Fulbright Economics Teaching Program 2003-2004 Marketing Places Lecture note Business Opportunities in a Place BUSINESS OPPORTUNITIES IN A PLACE Phan Chanh Duong As the saying goes:
Trang 1Fulbright Economics Teaching Program
2003-2004
Marketing Places Lecture note
Business Opportunities in a Place
BUSINESS OPPORTUNITIES IN A PLACE
Phan Chanh Duong
As the saying goes: “Traveling forms a young man”, our living space widens as we know more places For businesses, traveling is exploring opportunities
As one goes to a new place for its good reputation, for a visit, an adventure, or business opportunities, the first impact is the information exchange Whether the information is accurate and beneficial depends on the conditions, circumstances, and the following contacts
Whatever travelers take trips for business opportunities, for leisure, or for a new feeling
of nature, culture, and people, place marketers should understand what they are interested
in
At a new place, the first impression is usually about the broad scenery of nature, residency, and infrastructure (the transport system, construction works, and so on) This impression is very important since it provides the traveler the first sense of pleasure and amicability, or anxiousness and caution…
It is followed by the direct contacts with people, reflected in their attitudes and words Looking at the host, the locals, and the local authority’s behaviors to see whether they are enthusiastic and hospitable, or glacial and suspicious, travelers adjust or strengthen their first feelings
Those travelers who have already gathered information on places from books, the media,
or their previous trips would compare, confirm, and update their information and feelings Different travelers of various purposes, backgrounds, cultures, and thoughts would have different impressions; most generally and importantly, the place should be harmless to them Thus, from the travelers’ perspective, the first requirement for a trip is the security
of the destination
For a traveler taking a trip for business opportunities, she/he is little concerned about whether the destination is wealthy, whether its infrastructure is good, or how its culture and politics are She/he is likely to have the following questions:
o What commodities are there?
o Where are the markets for supplies and products?
o Are the sizes of the markets considerable?
o How are the regulations and how are they involved in their business?
o How are the other relationships with their business?
o The distance from the place to the neighboring hubs
o The geographic, economic positions in relation with the neighborhood
o Transportation
o Health care, education
o Labor force
Trang 2Fulbright Economics Teaching Program
2003-2004
Marketing Places Lecture note
Business Opportunities in a Place
o Horizontal and vertical linkages to their business line
o The general economic conditions with related factors
With above information, the traveler can primarily outline the business opportunities there
Followed is a more detailed survey about the accuracy of data and information received, the risk and returns compared with other places, the possibility to deal with them, and the security for people and wealth, based on which the traveler can determine the size of the project/deal Importantly, who is the partner? Who can make decisions (the local authority or the corporation leaders)? This point is crucial, especially for developing countries
Hence, place marketers not only are responsible for the first contacts with businesspersons who come for business opportunities, or taking their own trips abroad to market their places, but also engage in confirmation or adjustment of initial information received by travelers, and in their place-related business decisions
After doing so, the marketing task is almost done for a particular case Then, the local and non-local firms negotiate contracts and have deals
Remember that a weakness of a place is not always disadvantageous; it may be an opportunity under the businessperson’s eye Opportunities are available everywhere; it is important to realize it Is its rate of return satisfactory? Is there risk? How is the risk? As your place offers investors a high rate of return relative to that offered by other places and ensures the security against risk with other things being equal, investors themselves will find out opportunities in your place That is the initial cost to find an opportunity for your place development The following opportunities would come on a multiplier basis, the cost would be diminishing, and people themselves would want to bring in their physical and human capital to share your place development and engage in the better future development
Where do we can find the business opportunities? Certainly, place marketers can answer this question!