Marketing Strategy. New dimensions in the global marketplace.

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1098711 – Marketing Strategy. New dimensions in the global marketplace.

International business can be traced back to many of the earliest civilisations and the Egyptians, Greeks and Romans were all to a great extent involved in trade across their borders. However, the great influence of globalisation has developed during the last centuries due to the impact of different driving forces (Yip, 1992) within the economy, which have caused businesses to become internationalised and then globalised.

At the same time, the internationalisation has been a slow process for most companies and it has often been a question of gaining experience of other countries step by step. When the home market limits the opportunities it might be necessary for expansion into other market areas. In this situation it has been necessary for the company to attempt to reduce uncertainty by exporting to neighbouring markets.

Limited resources might also lead to that the company prefers forms of market entry that are not so costly and hazardous. However, during the last two decades, companies have developed their international activities more on a contingency basis. The international market behaviour has been influenced by a need to take advantage of different market opportunities and by an increasing need to serve customers in the global market environment. Due to the competitive situation it might also have been necessary to introduce products more quickly in the marketplace or to introduce products to several markets simultaneously.

Several researchers within the area of international marketing have, during the last decade, devoted their topics to the process of internationalisation. For the most part, this research has been focused (Fletcher, 2001) on factors causing internationalisation or to the process why companies become increasingly involved in international activities. Less interest has been devoted to the marketing strategy as such. This paper will therefore be focused on the marketing strategy and the need for adjustment due to the market situation.

Even if the international market gives a company opportunity to exploit their competitive advantages the rate of change has accelerated dramatically during the last decade. Many of the changes are taking place due to an increased globalisation and the business environment is influenced by economic and political factors. Coupled with the changing economic environment there has also been a continuous change in social attitudes and values, which are likely to have implications for marketing management. New technology has caused major changes in production technology and has also served to increase the rate of change. Newer technology has, therefore, a major impact on particular aspects of marketing. The strategy of any organisation will be shaped by the company's own capabilities and competencies, but also by the competitive environment.

Much of the literature on international marketing refers to export marketing and the process of internationalisation by which companies gradually increase their international involvement. Commitment to international market development requires that a company devote resources and management capacity to fulfil their strategic intentions. International marketing is the process of focusing the resources and objectives of a company on global marketing opportunities.

The marketing concept requires more than being able to meet customer needs - it requires meeting them better than competitors. The basic goal of marketing is therefore to develop a competitive advantage and to create customer value by maintaining focus on its key customer group. Due to the changing market environment, it is necessary to adjust the marketing strategy accordingly. Customers choose those suppliers which offer the best value. If a company does not have a competitive advantage it will lose market share or have to cut prices to retain the market share. Strategic market planning is concerned with adapting the organisation to a changing environment. Organisations succeed when they meet the need of customers more effectively than competitors. According to Greenley (1993), the framework for developing marketing strategy can be explained by the stages of strategic planning at three different levels: corporate mission; corporate strategy; and the actual marketing strategy. This paper concerns the third level.

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The actual marketing strategy (Greenley, 1993; Sudharasam, 1995; Hooley et al., 1998) can be formulated in different ways, but usually it includes the following dimensions:

  • the product or service market where the company compete;
  • the level of investment to maintain or grow the business;
  • the product line, positioning, pricing and distribution strategies needed to compete in selected markets; and
  • assets or skills to provide a sustainable competitive advantage.

In the long run, success depends on creating core competencies in the areas where the company operates.

Economic and technological developments are driving the world towards ...

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