Fulbright Economics Teaching Program 2003-2004 Marketing Places Lecture note Business Opportunities in a Place Phan Chanh Duong 1 Xinh Xinh/Kim Chi 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 Communication o Transportation o Health care, education o Labor force Fulbright Economics Teaching Program 2003-2004 Marketing Places Lecture note Business Opportunities in a Place Phan Chanh Duong 2 Xinh Xinh/Kim Chi 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! . Teaching Program 2003-2004 Marketing Places Lecture note Business Opportunities in a Place Phan Chanh Duong 1 Xinh Xinh/Kim Chi BUSINESS OPPORTUNITIES IN. 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