Global & Domestic Marketing Decisions

Global & Domestic Marketing Decisions

The global market is the opening of countless sources of ideas, goods, and services to those who want them across time zones and borders. Achieving a global market tends to accommodate labor and goods on the one hand and on the other hand cultural and individual styles. If prices are too high, the product may not sell, if the prices are too low, exporting activities may not be sufficient for profit or may create a loss. Domestic Market is the price at which a product is sold directly that determines the firms’ revenues. Domestic marketing and global marketing can affect the following environmental factors:

Economic Environment

This consists of factors that will affect a consumer’s purchasing power and spending habits. Economic factors include inflation, unemployment, rates, business cycles and income. The changes in economic environment can have an impact on the market place. The money spent by consumers is important to marketers. The trends in economic environment show an emphasis on global income distribution issues, low savings and high debt, and the change in expenditure patterns. An example would be access to cable TV, appliances, etc, where there is little visible different between those who are poor and those who are not. Both utilize those services.

The only difference is that those with less income may shop at discount stores for the same products. Domestically one can have the option to choose the type of product based on what they can afford and have multiple brands to choose from to meet their requirements, however globally; one may not have that privilege as an option. In most foreign countries, or third world countries, having dishwasher for example is not high on the priority list as it cost them more they can make in a year, income wise. However, in the United States, it is very rare that you will find a home that does not have a dishwasher in it. This is because the US has adapted and become accustomed and reliant on having dishwashers as a form of convenience where other countries are not as advanced when compared.

Technology Environment

This refers to the new technologies that create new products and market opportunities. This factor has great impact on one’s lifestyle and on the economy. Technology can be found in almost every household and business organization world wide. With the rapid rate of technology changes have enabled in some areas, and forced in another, entities to quickly adapt to the terms and development of the ever changing technology environment. Both global and domestic markets benefit greatly from technology. Using Microsoft as an example, over the years, it has become seemingly impossible to not have a computer that has Microsoft software.

With the software coming in all forms of languages and applications to suit the global and domestic market, people find it most convenient to utilize their product as it takes a true computer “guru” to use a different alternative. Organizations follow suit, aside of the major conveniences, they take into account the personnel hired and their level