Marketing Globalization is not a new phenomenon but it is getting more media and exposure as a result of globalization. This process includes the movement of markets across borders, which are motivated by various factors such as competitiveness, consumer demands, and other factors that cannot be ignored. It also includes the movement of products between markets which can be motivated by factors such as technology, political and social conditions, supply chain management, geographical location, brand name recognition, and other related factors.
With marketing globalization becoming a major force in international business, businesses have to cope with a number of global challenges. One of these challenges is addressing consumer needs across different markets, which is made possible through globalization. Consumer preferences are highly fragmented, leading to a situation where there is a lack of cohesiveness among products and services. Consumers have to be dealt with according to their individual needs in different markets. While some consumers have common preferences across countries, others may have very strong local preferences.
Marketing Globalization has made many businesses stateless. It has led to the disappearance of borders in international markets. Without walls, companies have no boundaries. In a highly integrated and interconnected global economy, companies are able to establish a virtual wall between themselves and their customers.
Statelessness has another more drastic effect of marketing globalization. As statelessness is an inherent feature of globalization, individuals who lose their nationality or citizenship can face difficulties when trying to access public services. This has made many countries dependent on imported goods, thereby reducing the effectiveness of national economy. Since consumers from other countries can’t access country-specific products easily, sellers from other countries will have to promote and sell goods through transnational means, such as advertising. Thus, marketing globalization has led to the gradual destruction of barriers to entry for businesses and the rise of multi-cultural societies.
The loss of national boundaries and vulnerability to cross-cultural contact also make marketing globalization a threat to national security. State-sponsored terrorists, such as Hezbollah and Iran, are spreading their violence into Middle East countries. This global phenomenon has worsened existing threats and created new ones. National borders do not stop terrorists from attacking innocent civilians in major cities, as they often do. Therefore, marketing globalization has played a role in the rise of international terrorism.
The rise of globalization also affects consumers. Cross-cultural interactions reduce the cultural diversity that existed prior to technological advances. Consumers from different countries interact with each other through various means, such as the internet, and this interaction has led to the assimilation of various practices, opinions, and beliefs. This multiculturalism leads to increased rejection of products from other markets, lowering the value of the product. These practices lead to lower consumer confidence and loyalty.
The increasing competition from global companies and the lack of local markets make consumers more price sensitive. As a result, they are willing to pay less for a product or service if they do not believe it is offered at a good enough value. Marketing globalization has been blamed for a variety of bad consumer behavior such as the overuse of testimonials in product reviews, tendency to buy the same brand over again, and “word of mouth” marketing strategies. A number of studies have found that consumers have become more accepting of marketing tactics that cross national boundaries.
Marketing globalization has been blamed for the decline of many developed economies such as the UK, Japan, and the US. Some blame the dearth of local markets on immigration, others on lower investment and consumption, but still others credit declining national incomes on consumer behavior. It is difficult to pin down the cause of the low growth in these economies’ GDPs. Steenkamp believes that marketing strategies have a significant role to play in the economic development of nations.