Business Studies

Review the “Global Environment for Marketing” study material. In your own words, explain the concept of globalization as it relates to marketing. Describe two benefits of globalization for an organization focused on both local and global growth. Support your ideas by citing the study materials. In replies to peers, provide feedback on the benefits they provided and include additional benefits that have not already been discussed.
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ANSWER

Global Environment for Marketing

Introduction

Globalization is the increased interdependence of the world which generates international influence and operations at an international scale. The increase in globalization has impacted business marketing campaigns. Globalization has widened B2B marketing and offered an opportunity to boost brand awareness, develop markets and increase sales (Payonk, Lyashenko, and Kvilinskyi, 2015). Globalized marketing demands companies to understand the consumer needs in different target countries and build a global marketing mix in which price, place, product, and promotion are focused on a specific country’s need.

The concept of globalization in marketing entails the general marketing framework which a global enterprise adopts to introduce, design, promote, distribute and maintain its products globally (Payonk, Lyashenko, and Kvilinskyi, 2015). The global marketing dimensions include the nature of branding and labeling, product design, brand name, and advertising strategy for each target country. For each dimension, the organization has to choose the extent of customization and standardization. For instance, an advertising strategy has to be standardized or customized for every country.

Benefits of Globalization

Globalization allows organizations to tap into larger markets. Ideally, business participation in global markets allows internationalization and transfer of business activities into various geographic meridians, which boosts the market growth. Global markets have enabled the organization to focus on mass consumer products to find suppliers from various locations globally. This has enabled them to lower the overall costs and improve the functionality and quality of their product offering to effectively compete (Erixon, 2018). Organizations can access larger customer bases which means that they have larger volumes of sales and growth rate. Market share growth has been linked to lower labor costs, easy access to resources, and unsaturated demand. Market growth is vital for the long-term survival of a business. With access to a larger market, it is easier for businesses to acquire assets, fund investment, and attract new talent. This greatly drives profit and business performance due to the ability to operate on greater scales and increase profitability. With better access to the global market, organizations can increase their market share, thus dominating their industry. With great dominance over the industry, the organization can exercise various powers, such as greater bargaining power. The company will enjoy an upper hand where it can begin negotiating with distributors and suppliers.

Globalization increases the wide talent pool for an organization which means that they can utilize the skillset to improve the efficiency and growth of the business. Ideally, globalization leads to new markets that allow organizations to find new and specialized talent. One of the biggest benefits of hiring global talent is the increased diversity. Integrating the global talent skills in the organization eliminates the old ideas and leads to new procedures and processes that lead to development and growth (Ristovska and Ristovska, 2014). The diverse workforce will have various benefits such as creativity, productivity, profits, reputation, employee engagement, and cultural insights. Mixing the various backgrounds enables an organization to innovate ideas due to group thinking, leading to total market reach within the organization. A wider talent pool has proven increased productivity, higher return, and creativity from the diverse workforce.

Conclusion

Globalization has enabled organizations to develop a marketing mix considering global operational similarities, differences, and opportunities to reach global objectives. Organizations have adjusted marketing strategies to adopt the conditions of other markets. Globalization of business has led to changes and benefits that have led to growth and development due to large market share and wide talent pool, increasing capital output and productivity.

References

Erixon, F. (2018). The economic benefits of globalization for business and consumers. European Centre for International Political Economy.

Payonk, K., Lyashenko, V., & Kvilinskyi, O. (2015). Operation of a business entity in the context of globalization. Экономический вестник Донбасса, (4 (42)).

Ristovska, K., & Ristovska, A. (2014). The impact of globalization on the business. Economic analysis, 47(3-4), 83-89.