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Marketing can be defined as the efficient utilization and management of company’s resources to meet the needs of consumers while achieving the company’s objectives. It’s an extensive exercise which includes planning, conception, and execution of ideas, pricing of the commodities, promotion, and distribution of the company’s products to meet consumer needs and obtain the companies objectives. Marketing can be done within local boundaries also known as domestic marketing or across national borders thus known as or global marketing.
Global marketing is trade conducted on a worldwide scale which reconciles and takes commercial advantage of global operational differences, similarities and opportunities in Oder to meet global objectives and meet consumer needs globally (Kegan 22). Local marketing which is also referred to as domestic marketing, is marketing restricted to the political boundaries of a country. It only considers domestic competition although it may also face competition from companies run by foreign investors.
These two types of marketing are similar in several ways in that they both aim at profit making. Both aim at maximizing economies of scale and thus enable business organizations to optimize profits. They introduce products and services in the market and create awareness to the public to enhance consumption of products hence maximizing profits.
Both local and global marketing faces stiff competition within their scope of operation.In local markets for instance they face local competition from local rival companies, and also experience competition from companies formed by foreign investors within their boarders. In global marketing the companies are faced with competition from the local countries and thus have to work extra hard to establish their brand in the foreign countries and also within the home countries (Trepsta 23-31).
Both local and global marketing rely on advertising to promote their products in the market. Although this advertisement may be at different levels, the local companies can use local media as well as interpersonal advertising while the global companies use international media and global communication such as the internet to meet their marketing objectives.
Both local and global marketing aim at maximizing their economies of scale in production and distribution to maximizes their profits and ensure the long run survival of their businesses (Kegan 56). In the long run both kinds of marketing aim at achieving efficiency, that is access to more customers and markets maximize utilization of available resources and achieve operational flexibility among others (Kegan 57).
However despite their similarities, they have many differences in that their scope of operation varies greatly in that, while local marketing is only conducted within the borders of a country, global marketing traverses borders cutting across cultural, political and economic boundaries to meet its objective and satisfy consumer needs.
Local marketing aims to sell products and services based on the needs of the local consumers while the global marketing can be termed as polycentric in that they it acknowledges that each market in different countries has different needs and thus modify their products to suit and meet the needs of their dynamic consumers.
According to Smith (39-42) Global marketing employ and relies heavily on market research to dictate their investment trends in different parts of the globe for example they consider issues like the flow of attention, emotion and branding improvements to dictate their investment. Local marketing on the other hand may not necessarily carry out extensive research as they are well vast with the needs of the local consumers.
While local marketing enjoys limited cultural and language barriers thus making their cost of operation lower as well as their marketing, global marketing is faced by stiff language and cultural barriers and hence has to incur higher costs of production for example, it may necessitate them to hire an interpreter to facilitate marketing. The difference in culture and language barriers require extensive planning and strategizing which adds on to the cost of production (Kegan 56).
Global marketing requires huge amounts of financial resources as it is complex while local marketing requires little amount of capital as it operates at small scale and face limited barriers. However global marketing tend to enjoy more economies of scale in the long run.
While local marketing only has to conform to the laws of the countries it operates in and face minimal taxation, global companies are faced by stiffer international laws and regulations of the global market which may sometimes slow or hinder their operations in some countries as well as facing stiff taxation thus facing problems.
A well organized global strategy can help global companies gain a competitive edge, achieve efficiency that creates access to more customers and markets, exploit another countries resources, raw materials, labor, maximize their economies of scale, maximize profitability and even stimulate formation of auxiliary companies among others (Smith27).
Global marketing has advantages in that, they can easily introduce products and good in the market using advertisement, enjoys large economies of scale, incurs lower market costs, has the ability to leverage good ideas quickly due to massive information, enjoys uniformity of marketing practices, has wide range of consumers and allows interactivity through e-marketing facilities among others. Despite this many advantages it also faces challenges,
They require high levels of capital yet it’s a high risk venture as it is faced by uncertainties, requires a lot of time and effort to establish thus discouraging potential investors as they are faced by differences in consumer needs, wants and usage patterns of products, legal environment some of which may conflict with those of the home market, differences in product placement, brand and product development may prove challenging among others.
Global marketing is faced by varying consumer tastes’ and preferences in different countries therefore a difficult venture as it requires extensive research to understand the likes and preferences of these consumers and thus an expensive venture that requires a lot of time and effort (Smith, 34). On the other hand , local marketing despite it enjoying various privileges like requiring less financial resources unlike global marketing, and being a less risky venture , faces less cultural and language barrier, and facing less stringent laws, compared to global marketing its also faced by several l challenges (Trepsta 49).
Emergence of global marketers is a major challenge as they are not usually prepared or are even not aware of the changes in the global markets but only concerned on how they are perceived in their home countries thus invasion of foreign products and services may prove challenging to the companies, alongside stiff competition and taxation in some countries.
In conclusion therefore both global and local marketing are similar in that they are driven by their profit motive though they vary in different dynamics like scope. Proper application of marketing elements that is product being the good or service produced or being offered, price which varies in different markets, placement which is dependent in the competition offered, and promotion to ensure the products sell definitely yields success in both local and global marketing.