Globlization and Marketing
Globalization of marketing is an interesting phenomenon the world has been going through this process of change towards increasing economic, financial, social, cultural, political, market, and environmental interdependence among nations. Globalization brings about a borderless world. Globalization drives people to change their ways of living, change their ways of conducting business. Global market Is one of the most attractive developments for all centuries.
Its impact on economic transactions, processes, institutions, and players Is dramatic and wide ranging. It establishes behavior and requires different mindsets. Globalization of markets Involves the growing interdependency among multinational nature of sourcing, manufacturing, trading, and Investment actively; Increasing frequency of cross- border transactions and financing; and heightened Intensity of competently among a larger number of players.
Development of new technologies and the new products also contributes to the globalization of markets. Globalization of markets Is best reflected in the “internationalization” of Business transactions. Five dimension of the globalization of markets. First is the nature of manufacturing and sourcing activities, business activity flows freely to places best equipped to perform it most economically and efficiently. This is especially apparent in the case of the service industry.
Second competition for customers and markets has intensified significantly as a result of globalization. Whereas only a handful of multinational companies dominated international trade a couple of decades ago, today companies from all parts of the world are participating in worldwide business. Companies from practically every nation are racing for positions in various industries. Third the much of international business activity was in the form of export-import and foreign direct investment.
Today, transactions are varied and more complex: contract manufacturing, franchise operations, countertenor, turnkey construction, technology transfers, international strategic alliances, and more. Fourth technology spreads freely and rapidly between markets and players. Technological leadership does not provide advantage for very long. Companies must capitalize on their discoveries quickly, before others match them. Fifth taking financing activity has become worldwide as well. Businesses finance their growth and expansion through international capital markets.
As such, they are able to take advantage of varying interest rates and currency markets by tapping a wide variety of funding sources. Globalization and marketing cooperation Among the various types of cooperative arrangements mentioned, co-marketing alliances are the focus of this dissertation since they are considered a specific type of strategic alliances whose scope Is Limited to marketing actively. They Involve the coordination of one or more aspects of marketing ranging from research and placement to production which is central to most types of strategic alliances.
Coordinating marketing activities to achieve superior marketing performance in terms of sales, market share and profitability is the fundamental task of most industries in which huge investments attain. As a result, there has been an increasing trend towards more marketing cooperation among competitors in this global marketing. The most fundamental lesson from the globalization of markets is that the education and skills of the work force and managers will end up being the dominant competitive.