Market Development and Global Trade Environment
This paper aims to address market development stages and the global trade environment in Ghana and Nigeria. Market research is chosen as one of the categories of business growth. In this context, the strategy supports the concept of products concerning design and introduction to the market. Companies in the economic environment such as Ghana and Nigeria will conduct studies to navigate consumers’ preferences, needs, habits, or behaviors and gather information about competition for better decisions on entry approaches. Once satisfied with the research data, an effective market matrix such as product development or penetration is selected based on orientation.
Market development stages
Market development is an approach for organizational growth, and it is used to explore new segments for the existing products or services. Usually, the primary targets of market development are customers who do not consume or buy commodities. Various approaches are used to gain new clients, and this includes promotions or conducting market research. Therefore, one of the stages of market development is research and as informed by the article.
In the article, Issues of Development of Marketing Research on The Auto-transport System by Berdiyorov (2020), the author address one of the stages, pointing out that marketing is a broad concept in terms of information consumed. In the research process, a system-based approach is applied to efficiently consumer data about customers (Berdiyorov, 2020). One of the study mechanisms employed is a marketing information system (MIS) which involves collecting, processing, and transmitting data sets for various activities. Information gathered enlightens competitive businesses and analyzes the prices of products.
The article concludes that marketing research is an effective way to improve the expansion of products and services because there is a broad awareness of trade in specific regions. In this article, a market study was conducted to navigate public administration services in passenger transport. Research gives insights into how products and services ate consumed, pointing to areas of effectiveness.
Global trade environment in Nigeria and Ghana
Ghana and Nigeria are two African countries that have enjoyed friendly relations as they are foremost business partners in the Western part. The combined population and GDP are large in the ECOWAS market, with shared common values and visions for the subcontinent. The two nations have always supported each other on major issues (Khobai, Kolisi & Moyo, 2018). The relationship made them become cherished partners, with the economies of the two being closely linked as bilateral non-oil trade.
The article by Khobai, Kolisi, and Moyo (2018) informs about the relationship between trade openness and economic growth. In this resource, the cited case is that of Ghana and Nigeria, which illustrates that business partnership is beneficial to global marketing and helps achieve competitive advantage. The authors of this article argue that trade openness is a major driver of growth. In conclusion, to manage a dynamic supply chain, there is a need for careful strategy and close alignment with partners. Tarde partnership is one of the approaches to achieve economies of scale which support competitive advantage in broader markets.
Competitive Advantage and Product Market Matrix
The matrix approach shows four stages that firms can apply to help with growth and analysis of risks associated. In the country’s economies, such as Ghana and Nigeria, a marketing mix of market penetration can be used to expand local products and services to other countries. The aim is to improve local economies by reaching out to more markets for products such as oil. Some commodities exist in a market where competition is intense, and this requires countries or economies to go out of their way to expand share for more growth opportunities.
In Ghana and Nigeria’s trade environment, a market development growth strategy can be used to target new customers with existing products. The countries’ economies would expand when trade extends beyond the existing markets, for instance, going global to supply a product like oil to other countries. Nigeria has been a trade partner with Ghana for a long, and the relationship helped boosted its existence in the ECOWAS market. For more growth opportunities, engaging in trade with more states would help boost the economy.
For a company to expand globally, it may have to apply competitive advantage through product superiority in terms of features, reliability or benefits, and wide distributions. Some of the factors that affect the economic environment include social, political, and technological changes. Considering Nigeria and Ghana’s global trade environment, political stability, and advancement in technologies may help companies that wish to reach international markets excel. Typically, economic factors are beyond firms’ control but help get customers through negotiations, ease of supply, or production. The more a country is stable politically and exercises fair trade regulations, the better the market practices. Producing or availing goods in the market with ease in an economic environment is a competitive advantage to capture global market targets.
On the other hand, competitive advantage applies to a trade environment whereby a company wishes to go international availing of products and services at favorable prices to trading partners. Commonly, the competitive advantage can be applied effectively in trade if a particular country’s economic environment is conducive. For example, if the production cost is high for companies in Nigeria or Ghana environments, firms in their respective countries may not offer fair or competitive prices in the international market.
Marketing Concepts in Market Research on Economic and Trade Environments
One marketing concept to apply in choosing the topic of market research is the product idea. The latter assumes that people generally prefer quality, innovative and high-performance products. The price does not have a role in consumers’ buying habits, and individuals are willing to purchase an item regardless of the cost due to product features. Therefore, the product concept has to look at the item offered for sale in the economic environment.
The price charges depend on the market, quality, and marketing approaches to the segment targeted. The product has to be relevant to the economic environment, the prices charged should be affordable to the target consumers, and production must meet the standard stipulated in respective economies (Cooper, 2019). In a trade environment, the product concept applies in terms of uniqueness or design quality, preferences, and favorable prices.
The product concept applies to the topic of market research in that, to fully satisfy customers in a particular trade environment, choices, preferences, and interests must be well known. Marketing research helps to design products that are of qualities and meet the needs of targeted customers. For a new product and based on a country’s market orientation of product design and market research, a matrix that would be suitable is product development and diversification. The latter refers to the approach where fir enters a market with new items to find customers and retain them (Cooper, 2019). Although the strategy is risky because the business is new to customers, the challenges can be mitigated by integrating market research as one of the development stages. For the existing products, market penetration is best to reach new clients in regions where a business from a particular country has not reached yet.
Berdiyorov, T. (2020). Issues of development of marketing research on the autotransport system. International Journal of Research in Management & Business Studies, 6(2). 40-45. Web.
Cooper, R. G. (2019). The drivers of success in new-product development. Industrial Marketing Management, 76, 36-47. Web.
Khobai, H., Kolisi, N., & Moyo, C. (2018). The relationship between trade openness and economic growth: The case of Ghana and Nigeria. International Journal of Economics and Financial Issues, 8(1), 77-82. Web.