Importance of Economic Development for Marketers - Essay Example

? Market Development and the Importance of Economic Development to Marketers Task Introduction The marketing procedure refers toall those procedures and behavior that are conducted in an attempt to increase the sales of products or services. Contrary, to the popular beliefs of marketing being a tool used to entice consumers to increase their purchase volumes of merchandise and services. This unit looks at marketing as a tool for association in the society, stages of market development and significance of global marketers in understanding the economic development of nations. An Outline of the Stages of Market Development Which a Country Passes In The Process Of Developing Its Market of a Product or Service An outline of the stages of market development that each developing country passes through include; an invention of an apt idea, selecting of the appropriate ideas to apply, building up a preferred idea and verifying its viability, evaluation of the business, Beta testing and market testing, scientific execution, commercialization and new product value (Levitt, 2006, 25). An Explanation of the Stages of the Market Development Which a Country Can Go Through Invention of Suitable Idea Invention of suitable is the first stage in setting up or developing new markets. Organizations have adopted for stage process when operating in the small market. This is made possible because undivided attention is a lad on the customer’s need. A developing country has to monitor the types of ideas it initiates into its daily operation through monitoring and studying of consumer needs. Good inventions of ideas lead to quick achievements of the objectives of a firm or an organization. Suitable ideas will determine the marketing policies applied by nations in building new markets (Levitt, 2006, 59). Selection of the Appropriate Ideas to Apply This is the step in which potential ideas are separated from bad ideas. Not all initiatives are inimical; as a result, screening of ideas is done to lead to a positive growth of the organization. A developing nation has its processes passed through appropriate screening and promising ideas put in place for the country to grow positively. The ideas selected should follow the principle of AIDA (Awareness, Interest, Desire and Actions). The principle helps an entity to discern what it requires from a targeted market (Levitt, 2006, 71). Building and Verifying the Viability of a Preferred Idea This is the stage where the best results are taken for implementation into other products that can compete globally to the other markets, and the proposed are tested. Developing nations passes through this stage since all the process and procedures that they apply in their operation are verified for viability. Evaluation of the Business Evaluation of the business involves a thorough evaluation of the souk like the market size in a particular environment. Evaluation of advertising strategy is a core aspect in the expansion of stable market for a country. Most countries have espoused business evaluation in their system to lessen the process they take in market expansion. Evaluation of the business helps the author clarify some useful notions that may be a hindrance in developing a new market. Beta testing and souk testing This refers to the development of model around a product to make it unique from other products. The profits ad losses accrued are used to resolve the feasibility of the merchandise. Beta testing and market testing are both processes that a country might pass through in an attempt to expand its market. Scientific Execution This involves implementation of new resources to improve the operations of resources within an organization. Countries wishing to expand their existing market are bound to bring in new equipments and knowledge required to lead to the growth of the market. Commercialization Commercialization involves the advertising of new products in the market. The product in most instances is unique to the market. Commercialization entails such programs like initiation of new merchandise in the market. A country struggling to develop its market applies different commercialization techniques like advertising to market their merchandise. New Product Value This refers to the standard value of a product. There are a lot of situations where the product value is fixed to reduce the exploitation of both parties concerned in a trading environment. A country planning to survey a new market has to pass through the stage where the value of a product is determined by the concerned authorities before being allowed into the market. Significance of International Marketers in Understanding the Economic growth It is important for international marketers to understand economic development of the nations they intend to conduct their businesses before making a venture in the industry. This is because the types of market differ in terms of physical location. Information on universal advertising environment greatly benefits a marketer who is planning on venturing into new markets. International marketers face a lot of challenges from the international souk, as a result, there is a lag in the economic developments when proper strategies are not put in-place. International marketers ought to be able to master the changes and the challenges that they stand to face in their daily interaction in the trading environment. Secondly, understanding of economic developments helps an international marketer to predict the production structure to anticipate. The fiscal growth of countries can be witnessed through the political environment of a country. A worldwide marketer conducting trade in various nations ought to keep him aware of the economic environment to know of the possible changes s that is caused by changes in the political environment (Levitt, 2006, 131). Thirdly, an international marketer immensely benefits from understanding the economic development of nations with potential trading markets. This enables the marker to assess the assets of potential international market and make appropriate decisions regarding the steps to take in the dealings within those markets. Fourthly, the knowledge of the economic state of a nation immensely assists marketers, since they experience various rigors, but manage to succumb them because of the knowledge of economic development they posses. Lastly, the economic expansion knowledge enables international marketers to predict the swap rates of countries; as a result, they are able to avoid currency risk in troublous fiscal times. Currency exchange rates amongst international markers appreciably affect the trading patterns of marketers, since they conduct their businesses in areas with stable currency to maximize on their profits. Conclusion Conclusively, market development is a complicated process for firms, and individuals contemplating to venture their merchandise and services in new market territories. The process of developing new markets in foreign countries proves to be a hard nut track for individuals, entities and nations at times. Market development stages have made the process of building new markets easier, since they guide a potential business person on the steps to take when exploring or building new markets. Bibliography Levitt, T. (2006). Ted Levitt on marketing: A Harvard business review paperback. Boston Mass: Harvard Business School Pub. Read More