Economic development, the process by which a country improves the wellbeing of its citizens through political or economic means, is influenced by a variety of factors, including marketing. The role of marketing in economic growth marketing plays a vital role in economic growth in the present global world. Many factors play a role in economic development, including the economic growth of the regions businesses. It ensures the planned economic growth in the developing economy where the scarcity of goods, services, ideas and excessive unemployment, thereby marketing efforts are needed for mobilization of economic resources for additional production of ideas, goods and services resulting in. Many easily understood charts and tables help point up the various themes of the book. In a poor economy this involves two closely related processes. In this article we will discuss about the strategies of economic development balanced and unbalanced growth. As an integral function of business, marketing is also key part of economic development. Behavioral economics and marketing in aid of decision making. Apr 20, 2020 overview of economic development marketing marketing is a tool that helps promote economic growth and development in a community. Introductionthere are many definitions of the concept of marketing and it will be an exercise in futility in trying to have a universally accepted single definition of the concept of marketing here.
Social economic development strategy of georgia 4 support to universal european values, which will be basis for getting closer to the eu. Economic development is the sustained increase in income of all members of society so as to be free from material want. It ensures the planned economic growth in the developing economy where the scarcity of goods, services, ideas and excessive unemployment, thereby marketing efforts are needed for mobilization of economic resources for additional production of ideas, goods and services resulting in greater employment. Marketing has acquired an important place for the economic development of the whole country. Marketing serves also as an economic driver in many ways, from job creation to influencing purchases of products and services. With economic development, the activities and tasks of marketing increase. The role of marketing in economic development springerlink. Taking into account the apart role in the market economy, the capital market occupies. Importance of marketing for the economic development of a country. Thanks to technology and the internet, there are many effective marketing options at your disposal. Its function is the development of cooperation between manufacturers, retailers, consumers in certain market conditions.
To create a positive attitude towards sustainable economic development 1. The term is often confused with economic growth, which refers to an increase in the ability of an economy to produce goods or services over time. Economic development implies both more output and changes in the technical and institutional arrangement by which it is produced and distributed. This article provides information about the role of mass media in development. It is pertinent to note that the power of marketing is the same, but there exist qualitative and quantitative differences, depending on the. This traditional approach neglects the role of marketing in stimulating economic growth via increasing productivity in all sectors of the economy and in. The role of the capital market in the economic development. Marketing is treated as a major stimulus to economic development, so the topics like development and the channels of distrubution, consumerism, and marketing research all receive their own chapters.
Spending on research and development is expected to address the likely future social and economic crisis associated with a burgeoning youth in the continent as at 2016, 41 per cent of the. Economic development refers to the process in which a region improves the wellbeing of its citizens. Correspondingly, effective implementation of association agreement between eu and georgia whose integral part is deep and comprehensive free trade area is very important as it is a. Critical concepts in development studies 4 volumes london.
Pdf marketing, as a discipline, has played an important role in the development of industrialized nations. Posits that the criteria or objectives by which development is measured have also been broadened. Economic development economic development can be referred to as the quantitative and qualitative changes in the economy. Agricultural marketing in developing countries economic reforms have had sweeping impacts on agricultural markets in developing countries.
The role of marketbased economic development in strengthening. Instead, they are relying on building businesses from the ground. According to philip kotler, marketing is a human activity directed at satisfying needs and wants through exchange process. The role of small and medium enterprises in economic. Understanding the process of economic development is thus central to most research in economics and the social. One aspect of that challenge is to achieve development in an interdependent world, that is a world in which goods, services. As a result of it, marketing is considered to be the most important activity in a business enterprise while at. Depending upon how the city or county structures its economic development advisory board, the scope of authority, responsibilities and the ability to. The process of marketing, which is the development of goods or services from conception to consumption, includes the coordination of four basic elements. The role of marketing in economic development in africatanzania. Jul 17, 2015 it ensures the planned economic growth in the developing economy where the scarcity of goods, services, ideas and excessive unemployment, thereby marketing efforts are needed for mobilization of economic resources for additional production of ideas, goods and services resulting in greater employment. Generally, marketing as an essential category of market specifies the activities of a manufacturer to manage the demand for the products. It is the belief that it is possible for man to improve his economic lot through systematic, purposeful, and directed ef.
New jobs are the lifeblood of any thriving region and can ensure economic health and prosperity for years to come. It also discusses the different economic strategies that the company should consider relative to its timeofentry into the market for a specific product. Dictionary term of the day articles subjects businessdictionary business dictionary dictionary toggle navigation. The role of research and development in economic growth. Relationship between marketing and economics by zerin. The five biggest mistakes in the field of economic development marketing, a specialized discipline that focuses on how cities, regions, states and countries. The five biggest mistakes in the field of economic development marketing, a specialized discipline that focuses on. The role of small and large businesses in economic. Determines that the evolution and scope of marketing and its relevance and value in the development process are a stimulus to economic development. Behavioral economics f r marketeers as economic growth proceeds, several changes in marketing take place. Whereas economic development is a policy intervention endeavor with aims of economic and social wellbeing of people, economic growth is a phenomenon of market productivity and rise in gdp. This urge for communication is a primal one and in our. Role of marketing in a developing economy marketing.
Feb 17, 2015 economic development differs from economic growth. It also discusses the different economic strategies that the company should consider relative to its time of entry into the market for a specific product. Meaning and importance of marketing management explained. In addition, the problems encountered with led and the financing mechanisms available in south africa are also discussed. Economic development usually refers to the adoption of new technologies, transition from agriculturebased to industrybased economy, and. Economic development economic development can be referred to as the quantitative and qualitative changes in. The problem of regional marketing, the role of commercial marketing and the basic strategy for marketing of the territory have been explored. They are the main source of employment and poverty alleviation. Discusses the meaning of economic development and economic growth, modernization, distributive justice and socio.
This chapter addresses the importance of evaluating economic considerations in the project design phase of the product development. Marketing and economic development 253 ductively with societys purposes and human values. Markets are the context, both physical and conceptual, where exchange takes place. It is in marketing, as we now understand it, that we satisfy individual and social values, needs, and wantsbe it through producing goods, supplying services, fostering innovation, or creating satisfaction.
It argues that b usinesses must work together with other key economic, political and social. To make it relevant to our business environment, this paper concentrates on the role of marketing in economic development, particularly in a developing country with growth potential. Large businesses in economic development by kelly edmiston i ncreasingly, economic development experts are abandoning traditional approaches to economic development that rely on recruiting large enterprises with tax breaks, financial incentives, and other inducements. The role of small and large businesses in economic development. The 5 biggest mistakes in economic development marketing. In recent years, local governments in the united states have become increasingly active in economic development programsgovernmentrun or subsidized programs that provide assistance to individual businesses in order to increase local jobs, lower local unemployment, and. Research and development, economic growth, human capital jel class. Marketing includes all activities from the producer to the final including processing. Along this spectrum lies a variety of arrangements where the economic development advisory board and the city or county share oversight, responsibility and accountability for economic development. The led is a component of the municipalitys overall strategic plan as outlined in the integrated development planning process. Role of marketing on economic development bizfluent.
The planners in developing countries realise that the development of agriculture could be hastened with the effective use of mass media. Seven strategies for creating successful economic development. In particular, infrastructure services encompassing transport, telecommunications, water, energy and financial services are of critical importance to economic development and could. Some services sectors are also considered to be the backbone of economic activity and have a bearing on social development. With more than 5,000 members, iedc is the largest organization of its kind. In order to stand out from the pack, the role of marketing in economic develop ment is incredibly crucial.
It has also become a necessity for attaining the object of social welfare. The first step in defining economic development is distinguishing it from the concept of economic growth. The significance of communication for human life cannot be overestimated. Most writings on economic growth have focused on industrialization and increasing industrial productivity. Importance of marketing for the economic development of a. The role of small and medium enterprises in economic development. In general, state intervention has been reduced, notably with respect to. Marketing plays a vital role in economic growth in the present global world.
Nevertheless defining economic development is a necessary prerequisite to move discussion towards objective policy discussion and robust measurement. Pdf the role of research and development in economic. During the 1960s, interest emerged in this field, as evidenced by a number of articles and the publication of the 1965 ama proceedings under the title marketing and economic development. This is true because beyond the physical requirements of food and shelter man needs to communicate with hisher fellow human beings. The international economic development council iedc is a nonprofit membership organization serving economic developers.
Socialeconomic development strategy of georgia 4 support to universal european values, which will be basis for getting closer to the eu. Sustainable economic development strategies generate substantial economic and employment growth and sustainable business and community development by demonstrating that innovation, efficiency, and conservation in the use and reuse of all natural and human resources is the best. At the beginning of the 21st century the task of reexamining the role of the state in economic development is becoming increasingly important for african. Regional marketing development managers are located throughout the commonwealth. The success of agricultural development programmes in developing countries largely depends on the nature and extent of use of mass media in mobilisation of people for development. Economic development reference guide acknowledgements verizon verizons mission is to open doors for economic development and to build relationships and partnerships that help create and retain jobs in verizon communities. It examines the conditions in the former ussr and its satellites and shows how marketing could facilitate their vitally needed economic development.
This session will highlight the economic developers role in developing and implementing a marketing plan, and the different targets of economic development marketing. This traditional approach neglects the role of marketing in stimulating economic growth via increasing productivity in all sectors of the economy and in integrating segmented markets in developing areas. The paper links back the story of economic growth to the studies of 17th and 18th century. Activities such as storage and processing, packaging and retail distribution become more important. Pdf the role of research and development in economic growth. The purpose of this game is to help students understand the dynamic role freemarket processes play in stimulating economic development. The role of the capital market in the economic development by. Thus the link between marketing and growth and development of contemporary economies is quite obvious ogunsanya, 1999. According to the marketing concept according to the marketing.
Behavioral economics and marketing in aid of decision making among the poor marianne bertrand, sendhil mullainathan, and eldar shafir this article considers several aspects of the economic decision making of the poor from the perspective of behavioral economics, and it focuses on potential contributions from marketing. Introduction in the modern, highly competitive world of today, important sources of wealth and economic development are knowledge, learning and innovation committee of technikon principals 2003. We recommend that targeting come from reliable data analysis generated from the community county, state doc and regional economic development efforts community performs shiftshare and location quotient analysis finds a high and growing concentration of corn, soybeans and pigs. It ensures the planned economic growth in the developing economy where the scarcity of goods, services, ideas and excessive unemployment, thereby marketing efforts are needed for mobilization of economic resources for additional. One cannot have agricultural development first and industrial.
These professionals provide assistance to agricultural producers, buyers and industry representatives to enhance sales efforts, develop valueadded ventures and support new marketing initiatives. Product development economics electrical and computer. Processes for economic growth, food security and poverty reduction market based economic growth is a critical element in medium to long term poverty reduction and food security. Marketing terms the term consumer is used for anyone who is the final consumer of a product or the final user of a production the retailer is the final link in the chain from producer to consumer. Taking into account the apart role in the market economy, the capital market occupies an important place, through their specific mechanisms, succeeding to give its contribution to the economic development of the society. Plc ilupeju branch give the definition of marketing. Behavioral economics and marketing in aid of decision.
A major problem for an ldc relates to the balance that needs to be preserved between the different sectors of the economy, viz. Introduction the theory of economic growth has its foundations in the seminal work of adam smith 1776. The role of marketing in economic development emerald. Economic developers promote economic wellbeing and quality of life for their communities, by creating, retaining and expanding jobs that facilitate growth, enhance wealth and. The model, based on japans development, is proposed. Consequently, as economist amartya sen points out, economic growth is one aspect of the process of. To facilitate participatory support in economic development.
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