Inevitably, the level of economic development has a direct contact with the marketing strategy of a company. Basically a company's marketing strategy is a mixture of three things which are distribution, promotion and pricing.
Companies usually make its marketing strategies according to the level of economic development in both the multinational and global context. For a developed country, the organizations have an idea that promotion and pricing strategies will be crucial for them merely to accelerate the level of their earnings. There can be a marginal difference between the standardized form of marketing and local method of marketing. Standardized form of marketing compel the organizations to facilitate the consumers in the same way as they wanted while the domestic marketing makes their own rules of entertaining the consumers, this is the main thing why the standardized form is more productive than the domestic form. Standardized form of marketing includes tailoring the products through branding and slogan concepts, while domestic marketing does not emphasize on these concepts with a great deal. Inevitably, the socio-cultural factors play a dominant role in the success of global marketing because it enhances the level of socialism among the products of a company and thus satisfied the appetite of the consumers with a great deal. Exporting, joint ventures and trade marking are some dominant mediums to enhance the global marketing stance for the companies, especially for the foreign companies, so consideration of the same will bring economical advantages for them. There are numerous factors which influence on the essence of global marketing like foreign direct investment (FDI) and exchange and political risk. Entering in a new market for a company is not a piece of cake as it requires extensive research and behavioral studies. Through ad hoc research and development...
Organizations have idea that people can give any amount for the products in the developed countries which induced the organizations to set high amount in that region and set relatively low price in developing countries because of the income effect. The stance of distribution and product manufacturing has a direct relationship with the overall performance of the product of a company as if the product is well being among the customers then the distribution will increase automatically. The level of effect is almost the same for international, multinational and global companies.
The economic levels which have been discussed throughout this assignment may also affect the demand of the company's products. Organizations have to keep a proper check and balance over the marketing strategies while penetrating in any of the economies of scale. The demand of the products in developed economies is always different from the demand of products in developing countries just because of the buying power of the individuals. As an example, the European market (Developed) has different demands and strategies while an Asian market (Developing) has different which allows the organization to set different prices for different products in these two markets.
Work Cited
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What is Economic Development, retrieved from http://www.valleycountyeconomicdevelopment.com/pages/what_is_econ.htm, Accessed on [7th April, 2011]
