Domestic Consumer Predispositions: Ethnocentrism and Disidentification - Assignment Example

?   Topics Discussed in       Topics Discussed in This essay will include my key contributions to the discussion topics all through the semester. In addition, the essay will incorporate a brief description of was covered by the presenters, how I contributed as well as some of the external resources I had studied as background for my contribution. The essay will look at the following topics; the physical global marketing environment; domestic consumer predispositions: ethnocentrism and disidentification; segmentation, targeting and positioning; and global market entry strategies. The Physical Global Marketing Environment The presenters asserted that there are a number of physical forces which can have a significant effect on the ability of an organization to undertake business activities in global markets. In their view, physical forces, such as technological restraints may make it demanding or even not possible to develop a significant international market. For instance, a number of developing nations contain such primitive storage and transportation systems that make global distributions inadequate or at times, impossible. The presenters made this claims when they were explaining the scenario using food as an example. This is because food is frequently damaged by the time it reaches the destination of business in particular nations (Jensen & Hansen 2006, p. 443). In addition, according to them, this fact can be compounded with lack of adequate sewer systems and unclean water. I made a contribution to this topic by asserting that exporters in the United States should be informed that particular technological disparities have an impact on the nature of exportable products. For instance, internet and computer utilization in a number of developing nations may be nonexistent or extremely thin. Also, homes in numerous developing nations do not contain electrical systems that are identical to those of homes in the United States in capacity or kind. The external source indicates that when organizing global market activities, the probable effects of the physical forces should be taken into consideration. According to the source, it is the physical global marketing environment that can affect the success of a business. In addition, the physical global marketing environment has an impact on the economic and political activities, models cultural components, for example, religion and language, and determines transportation, usage of land, and commercial flows. Domestic Consumer Predispositions: Ethnocentrism and Disidentification The presenters argued that clients’ local bias is a significant determinant of behaviour of domestic product purchase. In their view, consumer ethnocentrism explains customers’ leaning to prefer local commodities and stay away from foreign commodities. They also argued that marketing managers and researchers examine degrees of consumer ethnocentrism to determine the degree of local biases in the business environment. They also argued that consumer disidentification has a tremendous effect on purchasing choices beyond and above the effect of consumer ethnocentrism. In my argument, I highlighted that components, for example, ethnic identification and acculturation are significant indicators of both consumer disidentification and consumer ethnocentrism. In addition, I explained that businesses could evaluate the degree of consumer disidentification as part of their continuous tracking studies to determine the degree of consumer disidentification in their local market to attain specified insights into regional disparities in consumer disidentification levels. Such details could be employed to signify whether the national origin of the commodity should be marketed in the respective areas (Shankarmahesh 2006, p. 153). The external resource emphasizes that consumer disidentification may be traced by domestic organizations that attempt to understand consumer disidentification and want to safeguard their markets against escalating global competition. Also, the resource explains that elevated levels of consumer ethnocentrism in the local market place help develop barriers to entry that safeguard local organizations from the rivalry of overseas businesses. It concludes by asserting that organizations should resolutely assess consumer disidentification degrees in foreign markets to detect and target consumer populations with elevated degrees of consumer disidentification (Josiassen 2011, p. 130). Segmentation, Targeting and Positioning The presenters explained that in order for a business to be efficient and effective it should first seek out the target client market. They argued that the three foremost elements to look at when settling on the target market include market segmentation, targeting, and positioning. In their view, market segmentation entails categorizing the different clients into groups that have identical needs or will react identically to market action. They also explained that after segmenting the market on the basis of different classes and groups, there is need to select the targets. Finally, they argued that positioning entails developing a brand image and product in the minds of customers. In segmentation, I explained that each unit will react to a different marketing mix plan, with each providing different profit and growth opportunities. In targeting, I explained that not singe strategy will be fitting to all customer groups, so it is essential to develop specified strategies for the target market. In positioning, I clarified that it could include enhancing a client’s view about the experience they will have if they choose to buy an organization’s service or product. The external resource highlights several ways of segmenting the market, for example, through geographical location, demographics, behaviour, and psychographics. It also illustrates the different strategies of choosing the target markets, for example, through multi-segment targeting, undifferentiated targeting, concentrated targeting. Finally, it explains that adequate positioning entails a proper understanding of rival commodities and gains being sought by the target market (Kotler & Keller 2005, p. 67). Global Market Entry Strategies The presenters covered direct exporting and franchising as global market entry strategies. They explained direct exporting entails the direct selling of products into an identified market using in the initial instance personal resources. They explained franchising was common in North America and that it works adequately for organizations that contain a business model, for example, food outlets, which can be moved into other areas in an easy manner (Clottey, Collier & Stodnick 2008, p. 46). I explained licensing and partnering as other global market entry strategies. Licensing is a relatively high-level arrangement where an organization transfers its rights to the use of service or product to a different organization. Partnering is a specifically significant strategy in markets where the culture is dissimilar from that of the organization. The external resource explains that licenses may be for production or marketing. It also explained that partnering is significant as partners provide contacts, local market knowledge, and clients (Chang & Chieng 2006, p. 930). References Chang, P, & Chieng, M 2006, Building consumer-brand relationship: a cross-cultural experience view, Psychology & Marketing, vol. 23, no. 11, pp. 927-959. Clottey, TA, Collier, DA, & Stodnick, M 2008, Drivers of customer loyalty in a retail store environment, Journal of Service Science, vol. 1, no. 1, pp. 35-48. Jensen, JM, & Hansen, T 2006, An empirical examination of brand loyalty, Journal of Product & Brand Management, vol. 15, no. 7, pp. 442–449. Josiassen, A 2011, Consumer disidentification and its effects on domestic product purchases: an empirical investigation in the netherlands, Journal of Marketing, Vol. 75, No. 2, pp. 124-140. Kotler, P, & Keller, KL 2005, Marketing management (12th ed.), Prentice-Hall, New Jersey. Shankarmahesh, MN 2006, Consumer ethnocentrism: an integrative review of its antecedents and consequences, International Marketing Review, vol. 23, no. 2, pp. 146-172. Read More