There are new technologies that are emerging in the market and this ahs led to advancements in communication and transport. Every marketer in the world wants his/her products marketed by use of the new technology. The recent developments in technology have resulted in the emergence of standardized consumer products that are marketed in the global market. Consumer preferences that were regional or country based have ceased globally and the needs and desires of people have been homogenized.
This has resulted in failure of most of the multinational corporations while the global corporations are thriving in business. Homogenization in the global market can be seen in the case of Coca-cola and Pepsi-cola, these two producers sell their globally standardized products around the world which is filled with people with different tastes and preferences but they make good sales. Unlike before when companies perceived that overseas prices were higher, now companies are using a common method to distribute finance and price their products internationally.
The markets that used to be small and nation based have expanded to market their products globally; this has been necessitated by the competition that exists leading to increased efficiency in the production, management, marketing and distribution of products. Customers tend to prefer products from companies that have forced the costs and prices down while on the other hand increasing the quality and reliability of their products. Large companies that operate in a single country are very much unlikely to standardize their products internationally.
Companies that lack clarified global focus and are not attentive to the economies of simplicity and standardization are faced with a lot of problems in their marketing lines. The multinational corporation knows a lot about very many countries while the global corporation understands the need to be competitive on a global scale as well as on a national scale and is always aimed at reducing its prices by standardizing its products and operations.
Due to the current global markets there has been a great deal of division of labor and specialization. Large scale production of standardized items has been seen to be cheaper within a wide range of volume than small scale production (Theodore, 1984). Implications for a global marketer Global marketers need to come up with ways that will increase their competitive advantage globally and these would help them survive in the global market. Use of the current technology can increase the global marketers’ area of business.
The global marketers also need to standardize their products so as to make sure that they are fit for the international market. For a global marketer to thrive in business he has to change the mentality that marketing is giving the customers what they need and look at marketing as trying to understand what exactly the customer would like. Global marketers should not therefore persist with costly, customized multinational products and services but they should aim and press for global standardization.
The global marketer also needs to note the barriers to globalization that exist in the market; these barriers are normally experienced in the Middle East countries and also the transfer of data and technology across the boundaries of the European market countries is hindered by financial and legal impediments that exist. Another barrier that may affect the global marketer is the resistance to radio and television interference that exists in some neighboring European countries.
Before any marketer thinks of exporting their domestic products there is need to assess how the products need to be changed to fit in the international market. Most customers always need a product that meet their needs and so they need certain features in the products but research has shown that they can take other features if the promotion and the price was right and therefore global marketers should come up with practices that are aimed at reducing their prices.
The wider the marketer’s global reach, the greater the number of national preferences encountered in the promotion and distribution of the products and therefore the global marketer should accommodate differences at some times. Companies should also note that it is not automatic that there exists a market of their products in a region where a similar company flourished in business. Recommendations and additional thoughts Companies that wholly capitalize on economic convergence can still make adjustments and distinctions in different markets.
For any company to go global it has to undergo the following stages; stage one is when the company focuses only on the domestic market, stage two is when the company still has a home focus but it has exports, stage three is when the company realizes that it has to focus more on the multinational than the domestic market and in stage four the company has global organizations that aim at marketing the company’s products globally. During this time when the company is moves through the four stages its marketing is affected by the effect on products, promotion, placement and the price of the products.
As many companies try to become global there is need to look at the demerits that are associated with the practice, they include; difference in business laws, different distribution channels, differences in the administration procedures and the differences that exist in the consumer response, needs and usage pattern of the products (Helsen and Kotabe, 2004). WORD COUNT 882 WORDS REFERENCE LIST Helsen, K, and Kotabe, M (2004), Global Marketing Management – 3rd Edition, San Francisco John Wiley & Sons, Inc – Publishers. Pp. 10-12 Theodore Levitt, (1984), the globalization of markets, The Mc Kinsey Quarterly. Pp. 2-19