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Globalisation is all about exchanging goods or services across international borders in order to acquire more or more profit by gaining attention of domestic as well as foreign clients (Terpstra, Foley & Sarathy, 2012) . However, number of companies are trying to expand their business at global marketplace for generating maximum revenue as well as dream to establish their goodwill by acquiring trust of clients. Therefore, assignment is going to express the significance of marketing at international level because it helps in accomplishing various business activities in more effective way. Along with this, provides numerous of advanced technologies to promote domestic goods at new emerging marketplace. Moreover, report is also throwing lights on several companies that are expanding their business in new market with the help of appropriate s
Globalisation is an appropriate trend of maximizing interaction between human or companies at worldwide scale for creating a positive relations in between distinct nations. In simple terms this term mean that “exchange of commodities at international level” in place of monetary or non-monetary terms. In fact, it is very helpful for distinct organization in various manner such as; maximize the revenue of an enterprise by enhancing their productivity, provide opportunities for growth, emergence of advanced technology, creates positive relations in between nations, reduce political factors and so on. According to survey report it has been analysed that almost entire corporate world dream to expand their business into new marketplace for acquiring the international benefits by satisfying the needs of clients. Along with this , aim to establish their goodwill at global market in order to continue their business for longer time period. As a result, due to this country is enjoying a major development phase due to emergence of various multinational organization because it helps in creating a maximum number of job opportunities to unemployed persons. Additionally, economy of a nation is also get enhanced by uplifting the weaker sections of society in a minimum time period (Czinkota & Ronkainen, 2013).
Beside this, it has been determined that globalisation is a term which seen as a major factor of development but at the same time sometime create problem for company due to fluctuation in various factors. For example; currency rate of various nations are differ from each other, culture, language differences, backgrounds and so on. Thus, number of things are identified which shows that globalisation is playing major contribution in development of worldwide marketing activity that is discussed as follows:-
- Creation of employment opportunities:- According to this element it is analysed that first or foremost that is that unemployed person gets maximum opportunities of their personal enhancement due to emergence of various multinational companies. For example; ALDI is expanding their business in new marketplace such as Japan which aids local people by offering best chance to acquire more or more revenue. As a result it automatically helps in promoting worldwide connection amongst distinct foreign members.
- Uplift weaker sections:- Poorer people are trying to improve their life standard by taking part in international marketing process to make relations with various competitors. In fact, globalisation supports entire nation in various manner like; provides best possibilities to common people about enhancing sales performance. Apart from this, weaker people are supporting economy of a nation in various manner.
- Introduction of new trends:- Emergence of various companies and joint venture helps domestic people by offering innovative trends, unique ideas and thoughts for capturing the attention of millions clients. However, in today’s advanced world every member wants to try something new or different for experiencing in their life (Berthon and et. al., 2012) .
- Identifies advanced promotional tools:- Globalisation is all about exchange goods or services at international level which helps in identifying modern technologies of promoting goods or services at marketplace. For example; offer high tech equipments of connecting people across the nation like; online sources, social media and so on.
- Enhance the knowledge:- Interaction with various new people automatically enhance the learning of a person because every individual is having distinct minds. Mainly, it helps overall society in various manner.
Instead of this marketing activities is all about promoting goods or services in different nations for gaining competitive advantage at marketplace. There are various drivers which are having major impact on strategic choice of promotional activities while expanding business at worldwide level. Thus, main drives are described as follows:-
- Government:- Advisory bodies is focussing in improving the current situations by taking measures steps like implementing various acts, norms , rules and regulations. In fact, every nations are having their distinct policies for trading across the borders such as; export and import rate . Main objectives behind enacting distinct acts and rules is to minimize the probabilities of fraudulent activities as well as protecting contractors from exploitative things. Reductions in trade obstacles, tariffs, opening free trade policy while exchanging commodities into various nations (Paliwoda & Thomas, 2013).
- Competition:- Corporate world is full of opportunities and growth due to maximization in consumer demand. Therefore, due to this number of companies get emerges in every year for acquiring more revenue on their initial investment. As a result level of competition get increases which affects the success of particular organization. For instance; Apple is enjoying great monopoly in various international market due to their product quality, advanced features and believes in introducing innovative ideas. On the other hand, other telecom companies are also trying to beating the Apple by launching modern tools or goods. As a result, competition between two rivalries are increasing day by day due to changes in several elements.
- Cost:- Pricing is all about fix a specific cost of particular product by considering necessary expenditure which was incurred while converting raw materials into finished products. For example; manufacturing, marketing, delivering and so on. Apart from this, one thing is also identified in cost driver is that currency rate of various nations are always get fluctuated and differ from each other which have a major impact on a price of particular products.
- Market:- Analysis of market is all about studying of current changes that is taking place at global environment in order to make certain decision as well as supports while making marketing plans or strategies. In fact, it will guide the company towards corrective path by showing competitor policies, new success obstacles and methods of promoting goods in new marketplace (Sharma& Johanson, 2013).
Hence, all the above drivers have a major impact on a marketing activities of an organization because sometime these factors act as benefits elements but at the same time it also act as a major barrier for company. For example; policies of governing protects buyers and sellers from wrongful conducts whereas sometime it act as major restrictions for success of corporate park.
Instead of all this, it has been identified that entering into new marketplace is a very tough and complicate job due to availability of numerous elements such as; changes in currency rate, differences in national rules, norms, regulations, business environment, culture, language hence forth. Therefore , some of the major methods which is used by company while entering into new marketplace is explained below:-
Joint venture :- As per this components, some of the companies are coming into collaboration with successful organization in order to control their losses and focussing on improving their performance. Thus, number of organizations are identified which are coming closer to establish their new venture at foreign marketplace for enjoying the major benefits by satisfying needs of local and outsider clients. One of the major benefits of using this strategy is that liabilities and risk are segmented into both the companies as per terms and conditions as well as profit also. As a result, if there is a phase of loss then two venture come closer to face it simultaneously without blaming each other ( Meissner, 2012).
Licensing:- Foreign companies is allowing other organization to use their proprietor name in particular marketplace for gaining advantage and amount is paid to entrepreneur whomsoever idea is getting used. It means, its all about offering patent name to some other company in order to attain maximum profit without doing something. For instance; Apple is a most successful brand across the international level which is demand by everyone due to their high level image. Thus, if an organization wanted to use the brand name of Apple then they need to acquire prior approval from company owner. Beside this, most of the companies are preferring this process for entering into foreign market in order to control additional promotional costs.
Franchising:- As per this parent company is granting franchise to another one for using their trademark for running a new business entity in other nation. For example; Macdonald is gaining franchising in place of money and acquire right for identifying as a name of parent organization.
Merger and acquisition:- Most of the companies are coming into alliance for controlling their risk by sharing everything with other organizations ( Vincent and et. al., 2011) . Basically, these type of enterprises are involved acquiring other dissolved enterprise for helping them from coming out from loss. On the other hand, merger is all about creating subsidiaries with other organization for enhancing their sales volume and wish to establish their outlet in different marketplace.
Hence, it has been determined that number of tools are present which plays a very vital role while entering into foreign marketplace. Along with this it aids in enhancing the performance an enterprise by attainment of set objectives and standards.
Major example of multinational companies which are getting involved in foreign market place are ALDI, Apple, Maybelline, Marriott hotel and so on (Cadogan, 2012). It means, number of companies are participating in globalisation with the use of various modern marketing activities which helps entire corporate world in various complicated situations. In fact, promotional tools is all about involvement of several techniques like; cluster of traditional and modern P’S, social media, advertisement through television, newspapers, brochures, handouts, posters hence forth. It means number of tools are identified which helps companies while expanding business at worldwide level with the use of several market entry s