GLOBALISATION AND ITS IMPLICATIONS FOR

INTERNATIONAL MARKETING

MODULE: INTERNATIONAL MARKETING

MODULE NUMBER: MCT 445

CANADIAN NUMBER : B753

2773 WORDS
 ABSTRACT

Marketing, this is a far-reaching word. It has recorded the history of people

economical development and the world’s changing. In addition, the thriving

and degenerative ages in every country has been recorded as well. All of the

industries in the world when involved with business or economy mean a cope

of marketing. Follow by the advanced history of marketing, from local markets

to presently global markets, markets are spreading in a very swift speed and

expand into every corners in the world. People from different countries

learned each other’s culture from the import products, services and being

taught its various stereotype without to go out to one’s country. Marketing has

influenced people’s action, thought and appearance also invisible internality.

As a result, marketing could raise people’s desire about products needs and

the impressions of its foreign countries. However, globalization marketing is

developing with a based element of standardization; therefore, to find out the

diverse strategies in control with homogenization became a difficult task for

the marketers nowadays.

 INTRODUCTION

Marketing has been discussed for decades, from the original marketing to the

developing global marketing and its various definitions. After World War II,

American companies became the leading suppliers and expanded its own

psychology of dominant multinationals. American multinational companies

stretched the new marketplaces in Europe, Asia, and Latin American

(Johansson, Johnny K, 2003). Subsequently, marketers understood the

significance about spreading local marketing in order to expand business

opportunities. Marketing advanced towards multinational marketing, foreign

marketing, international marketing and global marketing (Toyne and Brian,

1989). Firstly, the history of marketing development will be briefly introduced

and will discuss about the definitions and contents of marketing. International

marketing will be analysis secondly by its complex elements such as

management. The sustained firms are broadly been argued with diverse

statements and the completed interprets has been recognized as an

evaluation confining benefits for marketers in foreign countries implicated in

varying environments (Johansson, Johnny K, 2003). Finally, the widespread

global marketing will be debated with the segments advantages and rivals. In

addition, this essay was written in the basis of the wide discussion from

international marketing lecture, ‘Globalisation has impacted the domestic and

international marketplace on international marketing and how some the

consequent opportunities and challenges may be maximised and overcome

respectively, by small as well as multinational companies seeking to further

explore the marketplace’ is the topic which I selected. Therefore, the relevant

literatures are fundamentally respected with global marketing as the main

issue and generally analysis other minor marketing elements. As a result, this

essay can only briefly discuss about the extensive marketing industry but

hardly reach its entire and obscure scope.

DOMESTIC AND INTERNATIONAL MARKETING

When domestic marketing were matured completely in the local markets,

marketers were searching for new marketplaces in order to raise the

opportunities for its economies. To begin with the expending, adjacent and

similar markets became the first target to attempt. American companies won

the leading place in the world and became the vary suppliers during the initial

developing phase. When 1986, Robert Buzzell claimed the benefits of

standardization; unfortunately, it wasn’t be recognized by contemporary

marketers, nevertheless, Theodore Levitt published an article in 1983

debating the present markets, and found they had became increasingly

similar, the reason had been analyzed and people were and still receiving the

same product and information due to technological innovation and advances

in mass communications, hence, multinational companies defeat local

companies by better quality but lower price products (Johansson, Johnny K,

2003). However, not standardization was the only focus but marketing mix

management, included target of product, price, promotion and distribution

strategies and tactics began with an active marketer (Gordan Foxall, 1997)

‘Multidomestic markets are defined as product markets in which local

consumers have preference and functional requirement widely different from

one another’s and other’s elsewhere.’ (Johansson, Johnny K, 2003).

And marketers confirmed the importance of standardization products from the

process of multidomestic markets develop towards global markets. Even

though price is a main reason to affect consumer behavior, however,

standardized products provide not only low price but higher quality and better

valuable products to satisfied customers, also status, brand images, leading

design and manufactured in better standard are the invisible additions.

Moreover, initiate the desire from customers and supply liberal growing in

mature markets for target consumer’s return to upgrade products in advance

to create brand’s loyalty and make the markets steady (Johansson, Johnny

K, 2003). One clear example in our daily life is that the global wide companies

have already realized the significance of providing an official website in the

internet world. In the websites, companies also need to serve different

languages translation options to expand its brands information.

Alhadeff(1982) notes that consumer behavior, for example, is determined at

the intersection of two response strengths- that for approach (a function of the

benefit likely to result from purchase and/or consumption) and that for

avoidance (a function of the costs of that purchase/consumption) (Gordan

Foxall, 1997). Accordingly, marketers had apprehended that well global

marketing is not based on price only but other know-how. Diverse marketing

strategies are decided and adjusted with various multicultural environments,

for example, Chinese drink tea with dinner and British drink tea with afternoon

sweets; hence, successful marketing strategies is to satisfy customer and

accommodated in distinct conditions. ‘Rafiq and Ahmed (2000) presented

what they considered the five elements of internal marketing: employee

motivation and satisfaction; customer orientation and customer satisfaction;

inter-function coordination and integration; marketing like approach to the

above; and finally implementation of specific corporate or functional

strategies.’

From the above finding indicated the weight of management, marketing jobs

increased due to the extension from domestic markets but multinational with

various cultures such as management executive officer and multinational

marketers. Meanwhile, manager faced the barriers to manage and promote in

unfamiliar markets; and it proved that managers need rich international

management experiences in order to solve problems in the world. As a result,

international marketing and coordinating companies established (Johansson,

Johnny K, 2003).

When discussed marketing management, marketing communications is a

major statement. As well as internal marketing (IM), which has been stated as

an efficient tool in marketing management. ’Some of IMs applications include

creating an internal customer orientation, increasing employee motivation to

work towards a common goal, increasing productivity, improving staffing

procedures, and changing organizational culture, among others.’ Also, Berry,

Hensel, and Burke (1976) claimed that IM is a technique to deliver high

service quality. From Lings and Brooks (1998) research believed that diverse

internal companies’ acting and processing declared IMs function; it is similar

to connect with marketing relations, such as human resource (HRM) and

employee relations. This research pronounced the significant usage between

internal and external marketing management. Keleman and Papasolomou-

Doukakis(2001, 122): IM is a ‘managerial initiative that views internal

relationships and structures within the organization to be governed by the

exchange logic that presides over external markets’. (JOURNAL of Marketing

Communications, 2010)

Thus, the development of marketing relationships network from service quality

to satisfy internal employee would overcome difficulties and increase higher

completion communication. Three variously complex strategies and

development present marketing make up the steps of foreign entry, local

marketing abroad, and global management (Johansson, Johnny K, 2003).

MULTIDOMESTIC VERSUS GLOBAL MARKETS: KEY DIFFERENCES

MULTIDOMESTIC GLOBAL MARKETS

MARKETS
MARKET MARKETS ARE DEFINED MARKETS TRANSCEND

BOUNDARIES WITHIN COUNTRY COUNTRY BORDERS .

BORDERS . CUSTOMERS CUSTOMERS AND/OR

AND COMPETITORS ARE COMPETITORS CROSS

OF LOCAL ORIGIN . FRONTIERS TO BUY AND

TO SELL .
CUSTOMERS SIGNIFICANT SIGNIFICANT

DIFFERENCES EXIST SIMILARITIES EXIST

AMONG CUSTOMERS AMONG CUSTOMERS

FROM DIFFERENT FROM DIFFERENT

COUNTRIES ; SEGMENTS COUNTRIES ; SEGMENTS

ARE DEFINED LOCALLY . CUT ACROSS

GEOGRAPHIC

FRONTIERS.
COMPETITION IT TAKES PLACE AMONG THEY ARE FEW AND

PRIMARILY LOCAL FIRMS; PRESENT IN EVERY

 EVEN INTERNATIONAL MAJOR MARKET .

COMPANIES COMPETE RIVALRY TAKES ON

ON A COUNTRY –BY- REGIONAL OR GLOBAL

COUNTRY BASIS . SCOPE .

INTERDEPENDENCE EACH LOCAL MARKET LOCAL MARKETS

OPERATIVES IN OPERATE

ISOLATION FROM THE INTERDEPENDENTLY .

REST . COMPETITIVE COMPETITIVE ACTIONS

ACTIONS IN ONE MARKET IN ONE MARKET IMPACT

HAVE NO IMPACT OTHER MARKETS.

ELSEWHERE .
STRATEGIES THEY ARE LOCALLY THEY ARE REGIONAL OR

BASED . LITTLE GLOBAL IN SCOPE .

ADVANTAGE EXISTS IN GREAT ADVANTAGE

COORDINATING EXISTS IN

ACTIVITIES AMONG COORDINATING

MARKETS. ACTIVITIES WITHIN

REGIONS OR

WORLDWIDE .

GLOBAL MARKETING

The definition of ‘world wide’ became different than past; as the saying goes

the world gone flat also the conception of global village. Since technology step

into a new stage, the unpredictable of wide world became much fewer; since

transportation became common and widespread, the distance of wide world

became much closer. Globalization transmitted a fresh definition and life to

marketing industry, and it is a current developing stage which marketers are

dedicating and learning term. ‘Global marketing is the process of focusing an

organization’s resources on the selection and exploitation of global market

opportunities consistent with and supportive of its short- and long-term

strategic objectives and goals.’ (Toyne and Brian, 1989)

To start with the global marketing, market drivers which included market,

competition, cost, technology and government variables are major elements

needs to consider. Here is the statement from (McGraw-Hill/Irwin, 2003)

below. From his argument declared that globalization has not only satisfied

companies’ economics but also customer needs. Both of the internal and

external demands have been benefited by globalization and the world’s

technological advanced, also, customized products and service ruling the

marketplaces nowadays.

MARKET DRIVERS ARE THE STRONGEST FORCE PUSHING GLOBAL MARKETING .

MARKET DRIVERS INCLUDE :

1. COMMON CUSTOMER NEEDS .

2. GLOBAL CUSTOMERS

3. GLOBAL CHANNELS

4. TRANSFERABLE MARKETING
Customers’ needs: With technological progress and global communications,

consumers in many countries are exposed to similar messages and products.

 Free trade and unrestricted travel have created homogeneous groups of

customer around the globe.

 However, some industries are remaining multidomestic. Foods, drinks,

apparel, and entertainment. With different customer preferences and

differentiated products across countries.

Global customers: need the same product or service in several countries.

 This is why suppliers firms in the automobile industry.

 They have spurred the development of global hotel chains, global ad

agencies, and global communications.

Global channels: New integrated networks make it possible for marketers to

sell their products around the world.

 As a consequence of multinational integration of transportation systems,

the spread of large financial institutions, the emergence of worldwide

distributors of grain and other commodities, and the globalization of even

seemingly localized retailers such as supermarkets.

Transferable marketing: Using the same marketing ideas in different

countries.

 The Multilanguage packaging of many consumer goods has made it

possible to offer the same packages with the same colors and the same

brand brands in many countries.

‘Nielsen, the U.S-based market research firm, concluded that in the

consumer packaged goods category, only 43 brands could be called “global”.

Even considering that the study excluded certain product and service

categories (autos, electronics, credit cards, and liquor, to name four), the

number is lower than most observes would have guessed.’ (Johansson,

Johnny K, 2003). Before multinational marketing developed into global

marketing, marketers had recognized the majority of global communications

such as Internet network. Globalized communications concluded broadcast

(radio, television and film), fax machines and any advanced technology

products; it also brought companies the information network, and internet

massages are hardly spending any cost. Therefore, the marketing

headquarter today could send decision and massages easily to subsidiary

without time and distance barriers, efficient and effective information

spreading is an important element for marketers presently, also, the positive

and activity innovation and customer satisfaction are also necessary without

doubt (Johansson, Johnny K, 2003).

THE CHALLENGES AND OPPORTUNITIES

Expending and multiple countries in the world fulfilled with diverse resources,

cultural and environments, global village is not only exchanging information

but also each other’s wealth. According to the history, developed countries

have priority selection for power and ability, they are the leading winners; on

the other hand, developing countries and the third world becoming the basis

manufacturers. While marketers are stretching new marketplaces, the debate

between resources unfriendly translated and treatment in those countries

becoming another atmosphere. Governments and academics declared the

origination of Corporate Social Responsibility (CSR) and the organized

antiglobalization movement. The antiglobalization had a huge voice when

year 2000 by to query globalization organization’s ‘fat’ advantage from

economy and societies. However, the terrorist attacked New York when

September 11, 2001 and the antiglobalization became diminuendo due to this

incident; meanwhile some people believed this drastic action was linked with

the inspiration from antiglobalization. Argument from publics and

antiglobalization motivate the corporations and coping strategies developed

(Johansson, Johnny K, 2003). Globalization is an un-resisted trend,

nevertheless, it is necessary to protect and balance for people unless the

waste of wealth in countries. Although the ‘globalization crisis’ has became

the opportunity for developing countries; significant work opportunities

increased and foreign cultures are brought into domestic, high competition for

individual and states chances, highly economic growth such as Chinese

markets are meaningful expending in decades. From researches and

observation of economic data provided the numbers are raising in the world

with wealth of people, jobs opportunities and higher wages (Johansson,

Johnny K, 2003). Globalization impacted international markets with good

benefits also rival barriers, scholars and practical managers concluded some

aspects which needs to aware. From the awareness of elements which are

necessary to be considered such as technical skill is also showing an

opportunity for marketers to upgrade. As for western companies, the vary

advantages to extend its brand and royalty also raise its economical scope.

For international marketers, a wider spread means less trade limitation due to

the unstable policy from governments. And it is a wild market waited to be

developed and the leading companies would be the first-fresh from

allochthonous, which would increase consumers’ desires. Companies would

also obtain a new chance to re-branding its internal construction, and it is an

opportunity in strength itself. In the contrast, the huge challenges to

marketers who want to extend itself through globalization, the first aspect is

that every internal and external tools would became much more complicated.

A new developing and reaching into strange foreign countries need a deep
research and test, cannot hasty step into it. Do not forget the antiglobalization

conception and its overreact incidents, and the logical thinking of defending to

foreigners. Therefore, the aspect with ethical issues needs to be studied

thorough and compare with the similar markets by former marketers. As a

result, to respect its traditions and cultures is a very important foundation.

Marketers should come up with a solution for the un-balanced “users and

producers” issues, such as the manufacture in China, but original companies

in western countries. This situation would create an animus due to the unfair

resource allocation and create the crisis to suppliers. Fair trade, EU and green

marketing are having the function for solving the unfair situation and is

spreading well in the world nowadays, customers also mentioned the

importance with CSR in companies philosophy. Finally, Internal and external

management which being mentioned above is a very vital key point linked

with companies in global markets.

CONCLUSION

The natured resources are not allocated from the very beginning and the

world nowadays is watching the changing in countries with various reasons.

The relevant literature had been mentioned above in this article are basically

focus on the old theory of niche western world and poor east side. However,

the economical journals and related articles recently are reporting

globalization without the boarders or countries (area) but diversity industries

(classification).

This statement is showing that the globalization is crossing wards another

step which might be very simple and united world in the future, and is back to

the original idea of global gone flat. Therefore, the antiglobalization may loss
their issues to fight or argue with due to the simplified economical

environments. Even though the resources between ‘users and producers’ are

not fair, the replacement resources will be invented and discovered step by

step. While that time, the world needs to separate the wealth for people who’s

needed, and it may be the conception of balance to people who do not agree

with globalization earn extra advantages. Marketers need to be very careful to

extend its mid and long terms in outer marketplaces. There are cases which

are very successful at the moment, such as MAC Apple products, it has

created its own standardization and its unique segmental strategies with

different environments and cultures, they also mastered a key point in

customized satisfaction for consumer return for upgrade products and

indirectly increase its royalty from the world.

Finally, marketplaces will be developing to the end but marketing will keep

advancing in different strategies and tactics. While that time, marketers may

be very limited and all mutual cooperation with each others.

 BIBLIOGRAPHY

> Gordan. F, 1997. Marketing psychology, London: Licensing Agency,

Johnny K. J, 2003. Global marketing: foreign entry, local marketing&

global management, New York: McGraw-Hill/Irwin.

> Sherry, F. and Mette, S., 2010, Internal marketing as a change

management tool: A case study in re-branding. JOURNAL of Marketing

Communications, Vol.16 No.5 Dec 2010, page 325- 345.

> Toyne and Brian, 1989. Global marketing management, Massachusetts:

Simon & Schuster.