The Benefits and Challenges of Working With the Global Market
The global market is defined as “marketing on a worldwide scale reconciling or taking into account worldwide operational differences, similarities and opportunities in order to reach globally agreed upon objectives.” Global marketing takes the four Ps of traditional marketing — product, price, place, and promotion — and expands them across national borders. It involves researching, planning, executing, and controlling the development, production, distribution and sale of a product or service to a global customer base.
The most commonly cited benefits of working with the global market are expanded revenue, increased profits, and decreased business costs. However, entering a new marketplace can also bring about challenges that can inhibit long-term success.
Globalization creates a powerful and irreversible force that can change consumer preferences. Technology allows for instant communication, faster travel and transportation, and lower cost to produce standardized products at global proportions. Even small local market segments that were previously protected from outside competition now feel the forces of globalization reshaping their preference patterns.
As a result, corporations must either adapt to these new economic realities or be decimated by them. The successful global corporation does not abjure customization or differentiation for the requirements of markets that differ in their product preferences, spending patterns, shopping habits, and institutional or legal arrangements. But it recognizes that the only meaningful distinction between the world’s many market segments is at their margins, and it searches for sales opportunities in these marginal areas to gain a competitive edge.
In addition, companies that work with the global marketplace are more likely to thrive during economic uncertainty. If one market suffers, a company’s success in other countries can offset losses. The broader talent pool that comes with international operations also provides more options for workforce management. Companies can hire candidates with different skills sets and experience, and offer more room for salary negotiations.
Another benefit of working with the global marketplace is gaining access to lower-cost raw materials and superior technological processes that reduce long-term business expenses. This can make a significant difference to a business’s bottom line, especially in the beginning stages of development when initial investment is highest.
When launching a new product into the global marketplace, a business must be flexible enough to modify its advertising campaigns to fit the cultural values of the new markets it is targeting. For example, a burger restaurant may have to replace beef with vegetarian cutlets in India because cows are sacred animals in that country’s culture. This flexibility can prove challenging for some businesses and may halt the company’s growth in foreign markets. However, with time and the right resources, a company can overcome these hurdles. Global market research is essential to a company’s success in the modern economy.
The global market is defined as “marketing on a worldwide scale reconciling or taking into account worldwide operational differences, similarities and opportunities in order to reach globally agreed upon objectives.” Global marketing takes the four Ps of traditional marketing — product, price, place, and promotion — and expands them across national borders. It involves researching, planning, executing, and controlling the development, production, distribution and sale of a product or service to a global customer base. The most commonly cited benefits of working with the global market are expanded revenue, increased profits, and decreased business costs. However, entering a new marketplace can also bring about challenges that can inhibit long-term success. Globalization creates a powerful and irreversible force that can change consumer preferences. Technology allows for instant communication, faster travel and transportation, and lower cost to produce standardized products at global proportions. Even small local market segments that were previously protected from outside competition now feel the forces of globalization reshaping their preference patterns. As a result, corporations must either adapt to these new economic realities or be decimated by them. The successful global corporation does not abjure customization or differentiation for the requirements of markets that differ in their product preferences, spending patterns, shopping habits, and institutional or legal arrangements. But it recognizes that the only meaningful distinction between the world’s many market segments is at their margins, and it searches for sales opportunities in these marginal areas to gain a competitive edge. In addition, companies that work with the global marketplace are more likely to thrive during economic uncertainty. If one market suffers, a company’s success in other countries can offset losses. The broader talent pool that comes with international operations also provides more options for workforce management. Companies can hire candidates with different skills sets and experience, and offer more room for salary negotiations. Another benefit of working with the global marketplace is gaining access to lower-cost raw materials and superior technological processes that reduce long-term business expenses. This can make a significant difference to a business’s bottom line, especially in the beginning stages of development when initial investment is highest. When launching a new product into the global marketplace, a business must be flexible enough to modify its advertising campaigns to fit the cultural values of the new markets it is targeting. For example, a burger restaurant may have to replace beef with vegetarian cutlets in India because cows are sacred animals in that country’s culture. This flexibility can prove challenging for some businesses and may halt the company’s growth in foreign markets. However, with time and the right resources, a company can overcome these hurdles. Global market research is essential to a company’s success in the modern economy.