Global Marketing Reflection Essay
Global marketing is a vital business element in our society. Today, companies worldwide are trying to enter new markets and make a profit both domestically and globally. It’s important to note that global marketing seeks to make products and services more global and less domestic. Moreover, since some businesses often become more saturated in the domestic landscape than in a global space where there is a vast market (Whitler, 2019). From the basics of marketing, I appreciate the vast variations and dynamics in domestic and international markets. Most specifically, I have understood pricing and distribution orientation in foreign markets (Global Marketing Reflection Essay).
Variations and Dynamics in Domestic and International Markets (Global Marketing Reflection Essay)
First, I think that for small companies to diversify and venture into international markets, the pricing element is critical. It entails setting pricing objectives that target the market, and consumers and influence society positively. Achieving profitability remains the main aim of pricing. This will mean striving to have a large market share and getting new customers. Further, retaining current customers, initiating counter-competitive actions, and attracting competitors’ customers.
Another essential element is to utilize pricing methods effectively; cost-based pricing, value-based pricing, demand-based pricing, and competition-based pricing. Nevertheless, viewing pricing from a manufacturer’s standpoint is considerable as it dramatically influences demand, brand appeal, competition benchmark, and subtle features involved (Global Marketing Reflection Essay).
From my perspective, international pricing strategies are critical for any other company existing in a domestic business landscape. Furthermore, these strategies bolster general operability in analytic dimensions. Analytic dimensions constitute three major constructs; company internal factors, market factors, and environmental factors. Besides, decision-making approaches informing pricing strategies are based on uniform pricing and market-by-market pricing(Global Marketing Reflection Essay).
Another construct of international pricing strategy is managerial dimensions. Consequently, made up of a company’s most critical areas; managerial issues, sources of financing, and financing international transactions. I think the elements of international pricing strategies further complicate a company’s orientation and operability in the global market since managerial issues often arise. Some of the managerial issues include providing customer financing, quoting in foreign currency, creating and analyzing customers’ value chains, and dealing with parallel imports or gray markets.
Furthermore, the international transfer pricing initiative seeks to satisfy a set of objectives. These objectives focus on reducing taxes and tariffs, managing cash flows, internal concerns, avoidance of conflict with home and the host government, and competitiveness in the international game (Global Marketing Reflection Essay).
These objectives are sustainable because of predetermined benefits for small companies diversifying operations into foreign markets. Some markets are rigid and can take parent companies years to penetrate. It is necessary to find a balance between distributor needs, manufacturer channel needs, manufacturer goals, and consumer needs. Such channel structures and relationships will ultimately improve outcomes(Global Marketing Reflection Essay).
Various strategies can be utilized to manage global marketing. Apart from international pricing strategies that constitute analytic dimensions, decision-making, and managerial dimensions, I believe global marketing’s most essential features comprise international distribution and channel strategies, international logistics, and trade documentation.
I have established a connection between the complex features of international trade and the basic features of domestic trade, and it has been significant to understand what it is like to be operating in global markets. Even though single distribution and strategies can be used, combinations can work as well, as is the case with intensive, selective, and exclusive distribution on the one hand and the pull and push strategies on the other (Global Marketing Reflection Essay).
Whitler, K. A. (2019). What Western Marketers Can Learn from? Harvard Business Review, 81.