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| Ferry Landing Marketplace-Coronado |
Marketing
and economic development are two concepts that are intertwined. According to a
paper by Low and Dang (2012), international marketing is a major factor in
raising economic development in a country. The development of society through
producing and selling relevant products worldwide is based deeply in prior
literature dating back over a century. Without marketing it will be difficult
to grow the wealth of a country.
The
concept of international marketing can be seen as macro-marketing; or marketing
on a large scale. Macro-marketing is related to marketing systems, marketing
systems impact on society, and societies influence on marketing systems (Hunt,
1977). As marketing is a national
exchanged and international marketing is an international exchange, development
of society is directly impacted by the quality and value of goods and services
flowing through these exchanges.
The purpose of international marketing is to satisfy needs worldwide.
When countries can align their economic systems to produce products and
services that will lead to wealth growth and quality of life development they
have effectively competed on the international market. If wealth is moving
overseas and standards of living are lowering then they are not effectively
competing. The individual arguments matter little in this debate if they
produce the same results.
International marketing isn’t a standalone process and relies on the
three subsystems of physical distribution systems, financial systems, and
communicative systems (Drucker, 1958). Companies must have connections to
distribution networks; they need a medium of exchange and financial transference,
and the ability to manage their companies/distributors through communicative
systems. Customers must be aware of products, have a mechanism to purchase the
products and receive the products.
The products are not bought and distributed without first being
developed. The concepts of entrepreneurship, standards, proper management and
stimulating demand can increase the market size. As these elements come
together higher levels of productivity and efficiency in product development
rise thereby drawing in more wealth (Cundiff & Hilger, 1980).
Ricardo’s theory of comparative advantage
indicates that companies that can produce products cheaper in one country can
trade with other countries with different competencies (Ricardo, 1817). Labor, capital, and land are used to develop
competencies in market production. Today’s international marketplace requires
highly competent labor as resource extraction is likely an advantage of
emerging nations.
The authors
argue that economic development requires the right national environment. It is
important for nations to cluster industries and create local spillover effects that
improve upon skilled labor, capital investments, and infrastructure.
International marketing links a country to the international market and helps
to encourage adjustments within society to meet these challenges. There is a
growing need among developed nations to adjust their governmental management to
better reflect the needs of the global marketplace.
The report helps
us understand that when products are designed and produced to a world market economic
growth can occur. Firms must align their internal resources to the world
environment in order to be successful. Competencies lay in using intellectual
abilities and highly skilled labor to turn lower value commodities to higher
value products that have wide appeal and generate significant wealth.
Underdeveloped nations will have a hard time copying the products and services
developed through higher level nations when the highest human capital is
developed that matches available resources.
Cundiff, E. W. and Hilger, M. T. (1980). Marketing and the
Production-Consumption Thesis in Economic
Development. InG Fisk, R. W. Nason & P. D. White (Eds.), Macromarketing: evolution of Thought
(pp. 177-186).
Boulder: University of Colorado,
Business Research Division.
Hunt, S.D. (1977). The three dichotomies model of marketing: An elaboration of issues.
In C. C. Slater (Ed.),
Macromarketing: Distributive Processes
from a Societal Perspective (pp. 52-56). Boulder, CO: Business
Research
Division,
University
of
Colorado.
Low,
S. & Dang, T. (2013). Role of marketing and construction in economic
development: lessons for emerging economies. IBA Business Review, 7 (1).
Ricardo, D. (1817).
On theprinciples ofpolitical ecOIIOfl9\ and taxation. London: J. M'Creepy.
