Term one week 6
year 2023
Date: 08/03/23
Lesson #.8
Topic: Economic Conditions
Major economic activities in Papua New Guinea include mining, cash crops farming, logging and fishing.
Through these economic activities, there is an increase in trade within and outside of the country. It leads
to an increase in the movement of capital among individuals, businesses and overseas markets and
suppliers. When economic activities are profitable, businesses achieve their business goals. However,
when there is a fall in market prices, the supply decreases and the demand also decreases. Businesses
need to be aware of such economic challenges that have strong forces to affect their business plans.
Another good example in Papua New Guinea is that, when there is a low supply of foreign currencies in
the currencies exchange market for a long period of time, this affects businesses that import from
overseas. It will lead to having debts to pay over long periods of time which may affect the goodwill of a
business with its overseas supplier. Again, such economic problems, affect their business plans.
Take note that economic conditions can have either a negative or a positive impact on marketing.
Government policies
The government as a regulator of business imposes new taxes; charges tax rates, controls interest rates,
basic product prices and town planning rules. For example, if the government reduced customs duty on
sugar, it would be possible to import sugar from overseas at a lower cost and compete with Ramu Sugar.
This policy change would have an impact on the marketing plan of Ramu Sugar. Therefore, businesses
must be watchful and alert. They should understand that government decisions can affect their business
marketing strategies.
Use of Technology
In this century, technology is changing rapidly in all sectors. Improved technology has an impact on
marketing. Technology has completely changed the landscape of production, distribution, advertising,
selling and communication. In short, technology has helped marketing in a big way.
For example:
(a) Fax machines contribute to quick transmission of marketing communication
(b) Email contributes to fast-tracking marketing communication
(c) The internet enables online marketing
(d) Computers improve the efficiency of market research
(e) The telephone is used for telemarketing
(f) Software packages and design technology are used to design and develop
new products effectively.
(g) Digital printing technology helps businesses to create attractive posters, billboards and hoardings.
Activity
Give at least two (2) examples of government policies in Papua New Guinea affecting businesses.
(a)_____________________________________________(b)___________________________________
2. Provide at least two (2) ways in which technology has enhanced efficiency in marketing.
(a)___________________________________(b)____________________________________________