Effects of globalization on the market

Document Type:Research Paper

Subject Area:Management

Document 1

Causes of globalization in marketing ◦ Technological advancements ◦ Capital mobility ◦ Widened global communication Introduction Globalization is simply defined as the process aimed at strengthening political, social, and economic interdependence globally. Globalization aims at expanding business operations globally based on international strategies. Globalization in marketing refers to the buying and sale of goods and services in an mutually dependent and integrated global economy. Globalization in the field of marketing leads to increased market potential, improved access to resources, and an upsurge in trade and investment potential. It gives companies the opportunity to enhance their brand awareness, stimulate sales and establish markets in new countries (Bandinelli and Arvidsson 68). Coordination of marketing activities helps in achieving enhanced marketing performance through increased sales, and improved market shared and profitability.

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How globalization affects a growing market Globalization affects a growing market by increasing competition, rapid technological changes and enhanced transfer of information. At the outset, globalization increases competition in a growing market. Competition influences the costs and prices of products and services, the target population, adaptation to technological changes, and enhances productivity. Globalization enables growing markets to produce goods at reduced costs and sell at lower prices thereby increasing the market share. Thus, it is critical for growing markets to adapt quickly to the changing technologies to cope up with the changing customer expectations. Globalization affects growing markets through knowledge and transfer of information. Information is critical to the production of goods and services (Eckhardt, Dholakia, and Varman 9). Effective knowledge and information transfer enable businesses to cope up with the changing market needs.

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Rapid changes in the global market necessitate the need for a quick transfer of knowledge and information efficiently. Capital mobility also has led to globalization in marketing. The movement of capital across national borders enables firms to secure financing from a wide range of sources. Secure funding fosters economic growth and foreign expansion (Rakic and Rakic 2017). Capital mobility in marketing necessitates the need for globalization to connect markets with a vast pool of financial sources and eventually stimulate economic growth. In summation, globalization is critical in marketing to boost sales, improve performance, expand market share and enhance access to global resources. , Nikhilesh Dholakia, and Rohit Varman. "Ideology for the 10 billion: Introduction to globalization of marketing ideology. " Journal of Macromarketing 33. Fosdick, M.

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