MAINA 1OAN NYAMBURA

D33S/4369/2009
BBA 307 INTERNATIONAL MARKETING
GLOBALIZATION ASSIGNMENT












Globalization
Globalization is the process whereby the people, companies and governments oI diIIerent countries
interact and integrate through processes like international trade and integration. Nowadays, this is mostly
driven by InIormation Technology.
This process aIIects the environment, culture, political systems, economic development, prosperity and
well-being.
Globalization has existed Ior thousands oI years, people travelling across deserts to trade with each other.
People, corporations and countries have invested in enterprises in other countries. But now, policy and
technological developments have spurred increases in cross-border trade, investment and migration.

Features of globalization
There are a Iew main Ilows that characterize globalization;
1. conomically, the main Ieature is the interconnectedness oI the global economy. Cheap and
reliable shipping and easy communications (internet and phones) have made it so that it is very
easy Ior goods and even services to be produced in one country Ior use in another. This is true to
a greater degree than it ever has been in the past.

2. Goods and Services e.g. exports plus imports as a proportion oI national income or per capita oI
population


3. Globalization is marked by Iairly rapid economic growth in the developing countries, such as
India and China.

4. Labor/People: e.g. net migration rates, inward and outward migration Ilows, weighted by
population


5. Culturally, globalization is moving us more toward a world culture. Movies, TV shows and
music are easily exchanged between countries.

6. Globalization is marked by rapid change in the industrial base oI the Iormerly leading
manuIacturing countries, such as the US, Germany and Britain.

7. Capital e.g. inward or outward direct investment as a proportion oI national income or per head oI
population.

8. Technology e.g. international research and development Ilows, proportion oI populations and
rates oI change thereoI, using particular inventions especially Iactor neutral technological
advances such as the telephone, broadband.
9. ManuIacturing plants sourcing their raw material Irom diIIerent countries. The sale oI products
manuIactured in these plants may include sale in countries other than where the plant is located or
those supplying raw materials.
10. ManuIacture oI sub-assemblies oI Iinished products in multiple countries in plants owned by the
same company.
11. People in more than one country collaborating in design oI new products and manuIacturing
processes
12. People and companies making investment in countries other than their parent countries.
13. mployment oI people Irom diIIerent nationalities, and posting them in locations other than their
home countries.
14. Outsourcing oI business processes to other countries.
15. Marketing oI the same products under the same brand names in diIIerent countries
16. It means Iree access to the markets in the world without any physical (quota) or Iiscal (tariII) or
any other government restriction. Hence, global consumers emerge demanding high quality
products and more value Ior their money without any restrictions like parochial, regional or
national consideration.
17. Globally standardized products need be marketed ail over the world. There are already many such
products having world market. It includes the "lead" products in a region taking care oI dominant
needs oI that region.
18. Globalization requires resources like raw materials, Iinance and technology. Free access to
quality raw materials, latest technology and cheap Iinance are important characteristics oI this
process at less cost.
19. In globalization. Free mobility oI managerial personnel and entrepreneurs result into mergers,
takeovers and structural regrouping in countries across the globe

!oints behind globalization
The goal behind globalization is to increase material wealth, goods and services through an international
division by labor by using the increase in international relations, specialization and competition.
Kenyan businesses need the global market. The local market is just too small and it would be impossible
to survive without international market.
Globalization raises our competitiveness. Being a small Iish in a big pond does not improve our
competitiveness. In business, it`s only when we Iace the real challenges that we grow. We just need to
open up our businesses and the competition will make us prosper.
Globalization raises our human capital. We can get Ioreign talent in our country which will help us
improve our economy.
It increases transparency oI local businesses. This is because iI a company is an open book, then it will
encourage investors to support them.


Effects of globalization in marketing
Globalization drives people to change their ways oI living, people are more inclined to start their own
businesses and give a chance to international trade and this increases the opportunities Ior marketing
services.
Marketing proIessionals have the need to utilize social media which can cover a wider base
internationally than conventional media such as posters and billboards.
Marketers can no longer rely on their words to sell products. The distance between product and consumer
raises the need Ior the product to be able to speak Ior itselI.
It prompts Iirms to change their ways oI conducting business, they realize they can no longer be closed
oII and they make more oI an eIIort to trade internationally.
It spurs nations to establish new national policies. These include ways oI knocking down international
trade barriers.
vents transpiring in diIIerent parts oI the world now have dramatic consequences to other parts oI the
world at a Iaster pace than anyone could imagine in the past.
On the positive side, globalization enables Iirms to outsource and Iind customers around the world, e.g.,
the auto and electronics industries. The globalization oI production and operations beneIits Iirms through
the realization oI economies oI scales and scope. Hence, no one can deny that globalization has changed
the way we conduct business.

How marketers adjust the marketing mix program to manage the challenges of globalization
Situational Analysis: The marketer takes a look at the micro and macro conditions Iound in the Ioreign
market as well as the international. The key demands Ior the adjustment oI the marketing mix are
highlighted here.
Marketing Mix Plan: The marketer presents each marketing mix area with a clear indication oI the
respective aspects which he should have been adjusted to suit the requirements oI the particular Ioreign
market.
Market ntry Strategy: Marketers determine how the company will initially participate in the market
they`ve chosen. Possible options Ior participation include exporting, licensing, strategic analysis and
Ioreign direct investment.
Program oI Implementation: Marketers draw this program to highlight the activities that will be carried
out in Ioreign markets, the order in which they`ll be carried out, the time-Irame and the required set oI
stock-holders Ior each. Due to the challenge oI globalization, the behavior oI stakeholders is considered
important Ior marketers to use in building suIIicient social capital that promotes corporate reputation,
perception I the brands and the company and overall brand awareness.
Budgets and Projections: The marketer develops an estimate oI the expected demand oI products and
services.
Monitoring and valuation: This is a summary oI the methods the company will use.