Global marketing is the ability to adjust the strategies of the personal company to be able to adjust the strategies of the other countries. It entails with more than buying and selling the products individually at a given time. It entails the processes such as planning, positioning, promotion as well as the creation of the products in the global market. Due to the proliferation of the internet, it has become possible for the small businesses to reach out to customers around the world very easily.
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Any company that is not willing to carry out business internationally will encounter competition from other companies and lose customer power. Global business, therefore, is a requirement for all companies in order to stand the competitive advantage. The business selected is technological. At the moment technology business is spreading widely due to the kind of new products that are brought to the market.
1. Two technological products in the global market include Facebook – Oculus Rift which is able to kick off the virtual reality of the revolution and the Google project Ara that is able to let one snap onto his phone like Legos.
a) The given products exist in the market and it is possible to determine that there is a need for them in the market. To begin with, the products are widely desired by many people internationally. The google Ara product helps individuals to be able to snap components to individuals phone in a very easy way such as playing with the Lego toys. People need a device that can be able to snap on components from their gadgets. The google Ara device can help the people to customize their phones by adding things such as better memory, the camera as well as special sensors to check the cleanliness of the water being taken. Since 2016, the products have been used by individual and the need is growing and most likely it will expand globally. The Facebook’s Oculus Rift is helping the gamers and sci-fi lovers at the moment. The aim of the product is to bring a virtual reality to the masses. The headset of the product has to be tied to be connected with a heavy duty personal computer in order to work out the expected magic. The experience of the two products is flourishing and more customers are interested despite the heavy prices. The products as well are able to address the current customer needs. They help the customer to customize their gadgets well to achieve new desires. Thirdly technology is widely used at the moment. All people are therefore looking for any technological devices that will cater for their needs. The products are essential since they make customers and organizations technologically active.
b) The company will be able to maintain the cost competitive advantage. It will have the ability to purchase other new products due to increased income. When a company is able to use the products it will maintain a competitive advantage. When using the Google Ara product it will be able to customize the electronic devices such as phones before selling them to customers. In this case, it will help to suit them to the desires of the customers. This includes adding better cameras and making it able to test issues such as pregnancy, clean water, and presence of poison without struggling too much (Barney, 2014). A company with such a device will eliminate those without. Similarly, Facebook?’s Oculus rift boots the competition of a given business. It is able to use the virtual reality headset creating a reality to the masses. It specializes in the virtual hardware and software products. A virtual reality in the given products will make a company more competitive and stand ahead of the others.
c) The two inherent risks of the two products are high cost and maintenance. The products are very expensive and it will not be cheap for the customers to afford them. This factor makes the customers shy off from the company products. In addition to this, it is hard to maintain since expertise is needed. Not all people are technologically sharp and therefore once the products are damaged it will be hard to repair them. In the case of technological persons, it will be possible to handle the products. The price of the products can be managed if a group of customers will turn up together to purchase them. This is helpful since it will benefit them all and in case of damage, the costs will still be shared.
2. Online customer relationship management software is the best in this case.
a) The software is able to automate some task and is able to hide unwanted features. It helps by making up the promise of making business more efficient. It helps a company to develop since it is able to take a different approach as opposed to the competitors. It can as well be able to function in middle size to large businesses. It helps to incorporate the marketing and the customer department together. When a team member is talking to a customer the history of the individual will easily be tracked with the company. It deals with online sales, online marketing and online services (Root, 1994). It is, therefore, the best since a company will not be forced to buy different software for different departments. Companies can, therefore, be able to use the software to track the history of the activities taking place in the sale of their products in various geographical locations.
3. The distribution channel for the new products will be Facebook.
In order to ensure a high access of the products, the best distribution channel will be the internet. In this case the customers will be able to purchase and make recommendations for the products even when they are in different countries. The social media platforms will be used in this case such Facebook. This channel is helpful to the company to expand its reach and be able to grow revenue.
a) Contractual agreements are key considerations among the companies in the global field. They are meant for long-term non-equity associations between the companies that are connected in business relations. These agreements entail the ability to transfer technology, skills and human labor. Knowledge in this case is being transferred and not equity. Licensing can as well be used for entering the global market but it is least profitable. Franchising can as well be used as an agreement idea.
In this case, there is combination of skills that allows for flexibility in dealing with the local market conditions. It allows the franchiser to follow the marketing of the products sold up to the last sale. It is therefore an important way that is used in international marketing. Regional trade agreements are treaties that are made by two or more governments in order to offer better treatment to the kind of trade that is taking place between them as opposed to what they do to goods that are imported from outside (Samiee, 1994).
This has led to the reduction of tariffs from the trading partners within a given region. In this case, there will be a creation of a free trade area. Regional trade alliances have been existing between countries since time immemorial. The German Customs Union is one of the alliances founded in 1834. It was able to bring together many states and carried business with mutual agreement. The North America Free Trade Area is another alliance that united the countries in the North America.
A combination of countries to sell the above products in regional trade agreements will be very useful and profitable. Environmental forces such as the cultural, political and economic environment do play a role when entering the global market. The Cultural environment is able to influence the behavior of the consumers. When companies are able to understand cultural dissimilarities and address them, they can be able to progress better (Blackwell et al., 2007).
It is important to ensure that customers are friendly to the business and not groomed in cultural terms. Religion as well needs to be addressed to ensure that customers are uniform and no bias in the business. Economic factors are also essential in the international market. The market is attractive when considering the age, population growth as well as life expectancy. Low population growth rates in many cases have been characterized by highly economically developed countries that have high disposable income. Income levels are able to determine the economic power of the market. In this case, companies will adapt well. Companies need to modify their products in the case of inflation, to ensure that consumers are able to able to afford them.
b) Internal and external supply risks can affect the distribution of new products in the market. External supply risks include demand risks can be caused by unpredictable customer demands. Supply risks of the products can be caused by any interruptions to the flow of the product. Environmental risks can be caused factors that are outside the business environment. Internal supply risks can be controlled by the business (Bradley, 1999). They include cultural risks and manufacturing risks. The business deals with cultural risks by hiding any negative information that is cultural.
4. Price Skimming strategy
This strategy is vital to ensure that companies are able to maximize sales on new products in the introduction phase. In this case, the rates of the products will be set high in the introduction phase. When there will be other competitor goods in the market, a company will be able to lower the price of the goods gradually. It is helpful since it allows the company to make profits in the early stages before competitor products take charge.
a) While distributing the products there will be costs for packaging, storage, and marketing. In addition to this licensing as well will make the company incur costs as well as fees. Licensing to make the products public and be accepted to sell them to customers is costly to the company.
b) The effect of the new product on the demand for substitutes and complements affects the consumer acceptance of the product (Czinkota et al., 2007). Consumers don’t accept products that have negative effects on the substitutes and complements. The pricing strategy that is developed when the new products are introduced also has the impact on the willingness of the consumers. The price skimming strategy used in this case can blow away many customers bur in the presence of competitors they will accept the products. Also, a complex product when used will limit the ability of the customers to accept it. Simple products allow the consumers to use energy when using the product.
c) The use of a web engine search can help to determine the competitors pricing value. Also, the competitor’s web postings can be used to determine the price. The information available can help to determine their pricing value. In addition to this, a pricing intelligence tool helps to determine the same. The economic power of the competitor will be used to note how they will purchase the new goods in the market.
5. Pull strategy can be used in this case to promote the selling of the products.
It is demand driven and targets the end user. The products in our case are very expensive and therefore retailers may not be willing to take them. They include free samples and public promotional events such as the door to door sales of the products. Also through internet marketing campaigns, it will be easy to promote the sale of the products.
a) Two social media channels include Facebook and Twitter. This is due to the fact that they have a large number of followers and therefore accessing customer is quick. In addition, many people can access these channels through their phones wherever they are. The behavioral characteristics of the platforms also favor them. They operate on a twenty-four-seven basis and therefore customers will requests products anytime.in addition, customers can access these channels wherever they are across the world.
b) Free samples and discounted prices are used in this case. The company provides free samples to all customers in the store. This is regardless if they buy anything or not. This will encourage them to buy even a product they did not plan to. It further encourages other customers to purchase the products. Customers similarly love discounted prices on goods. The company offers customers the new products at a discount on special days such as on their birthdays and during their wedding days as a sign of care. This encourages a massive number of new customers to purchase the products. In conclusion, global marketing is important as it promotes the sale of products.