Paper Sample on Marketing and Macroeconomics

Introduction

The research used survey questionnaires. Travelers who had spent at least one day in the area under study were subjected to the questionnaires. The questions were used in the study including three open-ended questions regarding the impressions they developed regarding street food. The response obtained was measured using a five-pointer scale comprising of the human senses. Lastly, sociodemographic information was also required, and the open-ended questions were analyzed using the software IBM-SPSS Text Analytics for Surveys.

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Macroeconomic Analysis

A microeconomic framework is a useful approach in modeling, and understanding consumer behavior. Microeconomics focuses on the role of business play, and consumers in an economy (Gerace, 2019). Businesses will deploy various mechanisms including sensory marketing to attract and retain clients. The consumers make decisions based on the product being sold, the purchasing power of a consumer, and the fair price to charge for the product. Microeconomics address smaller units of the overall business. These units include output, employment, exchange rates, and interest rates. It is worth noting that the effects of actions of a business are examined in terms of supply, and demand. When applying microeconomics in sensory marketing it is vital to understand the tenets below:

Individuals make consumption decisions based on utility. It means that the decision made by a buyer towards a certain product must increase the person’s satisfaction and happiness. In sensory marketing, the street food that is being advertised must observe this factor (Krishna, 2012).

The decisions made by businesses are based on the competition they face in the market. Therefore, the companies dealing in street food will advertise their product considering the prevailing competition.

Sensory Marketing

Sensory marketing intends to influence the human senses and so it is vital to consider total and marginal utility. These factors (total, and marginal utility) are concerned with the decisions that a consumer after knowing the possible benefits (Gerace, 2019). The benefit an individual stands to get from a product affects the level of utility of different goods. Sensory marketing of street foods has grown over the past because it has been affirmed that travelers prefer having street food (Krishna, 2012). Therefore, the marginal utility that must be addressed refers to the additional value that goods and services bring. On the other hand, total utility refers to the type of consumption that a product brings to the buyer. Before marketing any product, it is important to consider utility. The utility can be challenging to measure as it is used to tell how all the consumers will behave whereas consumers feel differently about a particular product. In case the product is pizza, the benefit that a person receives from eating the fifth pizza is not greater than that of the first slice.

It is important to note the difference that total utility and marginal utility brings. The declining satisfaction that is experienced from additional units is described as the ‘law of diminishing marginal utility.’ It not strictly a law, but help in illustrating how resources spent on resources with law marginal utility such as the fifth pizza could have been better used in some other place. Sensory marketing must take into account the marginal utility of the product being marketed (Krishna, 2012). It is important to inform the consumers about the contents of the product so that they can improve their consumption, and have the least possible marginal utility.

Sensory marketing is grounded on the microeconomic theory of the business, from a consumer’s perspective. This notion is based on ‘goods logic’ such that if people are regarded as consumers considering the average needs they create in a market context (Gerace, 2019). Additionally, the concept is applied in the marketing of street food because it is founded on acquiring single transactions, and short-term exchange between active buyers, and sellers. Travelers are the active buyers, and so every advert designed must target a single transaction from the travelers. Sensory marketing applies a transactional approach that is short-term because various clients show demand seasonally. It as well applies relationship marketing (RM), which is sophisticated because it requires networks, relationships, and interactions between adaptive, and active buyers, and sellers (Gerace, 2019). In the food industry, RM revolves around customer retention and long-term retention.

Supply and Demand

The relationship between supply and demand is the primary focus of Microeconomics. However, other factors can be associated with sensory marketing and its influence on the traveler experience of street food. These factors include market failure, which can affect the state of various economic factors including employment, production, and low revenue (Gerace, 2019). Such effects can lead to economic depression. Sensory marketing must consider the state of the economy. For instance, the supply of street food, and the demand must be observed. Sensory advertisement aims to increase the client base of the product.

In case there is a market failure with regards to the brand being advertised, the demand might be more than the supply (Krishna et al., 2016). Such a state will create a bad image for the brand. Market failure is greatly influenced by the factors of production, which are land, labor, entrepreneurship, and capital. Furthermore, the level of competition that a firm faces in the market can be vital in facilitating sensory marketing. First, it is important to know the type of competition that is prevailing in the industry. For instance, there is perfect competition in the street food industry. Therefore, there are few barriers to entry making many businesses venture into the market. As a result, there is stiff competition as there is little room for differentiation between the products being offered. Hence, sensory marketing must be applied in consideration of such microeconomic factors.

Conclusion

Microeconomic indicators including unemployment rate, inflation rate, GDP, the balance of payment, and many more are associated with sensory marketing (MarkeyTowler, 2019). For instance, GDP stands for the gross production of a particular good. In the food industry, GDP is important in ensuring there is an equilibrium between supply and demand. The GDP function informs organizations of what output will suit the available demand (MarkeyTowler, 2019). In this case, travelers must be monitored to notice when there is a high or low number of travelers.