Three stages of Economic Development:

(a) Stage One

The first (lowest primary level) stage of economic growth consists of production and marketing of agriculture and extractive products like raw coffee, raw cotton, forest products, fish products and minerals.

(b) Stage Two

This is the secondary level of economic development which is characterised by manufactured and processed products, e.g. motor vehicles, televisions, refrigerators, processed foods, etc. The stage is dominated by the marketing of manufactured and agricultural goods.

(c) Stage Three

At the third stage of economic development, marketing of services reflects the tertiary level of economic development. When we refer to marketing of services, our discussion is largely based on the commercial activities which go on during this third stage. However, it should be noted that to a small extent, marketing services can take place during the first and the second stages of economic development, there is nothing as a dividing line.

Our definition does not include those services which are incidental to the sale of physical products. The demand for services is considered as a function of the following: -

• Incomes of people;
• Leisure time which is available;
• General standard of living

The higher the incomes of people, for instance the more purchases of services will be made. In East Africa the personal disposable incomes are low, hence the quantity of services purchased must be less than the quantity purchased in Japan where the personal disposable incomes are much higher than ours.