Globalization of Markets Definition and Effects
Global marketing is much more than selling a product internationally. In fact, global marketing refers to the entire process of planning, producing, placing and even promoting a company’s products in a market which encompasses the world. A Global Market makes companies stateless and without walls. The internet is an integral tool in this market.
Benefits of Global Marketing
If done right, global marketing can have many benefits. Let’s take a look at some of them.
- Global marketing is great for improving the effectiveness of the service or product your company offers. The more you grow, the more you learn which makes your company better at producing new products as well as services.
- Your competitive advantage increases with global marketing. Many companies find it easy to compete in the local market. However, there are few companies who find it easy to compete in the global market. Competing in the global market makes you a strong force in the industry your business falls into.
- Competing in the Global Market helps increase awareness of your brand as well as your product. Any businessman worth his salt knows that brand and product awareness is invaluable.
- Competing in the Global Market increases your savings and reduces your costs. This comes from attaining economies of scale and range by standardizing your process by focusing on other markets.
Globalization of Markets Definition
Globalization of markets is a term which combines the selling of goods and services with the promotion in an integrated global economy which is increasingly interdependent.
The Stock Market
The Stock Market is a representation of the State of the Globalization of Markets. This is because stock prices rise as well as fall based on the news that a product or service is doing well or not in different parts of the world.
The four Ps of marketing (product, price, place, and promotion) are huge challenges when looking at them from a global perspective. Keeping domestic and international marketing messages the same doesn’t translate well to different markets. An example of this is when Colgate marketed Cue toothpaste in France. Colgate failed to do enough research on the name as Cue is an infamous porn magazine.
The Success of Globalization
The success of globalization can be seen when looking at companies who have done it right. Korean electronics behemoth LG Electronics has succeeded where many have failed by tailoring its global approach to the conditions of the country it operates in. LG's success comes from maintaining a balancing act with three dimensions. LG's success can be attributed to their large scale manufacturing operations, R&D leadership in as well as satellite R&D centers in major markets and a sales approach which is locally customized. Focusing on a single one of these dimensions would not give LG the success it enjoys.
Many companies like LG have discovered that they need to go beyond the basics of high quality, low cost and differentiation if they would like to excel in the global market today.
Globalization is inevitable. In fact, there aren’t many industries which are untouched by global competitive forces. Language, culture, and people present obstacles when it comes to globalization and will ensure that the process won’t be easy. However, it is inevitable that integration between people, countries, governments, cultures and so on will happen which will impact all industries. Different industries will be impacted in different ways. However, the takeaway is that there will be no industry which will stay untouched by the global market.
As already mentioned, no industry will stay untouched by globalization. However, businesses which fail to adapt will be left behind.