Cause marketing costs - Essay Example

CAUSE MARKETING COSTS The contemporary business environment has pushed firms to put strategic measures to maximize profits. This comes with emphasis on the multidimensional business practices outlined in the different industries. In respect of the cost minimization; most companies seek the concept of comparative advantage by decentralizing value creation activities. It is now common to see companies setting geographically dispersed value creation centers and setting up a global marketing network (Cullen & Parboteeah, 2014).

This has significantly helped in sustainable profit yields. However, there are emerging issues even as multinational companies seek to maximize profits. Corporate social responsibility, international labor law, ethical issues and level competitive ground are the realities that companies have to address.Owing to the relatively tight competition in different industries, for-profit companies have to embrace non-price competitive strategies. Reconciling the increasing cost of production and profit margin explains the redefinition of value chain process.

The source of the product does not matter in the current society as long as the brand is known. The companies are majoring on marketing and brand quality. Exploiting technology differences, labor and input factor cost variations across countries has become useful in surviving by the companies(Cullen & Parboteeah, 2014). Public image of the company is closely related to its product brand and this can be evidenced in the market size scramble by firms of the same products like Nike, Puma and Adidas among others in the sports and apparel industry.

It can therefore be noted that globalization has restructured the socio-economic and political behavior of people which is reflected in the companies’ competitive trend and consumer preferencesReferencesCullen, J. B., & Parboteeah, K. P. (2014). Multinational management: A strategic approach. Mason, OH: South-Western Cengage Learning.