International Global Marketing - Essay Example

International Global marketing International and global marketing Introduction Global marketing involve the marketing activities organized and integrated across borders to exchange offerings of value. In global marketing, firms have to compete in the international markets to defend their domestic markets while keeping up with global competitors. This requires a wide knowledge of other countries cultures and economies as well as knowledge of how the global economy works. In order to navigate the global economy, companies and management require environmental competence where the expertise required is on knowledge of the world’s economy, major national markets, political, social and cultural environments. International marketing enables consumers from all over the world to get a wide variety of goods and services at a lower price. The wake of globalization has been spearheaded by many factors all around the world; the internet use has made the world a global village where consumers and producers can interact easily from all over the world. Trade barriers have been taken down by most countries to aid in lower costs for good, free trade and free flow of the labour market from one country to another. Innovations and inventions have also helped in the transportation of good and services over long distances. Culture encompasses the traditions of a society passed from one generation to another. The roles and influence of cultures have been evolving with globalization as more world economies are becoming intertwined. Culture influences global marketing whereby international marketers have to understand a society in order to satisfy their needs (Gillespie & Hennessey, 2011).Economic factors deal with national or international economic developments that have a direct influence on supplier and consumer markets all over the world. Mergers and acquisitions A merger is a term that refers to the consolidation of two companies and an acquisition is the buying of a company by another.A mergerleads to a new company being formed while in an acquisition no new company is formed. A merger or acquisition can have a significant effect on the prospective growth of a company. There are various reasons why companies are involved in mergers and acquisitions, these reasons include; increasing the size of the company, it may take years to build a company top a respectable size enough to compete with its rivals, a merger or acquisition achieves this more rapidly. A merger during a recession is also profitable to companies in order to grab a bigger share of the market and increase profits. Pre-empting competition involves a company forming a merger or an acquisition with another company with an attractive portfolio of assets before a rival company can do the same. This increases competition between companies’. An economy of scale also occurs when two companies merge or form an acquisition. Companies exploit the economies of scale when companies with similar businesses combine, as they can eliminate or consolidate and duplicate resources like regional offices, manufacturing facilities, research projects among others. The money saved is then used to boost the earnings and expands the market share for all companies. Mergers and acquisitions are becoming a big more popular inthe international arena due to the tax purposes. Some countries have a higher corporate tax rates than others. Therefore to reduce the taxation bills, international companies opt to acquire or merge with smaller foreign competitor companies and move their merged entity’s tax home overseas to a lower-tax jurisdiction. The market reaction to the mergers will highly influence the company’s future growth and profitability. Foreign investments are highly boosted from international mergers and acquisitions. Various benefits also accrue from these international mergers and acquisitions to the firms, Cross border mergers and acquisitions are effective in boosting FDI (Foreign Direct Investment). International investors find it easier to invest through a merger or an acquisition because they provide an easy access to infrastructure and a ready customer base in a foreign country building a company from the groundwould provedifficult. Moreover an already existing brand name provides a strong business edge and easy access to local markets.  International mergers and acquisitions are a way for international firms to tap into the markets of the developing countries that are adopting liberal economic policieswhich are a big incentive to firms in the developed nations. On the other hand, the developing countries benefit from these international mergers and acquisitions through access to improved technologies and more productive operational mechanisms. Regulatory restrictions exist to act as impediments with the adoption of economic reforms by many countries in the 20th century. These rules and regulation lay down procedures and penalties involved in mergers and acquisitions. These rules and regulations have opened up opportunities with different countries inviting foreign investors and international mergers and acquisitions to their economies. The main advantages involved in international mergers and acquisitions therefore include a quicker way of growth, access to new markets, improving operating margins and profits, and taking on global competition among others. This trend is the future of international marketing that are serious in acquiring and improving international brands as well as developing new products. Employment Global marketing has accelerated over the years as new technologies have reduced the transportation and transaction costs, tariffs and other man-made barriers to international trade have been lowered. The prices of goods, job patterns, and wages all over have been affected by the relocation of some components of international supply chains. International marketing is changing the structure of individual economies within different groups in countries differently. There is redistribution of employment opportunities and incomes in advanced economies. The educated workers enjoy more opportunities than workers with less education that face a decline in employment prospects and stagnant incomes. International marketing has opened up equal opportunities to persons all over the world with the required qualifications to get employment.The challenge for these international companies is to find a place in the rapidly changing global economy that helps it retain its dynamics and openness while providing all persons with a rewarding employment opportunities and a reasonable degree of equity. Global outsourcing also known as offshoring of workers has been described as inevitable process by which market economies prosper. Global outsourcing involves sending some work overseas to specialized firms. The purpose of outsourcing is to escape unions while taking advantage of low-cost labor in other regions, or tapping the greater expertise and efficiencies of large contractors.Multinational companies growth depend on the export markets hence a shift of work to factories or contractors’ offshore still creates lots of new jobs globally. Outsourcing helps companies stay competitive while still creating new employment opportunities and the consumers enjoy a wider variety of goods. As the global economy continues to merge and become more inter-dependent, graduates from international school programs are in great demand. Jobs for qualified international persons have increased in number due to the multicultural and multiple language capabilities of the persons in the job market and the expected fact that there may be need to travel to other economic areas around the world. Some companies like the marketing companies, finance consulting firms, and nonprofit organizations hire internationally qualified personnel for their expertisein multicultural or for their specialized training. International business clients also create employment opportunities for people that have specialized in various areas of, business plan development, emerging new markets, and operations and supply chain management among others. Some sectors have created more employment opportunities while others have led to unemployment due to the use of labor saving technology. With this trend governments must urgently develop a long-term policy to address the distributional effects and their structural foundations in order to restore competitiveness and growth to their economy. Global advertising Advertising must be done on a country to country basis keeping in mind the countries language and culture. A multinational company may approach one other multinational company in order to handle its advertising needs all over the world or it may approach different advertising firm in various countries.in keeping up with global trends, a multinational company will approach an international firm for its international advertising in keeping up with a consistent advertising approach worldwide. Global advertising is also being done in international platforms with high international spillovers like airport billboards andMedias in satellite broadcasting and telecommunication providers. International marketers have to overcome the global advertising challenges that come in form of national advertising rules and regulations in different states, distinctive national trends and language problems and translations resulting from the different cultures, and absence of certain Medias in some countries (Porter, 1986). Global advertising has taken the platforms of social media like Facebook, Twitter, and LinkedIn among others. This platform has seen a series of technological innovations that has facilitated inexpensive content creations and interactions by online users. These social interactions have led to three distinct causes that are; a greater accessibility through the worldwide web, increase in the value of production and interactions, and the power shift from the producers to the consumers. In global advertising, the use of social media is dependent on the networking capability of the company and personal extensibilities of the users (Okazaki &Taylor 2013). Global marketing is set to be influenced by the interactivity of social media on a one-on-one interaction between the companies and consumers byusing network formation, information exchange, the similarities and differences in the use of the social media across different cultures in the world. Social media is positioned as a tool of GIMC(Globally Integrated Marketing Communications) that influences firms to employ global advertising and employ online advertising across borders therefore companies must have a broad understanding of the effects of social media Global advertising is being aided even in developing countries use of social media and increasing adoption of smartphones. Data-driven strategies and technique in marketing has been seen to extend the reach of marketing principles that are essential in the marketing and advertising sector. In content marketing, the companies have to come up with more engaging contents that are distributed to the consumers in order to ensure optimization. Language Language has been said to be the biggest key to any culture.Themost important consideration when developing international marketing campaignsis language because differences in languages have significant impacts on how products are received and used in a market, its brand name and the advertising campaign.The level and nature of education vary in international markets, this impact on the type of message and the mediums used to pass along the message. An international company will require a good interpreter to help with the extremely complex differences occurring between countries and across different regions. The best interpreters are people who grew up in the target market because they are more adept at recognizing potential issues than translators who learnt a second language. In countries with a common language there is a level of standardization as compared to another country with different cultures varying due to different language. Universities have introduced International graduate programmes where the level of education is standardized; this gives students from different countries and background an added advantage in competing in the global market. different languages have been introduced into the school’s curriculum to help the students manage the different international clienteles in the outside world thus the language barrier is slowly being taken down as the world becomes a global village where communication is highly enhanced with little chances of miscommunication. Crossing the language barrier allows the business to grow and expand the customer base and increase revenue. This is done by first understanding the culture of the country with the target market. The right message will gain valuable brand recognition. This can be done by translating the products, the advertisement and the company’s website to multiple languages in order to give the company a competitive edge. Conclusion There are various factors affecting the global market including political, legal, economic, social, Technological and environmental factors. All these impact a firm whether internally or externally and are a major influence in the decision making of any firm in the global market. Global marketing is of importance to countries and individuals, the markets and industries are becoming globalized and this depends on the skills of the management. The effects of globalization include the increase in demand for the goods and services at a larger scale. Companies must identify and particular characteristics of each country where it competes and set up marketing policies accordingly. There are significant opportunities for the international marketing firms in the emerging economies. There is untapped potential and open markets for the international market. Firms in international marketing have created employment opportunities and helped different governments put in place policies and regulations in regards to the international trade. The international market and its influence have in most cases influenced the world in a positive manner. Reference list Gillespie, K., & Hennessey, H. D. (2011). Global marketing. Australia, South-Western Cengage Learning. Okazaki S.,& Taylor C.R. (2013). Social media and international advertising: Theoretical challenges and future directions. International Marketing Review. 30 (1), 56-71. Porter, M. E. (1986). Competition in global industries. Boston, Harvard Business School Press. Read More