Globalization and International Marketing

Introduction

Globalization is refers to a process in which enhance the interaction among people, companies and government of different nationalities through integrating their economic, financial, trade and communicational capabilities. As a result, those distinct world economies are converged in to one huge integrated and interdependent world economy

With the emergence of globalization and as a result of diminishing trade and investment barriers, the domestic businesses got opportunities to spread their business throughout the world by entering to much larger international markets, in the form of international, multinational, transnational and as global corporations. And that’s where the concern of international marketing emerged. The efficiency and effectiveness in the international marketing strategies could enhanced through advanced communication such as social media and promotion by emails and transportation technologies where marketers can use logistic services such as DHL and FedEx, by mobility of finance in transactions could support using PayPal American express, visa and etc.

When consider about the globalizations’ impact towards international marketing its essential to give priority to some concepts. Globalization of production, standardisation vs. adaptation, financial risks,

Globalization of production    

In the phase of creating the customer value, where the international marketers need to concern on producing goods and services, globalization of production helps the production with by procuring high quality resources from various locations throughout the globe and advance technology in the world could use in the manufacturing process of the products. In order to lower the cost structures, improve the product qualities and improve the functionality of the products and services in a way in which it gives the competitive advantage to the organization. Ex- just-in –time production system used by the most manufacturing organizations today, where it’s founded by the Toyota.  

Standardization vs. adaptation  

Standardization is the primary motive of the globalization where the convergence of consumer taste and markets are emphasised in context of cross border which result in international organizations to  gain advantages in economies of scale by introducing and mass producing standardized products, pricing, distribution and communication throughout the world. Ex- Mercedes-Benz, Rolex watches; where they use standardized products and marketing mix strategies through all over the world to response the homogeneous human need of luxuriousness or the classiness.

Opposing the concept standardization there is the concept adaptation. this concept can be considered argument against globalization where the differences in cultures, perceptions and structures in different countries are taken in to the consideration and address the world more sophisticatedly. Here the marketers use differentiated marketing mix strategies to different marketing segments and make it more familiar to the host nature. This approach can be identified as a localization approach where it create, capture, deliver and communicate customer value by adjusting in to the cultural differences, language, national differences to consideration. Ex- McDonald’s where they use adaptation strategies to products, price and promotion according to the differences in various countries.