Marketing and its role in economic development
#publishes research in the intersection of Marketing, Economics and Statistics. # define marketing broadly as the study of the interface between. Characteristics of agricultural and livestock marketing Marketing and trade play vital roles in the economic growth and overall development of a nation. PDF | The value concept is a basic constituent of relationship marketing. The ability to of Economics. Christian Grönroos at Hanken School of Economics.
When customers stop buying your product at a fast enough rate, you enter into diminishing returns. In other words, the amount you are garnering from your marketing investment is shrinking. While this process is inevitable for almost every product, there are things you can do to slow it down: Keep your products fairly priced, work to stay competitive in the marketplace and respond to your customers' tastes. Dealing with Competition Part of responding to changes in the economy dealing with your competitors.
Unless you're very lucky, your business inevitably will have to deal with competitors offering similar products at similar or even lower prices.
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Customers may be tempted to buy from the competitor if you don't respond to these economic changes. To keep competitive, you have to increase your marketing exposure and even rethink your target market. If you're selling computers, for instance, and a competitor undercuts your sales, you may want to consider gearing your marketing campaigns to a different subset of the population that your competitor is leaving out, or you may take a look at your price point and determine that you can stay profitable while decreasing your price to meet the competitor's.
Economic Utility The economic utility theory states that consumers will buy things that increase their personal satisfaction. Economic utility goes a long way toward explaining why luxury products and high-end goods dominate the marketplace. People want to feel like they are part of the in crowd.
If your business caters to discount or redundant items, you may be missing out on the buying power of more affluent or trendy customers.
This focus on utility must be balanced with a keen sense of knowing your customer demographics. If you operate in a community that does not particularly care about high-end goods, your job is to cater to your customers' demands.
Economic Influence on Marketing
Economic utility is particularly relevant from the marketing standpoint, as it serves as a warning to not sell yourself short.
The term consumer is used for anyone who is the final consumer of a product or the final user of a production input e. The retailer is the final link in the chain from producer to consumer. Hence, an urban butcher is a retailer and so is a vaccinator in the government veterinary services who delivers a vaccination. The wholesaler delivers the product to the retailer. The term farm gate is the location of a sale where a farmer keeps his or her animals or produces his or her crop i.
The terms market actors and market agents are used interchangeably to represent any persons participating at any level of the market. The objectives of marketing vary.
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For the individual producer or consumer, the objectives may be to maximise benefits from the resources available and to expand marketing operations in order to increase wealth. From a societal viewpoint, the objectives may be to encourage efficient allocation of resources, to create wealth and promote economic growth in order to improve the general welfare of society.
Important considerations may also be to improve distribution of income between sectors of the economy and to maintain some stability of supply and demand for marketed goods. The concurrence of marketing objectives with national policy objectives identified in module 2 will be discussed later in this module. Producers usually carry out some or all of the marketing steps.
Often, because producers are also consumers, little of what is produced is marketed.The Economics of Sex
Livestock owners may be only marginally market-oriented. Because of traditional attitudes towards wealth in cattle, owners may choose to hold cattle rather than market them. Producers are likely to be some distance away from consumers.