chinese products in stores, with a noteworthy absence of global brands due to sanctions. Although advertising as known in the West does not exist, the packaging of local goods is evolving, sometimes imitating popular South Korean products. The limited variety of goods available reflects a significant disparity in consumer access, particularly between elites in Pyongyang and the majority of the population. The lack of promotional materials in stores, with the exception of some medical products, showcases a stark contrast to typical retail environments found elsewhere.
The digital landscape in North Korea is similarly constrained. While there is a monitored intranet, access to global internet services is virtually non-existent, and mobile phones lack standard functionalities such as social media. The concept of an "app store" is uniquely physical, requiring users to visit a location to download applications. As marketing evolves, especially online, there is potential for creativity and differentiation within the tightly controlled environment. The influence of Chinese imports and the possibility of lifting sanctions may lead to increased competition, presenting opportunities for brands to enter the market. Overall, while North Korea's economy is still heavily regulated, the seeds of entrepreneurial spirit and consumer culture are beginning to sprout.
North Korea, often regarded as a marketing time capsule, remains largely devoid of advertising and modern digital interactions. Laura Ashton recounts her experience teaching marketing to engineers and scientists in the country, highlighting the unique landscape of consumerism, which is emerging despite strict governmental control and international sanctions. Although North Koreans are unfamiliar with foreign brands and traditional advertising, there is a growing curiosity for consumer goods, with small businesses beginning to flourish under governmental support for entrepreneurship. This shift indicates a subtle change in the North Korean economy, where citizens are beginning to access products through local markets and channels.
In the context of retail, Ashton observed a curious mix of North Korean and Chinese products in stores, with a noteworthy absence of global brands due to sanctions. Although advertising as known in the West does not exist, the packaging of local goods is evolving, sometimes imitating popular South Korean products. The limited variety of goods available reflects a significant disparity in consumer access, particularly between elites in Pyongyang and the majority of the population. The lack of promotional materials in stores, with the exception of some medical products, showcases a stark contrast to typical retail environments found elsewhere.
The digital landscape in North Korea is similarly constrained. While there is a monitored intranet, access to global internet services is virtually non-existent, and mobile phones lack standard functionalities such as social media. The concept of an "app store" is uniquely physical, requiring users to visit a location to download applications. As marketing evolves, especially online, there is potential for creativity and differentiation within the tightly controlled environment. The influence of Chinese imports and the possibility of lifting sanctions may lead to increased competition, presenting opportunities for brands to enter the market. Overall, while North Korea's economy is still heavily regulated, the seeds of entrepreneurial spirit and consumer culture are beginning to sprout.
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Do Now: How does North Korea's controlled economy differ fundamentally from a free-market economy like the United States?
Task 1: Watch The Video In It's Entirety Then Take The Quiz
Directions: All of the answers to the questions in the first quiz and the worksheet can be found in the video below. Be sure to watch it in it's entirety.
Directions (Continued): After you watched the video (above), take the quiz on Schoology. You can preview the questions below.
Task 2: Read The Article And Then Take The Quiz
Directions (continued): Read the attached article and take the quiz. You can download the PDF below. You can also have the article read to you by pushing the play button below.
