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What is “Three-sector model”?
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The Overview of “Three-sector model”
What is Three-sector model?
The Three-Sector Model classifies economic activities into three sectors: Primary (extraction of raw materials), Secondary (manufacturing), and Tertiary (services).
It describes economic growth and development as a process where the main activities shift from primary to secondary and eventually to tertiary sectors.
Evolution and Modern Expansion of the Three-Sector Model
While effective in explaining 20th-century industrial economies, the traditional Three-Sector Model is considered insufficient for capturing the complexities of modern economies.
Thus, new sectors, such as the Quaternary Sector (information services) and Quinary Sector (human services), have been proposed.
The Quaternary Sector includes knowledge-intensive industries like ICT, research and development, education, and consulting.
Meanwhile, the Quinary Sector focuses on high-level decision-making roles and advanced human services, such as policymakers and senior executives.
Limitations and Criticisms of the Three-Sector Model
The Three-Sector Model has been criticized for not fully capturing the complexities of 21st-century information and service economies.
Particularly, advancements in technology and automation within the service industry have led to changes that were not predicted by the traditional model.
Additionally, the forecasted resolution of unemployment issues due to the growth of the service sector, as predicted by Fourastié, has not materialized, further highlighting the model’s limitations.
How to Apply the Three-Sector Model in Marketing?
Understanding the Three-Sector Model helps businesses develop marketing strategies tailored to the economic structure of their target markets.
In developing countries, where the primary sector is dominant, focusing on raw materials or agricultural products can be effective.
Conversely, in advanced economies, where the tertiary sector or even the Quaternary Sector prevails, offering specialized services or knowledge-intensive products can help expand market share.
For marketing related to the Quinary Sector, strategies that emphasize advanced expertise and leadership can be effective.
Branding that targets policymakers or senior executives, emphasizing influence and high-level decision-making, offers an impactful approach.
When developing marketing strategies, considering the development stage and predominant economic sectors of the target market is crucial for success.
This article uses material from the Wikipedia article “Three-sector model” which is released under the Creative Commons Attribution-Share-Alike License 4.0. Additionally, the texts and images were generated using ChatGPT.