Globalization and Its Challenges to Marketing

The trend of globalization which had been recognized by Levitt in the beginning of 80’s is subjected in the article; globalization in our days, with the direct support of privatization and liberalization is shaping the economics and sociocultural environment of the world economies, and became a phenomenon and pervasive all over the world together with its opportunities and challenges for global marketing practitioners. It is indicated that Globalization has impact on every business today like manufacturing, sourcing, human resources, finance, and research and development. One of the critical challenges of the globalization is the controversy between the standardization in marketing practices across the global markets or the need of adaptation into specific country markets. Researches on the standardization versus to adaptation controversy conclude that both approaches are the key of success in global markets. It is highlighted that the new communication and information technologies are increasing the global market opportunities and indispensable because more new countries are joining in the World Trade Organization (WTO) and opening their markets to the world every day. Another important case is; not only markets also marketing as a phenomenon is globalized. That means, marketing infrastructure and management practices are becoming sophisticated and similar, at the same time consumers are becoming more demanding in all over the world, except poor developing countries. As a result the net effects of all these developments are, global markets are getting more competitive and global brands are more challenged by new and local brands. These forced to create value in product quality and services in lower prices. Both opponents and proponents of globalization highlight some key issues at the same time, like; social impact, environmental observations, sustainable development needs, and equitable distribution of the benefits of globalization between rich and poor countries. Finally especially underlined some of the managerial dilemmas that global marketers faced such as: whether global markets characterized by converging commonality or persisting diversity, cultural constrains, whether this is a partial or a total globalization, whether the world is homogenized global consumption village or heterogeneous markets with diversified cultures and subcultures, universal aspirations for economic good life replacing the cultural and political identities of countries.

BUS 541.İNDİV.MİDTERM.SUMMARİZE
[106604197]- Bahar Sözüşen

REF: Journal of Marketing Theory and Practice, fall 2005, Volume 13, Issue 4
Ben Oumlil, University of Dayton and C.P. Rao, Kuwait University