Opportunities and Imperatives of Globalization the Millenium - Article Example

International Marketing: Global Impact In terms of international marketing, there are a lot of things to consider. Like for example, the knowledge about the subject. In this paper we will find out the meaning of marketing and how it enters global marketing, the effect of the international environment on the business involved in international marketing, the effects of internationalization in the implementation of the marketing mix, and the fact that cultural factor has greater impact on an organization moving from one country to another and the reason why not non-cultural factors. Marketing Marketing changed and evolved through periods of time. Today, it is standing continually providing benefits to consumers wherein the benefits will be provided and transactional exchange will take place. It is where the people are the producers and consumers, where the producers continually create or make goods or the basic needs the intended consumer needs then in turn the money earned by the producers made by selling to produce more goods. A healthy synchronization of the producer and the consumer leads to a healthy market. Marketing is defined by the Chartered Institute of Marketing as “the management process responsible for identifying, anticipating and satisfying customer requirements profitability.” An international tourism/hospitality company which is continuously changing and evolving through the years as part of its business management is the Marriott International Hotel. Most of this hotel’s branches are in the United States. During the recent years, this company is putting up businesses in various parts of the globe. It is entering new market. However, there are problems that they are meeting along the way. Despite this, the company is continuously addressing each problem. This company is consciously entering new market like that in Singapore, Australia, and many other countries that require co-ordination, planning, implementation of campaigns and competent manager(s) with the appropriate skills to guarantee success. That is why the objectives, goals and targets of the company have to be supervised and met, competitor strategies analyzed, anticipated and surpassed. The local market like the dry and wet markets, leading grocery stores and small booth or stall selling goods are some examples of marketing. Through effective use of market and marketing research, the Marriott International is continuously identifying the needs and wants of the customer and is trying to deliver benefits that will enhance or add to the customers lifestyle, while at the same time ensuring that the satisfaction of these needs results in a healthy revenue for the organization. Eventually, these markets, changing with time are generally increasing meaning more competitive than before. These lead to market going international or global. International Marketing’s Characterization International marketing is a scrupulous application of marketing concerned with developing and managing trade across international boundaries. The world today is getting smaller because of the following reasons: wide marketing overseas that enables the producers or the marketers to sell products in different parts of the world, modern technology, meaning the improved transportation and communication- the internet- which is more practical, and social mobility where people in all different parts of the world travel more and see more recognizable brands. But why is that companies, like the Marriott International, are choosing to go international or global in terms of marketing? First, marketing is going global because national markets’ competition is getting intense, more and more markets are being established; the products that you have in the national market are starting to face its dead end that’s why the market people are deciding to push through national marketing, the sales and profits in national marketing is definitely declining fast, and a person wishes to become a global competitor. International Marketing Environment Before entering a business outside your country’s boundaries, it is a must that an organization considers the environment. For example, the Singapore business environment is entirely different from the US environment. Knowing and exploring the environment that an organization is entering will help them avoid possible constraints and problems their business may encounter such as venturing overseas. Exploring the environments may maximize the opportunities of having a successful business international. The Marriott International have no choice but to develop ways to enhance their competitiveness. They must also be aware of the need for adjustment to the international market environment. They also need to be aware of the major events that have taken place that may influence their trade policies. The Impact of Global Marketing Environment As globalization takes place in international marketing, the choices of products and services for the customers increase. There will definitely an increase in competition that there will be a high possibility of huge companies to succeed because they have higher capital and labor force than other smaller companies. In order for other companies to succeed they need to consider planning. They need to have certain recognition to the market to be patronized by the consumers. Global Marketing also requires in-depth research and analysis in order to satisfy the wants and the needs of the market consumers. The more relevant information a firm has, the more likely it is to have customers. In the international market, competitions are larger. Risks are also likely to occur. If a business firm rushes their decisions, they may lose a large amount of profit or revenue and build up bigger dilemmas. Some countries have experienced political instability, changes to the regulatory environment, expropriation or nationalization of property, civil strife, strikes, acts of war and insurrections. Any of these conditions occurring could disrupt or terminate our operations, causing our development activities to be curtailed or terminated in these areas or our production to decline, and could cause us to incur additional costs. For example, The oil industry is subject to regulation and intervention by governments throughout the world in such matters as the award of exploration and production interests, the imposition of specific drilling obligations, environmental protection controls, controls over the development and decommissioning of a field (including restrictions on production) and, possibly, nationalization, expropriation, cancellation or non-renewal of contract rights. Inability to complete planned disposals and/or lack of material positions in new markets could result in an inability to capture above-average market growth. Marketing Mix The marketing mix principles which are also known as the 4 p’s are used by businesses as tools to support them in practicing their objectives. The marketing mix principles are controllable variables, which have to be carefully managed and must meet the needs of the defined target group. Its strategies are the following: Product strategies are where the organization starts at careful planning before introducing the product in the market. They must consider the consumers of the product. For example is that you are about to release a new product like a new brand of watch. You must consider the buyers. Does that new brand of watch satisfy the need of that particular consumer in that place? It also considers the benefits consumers will get from the product and if the product will satisfy the needs and demands of their consumers. Some factors that are related to this must know the product design, quality and features of the product. Pricing strategies are much based on the objectives the organization has set itself to achieve. It is consisting of penetration pricing, Skimming pricing, competition pricing, product line pricing, bundle pricing, psychological pricing, premium pricing and optional pricing. Place strategies refer to how a company or organization is to disseminate the service or products they are offering the buyers at the right place and at the right time. If the company does not distribute their products effectively and efficiently, it may have an effect on the profit. To distribute, it can be either indirect distribution or direct distribution of products. Distribution strategies depend on the product type being disseminated. It may vary from intensive distribution, exclusive distribution, and selective distribution. Promotion strategies are when a successful product or service is communicated clearly to be promoted in the market. Its techniques may vary from advertising, public relations, sales promotion, personal selling or direct mail. Internationalization As a business person venture on the international market, he must not only take a look at the benefits he could get but also he must know and understand all the transactions happening inside, and , of course, its difference compared to his present business in his own country. Competing internationally is not as easy as ABC. It takes time to evaluate your business whether it is successful or not, beneficial or not at all. Prior to this assessment, one should asses first before he plans a global business. This could help him to know what is the trend and need of today. It is possible that he could get advantages from this angle because he is catering to the needs of the people, and, at the same time, earning profits. Before starting a global business, the head should be more competitive and knowledgeable enough to know the flow in marketing. It’s good to start with what the consumers really need and interested with. It’s important to examine thoroughly your target country to know before-hand the factors that may affect your future business. This could help you predict and control the problems your future business may encounter. Effect of Internationalization on the Implementation of the Marketing Mix A market system, in its nature, requires careful planning and complex analysis. Every step in the planning process and every procedure in the analysis is a long process, which definitely costs a lot of considerations such as the kind of setting in a country, its size, and most importantly the kind of culture holding the lifestyle of the people in a particular country. When one certain strategy, that is supposed to apply in only one organization, is applied in a marketing mix of international level, there is no assurance that the strategy will work the same way as effective as expected. It may, that it was effective to a particular organization. But it must also be taken into consideration that organizations do not have similar structures and goals. For such a fact, a strategy that is effective for one organization may not be effective for another. It can be said then that marketing mix is attached with uncertainties, threats, and failures that may cause downfall of some organizations that cannot accept the strategy. Now, why are there organizations that find certain strategies inappropriate for them? From country to country, cultures vary in such a range that people could be driven amused and surprised upon finding out that cultures like this and that do exist. The market system is only a part of the economy. And the economy, put into studies and made into a discipline called Economics, considers many factors that would greatly affect the function of the market system. Culture can be likened into an imaginary or invisible commander who would dictate what items, goods, and services should the people avail of, with respect to their culture. Put into simpler idea, the culture of a nation is a very big determinant of the wants and needs of its people. It dictates the lifestyle or the way of life of a nation’s people. Also the economy is not being set free from political and social intervention. With all the countries having various settings and different ways of life, this is reflective of the various political and social structures of the inside societies. International Marketing Cultural Factor’s Classification Culture is a symbol of continuity or immortality for traditions in a certain country. They are sets of values, norms, behaviors and customs between an entity or an organization. In order for a marketing organization to be successful, it should blend to its cultural environment. Starting a business is tedious work. One should first research the culture and the environment where the business organization will be placed, and then the head of the organization and the executives must think of strategies on how to promote their company. The culture of a certain nation must always be considered in order for a certain entity to be patronized by their customers. Culture stands as a basis for an enterprise to be successful. A certain product in a business venture won’t be supported in the market if the product is not acceptable in the culture of a certain country. An example on how culture affects marketing is the McDonald’s Foodchain. McDonald’s offer different services and products to their customers. They base their products to the culture of a certain country which they have an outlet. McDonald’s in the United States offer food products which may not be in other countries like China, Vietnam or Singapore. They base their marketing strategies to the wants and needs of the people in a certain country. Non-cultural Factors Classification Aside from the cultural factors, there are also some non-cultural factors to be considered in starting a business in a country. These include human and non-human resources. If you are the head of the business, you should consider the knowledge and training of the workers you’ll hire as indicators of their capacity in relation to your business. Less knowledge and training would require you much effort to educate and teach them about the how-to’s needed for the work. These then, in turn, require additional expenses. On the other hand, well-educated and trained workers mean less effort and budget. It would, maybe, require additional seminars or orientation only. Non-human resources would include time, capital, site, raw materials and technology. In starting a business, we should consider the interval of building infrastructures, promotion of the business, hiring workers, and the like. The capital is one of the most important factors to consider, you cannot start anything without a capital. This would determine the financial capacity of the new business. This is often divided for the construction of infrastructures, starting salary of the workers, and other expenses. The site or location is also important. It is not feasible to attract consumers in a hidden place. Rather, businesses should be located in an area seen by the public. This would help promote your business to the people. Another is the availability of materials. The raw materials and technologies needed should be prepared before-hand to prevent delays of work. These should be accessible to you to save time and effort. Another reason may be to test the quality of the materials before using it to avoid regrets in the hand. In marketing, it is not merely promotion of products but it is also a promotion or introduction of developments to the consumers that may be adapted. For example, in a commercial, a food corporation advertises a product, and promotes this through children eating vegetables. In effect, consumers may be attracted to buy those products hoping that their children would eat vegetables too. Besides, this is one of the problems of the mothers today – to encourage their child or children to eat vegetables. This may also be included as a non-cultural factor under marketing. Conclusion Having the knowledge about the following, we then know the nature of international marketing, that it is built and organized for higher and better business transactions that make marketing for customers more practical because of the help of modern technology used in communication such as the internet and better transportation. The environment to which a business is to enter should be planned and explored first before anything else happens. For the environment plays a very important role to help an organization’s business to succeed. Marketing mix can be a good strategy to international marketing, however, it can also be said that marketing mix is connected with suspicions, pressures, and catastrophes that may cause breakdown of some establishments that cannot accept the tactics. Cultural factors have greater impact on international marketing than non-cultural factors due to the fact that culture dictates the wants and needs of the people in certain countries while non-cultural factors have lesser effects on the demands of the people. Reference: Barnard, P. "Global developments and future directions in marketing research," Globalization and the Millenium: Opportunities and Imperatives, Marketing Science Institute, June 16-17, Brussels, Belgium. 1997. Cooper, P. "Internationalization of qualitative research," ESOMAR Congress, Monte Carlo. 1996. Craig, C. S. and Douglas, S. P., International Marketing Research, 2nd Edition. Chichester, UK: John Wiley & Sons. 2000. Douglas, S. P. and Craig, C. S. "Evolution of global marketing strategy: scale, scope and synergy," Columbia Journal of World Business, Vol. 24, No. 3, pp. 47-59. 1989. Douglas, S. P. and Craig, C. S. "The changing dynamic of consumer behavior: implications for cross-cultural research," International Journal of Research in Marketing, Vol. 14, pp. 379-395. 1997. Human Development Report, United Nations Development Program, New York: Oxford University Press. 1999. Needel, S.P. "marrying market research and virtual reality: implications for consumer research," in Information Technology: How Can Research Keep Up With the Pace of Change? ESOMAR Conference, 25-27 January, Brussels, Belgium, pp. 65-75. 1995. Restall, C. and Auton, R. "The future of qualitative research from passivity to interaction," unpublished document. The Research Business Group, London. 1995. Thomae, M. "Multimedia CATI/CAPI," in Information Technology: How Can Research Keep Up With the Pace of Change? ESOMAR Conference, 25-27 January, Brussels, Belgium, pp. 89-101. 1995. Read More