The Global Marketplace

Economics is the name of how to earn money and how to consume it. Adam Smith is known as the father of economics who proposed the basic and the most authentic definition of the term 'Economics'. Economics is a subject which is used in almost every walk of life.

The field of economics is as broad as it has the entire world in it (John, pp. 16). As per the qualified professionals, economics is the most important subject to read. The government of every country always tries to enhance the knowledge of this particular subject among every citizen.

The concept of economic development is not new for the economics' coursework. The element of economic development is not only practical but also applied in a number of places. The main perspective of this assignment is to pen down different economic development phases and then evaluate its effects on the marketing strategies for a company. For this piece of work the researcher has to evaluate and answer the considerations for promoting, distributing and charging different prices at different economies of scale. The author has adopted a step-by-step (SBS) approach to complete this task in a well understandable manner. In the next section discussion about the economic development and its level has jotted down followed by the main brainchild of this paper.

Economic Development and its Levels

Basically economic development is the name of increment in the living standards of the population of a nation or country. It has been referred as development because it interchanges the level of sustainable economic growth of a country from low income group to high income group. The essence of economic development has a direct contact with the quality of life of the people of the nation. It is a true fact that, as the economic development comes into play the political, economical and social situation of a country as a whole gets enhance (Michael & Stephen, pp.58).

Development means improvement, so economic development means improvement in the economy of the country but its concept is not limited to the economy only as it accounts for improvements in different indicators of the country like life expectancy, literacy rate, poverty rates, unemployment rates, inflation rate and Gross Domestic Product Rate (GDPR). Economic development has a direct relationship with the country's overall growth and it is also related to the human development of a country.

The levels of the economic development prescribed by many economists are underdeveloped economy, developed economic and developing economy. As definition, developed economy is those economies that are already in a good economic position while developing economies are those countries or economies that are in the queue to become developed economies. The United States (U.S.), United Kingdom (UK) and Japan can be referred as developed economies while China, Pakistan and India are developing economies. Apart from that, the economies that are in miserable levels like Africa and Uganda has been referred as underdeveloped economies.

As an organization, the officials have to undertake different strategies while entering in any of economic development levels. The idea of taking and implementing the right strategy at the right time is quite crucial from the standpoint of an organization and the same has been discussed under the next heading.

The Influence of Economic Development on Marketing Strategy

Marketing is a term which has so many definitions and unfortunately not a single one describe its entire function appropriately. Generally marketing is a term uses to market the products in front of the customers.

Marketing strategies enable an organization to produce and launch the product in a market from which the likelihood of receiving substantial return is high. Inevitably, the level of economic development has a direct contact with the marketing strategy of a company. Basically a company's marketing strategy is a mixture of three things which are distribution, promotion and pricing.

Companies usually make its marketing strategies according to the level of economic development in both the multinational and global context. For a developed country, the organizations have an idea that promotion and pricing strategies will be crucial for them merely to accelerate the level of their earnings. There can be a marginal difference between the standardized form of marketing and local method of marketing. Standardized form of marketing compel the organizations to facilitate the consumers in the same way as they wanted while the domestic marketing makes their own rules of entertaining the consumers, this is the main thing why the standardized form is more productive than the domestic form. Standardized form of marketing includes tailoring the products through branding and slogan concepts, while domestic marketing does not emphasize on these concepts with a great deal. Inevitably, the socio-cultural factors play a dominant role in the success of global marketing because it enhances the level of socialism among the products of a company and thus satisfied the appetite of the consumers with a great deal. Exporting, joint ventures and trade marking are some dominant mediums to enhance the global marketing stance for the companies, especially for the foreign companies, so consideration of the same will bring economical advantages for them. There are numerous factors which influence on the essence of global marketing like foreign direct investment (FDI) and exchange and political risk. Entering in a new market for a company is not a piece of cake as it requires extensive research and behavioral studies. Through ad hoc research and development (R&D), the organizations become able to set the right prices for the right product at the right market. Organizations have idea that people can give any amount for the products in the developed countries which induced the organizations to set high amount in that region and set relatively low price in developing countries because of the income effect. The stance of distribution and product manufacturing has a direct relationship with the overall performance of the product of a company as if the product is well being among the customers then the distribution will increase automatically. The level of effect is almost the same for international, multinational and global companies.