Benefits of Marketing Impact
ASSIGNMENT 2:
Benefits of Market Impacts
The benefits related to social, environmental, and economic impacts are
often categorized as either market or nonmarket impacts.
Market benefits include:
– Increased sales quantities due to increased market demand
– Increased prices due to quality and reputation
– Reductions in costs due to increased efficiencies
– Increased productivity
– Reduced future costs related to environmental cleanup, internal control,
and ethics breach
What are examples of this impact in the Kingdom of Saudi Arabia? In a 3
page paper, provide as many examples are you can of the five benefits listed
above.
Use APA style guidelines, citing references as appropriate.
Solution
Benefits of Marketing Impact
Marketing impacts are the changes in the business environment that regulate the prices of
buying and selling of goods for the benefit of the buyer or the seller. In the kingdom of Saudi
Arabia, most of the finances that the country generates results from tourism activities. The
resources that the country gathers from the foreigners in the country are enough to upgrade the
services in the country thus improving the services offered to the client. Higher services results
in a satisfied customer and an increase in their number. The fundamental function of the paper is
to give examples of the benefits that the country enjoys from marketing impact.
Marketing impact increases the flow of goods and services in the country due to high
demand. In the oil business, the country has a large supply of oil. The constant supply gives the
customer the guarantee of ready products at all times. The country is one of the major exporters
of oil. The high demand for oil due to the wide range of uses creates a high demand that
increases the sales (Seto & Reenberg, 2014, p. 171). The demand for medical services in the
country is high. Many tourists get into the country for medical services. With 42 accredited
medical facilities, the high demand for the services increases the unit sales from the medical
facilities. The country is benefiting from the high demand to increase the unit sales of petroleum
products and medical services.
Secondly, marketing impact increases the prices with an increase in quality. Providing
high quality requires high prices to facilitate the acquisition of high quality machinery. The
country has a hot weather throughout the year. The weather is favorable for tourists, especially
when their home countries are cold. The hotels and spas that the tourists use have high quality
services, which result in high prices. Many tourists from all over the world head into the county
BENEFITS OF MARKETING IMPACT 3
to spend their holidays due to the good reputation of the services in the tourist destinations. The
medical facilities are also expensive due to the high quality of services (Askari, Iqbal &
Mirakhor, 2015, p. 346). Marketing impact realizes the need for improved services in terms of
quality, thus, increasing the prices to match the services offered. Tourists tend to avoid the hotels
with poor quality of services even if the cost is low. The impact results in increased income for
the country.
Thirdly, marketing increases efficiency, thus reducing operational costs. The production
of oil in the country and the high number of clients reduces costs in that the country does not
have to invest additional money in inventories. The customers collect the goods immediately
after processing, thus reducing the operational costs. Poor and inefficient systems cost the county
extra charges for keeping before collection. The efficient systems in the hotel industries and the
medial facilities eliminate the need for marketing the services. Clients from all over the world
know about the high quality of services, thus reducing the need for advertising costs. The
systems provide the suppliers of the raw materials in the hotel industry, reducing the costs of
searching for the goods. The efficiency of the system favors the service providers since they
minimize the costs and maximize the profits.
Marketing impact increases productivity. A high number of customers and the increased
sales require a high production rate to maintain a steady demand (Vactor, 2010, p. 3). For
example, the oil industry supplies, petroleum products to many parts globally. The industries
need to maintain the high demand to ensure the comfort of the customers. Without increased
production, the goods would not be enough to meet the demands. The hotel industry is also
increasing productivity by increasing the number of hotels. The high number of hotels and
hospital try to match the demand in the industry. The growth of the hospitals in the country
BENEFITS OF MARKETING IMPACT 4
ensures that the patients' access the medical services immediately. The level of productivity is
directly proportional to the number of customers that define the demand in the industry.
Marketing impact reduces the costs associated with environmental protection, internal
control, and ethics breach. In Saudi Arabia, the government has set aside laws and regulations
that guide the industries to reduce pollution. For example, there are areas designated as dumping
sites. The hotel industries operate adhering to the laws that protect the environment (Vincent,
2008, p. 253). Any industry that violates the laws ends up facing the legal measures thus they all
endeavor to operate within the laws. With the companies avoiding to breach the ethics in the
industry, the country experiences low costs of maintaining the environment since the rate of
pollution is low. The industries use the clean environment as a channel of marketing the
industries. The hotel department needs to operate in a clean environment. With the high
competition, the preservation of the environment is mandatory. The country thus uses the law to
regulate the industries internally and protect the environment in the country from pollution.
Marketing impacts benefit the country by increasing the income through a high demand,
increasing the quality of services that increases the income, and protecting the environment
despite the increased production as showed by the examples above.
BENEFITS OF MARKETING IMPACT 5
References
Askari, H., Iqbal, Z. & Mirakhor, A. (2015). Introduction to Islamic economics : theory and
application. Singapore: John Wiley & Sons Singapore.
Seto, K. & Reenberg, A. (2014). Rethinking global land use in an urban era. Cambridge, MA:
The MIT Press.
Vactor, S. (2010). Introduction to the global oil & gas business. Tulsa, Okla: PennWell Corp.
Vincent, P. (2008). Saudi Arabia : an environmental overview. London New York: Taylor &
Francis.
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