Strategic Planning Consists of Fitting Term Paper

Pages: 5 (1414 words)  ·  Bibliography Sources: 0  ·  Level: High School  ·  Topic: Business - Advertising  ·  Buy This Paper

SAMPLE EXCERPT:

[. . .] Purchasing power is the relationship between income and the cost of goods and services. Inflation measures the relative real value of currency based on changes from year to year. Recession is a period of negative income growth; it affects consumer spending habits tremendously.

The Impact of Technology on Firms is critical, especially when the rate of technological growth and development in the marketing environment is fast-paced and continually increasing. In general, organizations must respond to changes in technology by conducting research and then applying that research to develop new products based on that research. Some of the approaches used to do that include building scenarios, conducting online research, discussions with early adopters, analyzing marketing research, promoting an environment that encourages innovation and creativity, and catering to entrepreneurs.

The Political and Legal Environment determines various factors affecting the market; for example, laws and regulations can impose limitations on new technology and business, while political issues and related legal changes can affect consumers, businesses, and society in general. In addition to state and federal laws that may treat various types of businesses and products differently, there are also regulatory agencies at both the state and federal level that may impose requirements that increase overhead.

Foreign and Domestic Competition consists of those enterprises that offer comparable products and services to the same market. The competitive factors include the number of competitors, their relative size, and also the existence of interdependent industries.

Chapter 5 Summary

Global Marketing presents both the means to explore additional potential marketing opportunities as well as additional potential threats, such as from increasing numbers of competitors. On one hand, the U.S. already derives more than 13% of its GDP from international business and approximately 7% of American jobs involve foreign exports. The international markets expand business opportunities and can counterbalance government regulatory activity. On the other hand, millions of American jobs have also been lost to international competition and the opportunity to outsource American jobs overseas poses a serious risk to many more American jobs. The availability of outsourcing may also handicap legitimate governmental exercise of domestic regulatory authority.

Multinational Firms pursue market opportunities in more than one country. The typical stages of business development are: (1) conducting operations in one country and selling to foreign markets, (2) establishing foreign subsidiaries to conduct operations abroad, (3) establish a line of business exclusively in another country, and (4) sell globally online. Like global marketing, multinational firms also present both advantages and potential disadvantages. They already account for nearly half of all American exports, almost 20% of all private-sector American jobs and they generate 25% of private-sector wages. However, technology-based growth of multinationals is more capital-intensive than labor-intensive and may not support continued job growth; and they may extract more wealth than they generate.

The External Environment Facing Global Marketers is much more complex than the external environment of strictly domestic marketers. It includes the variables of culture, natural resources, economic and technological development, political structure, and demographic makeup. Typically, political and legal factors are more variable than within domestic markets and they are often less predictable.

Entering the Global Marketplace is an attractive opportunity for many organizations, mainly because it represents additional potential profits, access to more consumers, and increases the benefits of economies of scale. Generally, the greater the potential return, the greater the risk associated with the five methods of entering the global market, in the following order of ascending risk/return: (1) export, (2) licensing and franchising, (3) contract manufacturing, (4) joint venture, and (5) direct investment.

Developing a Global Marketing Mix requires a detailed understanding of the global target market but accomplishing that is more complex than understanding domestic markets. Among other factors, there may be changes necessary to the products or services and their marketing messages; there are logistical challenges based on geographic issues; there are many more pricing variables; there are currency exchange-rate issues; and there are various strategies to consider, such as "dumping" and "countertrade."

The Internet and Global Marketing are potentially valuable opportunities to increase revenue in comparison to traditional "brick-and-mortar" businesses because they are not limited to a physical location or to local target markets. Participating in e-commerce increases the exposure of the organization to global marketplace and… [END OF PREVIEW]

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Strategic Planning Consists of Fitting.  (2014, February 5).  Retrieved February 17, 2019, from https://www.essaytown.com/subjects/paper/strategic-planning-consists-fitting/1265985

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