Advantages
The advantages of global market
include:
·
Economies of scale in production and
distribution
·
Lower marketing costs
·
Power and scope
·
Consistency in brand image
·
Ability to leverage good ideas quickly and
efficiently
·
Uniformity of marketing practices
·
Helps to establish relationships outside of the
"political arena"
·
Helps to encourage ancillary industries to be
set up to cater for the needs of the global player
Benefits
of Marketing over traditional marketing
Reach
The nature of the internet means
businesses now have a truly global reach. While traditional media costs limit
this kind of reach to huge multinationals, Marketing opens up new avenues for
smaller businesses, on a much smaller budget, to access potential consumers
from all over the world.
Scope
Internet marketing allows the
marketer to reach consumers in a wide range of ways and enables them to offer a
wide range of products and services. Marketing includes, among other things,
information management, public relations, customer service and sales. With the
range of new technologies becoming available all the time, this scope can only
grow.
Interactivity
Whereas traditional marketing is
largely about getting a brand’s message out there, Marketing facilitates
conversations between companies and consumers. With a two way communication
channel, companies can feed off of the responses of their consumers, making
them more dynamic and adaptive.
Immediacy
Internet marketing is able to, in
ways never before imagined, provide an immediate impact. Imagine you’re reading
your favorite magazine. You see a double-page advert for some new product or
service, maybe BMW’s latest luxury sedan or Apple’s latest iPod offering. With
this kind of traditional media, it’s not that easy for you, the consumer, to
take the step from hearing about a product to actual acquisition. With Marketing,
it’s easy to make that step as simple as possible, meaning that within a few
short clicks you could have booked a test drive or ordered the iPod. And all of
this can happen regardless of normal office hours. Effectively, Internet
marketing makes business hours 24 hours per day, seven days per week for every
week of the year. By closing the gap between providing information and
eliciting a consumer reaction, the consumer’s buying cycle is sped up.
Demographics and targeting
Generally speaking, the
demographics of the Internet are a marketer’s dream. Internet users, considered
as a group, have greater buying power and could perhaps be considered as a
population group skewed towards the middle-classes. Buying power is not all
though. The nature of the Internet is such that its users will tend to organize
themselves into far more focused groupings. Savvy marketers who know where to
look can quite easily find access to the niche markets they wish to target.
Marketing messages are most effective when they are presented directly to the
audience most likely to be interested. The Internet creates the perfect
environment for niche marketing to targeted groups.
The youth is an example of a
global demographic. In particular, teenagers share common characteristics even
if they are from different cultures and nations. This youth market generally
has more money to spend and is affluent. However, this market is difficult to
target because they are always one step ahead – they are more aware of
marketing tactics and are very cynical. They are trendsetters that define
themselves in opposition to the establishment. Since the youth market is
growing, it would benefit the company to target them, as it would bring in more
revenue. Youths are also highly active on social media and in the recent years,
many advertising campaigns have gone viral through social media. With the
constant flow of media and information, brands continue to increase their
awareness, and increase consumer consumption. Targeting the youth market is
beneficial because they are more open-minded, have international contacts, and
travel more.
Cross cultural negotiation
The dimensions of culture, such
as power distance, the context of the culture and the local work ethic is an
area of marketing and social science that is closely related to Global
marketing. The ability to discern cultural differences through initial assessment
of another market is considered a critical enabler to progress in Global
marketing.
When a company can advertise
effectively to its foreign markets, it brings benefits to both sides. The
company gains more revenue and relations, and the foreign markets have access
to better products and services. Through the five cultural dimensions, reveals
how cultures are different and value different things. Typically, the west is
different from the rest. The west typically values individualism, high need for
autonomy, modernity, and a more explicit use of sexuality whereas eastern
values include family oriented, respect for elderly, submission to authority,
traditional collectivism, and Confucianism. When designing an advertisement,
cultural value differences must be considered to be effective since advertising
campaigns do not work the same way in different countries.
Adaptivity and closed loop marketing
Closed Loop Marketing requires
the constant measurement and analysis of the results of marketing initiatives.
By continuously tracking the response and effectiveness of a campaign, the
marketer can be far more dynamic in adapting to consumers’ wants and needs.
With Marketing, responses can be analyzed in real-time and campaigns can be
tweaked continuously. Combined with the immediacy of the Internet as a medium,
this means that there’s minimal advertising spend wasted on less than effective
campaigns. Maximum marketing efficiency from Marketing creates new
opportunities to seize strategic competitive advantages. The combination of all
these factors results in an improved and ultimately, more customers, happier
customers and an improved bottom line.
Disadvantages
·
Differences in consumer needs, wants, and usage
patterns for products
·
Differences in consumer response to marketing
mix elements
·
Differences in brand and product development and
the competitive environment
·
Differences in the legal environment, some of
which may conflict with those of the home market
·
Differences in the institutions available, some
of which may call for the creation of entirely new ones (e.g. infrastructure)
·
Differences in administrative procedures
·
Differences in product placement.
·
Differences in the administrative procedures and
product placement can occur
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