Business & Finance - Marketing WK 6 Assignment
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BUS622TeamecoBroughtonWK1AssignmentGlobalMarketingandTradeEnvironments.docx11
Global Marketing and Trade Environments
Teameco Broughton The University of Arizona Global Campus BUS 622 Global Marketing Dr. Lorraine Cigainero July 09, 2024
Abstract
This paper is a study of the business environment and the major global reorganizations in the last 20 years, with a focus on the economic and trade environment of the European Union (EU). In this context, the research concentrates on elucidating marketing concepts within the global level framework and the EU’s trade scene. The paper inspects the interaction between economic and trade-like practices in marketing strategies. Also, it gives the main strategies for bringing products into a new and existing market based on the product/market matrix.
Contents Abstract 2 Executive Summary 4 Global Marketing and Trade Environments 4 Economic Environment and Major Changes in the World Economy 5 Global Economic Changes 5 European Union Economic Environment 5 Trade Environment of the European Union 6 Trade Policies and Agreements 6 Market Access and Barriers 6 Application of Marketing Concepts 6 Global Economic Environment 6 European Union Trade Environment 7 Strategies for New and Existing Products 7 Product/Market Matrix 7 Market Penetration 8 Market Development 8 Product Development 8 Diversification 9 Conclusion 9 References 10
Executive Summary
The economic environment and the primary bearers of the world's 15 most eminent structural shifts in the last two decades are highlighted in the present paper. However, special attention is paid to Europe (EU). Along with that, marketing principles transferable to the global business and trade systems will appear, the effects of economic and trade changes on the marketing strategies of the company will be discussed, and also the strategies for old products and new products will be identified with the help of the product/market matrix. The main points to be discussed are marketing concepts such as market orientation and the 4Ps in a global context, the influence of economic and trade policies on market entry strategies, and the use of the product/market matrix to guide product launches and expansions.
Global Marketing and Trade Environments
Many technological advances, globalization, and economic power shifts have taken place worldwide in the previous two decades. Consequently, these alterations have practically disrupted the Western Balkans trade areas scenario, the first region to undergo a significant policy and market touch-up in the recent 2000s (Dimova, 2021). This paper explores these changes, applying marketing concepts from Chapters 1, 2, and 3 of the course text, Green and Keegan’s (2020) book, to the global economic and the EU’s trade environments. It further examines strategies for introducing new and existing products using the product/market matrix in this dynamic landscape.
Economic Environment and Major Changes in the World Economy
Global Economic Changes
The last two decades have seen a dramatic transformation of the global economy, with features like fast technology added to the list, increased globalization, and significant economic changes (Bolt & Luiten, 2024) (See the growth in Figure 1 below).
Figure 1: Global GDP since the Year 2000 Source: Bolt and Luiten (2024)
Significant developments have seen the boosting of developing markets, digital improvements, and alterations in global trading. Developing countries, especially in Asia, now take the lead in world economic growth and are real shapers of the global trade system (Green & Keegan, 2020). Therefore, Digital technology has become a transformative energy in the development of communication networks and, thus, has developed several revenue-generation solutions that did not exist. These different developments have produced opportunities and difficulties for the companies that have gone international.
European Union Economic Environment
Policy reforms, market integration, and economic crises have been the drivers of the European Union's economic development that is unique to it. The European Union implemented market integration economic policies to ensure regional stability and cohesion (Green & Keegan, 2020). The entire situation in the EU has come out due to the unique measurement techniques such as the introduction of the euro as a common currency, the addition of some other EU countries, and the task of economic cohesion became all necessary measures. However, the EU has also offered hindrances, including the recent global economic crisis, the Eurozone debt crisis, and Brexit, which has remarkably influenced the country's financial situation (Green & Keegan, 2020).
Trade Environment of the European Union
Trade Policies and Agreements
The EU's trade environment is a hypothetical construct with comprehensive trade policies and agreements to foster free trade and economic cooperation. Through the EU's trade agreements with different countries and regions around the globe, market access would be more accessible, and trade barriers would be reduced. These agreements have been vital in extending the EU's trade network and developing its global trade footprint (Green & Keegan, 2020). Also, the EU's single market policy has promoted economic integration among member states, shaping a harmonious regional trade environment.
Market Access and Barriers
Even with its broad trade policies, the European Union comes across numerous methods of market access discrimination and trade obstacles (Adamczyk, 2018). Significant delays in imports, different regulations, and protectionism in several countries are some of the obstacles that might disrupt trade and market entry of EU companies. Tackling these barriers shall involve strategic thinking and negotiations and using marketing tactics to send through the intricate trade environment successfully.
Application of Marketing Concepts
Global Economic Environment
One of the dominant marketing concepts from Green and Keegan's (2020) Chapter 1 that can be shown as market orientation is the global economic environment. The idea of the market having an orientation is focused on the fulfillment of the customer's needs, and it also means being able to react timely to the choices of customers in each separate market. However, it also means that in a global world, they must formulate new marketing plans and create products that comply with other countries' cultural, economic, and regulatory differences (Green & Keegan, 2020). This primarily happens because companies are experimenting with new markets. The developing market meteors are facing a common challenge: they need to develop an original solution and modify their market strategies.
European Union Trade Environment
Given the environment of trade in the EU, the idea of the 4Ps (Product, Price, Place, Promotion) is of a significant standpoint. The growth of the product, pricing, distribution, and promotion by companies should be directed to the distinct markets in the EU (Newbery et al., 2018). The EU's single market policy is connected with the circulation of goods and services; however, local companies are still supposed to factor in the unique features of the regions where they operate and the customers' preferences.
Strategies for New and Existing Products
Product/Market Matrix
Market Penetration
Businesses might opt for a market penetration strategy for products already existing in established markets. The main focus is growing market shares through competitive prices, marketing promotions, and customer loyalty programs. This is a suitable marketing strategy for mature markets with strong, long-standing competitors.
Market Development
When entering a new market, the companies should be involved in a strategy that includes both markets (the geographical expansion and new segments of the customer base). This strategy can be realized by running market research and accommodating their products and sales promotions to align with the new market processes and needs.
Product Development
For firms who want to introduce entirely new goods into long-existing markets, a product development strategy implies producing such a project that will be a new response to the consumers' demands. The development of innovative goods should take care of the target group's requirements and allow them to take part in the creation of solutions. Companies should give priority to investment in research and development and base new product designs on insights into market trends and customer preferences.
Diversification
Diversification is a strategy introduced by new products in new markets to find the way to a market with a brand-new product. This marketing strategy is the riskiest strategy that a company may use in marketing as it is necessary to enter the market, which is not only unknown but also new. Nevertheless, it can also present more space for growth.
Conclusion
Over the past 20 years, there have been significant changes in the world economic environment and the European Union's trade environment, which are both opportunities and challenges facing companies. With their employment of marketing concepts like market orientation and the 4Ps, the companies can effectively maneuver the shifting environments in which they operate and develop new and existing products. In the product/market matrix, the framework pertinent for companies to choose the most effective approach to expanding the market and developing the products that will make them stay in the global market has been established.
References
Adamczyk, S. (2018). Inside the trade union family: The “two worlds” within the European Trade Union Confederation. European Journal of Industrial Relations, 24(2), 179–192. https://doi.org/10.1177/0959680118760630.
Bolt, J., & Luiten, J. (2024). Maddison‐style estimates of the evolution of the world economy: A new 2023 update. Journal of Economic Surveys (Print). https://doi.org/10.1111/joes.12618.
Dimova, R. (2021). Border porosities : movements of people, objects, and ideas in the Southern Balkans. Manchester University Press.
Green, M. C., & Keegan, W. J. (2020). Global Marketing, Global Edition. (10th ed.). Pearson Education Limited.
Gurcaylilar-Yenidogan, T., & Aksoy, S. (2018). Applying Ansoff’s growth strategy matrix to innovation classification. International Journal of Innovation Management, 22(04), 1850039. https://doi.org/10.1142/s1363919618500391.
Newbery, D., Pollitt, M. G., Ritz, R. A., & Strielkowski, W. (2018). Market design for a high-renewables European electricity system. Renewable and Sustainable Energy Reviews, 91, 695–707. https://doi.org/10.1016/j.rser.2018.04.025.
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Microsoft_PowerPoint_Presentation.pptx
Ansoff Matrix for Strategic Product and Market Growth
Focus on increasing market share of existing products in existing markets through competitive pricing, marketing promotions, and customer loyalty.
Entering new markets with new products, which is the riskiest strategy but also offers significant growth potential.
Introducing new products to existing markets by developing innovative solutions that meet the demands of the target group.
Entering new markets with existing products by targeting new geographic areas or new segments of the customer base.
Market Development
Market Penetration
New Diversification
Product Development
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