The Global Marketplace
All Rights Reserved 2009
The global marketplace has provided both benefit and challenges to consumers and companies with products and services. Some of these challenges present themselves in development, organizational structure, and market orientation. Technology has provided benefits that have opened opportunities in communications, a large digital marketplace, and improved production assisting in a progressive movement. Some of the legal and ethical issues include market instability and greed, intellectual issues, and concerns for the environment. An Ipsos Reid study exposed consumer perception as an important factor in consumption. The pricing of the iPhone in relation to practicality related to a shift in marketing. Team organization plays a key component in company performance and creativity and logic are important factors. Another challenge in the global market is seen in the market placement of a product. IBM had difficulty with a personal PC launch and consumers wish to be educated. Technological advancements have aided communication in a team environment and a global environment. Small companies now have access to a global market to launch their products and services like Turkcell. Advances have also aided in production development of more advanced and green technologies. The ethical issues have encompassed greed and misaligned obligations on behalf of large companies like the automakers and government agencies. Global trade has made a large impact on even the successful markets with considerations of how noncooperation will effect their trade abilities and environmental concerns.
The Global Marketplace
Companies can face challenges when launching a new product or service into the growing global markets. Multifaceted issues arise as our market becomes saturated with technology, global applications, and legal and ethical implications. These components must be addressed to ensure the success of product launch and market implementation. Both benefits and challenges should be considered and evaluated by how relevant they are to market success.
Challenges in New Product Development
There is a vast amount of information available in a global market and providing a clear direction from information to implementation is an important aspect of product development. Clients and consumers need a clear message of intention and value in a product or service. A global market can provide a large selection and strong competition among well developed products. Providing these developed products or services will ensure a steady market value and increase consumer purchasing power. The development process must address the major points of interest and provide a prominent outlet. The organizational structure of teams is extremely important to the success of any product, service, or functioning company in today's global market. Without such a structure, even the strongest performing companies can face failure. The correct market orientation also plays an important role in sales and distribution success.
Developing a product that is desirable and unique enough to warrant a consumer purchase is a necessary consideration. The success of a product or service may not completely depend on the actual value of a product, but rather on the perceived value to the consumer. Graham (2009), states that the customer holds the power of whether or not to buy and forgetting that point can cost tremendously. Launching a campaign because a movement has arisen does not necessarily mean that the product will be well received. In an Ipsos Reid study (Graham, 2009) applying to Icynene Inc., women responded with an overwhelming response of 65 percent that the marketing presentation they were presented with was a gimmick to make them believe the product was “green” in nature . The men found it to be unbelievable by 75 percent. Being honest and marketing appropriately puts the product into perspective.
A global market brings great diversity and cultural influences that can effect a product response. Not every market in the global marketplace can sustain the same product price. Economic issues, cultural diversity, and consumer awareness are issues of consideration in the planning of product presentation to the marketplace. Pricing the product beyond its value to consumers could leave distribution numbers lower than anticipated. Apple was forced to lower the price of the iPhone a couple of months into their campaign and dumping the lower end version (Graham, 2009). Consumers just did not respond to their strategy.
Challenges: Organizational Structure
Having a strong support staff capable of understanding the product and its application works well in a marketing campaign and product launch. Bringing a team together who work as a strong unit with clear objectives and asset values can define the very success of a product launch and the company itself. A sense of feeling needed and valued is important in staff retention and motivation levels of performance.
The environment of empowerment encourages teams to be creative and proactive rather than reactive to a subset system of authority. Using a positive work ethic and rewarding system that acknowledges worker value creates cohesion to the goals of the company. With a disjunctive alliance worker productivity is a challenge and goals are more difficult to reach. Perception seems to be the strength of marketers while management likes to analyze the facts (Ries, 2009). There also seems to be a pattern in right and left brain dominance. Using the logic centers of the brain may not allow you to see a creative perspective. While using the more right side of the brain might only be more interested in the reality of something (Ries, 2009). Finding the balance between the two is important to a team that can work together to achieve a successful venture.
Challenges: Market Orientation
Understanding the target market and the profile of the consumer is also essential to marketing success. Information on what competitors have to offer specific demographics in relation to marketing trends, product advancements, and consumer practicality builds on development. These products or services must have an application in the life of the consumer (Ries, 2009). points out that IBM failed to launch a successful PC campaign because they were perceived as a “mainframe” company. The perception of the public became incredibly important to the launch of a new product. Failing to address this cost IBM 15 billion dollars in losses (Ries, 2009).
The knowledge of who the consumer is and what draws them into purchasing will provide a more prominent advertising target. Clear definitions of what the product is and how it is essential to market purchase and where it fits in the consumer market will define the scope of financial projections and the time needed to reach those goals. Graham (2009) points out that the consumers want an education and anything that does focus on that should not be included. With an easily accessible global market, consumers have the ability to do research and find many options for themselves.
Technology and New Product Development
Technology has advanced with tremendous tenacity in the last 50 years. No longer can a product expect to be relevant as was once common in the marketplace. These technological advancements have afforded great advancements and opportunities to even the smallest of companies and entrepreneurs. It has opened accessibility of resources, redefined advertising and marketing practices, and provided new avenues for market success. Communication has vastly changed, an explosive digital market has mainstreamed many tasks, and information resources have opened many doors of opportunity.
The business world has changed substantially since the onset of the world wide web. Many of the technological advancements we see today had original applications in military or scientific research. Many of these developments then make their way into the open market that can bring about change quickly and dramatically. When once we had to either call or write a hand written note to communicate with a client has become a simple process of email, texting, or teleconferencing. Now, a man in France can see a coworker give a presentation using web cast technology without actually being there.
The impact on volume of communication allows reproducible information to be accessed and reused in virtually every business setting. A presentation that once had to be given locally or recorded to a hard copy and distributed can now be accessed at a workers or a clients
desk. Boule (2008) found that productivity increases when a face to face meeting can be replaced by quick text messages or having the ability to respond outside of a scheduled meeting. The flexibility in the technology allows more decisions to be made quickly. Boule also finds that the flexibility of working through technology allows workers to complete tasks remotely and on a more flexible time frame conducive to their lives.
Technology: Digital Marketplace
Consumers can find a product or service with little or no effort with many available technologies. The Internet is now a digital representation of any business or service even if it has no real physical location. Someone in China can instantly find a handbag in Texas. Distribution channels become global even to a small business selling a service or product. Services also become exposed to standards world wide and mainstreaming practices establishes a stronger global tie. Advantages can also be gained in the way of competition. When once the small company could not reach a global market, now its products can be seen easily. Foreign Affairs (2009) reported that a company called Turkcell has blasted into the marketplace to rival companies such as Microsoft and now has a mobile signature service that enables a customer to use their phone to access an ATM machine without their bank card. They are the first to offer this technology and without the benefit of a global digital marketplace and keeping their debt down may not have been able to expand into other countries. Turkcell is confident that they have better service and technology than the United States and that they will be able to compete (Foreign Affairs, 2009).
Technology: Creating Better Solutions
The advancement in technologies have provided an ability for exponential growth and better solutions. Consumer demands for greener products and packaging has led companies to use technological advances in materials. Guzman (2008) points out that solvents were used as adhesives, but now other companies are switching to water based adhesives like the ones now used by UPS and Fed Ex. Rohm and Haas are also developing an earth friendly adhesive for food packaging. They have collaborated with Italian manufactures and expect to have a large impact on how food is packaged. Another example is a company called Ciba who plans to replace wax treatments in packaging to make them easier to recycle (Guzman, 2008).
Legal and Ethical Implications in New Product Development
Legal and ethical issues in a global market have revealed some serious questionable practices among some of the most profitable companies. Top executives have left companies with bonuses in the millions while average workers have been left with unemployment and fewer resources for retirement. Carelessness and greed eventually contributed to a downfall that many of the wealthy would also feel. Leaders unwilling to embrace new ideas, share some of the success, and plan for the stability of a market contributed to a serious market downturn that will greatly impact future market success.
Legal and Ethical Implications: Market Instability and Greed
The recent bailout of failing companies in the United States has raised awareness of many of the legal and unethical practices which have long been building into a financial disaster. Some executives have been able to live comfortably with large salaries and and frivolous spending. The focus of conscious spending and planning was abandoned in instances that would later create unbalance that would effect the worldwide market. Leaders have long seen the need for sustainable energy sources and hybrid vehicles, yet the investments have shown that this knowledge was ignored. Sachs (2009) points out that the big three automakers have promoted vehicles that they knew would not fit into the new market where environmental concerns had reached a peak. This carelessness led to a difficult transition in a failing economy already burdened by poor banking policies and government spending. Public approval of a bailout was met with disapproval. Sachs points out that the government spending on all research and development for energy was approximately 3 billion while the Pentagon spends that amount in a couple of days. While policies have begun to change, the solution will now be more difficult to implement.
Legal and Ethical Implications: Intellectual Issues
Intellectual Property issues can give rise to the transfer of ideas into a market where development and labor will pose a threat to the original market. As technology advances, implementing production at cost efficiency and rate is likely to need reevaluation and improvement as technology improves. Car production in the United States was a strong factor in the economic performance early in the car era. Once other countries were able to learn from our production, car manufacturing development improved giving them a stronghold in the market. A reduction in production costs and labor also effected the United States ability to compete in a global marketplace.
The costly production of automobiles and the issue of efficiency became a serious concern for Unites States auto companies. General Motors, Ford, and Chrysler still produce vehicles that rely heavily on petroleum fuel. Since the price of fuel has skyrocketed these companies were unprepared for the new consumer demands for more fuel and price efficiency. Consumer awareness of environmental issues and progressively undesired contractual obligations have led to the ability of a foreign market to obtain a market advantage (Sachs, 2009 ). Without the continual advancement of the Unites States auto maker's designs and vehicle functionality, they have left the door wide open to foreign markets willing to improve on our technology and innovation.
Legal and ethical implications: Challenges to the Environment
A large market boom can bring on a quickly developed production surge that may not take into consideration the direct impact of environmental and ethical concerns. Global trade (2008) describes a situation where cooperation for a global market can greatly impact social issues like poverty and environmental concerns. International talks in Geneva circled around farm subsidies and market giants like the Unites States and Europe who put pressure on China and India for holding to standards that would protect many of their farmers that just produce enough to get by. This disdain can then impact decisions that could effect efforts to curtail environmental issues with countries like China who has become industrialized on a large scale. The unwillingness of the wealthy markets to cooperate with the smaller markets could in the long run bring about a demise for both.
Benefits of technology, a balanced organization, and cooperation of competing markets serves to create a more viable global marketplace. Greed and poor production will only lead to a reactive decline in the ability for the advancement of companies around the world. By learning from mistakes, paying attention to consumers, and being responsible the global market can be of benefit to production and marketing success.
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