Concept of Globalisation
According to Robertson (2012), globalisation of markets originated the most interesting development of this era. Moreover, it has great influence on the organisation, monetary relations and developments, although it faces many challenges in the development of norms & behaviour and needs of different types of mindsets. It can provide opportunities to the well-organised participants in order to be practical and active while executing their part. In addition, it involves with the financial prudence of the world, trade, global sourcing, developing, and growing of cross-border transactions and investment which highlighted the competition on the large scale. Additionally, BrandenBURG & De Wit (2015) specified that it develops the transportation and communication technologies which help in the economic growth globally and having new technologies; products also assist in the development of globalisation of markets. As globalisation of markets is the greatest imitated in the “internationalisation” in any business transaction, which means that it carry one or more facets of business in an international environment. The transaction may contain foreign financiers, partner and technology may initiate from an overseas partner and so on.
Concept of International Marketing
Nowadays organisations are quite keen to comprehend the core concept of international marketing through which they can get the maximum benefit by executing it for their business expansion (Olson et al., 2005). Moreover, it is crucial from the prospect of an association that their planning and controlling should be accurate and done very precisely because these activities are vibrant in day to day process and it preserves an approach in order to direct an organisation substantially. Furthermore; plans should be lithe enough while coping with the indecision which is unavoidable for business in an international market (Palmatier et al., 2006).
According to Ramani & Kumar (2008) international marketing is an attribute to that particular marketing, which achieve through overseas companies. Moreover, this policy considering different techniques of expansions that often used by large scale firm. It has the stable level of marketing follows across the border which includes entry mode selection, market identification, marketing mix and planned decisions to contend in international markets. It is noted that international marketing is the international process in executing and planning the concepts, giving different ideas, promotion, pricing, good and better services to satisfy organisations and individuals needs properly (Berthon et al., 2012).
Facets of Globalisation that Impact International Marketing
Impact of Technological Factor on International Marketing
According to Zhou et al (2005), communication plays vital role in international marketing, it helps the organisation to enhance their business values, develop relations ,make strong and effective firm and let people learn about each other. Technologies like mobile, social media, internet helps the company to communicate with the client in order to build customer relationship. This new type of technologies brings the changes in media landscape and messaging decision organisation. Yalcinkaya et al (2007) stated that nowadays people get connected with each other through computers and phones which provide much information; through this they may collect more information about their product. Furthermore, Facebook, Twitter, LinkedIn and Pinterest make communication much easier and because of this work environment has been change. Moreover, Swaminathan and Moorman (2009) said that the money used by organisation on various types of communications changes as the media landscape changes .If companies have developed their products they should communicate their customer in order to get desired output.
It is noted that from the study of Douglas and Craig (2006) that technology plays a vital role in the process of driving the international marketing strategies properly. Moreover, most of the large scale businesses are quite keen to adopt all possible technological changes within the association that would help them to implement their marketing strategies in a more accurate manner. However, with the help of effective planning an organisation can easily found the effective measures through which they can easily execute their activities without any disruption and problems. Berthon et al (2012) stated that it is vital from the perspective of a firm to take effective measures that assist them to utilise the current technological advancement that support them to get the competitive advantages over their competitors through effective marketing. Furthermore, the implementation of technologies require lot of exertions for the reason that organisation have to consider different factors that might influence their marketing activities in a pessimistic manner. It is observed that nowadays organisations are very focus towards the expansion of their businesses that’s why they often consider new technologies in order to accomplish their long term goals and targets.
Impact of Economic Factor on International Marketing
It is analysed from the research study of Kiss & Danis (2012) that the economic condition of the market influences the offer and the manner in which the product is presented in front of target customers. For the purpose of international marketing, the economics in relation to the target market and the international economy impacts the strategy of marketing. It is noticed that local economy has the potential to impact the manner in which customers are approached but on the other hand, international economic framework limits the ability of the organisation to manufacture and distribute the products by regulatory and cost constraints. Covin & Miller (2014) argued that there are different factors of the economy that influences the international marketing strategy. These include currency exchange rates, shipping, tariffs, and others due to which the price and costs of the products are influenced. For instance, if the price of the product is higher in the international market in comparison to the local products then the organisation would have to target the market segment of luxury goods.
Douglas & Samuel Craig (2011) stated that international marketing of the organisation can also be influenced by the production activities. It is perceived that production must be done locally so that cost can be minimised and impact of the global economic factors on the operations can be controlled. Moreover, the stability of the financial institutions is also the major global economic factor that can influence international marketing. According to Budeva & Mullen (2014), many of the organisations need to invest huge amount on international marketing for which it is vital for them to evaluate the stability of the financial institutions of the countries. This is because they might need to take loan from the banks or other institutions to support their international marketing strategy. Therefore, the economic stability of the country in relation to financial institutions is very important for the organisations that focus on utilising international marketing strategies.
Sheth and Sharma (2005) indicated in his research study that international marketing activities are impacted widely by some of the global economic factors such as income, population, infrastructures, consumption pattern, foreign investments, and geography. The population growth rate serves for estimation and active population is the source of labour that is needed by the company. Moreover, Aspelund et al (2007) argued that in order to operate substantially in the international market, the companies also need to evaluate purchasing power of individuals which is the function of prices, income, savings, and credit. With the help of income, the companies can evaluate the market development which serves as the basis of targeting consumers. Based on this, it is evaluated that economic facet of the globalisation has massive impact on the international marketing because it involves determining the income and cost of the business in different parts of the world.
Impact of Cultural Factor on International Marketing
Styles and Seymour (2006) stated that global cultural and social factors influence the views of behaviour of customers as well as the fluctuation that is present between cultural factors in different areas of the world. This could serve as the original condition for improving and functioning international marketing strategies. It is noticed that cultural and social factors are connected together frequently. Culture basically includes language, tradition, beliefs, lifestyle and others. All of these factors have influence on the marketing strategies of the businesses that are operating in the international marketing. Vrontis et al (2009) further specified that cultural features are diverse in different countries due to which the organisations would have to amend their marketing strategy based on the requirements of the cultural facet of the country. This means that international marketing strategy of the company would be different all over the world.
It is analysed from the study of Czinkota and Ronkainen (2005) that values and attitudes of the individuals vary between nations, which makes it significant for the business to grab the locality in the country before entering the market. For instance, China banned the television commercial of Nike in which US star was taken as the celebrity. This demonstrates that the company would have to modify their marketing strategy based on the values and attitudes of the people in the nation. Moreover, Luostarinen and Gabrielsson (2006) argued that religion is also one of the important aspects of culture in terms of globalisation that impacts international marketing strategy. People prefer to see the advertisements that focuses on their beliefs and traditions, which demonstrates that the business would have to make sure that the marketing strategy used is based on the religious aspects of the nation and is not diverse. Therefore, the multinational organisations such as Nike, Coca-Cola, and others have to ensure that they consider cultural facets of the countries when adopting international marketing strategy. This is important to target the market effectively and to increase the brand position globally.
Brannen & Piekkari (2014) argued that language is the vital part of cultural identity due to which its role cannot be ignored in the international marketing. The process of marketing is based on communication which depends on the language, therefore, the marketer has to ensure that they have strong grasp of language of the countries globally. This is important because it is the means of reaching the wider target market effectively. The multinational organisations have to ensure that language is understood importantly by the people in which the product is being marketed.
Impact of Political Factor on International Marketing
It is noted that there is a strong impact of a political element on an international marketing of organisations that are operating globally. For that reason, it is vital from the prospect of an association to consider this factor quite closely at the time of formulating their marketing strategies for the reason that it would help them to execute their plans in a more appropriate manner. Sousa & Filipe Lages (2011) recognised that these days, organisations invest an adequate amount of resources in order to assess the overall environment where they are looking to expand their business activities. It is noted that the international marketing activities require the extensive amount of resources that’s why businesses are quite focused at the time of promoting their product internationally. In addition, with the help of effective planning firms can easily manage their activities that assist them to cope with the challenging situation in an efficient manner.
According to López-Duarte & Vidal-Suárez (2010), the unstable political environment always creates problems for an organisation to perform their operations easily that is why firms evaluate the political environment of their target market in order to remain safe from all sorts of economic loss. However, it is a prior duty of the R&D department of an association to consider each & every aspect of a country’s political environment because this is the best way through which an organisation can remain stable and competitive. Elsayed & Hoque (2010) observed that it is imperative from the prospect of an organisation that they should comply with the legal requirements of that particular country as per their law because it bounds them to execute their operations as per their local law. It is found that in most of the countries their higher officials are keen to promote their local firms and encourage them to execute their operations vigorously. On the other hand, they impose strict tariff policies on foreign firms in order to restrict their operations to some extent that would them to boost their local firms to some extent.
It has been observed that the government arrangements, political soundness, trading strategies, administrative bodies, and laws different from nation to nation and thus it gets to be obligatory to implement a few changes in the marketing research approach. According to Covin & Miller (2014) in Japan the legislature has fixed individual information security by setting a few commitments for companies who manage individual information of people, for example, name, and address, date of birth, phone numbers as well as email addresses. In addition, these organisations need to determine why this information are being utilised and should take consent from people before utilising their information for whatever other reason.
It can be concluded that there is a strong impact of different facets of globalisation on an international marketing of an association because it influence their activities in both positive and negative manner. For that reason, the organisations often considered these facts at the time of implementing their marketing activities specifically in the international market for the reason that it helps them to remain safe and secure from all sorts of financial and other losses.
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