Convergence and Divergence in Consumer Behaviour - Assignment Example

? Topics Discussed in Topics Discussed in My Own Research One element of globalisation is the convergence of income, technology and media. New-fangled technology would lead to homogenisation of consumer needs since consumers were expected to fancy standard products of low price, but high quality. Disappearing income differences, as well as converging technology across nations, will not bring about the homogenisation of consumer behaviour. Instead of this, consumer behavior will turn into a more heterogeneous factor owing to cultural differences (Chan & Hwang, 2009, 30). As consumer earnings converge across nations, the manifestation of value differences will turn into a much stronger factor than expected. This happening makes it increasingly significant to comprehend values of nationwide cultures along with their impact on consumer behaviours and action. Retailing plans for one nation cannot be extended to other nations without adaptation. During my own research, I focused more on the convergence and divergence in consumer behaviour. Basically, a firm has to come up with sells techniques that meet with the limitations of their consumers in a particular market. For instance, when setting the price of a commodity, it is vital for a firm to ensure that the commodity is priced according to the consumer it targets. This means that factors such as consumer income or needs will dictate how much an asset could be priced by an organisation. Presenter 1: Main Arguments Marketers should endeavour to abide by each and every country’s regulations and laws. They should also make efforts to keep up with the regulations and laws, which change frequently and, finally, clarify ambiguous regulations, which concern their activities (Stock & Lambert, 2008, 35). Presenter 1 basically focused on the socio-economic, political, legal and regulatory environments that concern a business. According to presenter 1, the socio-economic, political, legal and regulatory factors that concern a business basically comprise of the political environment, a nation’s sovereignty, democracy, totalitarianism among others. The political environment, as expected, is made up of governmental institutions along with the manning political parties (Mooij, 2004, 98). The presenter advises that a firm has to buy into a nation’s political beliefs in order to be able to venture into that country. The presenter also goes further to argue that a country regime is the one that decides whether a firm will invest in their nation or not, and; therefore, the importance of a firm to be accepted by the regime. Presenter 2: Main Arguments Before a firm start to sell its products, they should come up with a well planned technique of delivering their services or goods to their target market, as well as a proper way of distributing them there (Lymbersky, 2008, 23). Since presenter 2 was dealing with international market entry strategy, he referred to this as establishing, as well as managing/maintaining contracts with foreign nations. Basically, the presenter thinks that a majority of companies successfully conduct their activities in a niche market devoid of ever expanding into fresh markets. However, businesses attain success or increased sales, business stability and brand awareness through entering a new market. Therefore, a key technique should be devised for helping firms incorporate themselves into new markets. Forming a market entry strategy concerns a methodical analysis of possible customers, as well as potential competitors (Stock & Lambert, 2008, 36). A number of the relevant factors, according to the presenter, which are significant in deciding the possibility of entry into a specific market comprise of localised knowledge, trade barriers, competition and price localisation along with export subsidies. The presenter advises that if a firm is aware of these factors, then they stand a chance of venturing into a new market effectively. My Contribution to Topic 1 Even though, the physical environment is not regarded as one of the major elements of the SLEPT factors, otherwise referred to as the socials factors that affect a business’s success, it is an environment, which can affect a business’s success in exports. Therefore, it needs to be well thought-out. In my research, I focused mainly on the physical global marketing environment. I feel that if businesses need to incorporate themselves fully into the worldwide market, then they should seek to understand every social aspect of the region they want to venture into so as for this to take place. A nation’s territorial size, natural resources, geographical location, climate, lakes, rivers, as well as forests, make up its physical environment (Janssen, 2004, 555). The physical environment persuades both economic and political activities, shapes traditional characteristics, such as religion and language, and determines transportation, commercial and land usage flows. During my research, I discovered that when strategising for international marketing proceedings, the likely impact of the physical environment must take into account various factors. For instance, a firm should be aware that population distribution is affected by topography (that is a nation’s mountains, rivers, and deserts among others), as well as climate. Individuals are more inclined to settle where the climate is moderate and where there is a sufficient supply of water. Therefore, such information could help a firm decide where they should settle in case they want to venture in a particular nation. This will at least help them settle in regions where incorporating themselves to the nation’s citizens will not be such a hard task (Lymbersky, 2008, 27). My Contribution to Topic 2 When it comes to socio-economic, political, legal and regulatory environments, a marketer should be essentially aware of these factors in order for him or her to incorporate a business fully into that market (Aliber, 2007, 44). A marketer should make a foreign regime believe that a firm is cultured to their political beliefs in order for them to venture into that nation. A firm should bear in mind that a country’s law and regulations are a serious threat to their venture. For instance, if a government considers that a good is by any means harmful to their citizens, then the firm cannot venture into that country. The significant point of my contribution is that marketers should understand the marketing environment so as able to make the correct or good decisions. Transformations in the marketing environment (such as socio-economic, political, legal and regulatory environments) might create threats or opportunities either by influencing markets or directly affecting marketing actions and activities. References Aliber, W 2007, Readings in international business: A decision approach, MIT Press, Cambridge, Massachusetts. Chan, W & Hwang, P 2009, 'Global strategy and multinationals’ entry mode choice', Journal of International Business Studies vol. 23, no. 1, pp. 29-53. Janssen, M 2004, 'On durable goods markets with entry and adverse selection', Canadian Journal of Economics vol. 37, no. 3, pp. 552-589. Lymbersky, C 2008, Market Entry Strategies, Management Laboratory Press, Hamburg. Mooij, D M 2004, 'Convergence and divergence in consumer behaviour: implications for global advertising', International Journal of Advertising vol. 22, no: 2, pp.183-202. Stock, J R & Lambert, D M 2008, 'Physical Distribution Management in International Marketing', International Marketing Review vol. 1 no. 1, pp. 28-41. Read More