What is global market and how does digital media play a role in the global market?
Several years back, it took you a couple of months to import products into a country or export goods to a market in another country. Doing so was tasking and only huge trading companies were able to take the risk. The emergence of global marketing involves conceptualizing and then conveying a final product or service worldwide, in different countries. Global marketing is more than just conceptualizing and selling a product worldwide. The whole process involves actual planning, production, placement, and promotion of a company’s product in a worldwide market.
Digital media has and continues to offer brands greater opportunities than ever before to connect with global audiences. More recently, I.T, and particularly the internet, has shrunk the world further. Consumers can get products in a matter of days just by a click of a mouse button or businesses can have partners half a world away. With almost 2.5 billion active social media users worldwide, it makes sense for brands to find audiences through these channels.
Since the emergence of internet, even small to mid-sized firms are able to reach customers globally. With proper execution, globalization can bring many benefits into your organization.
1. New Revenue Potential
Taking this business to new global levels will get us access to a much larger base of customers. If everything goes as planned, we will enjoy increased revenues and the company will be exactly the shot of life it needs to take its revenues to new heights.
2. Lower Budgeting Costs
With a common messaging to be done, our marketing budget will be reduced significantly and will help maintain profit margins.
3. Ability to Help More and More People.
The solutions this company offers without a doubt has a potential to help customers all over the world improve their lives in some way. It will be able to help an exponentially greater number of people find answers to new challenges this company is able to solve.
Despite having many advantages of global marketing, it begs the question, what is that one challenge the company will face if it moves into a global market? Although we may have internet, nothing is able to beat our personal presence to our prospects and distribution partners. Not to mention the costs related to logistics, at some point, we will have to figure out the costs of doing long distance business in other regions of the world.
There are major disadvantages of global marketing
1. Cultural Barriers
Not every culture will be suitable for the products that our company offers. Crossing these cultural barriers might be cumbersome and very expensive for the company. We might have to adapt to certain rules that govern specific countries.
2. Inventory Management
If we are not careful, huge unused stocks may pile up and this may happen due to under or overestimation of projections or launching in a hurry without proper market research.
3. Product Customization
We may be required to have a bigger budget that will enable us customize our products. Product customization will take us extra time to implement. Without sufficient marketing, this might be hard to achieve.
