Marketing in the Global Economy

Making the decision to expand a small business can be a difficult decision for any business owner. Competition amongst small businesses within the United States can prove to be debilitating for many businesses due to various factors at any given time. The United States holds less than 5% of the entire world population; therefore, 96% of consumers live outside of the United States. At a recent international trade symposium held in Washington D.C., the Small Business Administration emphasized that today 's global markets present both challenges and opportunities. "In the global economy of the 21st century, our competition is not just the firm down the road. Our competition

A firm 's international marketing program must generally be modified and adapted to foreign markets. This international marketing program uses strategies to accomplish its marketing goals. Within each foreign nation, the firm is likely to find a combination of marketing environment and target markets that are different from those of its own home country and other foreign countries. It is important that in international marketing, product, pricing, distribution and promotional strategies be adapted accordingly. In order for an international firm to function properly, cultural, social, economic, and legal forces within the country must be clearly understood.

Each country is a different market, with its own language, buying habits, ways of living, mores, business methods, marketing traditions, and laws. So instead of trying to organize new agencies with American personnel, most U.S. agencies purchase a majority. However, U.S agencies are not locked into the differences, because through global marketing, all of people’s needs around the world will be same toward U.S products sold abroad. Global consumer culture also depends upon global media to create a sense of global identify and memory without which any cultural identity is incomplete (Smith 1991).

In order to provide effective anti-virus protection VMTEC Sys must think globally. With cyber crime on the rise, no country should be overlooked as the next viable source of a computer virus (Muncaster, 2009). Because China has the most economic opportunities and presents the greatest threat to the personal and small business computer VMTECH Sys has identified a strategic need to establish a research and development division to be physically located in China. This research paper will analyze and review the economic opportunities and threats that VMTECH R&D can expect to encounter as well as other market conditions which will affect the operations of a division located within China.

1. Many U.S. firms do exceedingly well in the global arena. Which of the following organizations is considered to be the U.S. leader with global revenues approximated at $285 billion annually? (Points: 1)

The continued accelerating pace of change in globalization is forcing an entirely new level of emphasis on individualized, highly targeted marketing across the many regions and countries of the world. Global marketing today must contend with a wider array of constraints, both economic and cultural, that as ever been the case in the past (Gupta, 2003). These constraints fuel a high level of creativity and focus on how to overcome cultural and economic constraints through rapid product development lifecycles, exceptional levels of supply chain integration (Wu, 2011) and greater focus on relationship market over just selling with a transaction mindset alone (Hansen, 2008). The pros and cons of globalization of form the foundation of today's highly competitive global marketing arena, forcing many companies to be more focused on the strategic and long-range over the tactical while compensation for a rapidly changing cultural mix of factors (Osland, 2003). The pros and cons of globalization are evaluated and the unique factors of global marketing also analyzed.

The progress of humanity and human beings can be attributed to one important factor and that is the strong capability of human beings to understand and adapt to cultural differences. Respecting cultural differences has brought the human beings close together and has tied them in a strong bond. The conquering of the cultural differences has also introduced us to a new terminology, global economy, which is a global system of production, distribution and consumption. The world has become a singular unit because the pace of economic development has accelerated due to an increase in marketing not only at a local level, but also at a global level. Global

The original formula for Red Bull was developed in 1964; however, the Red Bull company was not founded until 1984 after a merger between Dietrich Mateschitz, marketing guru, and Chaleo Yoovidhya, the owner of the Red Bull formula. Categorized as an energy drink, Red Bull was initially designed to “treat jet lag and boost energy for truck drivers” (Hollensen, 2012). In today's era, Red Bull is commonly used as an energy drink; like coffee, and as a mixer in alcoholic drinks, like Red Bull Wings and the Jägerbomb. This aligns with the company's focus on the younger generations of partygoers and post-secondary students.

Global strategy is considered as a detailed plan on how an organization or a firm can be successful marketing its products or services at global level to enhance business growth, and increase profit margin (Lynch, 2014).

Nowadays people always argue should we use the same standard for worldwide or using different strategies for different countries in the modern world.

Gone are the days where marketers focused on company-focused messaging. Now, businesses must cater fully to their audience.

Firstly, even though Starbucks has explored the Chinese coffee market and attracted many long-term customers, it is far away from enough. As you may know, the tea-drinking culture has been lasted over several thousand years. Moreover, there are a lot of products about tea in high-class, mid-class and low-class market. It is hard for Starbucks to enter the China market. As a result, Starbucks targeted the middle class market, especially the young people. In details, this kind of people contains some students, overseas returnees, foreigners, and white-collar employees. Due to the narrow range of customers, Starbucks limited herself to become more popular in China. Besides, the Chinese traditional tea drinking culture affects Starbucks expansion. Since China has 56 nations and huge size of land, there are different drinking styles in China. For example, the people in the north of China prefer to drink tea using bowl and drink fast, while the people from south are keen on drinking Gongfu tea and drink slowly. That’s why it is difficult for Starbucks to attract all kind of people by only one business model. Additionally, some researches show that tea is more suitable for the physical conditions of the oriental people. It is showed that the culture problem is still a big challenge for Starbucks developing Chinese market further.

The prevailing arena in business this millennium has powerful forces which are transforming markets and spectacularly changing ways of doing business. There has been increased movement of people, goods and organizations across borders which have resulted in the emergence of global market segments and the growth of globally integrated markets. Advances in communications and information systems technology have shrivel distances, linking markets through flows of information, images and ideas across markets. These trends facilitate the management of operations on a global scale and accelerate the need to deal effectively with global competition. As a result,

Standardizing a product and selling it all over the world might not work, for several reasons but mostly because it does not connect with the audience or the required demographic. Each brand needs to be able to customize their product in a way that connects to the culture of that particular region.

Businesses that wish to operate on a global scale must consider national cultures because of the four Ps of marketing. If a company wants to be successful on a global scale they must know how much it will cost to operate, what product they will be selling, how they will promote it, and where they will be operating in different areas. They will need to know if they will adapt to the market or keep the same business strategy they already have depending on different cultures.