|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.