Marketing

Economic development can be defined as "a sustained community effort to improve both the local economy and the quality of life by building the area's capacity to adapt to economic change". (Lucas, 1998). Economic development can involve job and income growth, it also involves sustainable increases in the productivity of individuals, businesses and resources to increase the overall well being of residents and maintaining or even enhancing the quality of life. Economic development refers to the enhancement of economic activity in the community. For an example: If the new jobs do not pay wages that residents can afford to live on, the growth may not represent economic development.  The economic level of a country is the single most important environmental element to which the foreign marketer must adjust the marketing task. (Cateora & Graham, 2007).

It is very much important for foreign marketers to study economic development because the concept of GDP, GNP, demand and supply, GNI and per capita income, all falls under the concept of economic development and it is very essential for marketers to have the knowledge about such index so that we can assume necessities of that country and can promote their product. It is necessary also to gain empathy regarding the economic climate within developing countries. The state of economic development must be studied with respect to market potential, including the present economic level and the economy’s growth potential. (Lucas, 1998).

Likewise, Economic development should be studied by a foreign marketer in order to assess present demand within a country and to assess potential and future demand within a country. It helps to become aware of the probable consequences of his actions within a developing country and determine what contributions as a marketer he can and should make to the development of particular country. It crucial for foreign marketers to have ideas like buying behavior of customers and their purchasing capacity which will help marketers to make decisions properly while making new products or promoting existing one. (Cateora & Graham, 2007).