Advantages of Global Marketing

Advantages of Global Marketing Globalisation To define the key processes for globalisation, a number of issues exist in order to clearly define the different perspectives of globalisation (e.g. Neoliberal, Counter-hegemonic etc) and the particular branch (e.g. economic, cultural etc). Globalisation itself is the process facilitating the international operation of financial and investment markets mostly due to deregulation and improved communications. Fischer (2003) proposes the ongoing process of greater interdependence among countries and their citizens. Harris defines globalisation as an economic process increasing the internationalism of production and distribution of goods and services whereas Friedman defines it as that loose combination of free trade agreements, the Internet and the integration of financial markets that is erasing borders and uniting the world into a single, lucrative, but brutally competitive marketplace (cited in Datta-Ray et al., 2008). Dicken (2011) proposes 4 parallel processes; localisation -concentration of economic activities with varying degrees of functional integration, internationalisation -the dispersion of economic activities across national boundaries with low levels of functional integration, globalisation demonstrating geographical spread and a high degree of functional integration regionalisation- same but slightly less widely dispersed. Global jobs refer to posts held by knowledge workers-a concept coined by Drucker (cited in Wartzman, 2014) to mean an individual employed in the task of developing or using knowledge. Drucker further clarified this by defining them as those who work differently than those of an industrial and agricultural age cerebrally rather than physically involved. Today, the roles are no longer mutually exclusive however, as those physically involved, may well contribute significant knowledge. The question can be asked as to whether companies should act as if there is a single market motivated by the same demands, or should they account for local or cultural differences when developing or marketing the cultures they serve? Globalisation is more than administering to foreign markets from a single corporate HQ. It is the globalization of the HQ itself, with different senior corporate functions being located in many parts of the world. By achieving this, the company in effect becomes local mimicking the behaviour of an indigenous company because key corporate decisions are made within the countrys borders even though those decisions have global impact. A company truly becomes global when it mimics a local company in as many different countries as it can. The possibilities of entering the global market require serious research and investment in order to produce successful results. Jones (2016) pointed out that many organisations have neither the proficiency nor the required strategic contacts in order to commence the global marketing process and concluded that there were advantages in the hiring of intermediary companies to act as representatives. Griffith (2013) outlined necessary management skills namely planned and improvisational decision making and soft skills which enhance the decision process-essential owing to the dynamic nature of the global markets. Delaney (2016) listed 4 advantages of global marketing-(a) Cost reduction and savings from an increasingly expanding market that strives to remain competitive. This is largely reliant on communications advances with multimedia and international broadband internet input, (b) Improved product and service effectiveness largely also due to significantly improved communications and multi-media awareness, (c) stronger competitive advantage compared to the number of firms that as of yet have failed to embrace globalisation and (d) heightened customer awareness regarding the global phenomena where customers can monitor the progress of their delivery. Additionally, negotiations with an increasingly diverse clientele generates significantly valuable experience in global trade. According to Neveling et al. (2014), ethics plays a key role on Chinese society, however ethics in business is relatively new territory, driven by reflections on economic reform, tradition and the influence of both Marxist philosophy foreign business ethics. China has a poor reputation in this filed with numerous examples e.g. when Toyota discovered a Chinese manufacturer using their logo on its cars, litigation ruled against Toyota when in the eyes of the court, the Toyota brand was not recognised in China. Subsequently, China is becoming a target for international litigation resulting in threats of sanctions. China has relented and is improving as a result. Neveling et al. (2014) also discussed the Chinese requirement for technology leading to increased multinational business transactions. The Chinese market is viewed with caution regarding breach of patents and theft, however the size of the market has acted as a deterrent for withdrawal by global corporations. References Datta-Ray, B., Deb, B., Sengupta, K. (2008). Globalization and North East India. New Delhi: Concept Pub. Co. in collaboration with North East India Council of Social Science Research. Delaney, L. (2016, September 28). Why Develop a Global Marketing Strategy? Retrieved March 28, 2017, from https://www.thebalance.com/why-develop-global-marketing-1953314 Dicken, P. (2015). Global shift: mapping the changing contours of the world economy. New York: The Guilford Press. Fischer, S., (2003). Globalization and its challenges. The American Economic Review 93.2 (May 2003): 1. Griffith, D., Hoppner, J., (2013). Global marketing managers. International Marketing Review30.1 (2013): 21-41. Jones, C. (2016, June 20). Globalisation is a reality but are we ready for it? Retrieved March 28, 2017, from https://www.fenews.co.uk/featured-article/globalisation-is-a-reality-but-are-we-ready-for-it-12194 Neveling, A., Malan, D., Yortt, A., (2014). Globalisation and its influence on ethical decision-making in business: China and intellectual property. African Journal of Business Ethics. 8(1). doi:10.15249/8-1-17 Wartzman, R. (2014). What Peter Drucker Knew About 2020. Retrieved March 28, 2017, from https://hbr.org/2014/10/what-peter-drucker-knew-about-2020