World economy and impact of culture on marketing strategy

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World economy is moving forward to the next millennium where we are seeing the emergence of an interdependent global economy which is characterised by faster communication, transportation and financial flows, all of which are creating new marketing opportunities and challenge. We are moving progressively further away from a world in which national(domestic) economies were relatively isolated from each other by barriers to cross-border trade and investment, by distance, time zones and language; and by national difference in government regulation, culture and business systems. Business organisation are tends to go forward for getting sales and profit ,their tendency is to expand business in a market where global village is the huge market to eat a slice(market share) of the dream cake of the global market. Global market is the upgrade destination of all business organisation where strategies in marketing plays key role to do prosperity as well as survival matter in business. Strategies in global marketing are not static, change as the time and economic condition are volatile and importance of changing factors in strategies are under consideration in the global marketing to assure the stability and prosperity in the business.

Critical review of the assign project work has been carried out on the basis of book review of Susan et al(2008) on the topic of "Reassessing global marketing strategy" under the book series of 'Research in Global Strategic Management',Year-2008,Volume-14,Page no.139-153,ISSN-(1064-4857),DOI-10.1016/S1064-4857(08)00002,Publisher: Emerald Group Publishing Limited.

In MIT's Center for Transportation & Logistics (CTL) looked at the challenges a surprising scenario was come out when discussing about The Supply Chain Strategies in Emerging Markets that is for shoe marketing in china it can be more cheaper to export that product after that importing into back than to directly saleto the domestic market.Explanation is like that shoe made in china and buyer who are existing in china that is domestic buyers has to pay value added tax(VAT) of 17% where this product in case of export are not subject to VAT .In this circumstances it is effective to send the product out of the china and back it by paying import duties which which is much more cheaper than buying domestically by paying VAT.This incidence of supply chain as well as exporting opportunities from the government policy encourages the business organization to concentrate on global marketing as well as emerging marketing opportunities despite on the domestic marketplace.

Culture is the distinctive way of life of the society of a nation.The perspective of the culture which include religion,customs,social organization of the society,attitude and values towards domestic and international life,aesthetic systems,educational life and language.Each country has an individual identity in terms of norms and abbots. In the global marketing all sorts of cultural dimension must be under consideration when making marketing strategies and have to understand how much this strategies can affect and avoid the bad impact of culture on this marketplace.

Impact of culture on Marketing Strategy:

Whenever a company wish to launch a product or services to a new marketplace must have to think before planning a marketing strategy that how much the consumer differ in perception getting the product or services from their domestic market.

For instance social marketing reseasrch reveals that the average frenchman are habituated to consume more cosmetic and beautification materials than that their life partner which can easily to show the target segmentation of the french cosmetic marketplace.If any multinational company focus on the general psychological theory in case of cosmetic marketing in france they will be definitely an example of looser.

Values of a society represents the mood of conduct the states cultural views.Understanding these aspects of values are important in global marketing.For example McDonald's does not sell hamburgers in India because most of the people almost 85% of the population in India are Hindu by religion and The cow they considered as highest respect and these mass population can't think sacred the cow.Thats why Mcdonald's sells the hamburgers in the name of McMaharajah:two all-mutton patties,sauce,lettuce,cheese,pickles,onion on a seam-seed bun.This example make sense how a cultural orientation stimulate to change the marketing strategy in different countries.

Dysney Land is the world wide biggest amusement industry successful in United states of America and on the basis of the main model of the America they gain fruitful outcomes in Japan as well but whenever they implement same strategy in Europe that is in France they face tremendous problem. For example in USA and Japan Dysneyland Alcohol and wine is prohibited to consume inside the park where in Europe specially in France have sensitivity about American culture imperialism and consuming wine in the lunch time is the big customs where the customers were feel uneasy to visit this expensive and attractive theme park and Dysney authority had to count loss and obliged to revise the schedule and programmatic strategy in France.

Resource audit identify what resources are available to the organization to support that organisation ,it may be out side sources or inside.For example an organization have patented product or it has low cost of supply source or brand image

Assessing the competency is degree of analysing resources being deployed to create ability of doing different activities.It is difficult to assess but can be done through comparison.Two different ways are:

* Historical improvement(Where analyse the company's previous performance or competitor's previous performance decling or improvement)

* Industry norms(Comparing the similar industries performance) and another one is

* Benchmarking(Compare the company with best operating either competitor companies or superior company)

Acompany's overall strategic capability either in marketing or any operation depends on the degree at which resources ,competences and strategic business unit are balance each others. And this balance can also be determined by the Portfolio analyses.

When an business organisation first time entering target global market in the most cases does not take into the account of existing difference among the company's domestic market as well as character of the global market.It is definitely true that norms and values of the customers,nature of the market infrustructure and competitors and their strategy are different from one market to another marketplace.

To assess the competitive advantages in the international market it is necessary to find out the strength and weaknesses of itself as well as competitors in each country where they wish to do marketing and also have to determine how these out come of these SWOT analysis can interact to influence deployment of resources worldwide.For example,Kao's Attack is the Japan's leading brand in the laundry detergent industry.It is the number 1 brand which in strong position among the 170 brands in Japan.However in outside the Japan Kaos in detergent market positioned small as it dominated by the Uniliver,Colgate-Palmolive and Prockter and Gamble which reflects that Kaos has limited configuration of operation ouside the Japan even in its five major products.According to statistics,in 1999 about 29% sales of Kaos was outside the Japan and approximatemly half of those sales was in Asia.This reveals that Kaos has limited geographic scope of infrustructure by which it is difficult to expand its operation around the world.This can be customised to a better prospect by concentrating on discover of customers needs and wants,a strong sales forces,Superior research and development and effective profit manaement.

Global market is inherently complex in compare with the domestic marketplace.Global markets are more or less geographically dispersed but there is interlinkage through trade flows,communication and distribution network,common market infrustructure,the prescence of common customers and so forth.(Dicken 1998 in Stanley al,2008).Even though there are some complexities and flexibility but it also possible to achieve sustainable competitive advantages in global market by considering followings:1.Determination of what extent market is integrated and interlinkage.2.Strength and geographic scope of the firm's position in global and organization of linkage to all operational activities.

An organisation's configural advantage will be achieved whene there is avaiablity of geopgraphic scope in the global marketplace will be possible,If an organization has no rich resources to market their product into either emerging market or developed market then they will face tremendous problem in amrketing as the compny will be dominated by the others highest company.