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Suggests that the process of transition and the hardening of the budget constraint in the former centrally‐planned economies of Eastern Europe recreates the link between an effective exchange process and business performance. Points out that this in itself creates the potential for marketing to play a significant role in business activity. Reports on a case study of the Russian experience which shows that there are still considerable barriers to the development of a marketing‐oriented approach to business. In addition to the obvious institution and infrastructure problems, there is still considerable progress to be made in relation to managerial attitudes and experience.

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