Global factors impact on marketing strategy

Marketing decision must consider the various global factors while developing marketing strategies in order to improve on the performance of a firm. The global factors affect the business environment in which the firm operates in as much they have to withstand competition in their industry. Globalization has affected the marketing strategies of the firm in that it has helped in the expansion of the market, hence a marketing strategy can reach out to a great pool of customers.  It offers an opportunity for a firm to access new markets by means of establishing relationship with customers, strategic partners or parties in a value chain. In addition, a firm can be able to establish strategic alliances with its various competitors in a local or international market which helps the company in having a large customer base. When the global economies are good a marketing strategy can be utilized to increase the level of sales while at the same time developing competitive advantage over other competitors (Thoumrungroje, 2004).

However, this factor can pose various threats to a firm, which relates to increased competition from other organizations that can access the same environment. Globalization leads to liberalization of markets, creating   new and challenging competitive arena. This means that a firm that is unable to develop an effective marketing strategy can face the cut-throat competition posed by multinational firms that have a big advantage due to large capital base and technological support. This creates a business environment which is very challenging, and which affect market opportunities and threats (Thoumrungroje, 2004). An example of the global factors is the liberalization of global economies by governments.

References

Thoumrungroje, A. (2004). The effects of globalization on marketing strategy and performance. Retrieved from:

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.629.6471&rep=rep1&type=pdf