•Globalization– Globalization is the process of rapid integration of countries and
happening through greater foreign trade and foreign investment. There are 4 simple steps a company must establish to start global marketing. First,
a company needs to achieve domestic dominance. Second, a company
must have a home focus with exporting. Third,
marketing to global markets must be mixed with overseas organizations. Changing the marketing strategy to become a polycentric strategy is the
best way to adapt to the needs of all the potential customers throughout
the world. Fourth, the value of the product must be on demand in
a global market. Global
marketing is unpredictable and marketers must be aware of different
opportunities and be willing to adapt and create new products for global
demands.
•Deregulation– Market deregulation occurs when a market is controlled and stable enough
to operate in a competitive and unregulated environment. The airline
industry is an example of government deregulation that occurred in the
1970s, when the government relaxed control over how airlines operate. One effect of market deregulation is more competitive pricing. Examples
of newly deregulated industries are the utility and telecommunications
markets. Market deregulation has now made utility companies such as
electricity providers and phone companies compete for business and offer
better pricing.
•Privatization– The term "privatization" describes a shift in the ownership
of assets or the provision of services from the government or public
sector to the private sector. Increased efficiency of public companies in value delivery and earning profit.
•Customization– Ability to ‘personalise’service or production as demanded by customers. Customers want more customized, personalized products and services,
but companies struggle to cost-effectively deliver them. Improving
communication and coordination between operations and sales
and marketing is one critical path to profitable customization.
•Disintermediation– Disintermediation in digital marketing
services is a concept where in effort is made to establish a direct
contact between the producer or the supplier and the end user or the
consumer. This is done by eliminating the middlemen or the affiliates. ‘No’to intermediaries; e.g. online dot-coms(eBay, Amazon, Yahoo)
Changes in the marketplace are influenced by various factors that affect consumer behavior, market dynamics, and economic conditions. Here are some key influences that drive change in the marketplace:
1. Consumer Behavior and Trends
- Shifts in Preferences: Changes in consumer tastes and preferences can significantly impact demand for products and services. For instance, a growing preference for sustainable and eco-friendly products can lead companies to adapt their offerings accordingly
- Demographic Changes: Variations in age distribution, income levels, and cultural shifts can alter consumer demand patterns. An aging population may increase demand for healthcare products, while younger demographics might drive trends in technology and fashion
2. Technological Advancements
- Innovation: Rapid technological progress can disrupt existing markets by introducing new products or services that meet consumer needs more effectively. For example, the rise of e-commerce has transformed retail, leading to a decline in traditional brick-and-mortar stores
- Digital Transformation: The integration of digital technologies into business operations can enhance efficiency and customer engagement, prompting companies to adapt their strategies to remain competitive
3. Economic Factors
- Market Conditions: Economic indicators such as GDP growth, unemployment rates, and inflation influence consumer spending power and confidence. A recession may lead to decreased discretionary spending, impacting various sectors
- Interest Rates: Fluctuations in interest rates can affect borrowing costs for consumers and businesses, influencing investment decisions and overall economic activity. For instance, lower interest rates may encourage spending on big-ticket items like homes and cars
4. Regulatory Changes
- Government Policies: Legislation and regulations can have profound effects on market dynamics. For example, new environmental regulations may require companies to invest in cleaner technologies, affecting production costs and pricing strategies
- Trade Agreements: International trade agreements can open up new markets or create competition for domestic industries by reducing tariffs and trade barriers. This can lead to shifts in supply chains and consumer choices
5. Competitive Landscape
- Market Competition: The entry of new competitors or changes in existing competitors' strategies can prompt businesses to innovate or adjust pricing strategies to maintain market share. This dynamic encourages continuous improvement and adaptation within industries
- Substitutes and Complements: The availability of substitute goods can impact demand for a product; for instance, if the price of beef rises significantly, consumers may switch to chicken or plant-based alternatives
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