The principle of the invisible hand of the market in marketing and business
The principle of the invisible hand of the market is a term that was introduced by the Scottish economist and one of the founders of modern economic theory, Adam Smith, to explain the mysterious processes in the market. He realized that the behavior of buyers and sellers in the market is determined not only by their desires, but also by some third party that is not visible.
For the reason that this side is not visible and clearly related to the market, it was called the " invisible hand of the market ." This third party coordinates the decisions and desires of buyers and sellers without them noticing. In the course of the transaction, they receive information not only from each other, but also from this very invisible hand of the market.
Moreover, they not only receive it, but also take it into account when making decisions. The fact that the influence on the decisions of buyers and sellers occurs imperceptibly, and also independently of them, is the principle of the invisible hand of the market. This principle has one very interesting consequence, which affects both individual businesses and the economy as a whole.
The basic principle of the invisible hand of the market
The invisible hand of the market can influence the decisions that buyers and sellers make. She has a voice in any transaction and can give it to both the seller and the buyer. Everything would be fine, but the expression "invisible hand of the market" is a little scary. Everything that is not visible is not clear, you do not know what to expect from the invisible, you do not know whether this is a friend or an enemy.
Accordingly, the invisible hand is an idea
Accordingly, the question arises, what is the "invisible hand of the market" after all? The answer to this question is very simple. Everything visible is material, which means that the invisible hand of the market has nothing to do with the material. If not material, then ideal, because there are simply no other options. Accordingly, the invisible hand is an idea.
But what is this idea? Everything is logical – this is the idea that underlies this particular market. Each market has its own idea and therefore its own invisible hand. It is the idea behind the market that is the invisible hand that controls it. The idea is invisible in itself, and therefore governs invisibly.
How the invisible hand controls the market
More precisely, the invisible hand governs the elements of the market: producers, consumers, distributors, developers, marketers, and creatives. The idea underlying the market connects all the elements of the market and controls its development. A detailed diagram of the market is presented in the picture above.
… the “invisible hand of the market" deals with sales
However, there is one problem. The bottom line is that the expression "principle of the invisible hand of the market" has a double meaning. On the one hand, it indicates that there is a certain market mechanism, but on the other hand, it indicates that the invisible hand of the market is guided in its actions by certain principles. In other words, the invisible hand has principles.
Knowing these principles, you can use it to your advantage. How can you use the invisible hand of the market to your advantage? As already mentioned, she has a voice in any transaction and can give it to one side or another. If he wants, he will give it to the seller, and if he wants, he will give it to the buyer. We can say that the “invisible hand of the market” is engaged in sales.
The principle of the invisible hand of the market in business
Accordingly, it can be used primarily to increase sales. It is clear that if she votes for the seller, then the buyer will be forced to buy goods from him. It is enough to get her vote to sell the product. Many products just do not sell well, because the "invisible hand of the market" does not give its voice to their sellers.
… the first principle of the invisible hand of the market is that it helps only its own
Time does not give, it means that it is contrary to its principles. Of course, the first principle of the invisible hand of the market is that it helps only its own. It is clear that there is no point in helping someone else. Accordingly, in order to get a vote from the invisible hand of the market, you need to get to know it, but it is better to be on friendly terms with it.
The second principle is to help only when help is really needed. If you help, when they do not ask, they can send you to hell. This happens very often and she is well aware of it. The third principle is that it helps only goods about which it has enough information, goods that the market really needs. This information must be passed on to her.
Who helps the invisible hand of the market
She herself will not ask her, guided by her second principle. Moreover, the more information is transferred to the invisible hand of the market, the more likely it is to get her vote in her favor, because the more information she has, the easier it is for her to convince the buyer to buy the product. To transfer information, it must be with the seller.
… you need to get up close and personal with the “invisible hand of the market”
When a salesperson is badly pumped with the idea of a product, then he has little information about it. Very often this is one of the reasons for low sales volumes. As mentioned above, the second principle of the invisible hand of the market is that if you ask for help, it helps. How can I get help from her? First of all, you need to get to know the “invisible hand of the market” closely.
To do this, you need to find out what idea underlies it. You can do this with the help of legram. Anyone who wants to sell a lot thanks to the invisible hand, anyone who wants to be friends with her, you must definitely get a leggram of the market in which you sell your product or service. For each product or service, you need to have a separate market leggram.
How to Befriend the Invisible Hand of the Market
The second thing to do is to form the intention to sell the product, not a desire, not a dream, but a clear intention. Only his invisible hand considers it as a sincere request for help and only reacts to him, providing assistance. It is possible to form a clear and strong intention to sell a product or service only with the help of a legram. It also helps create a market.
The third thing to do is to pump with the help of the legram the idea that underlies the product. The “invisible hand of the market” takes information about a product from a marketer, manufacturer, developer, creative, distributor, and they receive it only as a result of pumping an idea. The invisible hand cannot obtain information in other ways. Even hacking the market will not help .