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How does the principle of the invisible hand of the market

The principle of the invisible hand of the market is a term coined 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, which is not visible.

The principle of the invisible hand of the market

For the reason that this side is not visible and clearly has to do with the market, it was called ” the invisible hand of the market.” This third party coordinates the decisions and desires of buyers and sellers, and does it without them noticing. In the course of the transaction, they receive information not only from each other, but also from this most invisible hand of the market.

And not just receive, but also take it into account when making decisions. In the fact that the influence on the decisions of buyers and sellers occurs imperceptibly, as well as 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 basic principle of the invisible hand of the market

The invisible hand of the market can influence the decisions that buyers and sellers make. It has a voice in any transaction and can give it to both the seller and the buyer. All would be well, but the expression “invisible hand of the market” is a little scary. All that is not visible is not clear, you do not know what to expect from the invisible, you do not know whether it is a friend or an enemy.

Accordingly, the invisible hand is an idea

Accordingly, the question arises as to what is the “invisible hand of the market”? The answer to this question is very simple. Everything visible is material, so the invisible hand of the market has nothing to do with the material. If not material-then ideal, because there are no other options. Accordingly, the invisible hand is an idea.

But what kind of idea is this? Everything is logical – this is the idea that underlies this particular market. Each market has its own idea and accordingly its own “invisible hand”. It is the idea behind the market that is the invisible hand that governs it. The idea is invisible in itself, so it governs invisibly.

How the invisible hand controls the market
More precisely, the invisible hand controls 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 shown in the picture above.

… “the invisible hand of the market” is engaged in sales

However, there is one problem. The point is that the expression “principle of the invisible hand of the market” has a twofold 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 it can be used to your advantage. How can you use the invisible hand of the market to your advantage? As already mentioned, it has a voice in any transaction and can give it to one or the other party. 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
The principle of the invisible hand of the market and business

Accordingly, it can be used primarily to increase sales. It is clear that if it gives voice to the seller, the buyer will be forced to buy the goods from him. It’s enough to get her vote to sell the goods. 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-it helps only its own

If she didn’t, it was against her principles. Of course, the first principle of the invisible hand of the market-it helps only their own. It is clear that there is no sense at all to help someone else. Accordingly, to get a voice from the invisible hand of the market, it is necessary to get acquainted with it, and it is better to be on friendly terms with it.

The second principle is to help only when help is really needed. If to help, when not asked, can and to send to hell. This happens very often, and she knows it well. The third principle is that it helps only goods about which it has enough information, goods that the market really needs. This information needs to be passed on to her.

Who is helped by the invisible hand of the market
Who is helped by the invisible hand of the market

She herself will not ask for it, guided by her second principle. Moreover, the more information will be transferred to the invisible hand of the market, the more likely to get her vote in their favor, because the more information she has, the easier it is to convince the buyer to buy the goods. In order to pass on the information, the seller must have it.

… it is necessary to get acquainted with the “invisible hand”»

When the seller is poorly pumped idea of the goods, 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 – if asked to help, it helps. How to get help from her? First of all, you need to get acquainted with the “invisible hand of the market.”

For this purpose it is necessary to learn, what idea underlies it. This can be done with the help of a legram. Everyone who wants to sell a lot thanks to the invisible hand, everyone who wants to be friends with it, it is necessary to get a legram of the market in which you sell your product or service. For each product or service you need to have a separate market telegram.

How to make friends with the invisible hand of the market
How to make friends with the invisible hand of the market

The second thing to do is to form an intention to sell the product, not a desire, not a dream, but a clear intention. Only his invisible hand sees as a sincere request for help and only reacts to it, 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.

The third thing you need to do is to pump with legrome idea, which underlies the item. Information about the product “invisible hand of the market” takes from the marketer, manufacturer, developer, creative, distributor, and they get it only as a result of pumping the idea. In other ways, the invisible hand can not get information.

The better the idea is pumped, the more information it will receive, the higher the probability of getting her voice and sell the goods. You can work with the legram to pump the car yourself. If you have any questions, you can always get advice on marketing and work with legram, and with them the most detailed answers to all questions.

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