Effects of globalisation on marketing planning process with examples
The process of rising social and cultural interconnectedness, political interdependence and financial, economic and market integrations which are affected by advancement in communication and transportation technologies along with liberalisation of trade is referred to as globalisation. There have been dramatic changes brought up by the process of globalisation or an integrated global economy across the entire world. Globalisation has far reaching effects on different facets of life especially marketing planning by the companies. Companies like IBM, Philips and Microsoft are outsourcing specialists from different regions of the world. This is resulting in job shifts and structures of the companies globally. Although globalisation has led to increased market opportunities in the world, there has been significant rise in threats as well. Therefore, based on these two major effects, significant changes in business marketing strategies have been bought up by people all across the world.
Globalisation has resulted in the increased market opportunities worldwide. This implies that there has been increase in the potential of the market, rise in the investment and trade along with an easy access to resources after globalisation. A huge development in the IT sector with elimination of investment and trade barriers, deregulation of policies related to trade and investment have provided immense opportunities to all the firms which are seeking international markets for their businesses. With the increase of opportunities there has been a shift in the process of marketing planning by the companies worldwide. Companies can now access markets with cheaper costs by shifting their markets to different places where they can access resources by paying less amount of money. Further, there has been increase in the efficiency of market transactions due to globalisation. Undoubtedly, many economic sectors have seen rapid growth due to the introduction of new opportunities in the entire world.
The business practices have seen a huge shift due to globalisation. Companies like IBM, Intel, Philips and Microsoft are not just outsourcing from different regions of the world but have also started to form alliances with other firms e.g. (Ford-Mazda, GM-Ford DaimlerChrysler, NUPI-Chevron Texaco, BP-Mobil and GM-Honda and star alliances). As far as different forms of business restructuring is concerned, alliance formation is regarded as the most remarkable market trend in the world.
With the expansion of markets and audiences as a result of globalisation, the completion between different businesses has also increased. When the businesses are in competition, there is a great pressure on the production team for generating a product which can stand out in the market. Presently, consumers are becoming increasingly aware of the different choices of the products they have in the market. Further, the various means through which best products can be searched are also becoming targeted and help the consumers to easily choose the appropriate one from the irrelevant ones. For instance, if a company wants their permanent labor certification advertisements to stand out in the market, they would have to be creative in their approach. Moreover, the message should be able to reach to right people in a rapid and direct way.
When we are talking of globalisation, it’s impossible to not think of technology as one of the affected aspects in the marketing planning. The process of exchanging information instantaneously among people all around the world is facilitated by the technology. The companies need to have updated softwares in order to successfully market their products due to increasing development in technology. This puts additional cost on the companies. However, the companies need not worry in this aspect as every company can choose an appropriate means of technology according to their needs and relevance and can make cost-effective decisions. The process of globalisation has made the companies extremely efficient both internally as well as externally by facilitating easy exchange of information through internet. Therefore, consumers are more likely to expect higher efficiency upon interacting with different companies. The kind of work done by people all around the world has also been impacted by the process of globalisation. The conventional processes of marketing and promoting the products have transformed to advanced ways of promoting the products through websites, social media, advertisements and print media. For example- There has been a shift in the way IBM and other leaders in technology show interaction with frontier markets because of the movement of advanced technologies to the cloud. If we consider IBM before globalisation, natural language interface and Watson’s system of cognitive learning was not available to, for instance, an African ministry which was involved in the process of enhancing collection of tax. However, due to global economy, migration of Watson along with other technologies to the cloud has been made cheaper by IBM. This has ensured the clients of emerging markets to successfully access the technology irrespective of the low intellectual property protection in the country of the client.
There has been evolution in the hiring of employers for marketing planning due to globalisation. Earlier, all individuals need to be present in the same place for carrying out the decisions related to marketing of services provided by the company. However, with globalisation the different employees involved in the marketing planning sector of a company can work remotely from different countries also. This has enhanced the efficiency of the workforce needed for marketing planning. Moreover, it enhances the perspectives towards different marketing strategies for effective production and selling of products.
In the area of tourism, globalisation has left substantial impacts in the marketing planning process of the sector. As a result of globalized market, it has become possible for people all across the world to travel study and live abroad. Globalisation has made foreign places more accessible for tourism and travel industry. This can be best explained by the example of Indian aviation market which grew to around 28% in the year 2005-2006 due to globalisation. The same year recorded a global average of around 5.9%. There are several airlines in India whose business boosted significantly due to globalisation including Jet airways, Kingfisher Airlines and SpiceJet etc.
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