How Globalization is Affecting International Marketing Activities
Globalization is influencing how goods are marketed in the world. Some companies are adopting a global strategy that applies promotional themes and messages that are similar in selling the same product around the globe. Such companies reduce their marketing and production costs by standardizing the physical characteristics of their goods, and also through their marketing strategy. In other companies, the physical properties of their products need to be altered to suit the changing customer preferences from one country to another. Different consumers in different markets in the world require items that suit their political, economic, legal, and cultural requirements. Specific cultures only use particular products. Standardization of products is necessary for countries with a similar level of development in the economy.
Elements of the National Business Environment that Influence the Decision of Standardization versus Adaptation
- Laws and regulations in the target market
- Cultural differences
- National image
- Counterfeit products
- The life cycle of the product
Factors influencing the Choice between a Push Strategy and a Pull Strategy
A pull strategy is an approach of promotion that is designed to create a buyer demand for encouraging members of a channel to stock products from a particular company. On the other hand, a push strategy is intended to pressure members of a specific channel to take a product and promote it to end-users. The factors that influence the choice between these two strategies are characteristics of the distribution channel, the level of the channel’s access to the mass media, and the type of the product.
Issues That Affect the Decision on If to Standardize, or Adopt International Advertising
The main reason why advertising should be adapted to suit markets in foreign countries is the variations in cultural practices. However, companies advertising in different markets have to evaluate the aspects of the advertising campaign that should be standardized across different countries, and those that cannot be standardized. Business corporates that standardize their adverts seem to have control campaigns from their main office.
Difference between Worldwide Pricing and Dual Pricing
In worldwide pricing, a single selling price of a particular product is set for all markets across the globe. On the contrary, in dual pricing, one specific product has a different selling price in the home market and a different selling price in the export market. Typically, the amount in export countries is higher because of the costs incurred in exporting the products, as well as the fluctuation of currency.
How Price Controls and Dumping Affect the Pricing Decisions of International Companies
Price controls are defined as the lower or upper limits of prices placed on particular products in a country. Upper limit prices restrict businesses from raising the costs of the product above a given price level. On the other hand, lower limit price controls help companies from competitor businesses that may lower their products to beat out the competition.