Identify the major trends that have influenced world trade and global marketing - Term Paper Example

Major trends that have influenced world trade and global marketing International trade amongst countries increases standard of living inside the countries since resources are used more competently and a larger selection of items exist. Although this form of trade is going for centuries, certain countries in certain period of time have imposed restrictions on this international trade. That is, these nations due to one reason or other will actualize a protectionist regime, thereby blocking foreign companies to enter and do business in their territory.

However, with the advent of globalization and the liberalization of the WTO regimes, the major trend is this protectionist regime gave away to the regime of free trade. Many countries have opened up their economies as part of Free Trade and is having an impact on the global economy. The main strength of Free Trade is that, it puts forward the notion that minimalistic state role or intervention resulted in better economy and importantly better society. Free trade proposes that human well-being can best be advanced by liberating individual entrepreneurial freedoms and skills within an institutional framework characterized by strong private property rights, free markets, and importantly free trade (Harvey 2).

From earlier times, many Third World countries including Asian and African countries only indulged in agriculture for their livelihood. However, globalization and the opening up their markets as Free Trade regimes, these countries and their governments started to focus on industrial development, by improving their own industries and importantly by facilitating entry of foreign companies. They enticed the foreign companies with a slew of beneficial financial and social schemes. Foreign firms for their part optimally invested tapping the existing cheap labor and other resources, thereby garnering for themselves good profits.

Importantly, a sizeable portion of good profits reached the local employees, thereby improving their economic standing and also optimizing country’s economy. Apart from this major trend of globalization, another major trend that is influencing global marketing is the concept of green marketing. Marketing’s traditional axiom so far has been “give customers what they want” and “sell as much as you can” (Ottman, Stafford and Hartman 2006). However, in today’s business environment, sustainability is the key word with natural environment given clear importance along with the business motives.

Another trend is that of consumer knowledge increase with regards to impact of products and processes on their health, the environment and the overall well being of the world as a whole. Thus global marketing efforts should be aimed at redirecting the human needs and wants towards those consumptions that are environment friendly. This can be done by arriving at the right combination of the 3C’s of green marketing, which are as follows (Ottman, Stafford and Hartman 2006). Consumer value positioning - The products should be able to perform at least equal to if not better than the current non-green products.

The companies need to understand the consumer-desired value of the product and produce accordingly to target the relevant market segment. For example, organic food should be targeted towards health conscious customers who are not very price conscious.Calibration of consumer knowledge- This requires educating the consumers about the consumer desired features in the green products. For example, pesticide-free food is healthy and energy-efficient products save money. Use the internet and television extensively to promote consumer-value features of the green products to enhance their knowledge and hence switch over from non-environment friendly products.

Credibility of product claims – This can be done by ensuring that the consumer benefit claims of the green product are backed by substantial data. Certifications from trustworthy third parties should be used to promote the authenticity of the benefit claims which should be publicized with meaning of those certificates. Endorsements from such parties when publicized with importance of such endorsements help in gaining trust among the consumers and influencing their preferences towards the green products.

ReferencesHarvey, D (2005). A Brief History of Neoliberalism. New York: Oxford University Press. Ottman, A, Staffor, E.R and Hartman, C.L. (2006). Green Marketing Myopia. Heldref Publications.