This sample will let you know about:
- Discuss about the development of the global marketing concept.
- Discuss about the Advantages and disadvantages for UK company.
Global marketing involves planning, producing, placing, and promoting a business' products or services in the worldwidemarket. There is significantly more toglobal marketingthan simply selling goods and services internationally. This report gives a brief understanding about the global market and how it is necessary for the company to achieve growth.
Development of the global marketing concept
The concept of global marketing states that different markets needs to be targeted all over the world. In order to target different markets enterprise must be aware about the working pattern, rules and regulations and language of that country. Apart from this, companies such as Brightstar Financial to analyze the working and patterns of worldwide consumers and suppliers. Global marketing includes all the factors such as maintaining the mobility, competition and social business. Brightstar Financial needs to be aware of the global factors such as competitors outside the country and threats in the market so that they can use the channel of distribution effectively. Many of the companies believe that foreign market will be an opportunity for growth. This will help the company to gain the benefit of competitive advantage in the market (Magalhães and et.al., 2020). Ask for assignment writing help from our experts!
Research using academic sources, and discuss the development of a global marketing concept
According to (Keegan, 2017) Global Marketing is basically the marketing technique which enables the organizations to target the markets across the whole world and thus forms the integral part of each and every organization. No matter whether the organization advertises as well as markets their goods and products domestically or internationally, definition of the marketing remain vague. However, scope of the marketing is generally broadened when companies decide for selling across the international boundaries and this impacts their business to a high extent. While discussing the globalization, language plays an important and significant role as it is highly essential to communicate with the people of different countries in order to take the brand message to wider audience. Not only does the language, but organizations faces a large number of barrier when they market their goods as well as services across boundaries. Most of the problems which are being encountered by foreign marketer relates to strangeness of environment in which the marketing programs are generally implemented. In accordance with (Kim, Hulland and Eom, 2018) Success mainly hinges on the capability of organizations to assess and analyze the strange environment and achieve competitive advantage in those markets. Global marketing not only addresses taking the products and services on international platform but its concept basically comprehends to understanding the cultural values, perceptions, beliefs, language of the people residing in that country. As per the view of (Kotabe and Helsen, 2020) Before entering the new market, organizations are required to have a thorough market research in order to evaluate that what are the needs of customers, market trend, competitors etc. The theories and concepts of global marketing says that an organization is only says to be successful when it has effectively gone through the market in which it is planning to expand. Without having a proper and thorough knowledge, organizations will become prey of high risks and threats which will impact their operations and supply chain to a high extent (Leonidou and et.al., 2018). Need Assignment Examples?Talk to our Experts!
Real business world that supports this portfolio
ERPG framework helps to focus on the operations of international market which helps the company to take their operations upward. These framework helps the company to maintain the relationship between the headquarters of the company and their subsidiaries which are established in international markets. This aspect has its benefits and demerits such as
If the company wants to adapt a product or service then the cost and level of efforts required will be less. Apart from this method will help the company to provide a route which will guide them to explore different markets which includes same features.
The main focus of this concept always remains on domestic market and there is no opportunity for international human resources.
Background of India
India covers a large part of South Asia. Country has 29 states and each of them are independent in controlling their own affairs. India is the second largest country in the world in terms of population. India is a very diversified country which gives space to many castes and tribes. The land of India is situated between 6 different countries and they are Pakistan, Bangladesh, China, Nepal, Bhutan, Myanmar and Sri Lanka
Political risks in India
There are many factors which companies such as Brightstar Financial needs to look after before starting their operations in India and that is
- Instability in decisions of government which slow down the growth of the country.
- Factor of corruption and inefficiency of bureaucracy.
- Changes in factors which includes rate of foreign exchange, import export, issues in taxation and pricing. These changes are not predictable.
- Problems and issues related to culture, disputes between suppliers and management of the company.
- Fluctuation in rate of interest and inflation in the country can affect the growth of business.
- Interference in business which runs on small scale because of social and political factors.
Trade, tariff & non-trade barriers between UK and India
There are many barriers in India such as restriction of goods on the basis of Import licensing. Recently India has removed this barrier for most of the consumer goods available in the market. Apart from this government of the country charges 1 per cent of duty on imported goods as custom duty. On the other hand in UK does not have any kind of barrier on trade or investment which is beneficial for the company. Companies such as Brightstar Financial can easily transfer profits and capital without any restriction. Some of the barriers that are imposed in UK are according to the regulations of EU which after Brexit will be changed.
Economic environment of India
After the policies of privatization, globalization and liberalization in India the economy of the country has been stable in the market. Apart from these other policies such as industrial licensing has also helped to maintain the flow of the country. Since the last year the GDP of the country has been fallen down and as per the reports growth rate of the GDP is also poor because of which many countries are putting a stop to invest in the country. Some of the key players are investing because of the large market of the company.
Advantages and disadvantages for UK company to move to India
Brightstar has a large market to serve and increase more share in the market. Overall this will help the company to increase their goodwill and tap different markets. They also have the scope to increase the customer base of the company.
Although the economy of the country is not in a good condition which limits the growth of the business as many companies have already shut down their operations and left the country. For Brightstar Financial it will be a risky measure to come and serve to India.
Brightstar Financial are primarily the financial distributor who mainly specializes within residential mortgage and are the providers of the finance solution provided by a team of specialists for UK market. It has its headquarter in Essex along with three more offices throughout the country, The main aim of this company is to become the market leader as well as shape future of the UK specialist finance. This company mainly helps the brokers to grow their organization and business through offering knowledge as well as resources which are necessary for diversifying into lending areas. This company encompasses a large number of the lending areas and mostly includes short-term lending, commercial mortgages, development finance, second charge mortgages etc. Each of these lending areas consist of the dedicated team which is highly trained as well as skilled to provide the best expertise. It is partnership with more than 125 lenders and in collaboration with them, Bright star provides a large number of products as well as services. The main purpose of this company is to provide a thorough support and guidance to each and every broker as well as IFA and provide the right guidance to them. Brightstar receives the enhanced commission from large number of lenders.
Factors affecting the foreign market entry mode decision model and the right entry mode to enter a new market
In order to enter the Indian market company has the option and right mode of entering is joint venture. It will help the company to gain quick reputation in the market and establish themselves so that after some time they can expand their operations on their own. Joint venture will help them to gain quick access in the country and reduction of interference by government.
Firm Size-This aspect states that before entering into new markets company needs to look after their current available resources which will be in the terms of financial or technical. Companies which are operating on a small scale such as Brightstar Financial will need to collaborate with some in order to expand their operations due to unavailability of funds.
Network-This is an essential factor when the company is looking for expanding their operations. If the company is looking to enter in emerging countries then they will need to focus on this aspect because this will help them to know the inner details and conditions of the country which can help them to come up with their own strategies (Quelch, 2017).
Potential of Market-This aspect helps the company to assess that how much growth they will be able to make in how much time. This factor influences the decision of the company to enter and commence their operations. It is believed that larger the market larger they will be able to earn (Schultz, 2017).
Country risk-This factor is concerned with the economic and political condition of the country as these factors helps to determine the growth of the company in the concerned market. On the basis of these factors companies predict the demand and supply of the services which will be required.
Evaluate the advantages and disadvantages of using franchise method.
- This method helps H&M to reduce the probability of failure as the company has already established themselves in different markets which develops trust in the minds of people which helps in gathering more share in the market (De Mooij, 2018).
- H&M has already a share in market which will help them to avoid the factor of market testing of their products (De Mooij, 2019).
- Name of the brand is trusted by the people and recognizable which will help leave more impact on the target audience if they use proper strategy of advertising and other promotional strategies in effective manner (Grigorescu and Zaif, 2017). Get marketing assignment help Now!!
- This method is expensive which makes many investors go away from the idea. The reason behind this is that initial cost required to undertake this method is too high which is not affordable by everyone in the market.
- This method includes a lot of restrictions which limits the thinking and working pattern of the franchisee to run the business on their own.
- If the franchiser goes out then it will affect the franchisee as it will be a huge loss for him (Homburg, JoziÄ‡ and Kuehnl, 2017).
- If the franchisee does not have any kind of prior experience of how to run the business then it will be beneficial for him as all of the strategies and patterns will be provided to them by the franchiser they would just have to invest the money.
- With this method people get loans easily to start up their business as banks and other money lenders trust the company.
- Franchiser provides the details of suppliers which simplifies the work of franchisee as they don't have to make relationship with their suppliers (Alon and et.al., 2016).
From the above studies it has been concluded that companies such as Brightstar Financial who are operating on a small scale will need to collaborate with one of their competitors so that they can enter into different market. Also networking is an important aspect as it helps the company to know the details about the country they are going to enter in.