Change in Trends, Economic, Political and Legal Environment for Marketing - Assignment Example

?REFLECTIVE The business environment is changing dramatically with the passage of time. Globalization has changed the industry practices being followed in the past. Companies are coming up with strategies and innovation to market the products and penetrate in the global markets (Keegan and Green, 2012). After studying this course I developed an understanding that the physical global marketing environment holds significant importance for the marketers today. The intense competition in the industry and strive to maximize cost efficiency and gain competitive advantage have motivated the marketers to understand the varying cultures (Keegan and Green, 2012). I had no idea that understanding the change in trends, economic environment, political and legal environment is significantly important for marketing. In economies where the culture varies, the marketers have to come up with new and innovative strategies to increase demand. The marketing strategies are built on the basis of understanding the economic environment of a society which comprise of factors like demographics, culture, political & legal environment and the technological advancements to which the people have adapted to. Globalization has increased competition and the barriers have been removed. This in turn has brought changes in the institutional environment and has brought a significant effect on the marketers and their strategies (Griffith, 2010). In this globalizing world the marketer must make an attempt to understand the laws and regulation of the economies they are engaging in business with. They must respect the culture of the people so that effective marketing can be done. Understanding the people must be the primary objective of the marketer. The political condition and stability of an economy may be subject to change. This may change a few laws and regulations of the economy. The stability of the company may be tested under these varying conditions. I studied that the management and the marketers design their strategies in accordance to the political stability/instability in an economy. Sovereignty, political risk, taxes etc. are major concerns for the investors and hence are also of significant importance to the marketers while forming strategies (Shenkar, 2004). The political risk in the economy, the hikes in taxes expected if any and the jurisdiction are part of the economic environments. A socio economic society is dominated by the social norms and cultures which have been developed by the residents of the society (Shenkar, 2004). This gave me knowledge of interrelation of the entire factor and their growing significant importance as the world is becoming a global village. Hofstede proposed various theories to signify the importance of culture. He also identified certain traits of the individuals of the society. He argued that it is very important that the varying culture of the economies must be studied. Hofstede’s dimension of cultural relationship is based on five factors which are power distance, individualist, masculine & feminine cultures, uncertainty avoidance and long term orientation. The study of this model gives a clear understanding and classification of culture. The understanding that was developed by the marketers was that culture is the biggest factor which determines the success or failure of the product. This model is related to nature and time and the significant impact of globalizing has increased its use (De Mooij & Hofstede, 2002). While studying this concept I developed an understanding that Market segmentation is the process of grouping various customers into segments which have similar needs. The responses of the individuals are also similar in this segment. The responses of the segments vary with the changing situation. The segmentation can be carried out on the basis of Demographics, Psychographics, Geographical location etc. similarly targeting is dividing the market into various groups and classes. Positioning is the process of developing an image of the product for the customer (Viswanathan & Dickson, 2007). Before studying this course I was unaware that the marketers focus in such depth in creating value for the product. The classification of the customers on the basis of their taste and preferences was a unique concept which was delivered to me. During the study I found that the companies constantly conduct surveys and analyze the customers buying behavior to assess their preferences. The chapter related to global market entry strategy explains in detail the need to enter in a market. The solid market entry decision is the most integral part of globalization. It influences the businesses in designing properly the marketing mix decisions. The global marketers have to make decisions regarding the steps which they make while entering in the markets. This includes the selection of products in a particular market. Similarly the goals which the management of the company sets to be achieved must be kept in mind attract the target customers. This also includes the mode of entry and the time for entry, the marketing mix plan designs a control system that is balanced and appropriate (Katsikeas, Samiee, & Theodosiou, 2006). All the companies are looking to minimize cost. For this they outsource manufacturing function to places where production is cheaper. Higher imports and exports are also being promoted. This requires proper licensing, franchising, and contract manufacturing which can also be referred to as outsourcing and expanding the company through joint ventures. This reduces the cost and helps the company in penetrating into different economies. The penetration can be by acquiring new or subsidiaries companies which will improve the mere existence of the company. A strategic alliance must be formed internally and externally. The management and the employees must work together to achieve the external goals of the company. This can be done by improving the quality of the product along with its cost effectiveness. In the similar manner the criteria and timing for entering in a new industry are very important to be assessed (Shenkar, 2004). All the concepts which have been discussed in this essay have enhanced my skills. It has taught me the importance of globalization and diversification. Culture has a significant impact on the taste and preferences of the people so the strategies which the marketers have to form must be aligned in such a way. I also developed an understanding and impact of the changing laws and the strategies which help a company to penetrate in global markets. LIST OF REFERENCES De Mooij, M., & Hofstede, G. (2002). Convergence and divergence in consumer behavior: implications for international retailing. Journal of retailing, vol. 78, no. 1, pp. 61-69. Griffith, D. A. (2010). Understanding multi-level institutional convergence effects on international market segments and global marketing strategy. Journal of World Business, vol. 45, no. 1, pp. 59-67. Katsikeas, C. S., Samiee, S., & Theodosiou, M. (2006). Strategy fit and performance consequences of international marketing standardization. Strategic management journal, vol. 27, no. 9, pp. 867-890. Keegan W. J. and Green M. C., (2012). Global Marketing, 7th Edition, New Jersey: Prentice Hall International Shenkar, O. (2004). One more time: International business in a global economy. Journal of International Business Studies, vol. 35, no. 2, pp. 161-171. Viswanathan, N. K., & Dickson, P. R. (2007). The fundamentals of standardizing global marketing strategy. International Marketing Review, vol. 24, no. 1, pp. 46-63. Read More