IMS Topic 10 Discussion Forum
International marketing managers need to consider the impact of the global market on the product, place, promotion, and price. The first impact is that a company may expand into the global market to prevent the risk from the loss of the market from its competitors in the home market (Doole & Lowe, 2012). Therefore, the impact of expanding will be that the company will have a greater strength from the expanded market. The second impact is on price, where a company expands into the global market to increase economies of scale. Increasing the economies of scale will result in cheaper production; hence the commodity price will have to be lower than that of the competitors. The economies of scale are achieved through lower labour costs that exist in developing economies (Doole & Lowe, 2012). It is also developed from the fact that the manufacturer will be able to make larger quantities of the product because of the expanded market across the globe.
The third impact is that the manufacturer will benefit from access to better innovative technologies that may not be available in their home country. The company will benefit from a consistent supply of the product in the market, even in a situation where the conditions in the consumer country may not be favourable (Watson, 2018). Addressing the global market will also provide an opportunity for people in developing countries with low disposable incomes to have access to high-quality products that are produced in developed countries.
References
Doole, I. & Lowe, R. (2012). International Marketing Strategy: Analysis, development and implementation. Andover, UK: Cengage Learning.
Watson, G. F. et al. (2018). International market entry strategies: Relational, digital, and hybrid approaches. Journal of International Marketing, Vol. 26, No. 1, 2018.