Globalization of Markets and Competition through International Professional Marketing
International professional marketing is the byproduct of the global acceptance of international trade which makes the globe one huge market. Global trade continues to grow in scale due to several reasons. One of the biggest fuels of globalization is technological advancement. Improved communication and transportation has made trade more practical than ever. Access to the very best products from all around the globe now has almost no limits. The rapidly changing technology has also forged strict competition between firms as to which is fastest in developing and producing the newest in technology.
Countries in the past decades have all taken several steps t promote global trade through various trade agreements such as the General Treaty on Trade and Tariffs, and trade organizations such as the World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), and the European Union (EU) as a means of accommodating the realities of an economy gearing towards one global market.
Stages in the International Involvement of a Firm based on International Professional Marketing
A firm may go through several stages before it becomes fully able to compete across local boarders and into the international scene. A business generally starts as a purely domestic firm, focusing full attention on its home market and has no current plans of offshore expansion and does not consider any material threats from abroad. Such firm may eventually receive orders from abroad. Such orders may be seen under two different lights. First, the firm may see them as a hustle especially in the case of small orders because of the great deal of effort and expenses required in relation to the very modest related revenue. Second, the firm may see them as new opportunities, realizing that potential to expand and enter the foreign markets exists.
The firm that possesses the second view will eventually begin to export more and more. It soon fully enters the export stage where little effort is made to market the product overseas, although the number of offshore orders continues to increase.
The firm may then opt to enter more countries sequentially, with the aim of establishing a network of markets over a geographical group of countries. The firm can begin with the country from which the most overseas orders come and start developing the products popularity there. Little learning and marketing efforts are going to be shared among countries and the firm will likely have branch offices or subsidiaries focused only on the market of the country in which they are located.
The firm upon reaching the multinational stage will then engage in standardization across a certain region such as Central America, West Africa, or Northern Europe to make its activities and processes simpler and easier. Developing a standa rd marketing mix that will work for a certain group of countries is likely to generate more revenues through greatly decreased costs. Such marketing mix can be made possible with international professional marketing.
The firm upon multinational success will eventually reach the global stage wherein all focus centers on the entire World Market. Decisions will be made with the aim of optimizing the products position across the global market as a whole. The home country as the center of the product completely becomes a thing of the past. An example of a truly global company that makes use of international professional company is Coca Cola.
These stages demonstrate the growth from a fully local point of operations to a completely global scale. The journey is not easy and companies may fall in between these stages, get stuck in one stage or even fall back to one of the stages it has already passed. Certain parts of the firm may possess the characteristics of differe nt stages such as the pickup truck division of an auto-manufacturer may be largely domestically focused, while the passenger car division is globally focused. A global focus is generally fitting for large companies, but such may not be the case for smaller companies as some hindrances may prove to be too big to conquer. For example, manufacturers of ice cubes may do well as domestic, or even locally centered, firms.
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