The Global Marketing Environment

Global marketing Environment is a complex term to explain because it is covering all the issues of world that are continuously changing. To explain the true present picture of the Environment it’s necessary to go through the most up-to-date literature and study the current changes. This chapter is giving the idea about the today’s marketing and changes & challenges of the sub environmental forces.

Today’s Marketing

The changing behavior of customers and proliferation of new marketing channels setups the new issues in the business world. In international market competition it’s becoming harder and harder to maintain the life time relation with customers. Selling quality product and service in affordable price is not enough to gain the customer loyalty there are also many other dimensions of care. These all changes make profit secondary and modify organizations to customer-focused organizations and born the new theories and approaches.

Today’s marketing has come out with the circle of 4P’s (Product, Price, Place and Promotion) and in the broader sense it is taking as an organizational function. The modified form of marketing is to provide greater value to customer and develop and maintain a healthy relationship.

According to the American Marketing Association today’s Marketing is:

“Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in way that benefit the organization and its stakeholders.”(Keefe, 2004)

The Intermediate and Macro Environment

The global marketing environment comprises the intermediate and the macro environment. The intermediate environment contains those factors which are semi-controllable through contracts and they will be categorized as suppliers, Distributors, facilitators and shareholders. For example in software industries the different vendors, application sellers, temporary specialist staffs and subcontractors etc are part of intermediate environment. The macro environment is made up of those factors and forces which are generally uncontrollable. (Lee, 2005)

For the Global strategic marketing planning to evaluate and investigate the threats, opportunities and for risk assessment usually organizations used the PESTLE analysis here PESTLE stands for Political, Economic, Social, Technological, Legal, and Environmental Factors. (These macro environmental forces are also shown in above figure). Mostly external auditor is used to audit the impact of these forces.

Some countries have more relaxed and easy polices for import and export.

Countries history of friendly relation and healthy business deals have also a positive impact in the future trades. Similarly if countries have better infrastructure for trading polices and legislations it also goes in the favor of the international traders. It helps to minimize the time and provide the secure dealings and especially newcomers feel comfortable to trade in such environment. With all these reasons the fresh literature tells us about the twelve factors involvement in the international trading.

In 2005 according to the Geri Clarke the HELPS FREDICT is a more complete framework for the international marketing environmental analysis.

H History F Financial

E Economic R Rules- International Trade

L Language E Environment

P Politics D Demographic

S Social I Infrastructure

C Culture

T Technology

Changes and Challenges

In 1998 article in the Economist Magazine Sums it up nicely:

“Marketing has become a complex art. Technology and trade have increased the potential for global brands. The fragmentation of audiences and rising costs of television and print advertising are making other media attractive. And direct marketing and the internet are rewriting all the marketing rules.”

55 years back, the television invention opens the new ways of the mass marketing and with the visual demonstration many local brand and now take the status of the world class brand. This technology changes the language of the advertising. In old age mostly people preferred to buy things from market search and mainly radio transmitted about the market affairs and new coming products. Then TV gave the new confidence to its viewers and globally advertised the real market position. The visual demonstration also teach the people and guide them correctly and it also answered the question that why they need and want this specific product. Now World Wide Web is taking the position of the TV and Similarly the Digital TV and the Smart mobile are writing the new rules of the marketing.

Today mobile and pager is the basic need of people and every one is in range just because of a small piece of technology. Here telecommunication was playing an important role. Now in the end of 20th century, the emergence of internet and telecommunication introduce m-commerce. First mobile companies simply provide an updates information like weather reports, games online information, latest movies and songs information etc just to provide better services and to satisfy customer. From that time the m-commerce became the part of our life and no one feel this addition of the new business technique, today banks and other financial services are also providing mobile commerce services and this tiny device has become the source of market transactions. This was the small overview of emergence of the technology.

On the other hand the destructive incidents like 9/11 and 7/7 etc. and other country wars (War against terrorism) are destroying the developed markets and the investors are feeling fear to invest money in these risky areas.

The customer buying behavior and its quality perception is also changing and now he is demanding the rich added value products and services. The multinational companies and chain store also create a strong competition globally and it’s becoming more difficult to retain a long term relation with existing customer.

However the last decade of the twentieth century bought major changes that redefine the role and concept of marketing. The rapid change of market made customer more sophisticated and value added demanding. Products/service development and management has changed radically, the internet and third party securities made more easy transactions and virtualized payment and distribution channels introduce new way to approach market (O’Connor, 2001).

Bulk Email Marketing – Promote Your Business in the Global Market

Business owners use various online and offline methods to promote their products and services in the global scenario. To run their business effectively, they develop useful methods and strategies. The Internet plays vital role in promoting business activities for various business firms and bulk email marketing is one of the best option, which gives a sound platform to various business organization to socially promote their business amongst various clients and users. Thinking that bulk email marketing is nothing more than that of spam and wastage of time and money resources is totally wrong, as it has a very significant impact that can affect your business positively.

Earlier, people were not familiar with the promotion through bulk e-mail marketing, and treated such promotional mailing activities like spam mails. But as the time changed and technology got advanced, the email marketing system became an important way of social network marketing.

Adding on to it, this continuous spam mail can also lead to your website being banned by search engines. So one must be careful, because such junk email processes will lead to a very bad impact on one’s business in the market. To escape from such dangerous destruction, you can opt for a ‘subscribe’ function on your website, which will help you out in avoiding such problems because in this way you will send email messages only to your subscribers. It’s also better to provide a non-supporting link in your email message for those who don’t want to receive your free bulk email messages in future

For bringing up traffic to your website, you have to act creatively and you should take smart action. You can develop good relations with your clients by providing newsletters information about products and services and the latest update of your business. In a regular interval of time, you should always send free bulk email messages. Too much or frequent mails from you can let your client withdraw the subscribe deal and delete your address from his/her contact list as well. However, the important thing which should be kept in mind is that never slow down or stop sending your bulk email marketing [http://www.rupizxpress.com/] newsletters, because after a long interval of time, the client will automatically withdraw support.

Importance Of Web Marketing Technology

the increase in the number of businesses has created the need to be competent and innovative in order to capture a wide area and retain customers while wining new ones. Internet has created a global village where people can meet, exchange ideas and interact at various levels in the effort to bring about development. Web marketing is a modern trend in making outreach to customers in a fast and efficient manner.

Products and services that firms deal in are promoted in digital and presentable techniques through the internet to reach wider population than other media. This is a wide scope which not only involves the use of internet but also encompasses other functionality like wireless media and email promotions. All these types of media are collectively used or can be individually selected depending on the nature of target groups.

Technical skills and creativity are heavily invested in this process to be able to attract attention of consumers and have them scrutinize the products and read broadly with interest to purchasing them. These businesses endeavor to win the loyalty of consumers which can not be easy to earn if the techniques used are not that presentable. Finances are employed into the system to employ skills which are competent in promotional activities.

Development, sales, design and advertising are some promotional aspects that are also embraced in the process of making the information to be sent over the internet. Banner ads, search engine optimization, email promotion, mobile advertising and search engine promotion are some aspects that are used in reaching consumers. All these aspects are actively used by the businesses in creating a pool of knowledge resource for consumer consumption.

There are companies which actively engage themselves in doing the advertising of the products and services on behalf of businesses at certain agreed fee. The amount of money charged depends on the amount of information that is to be published for consumer viewing and the size of the advert. Well organized and presentable advert are found to attract customers and win their preference.

There are several categories of internet promotional techniques including search engine promotion, display advertising, social media, email, referral, inbound and affiliate marketing. All of these types are used concurrently in achieving the best results as they make a wide coverage. The choice of the type depends on the target group and the amount of money that can be employed by a business in the process.

Goods can be sold directly to consumers through a model known as E-commerce using network that connects the consumers and the suppliers. The target is to win the better part of market and have them purchase the products. Product can then be purchased from their physical premises or from internet if possible.

The choice of web marketing is the best decision that a business can make as it is the most efficient method used in making publicity. A business can combine the methods to ensure they get the best result as most customers use the internet, more so the social sites. Many organizations now embrace this method as it is fast, cost effective and efficient in reaching out to consumers.

In 21st Century as Global Market is Shrinking… Cross Cultural Adaptation is a Must!

Introduction

In 21st Century and in the era of Knowledge Based Industry when global market in shrinking cross culture adaptation is not only a MUST but is only a mantra to succeed. In my previous two employments, we had 15 and 24 nationals respectively from different countries and many of our people from India go on Deputation to other countries and many of them face challenges to cope-up with the cultural change…behavioral change.

Understanding Intercultural Sensitivity

Why you need to go out, India is a country with “Diversity in Culture”. This diversity is the result of the coexistence of a number of religions as well as local traditions.

The beautiful temples of south India, easily identifiable by their ornately sculptured surface, in the desert of Kutch, Gujarat, on the other hand, the local folk pit themselves against the awesome forces of nature, in the extreme north is the high altitude desert of Ladakh, Local culture is visibly shaped by the faith – Buddhism – as well as by the harsh terrain.

With over one billion citizens, India is the second most populous nation in the world. It is impossible to speak of any one Indian culture, although there are deep cultural continuities that tie its people together.

In its quest for modernization, India has preserved its ancient civilization and never lost sight of the ideals that gave her strength through countless centuries. Science and technology has been steadily raising the living standard and prosperity of its people, but the nation of more than one billion people – one sixth of humanity – continues to live with some of its traditional values that go back 4,000 years and more. See this synthesis of tradition and modernity on your India Travel itinerary.

Developmental Model of Intercultural Sensitivity

“Global diversity is the recognition and development of skills to deal with differences on both international and domestic fronts.” -Dr. Milton Bennett

How can we help employees in our organizations succeed in an increasingly complex workplace? Our function is to clarify what cultural competence is and why it is needed, and to help employees enhance understanding of their own culture, and increase their intercultural sensitivity and competence.
In 1986, Bennett created the Developmental Model of Intercultural Sensitivity, which shows a progression of stages people may go through in developing intercultural competency. Since then, he has partnered with Dr. Mitch Hammer of American University to develop the Intercultural Development Inventory (IDI). (The inventory is a set of statements that allows an individual to assess his/her developmental stage of intercultural sensitivity according to the DMIS. This tool is valuable because it measures people’s ability to experience difference in relatively complex ways).

Why there is Resistance…Tool to understand resistance

Development of intercultural competence does not come without a struggle; some employees will protest these efforts. Bennett’s model helps us understand that the basic form of resistance is a defense response. People who respond to diversity efforts in this way are often moving from the model’s first stage of intercultural sensitivity, denial (a failure to recognize that cultural differences exist) into the second stage, defense (recognition of differences). Often, people at this stage may express concern about reverse discrimination. “Recognition of the fact that differences do exist carries a threat,” he says. The reaction is to defend one’s self. Bennett recommends listening carefully to the person’s fears and to help them understand how the organization will continue to extend opportunities to this person’s cultural group, even as efforts expand to include other cultural groups.

The model predicts that as time goes by, people can move from defense (stage two) into minimization (stage three). “With minimization, there’s more recognition that we’re dealing with people that are different, but there’s still resistance to that idea,” Bennett explains. “The belief is that somehow if we are more open in making sure that equal opportunity exists, everyone should be grateful and follow a set of rules.” Someone in this stage may say, “Why can’t we all just be Americans?” A person at this stage hopes that we will all converge into a single cultural position. Of course, this position assumes people are able and willing to shed their culture and take on American culture.

How to address backlash

Bennett recommends several approaches to addressing backlash:

· Cultural Self-Awareness: Help employees develop cultural awareness, including (if applicable) identification of European American ethnicity versus stopping at a more specific cultural self-awareness (such as Italian or Irish).

· Recognition of Cultural Capital: Prepare employees to deal with issues of privilege in a non-threatening way. Help them to identify their own cultural capital (what it means to belong to their own group and how that translates into institutional privilege).

· Establishing a Cultural Core: Facilitate an exploration of value commitment in the context of intercultural relativity.

In other words, we need to recognize that our values are culturally based. Then, we must develop the capability of working effectively with people with different values without feeling the need to give up our own values system. “I find that most diversity practitioners don’t have the ability to deal with this,” He says. “[The tendency is to think] if there aren’t any basic values, which by the way are mine, how do we work and live ethically?”

Bennett envisions this model extending beyond domestic to international diversity efforts. “Global diversity is the recognition and development of skills to deal with differences on both international and domestic fronts,” says Bennett.

Many organizations realize that diversity efforts involve on-going change strategies rather than one-time training events.

There is also a move toward coupling international and domestic diversity, and aligning intercultural competence with leadership development. “The danger [in these trends] of course is that international issues may be seen as diffusing other important [domestic diversity] issues,” Bennett cautions. Our challenge, then, is to maintain the emphasis on domestic issues within the context of the larger global diversity effort.

Stages of Intercultural Sensitivity

In the ’80’s and 90’s organizations have attempted to go beyond mere discrimination issues and even to “celebrate diversity.” However, celebration of diversity falls far short of what is needed for effective collaboration between mainstream agencies and ethnic minority communities. For organizations or individuals to move beyond “celebration” to a real ability to work appropriately with cultural difference requires a planned sequence of development.

Bennett describes six stages of development in intercultural sensitivity. The stages provide a good framework for determining how to work with and improve the capacity for intercultural sensitivity and collaboration. Some of his stages of “cultural sensitivity” include behaviors or adaptations the authors include under the definition of “cultural competence.”

1. Bennett refers to the first stage of the model as “denial.” It means that people in this stage are very unaware of cultural difference. If mainstream agency staff are in this stage of intercultural sensitivity, a huge problem can be expected in the delivery of education, health, and social services for ethnic minorities, a gap that does currently exist when these groups are compared to Anglo Americans. The task for staff at this first stage of intercultural sensitivity is to recognize cultural differences that are escaping their notice.

2. Whereas in the first stage we do not “see” cultural differences, in the second stage of cultural competence we do perceive cultural differences; however, differences from ourselves or the norms of our group are labeled very negatively. They are experienced as a threat to the centrality and “rightness” of our own value system. Bennett calls this stage “defense.”

3. In the third stage of intercultural sensitivity, minimization, we try to avoid stereotypes and even appreciate differences in language and culture. However, we still view many of our own values as universal, rather than viewing them simply as part of our own ethnicity. The task at the third level of intercultural sensitivity is to learn more about our own culture and to avoid projecting that culture onto other people’s experience.

This stage is particularly difficult to pass through when one cultural group has vast and unrecognized privileges when compared to other groups. This problem is so invisible that persons in mainstream agencies are often mystified when representatives of ethnic minorities consistently withdraw from collaborative activities.

4. A reasonable goal for many mainstream agencies is to ensure that all staff achieve at least the fourth developmental level in intercultural sensitivity. The fourth stage in Bennett’s model requires us to be able to shift perspective, while still maintaining our commitments to values. The task in this stage is to understand that the same behavior can have different meanings in different cultures. The comparisons that follow in the Toolkit can be particularly helpful for staff of mainstream agencies to improve their intercultural sensitivity in this stage of development. In order for collaboration to be successful long-term, this stage of intercultural sensitivity must be reached by the participants of the collaborative process. Bennett calls this stage “acceptance.”

5. The fifth stage of intercultural sensitivity, adaptation, may allow the person to function in a bicultural capacity. In this stage, a person is able to take the perspective of another culture and operate successfully within that culture. This ability usually develops in a two-part sequence. It requires that the person know enough about his or her own culture and a second culture to allow a mental Shift into the value scheme of the other culture, and an evaluation of behavior based on its norms, not the norms of the first individual culture of origin. This is referred to as “cognitive adaptation.” The more advanced form of adaptation is “behavioral adaptation,” in which the person can produce behaviors appropriate to the norms of the second culture. Persons serving as liaisons between a mainstream agency and an ethnic minority group need to be at this level of intercultural sensitivity.

6. In the sixth stage, the person can shift perspectives and frames of reference from one culture to another in a natural way. They become adept at evaluating any situation from multiple frames of reference. Some representatives in cross-cultural collaboration may reach this level, but most probably will not.

Stage six requires in-depth knowledge of at least two cultures (one’s own and another), and the ability to shift easily into the other cultural frame of reference. The task at this level of development is to handle the identity issues that emerge from this cultural flexibility. Bennett calls this final stage of intercultural sensitivity “integration.”

Building Intercultural Development Inventory (IDI), a tool to build individual and team effectiveness

The ability to communicate effectively with people of different backgrounds, cultures, or perspectives is essential to creating an inclusive, productive, and innovative work environment. This is the basis for leveraging peoples’ inputs to improve business results.

Each member of a team or an organization must build this competence to a degree consistent with their responsibilities and work. It is therefore important to be able to measure intercultural sensitivity and guide development for individuals, teams, and organizations.

The Intercultural Development Inventory, developed by Dr. Mitchell Hammer and Dr. Milton Bennett, is a 50-item, theory-based paper and pencil or web-based instrument that measures intercultural sensitivity as conceptualized in Dr. Bennett’s Developmental Model of Intercultural Sensitivity (DMIS).

The DMIS is a framework for explaining the reactions of people to cultural differences. The underlying assumption of the model is that as one’s experience of cultural differences becomes more complex, one’s potential competence in intercultural interactions increases. Dr. Bennett has identified a set of fundamental cognitive structures (or “worldviews”) that act as orientations to cultural difference.

The worldviews vary from more ethnocentric to more ethnorelative. According to the DMIS theory, more ethnorelative worldviews have more potential to generate the attitudes, knowledge, and behavior that constitute intercultural competence.

The IDI measures an individual’s and/or group’s fundamental worldview orientation to cultural difference, and thus the individual or group capacity for intercultural competence. As a theory-based test, the IDI meets the standard scientific criteria for a valid and reliable psychometric instrument.

Key Characteristics of the IDI

The IDI is currently administered as a paper and pencil instrument composed of 50 questions that are designed to measure an individual’s sensitivity to and awareness of cultural differences. The survey consists of statements reflecting attitudes toward cultural difference, and responses are scored on a five-point Likert-type scale. The instrument takes approximately 20 to 30 minutes to complete. The results are compiled and a graphic profile of an individual or group’s predominant stage of intercultural development is generated. In addition, IDI results provide a textual interpretation of an individual or group’s stage of development and associated transition issues. Administration of the IDI is often accompanied by a pre-interview, in which respondents are asked about their backgrounds and prior experiences with different cultures. In addition, individuals and groups are provided with their IDI results in conjunction with a mandatory debriefing session that is facilitated by a trained and certified IDI administrator.

The IDI is a proprietary instrument that may only be administered by individuals who receive certification from the Intercultural Communication Institute (ICI).

Conclusion

Today, the importance of intercultural competence in both global and domestic contexts is well recognized. Bennett (1986, 1993b) posited a framework for conceptualizing dimensions of intercultural competence in his developmental model of intercultural sensitivity (DMIS). The DMIS constitutes a progression of worldview “orientations toward cultural difference” that comprise the potential for increasingly more sophisticated intercultural experiences. Three ethnocentric orientations, where one’s culture is experienced as central to reality (Denial, Defense, Minimization), and three ethnorelative orientations, where one’s culture is experienced in the context of other cultures (Acceptance, Adaptation, Integration), are identified in the DMIS.

References

1. Bennett, M.J. (1986). Towards ethnorelativism: A developmental model of intercultural sensitivity. In R.M. Paige (Ed.) Cross-cultural orientation: New conceptualizations and applications (pp. 27-70). New York: University Press of America.

2. Bennett, M.J. (1993). Towards ethnorelativism: A developmental model of intercultural sensitivity. In R. M. Paige (Ed.), Education for the intercultural experience (pp. 21-71). Yarmouth, ME: Intercultural Press.

3. Bennett, M.J. & Hammer, M. (1998).

4. Bikson, T.K., & Law, S.A. (1994). Global preparedness and human resources. Santa Monica, CA: Rand Institute.

5. Dougherty, D., Lynch, R.A., & Ohles, F. (2003). Review of the Intercultural Development Inventory (IDI) for assessing outcomes of a liberal arts education. Center of Inquiry in the Liberal Arts: Wabash, IN.

6. Endicott, L., Bock, T., & Narvaez, D. (2002, April). Learning processes at the intersection of ethical and intercultural education. Paper presented at the Annual Meeting of the American Educational Research Association, New Orleans.

7. Paige, R., Jacobs-Cassuto, M., Yershova, Y.A., & DeJaeghere, J. (2003). Assessing intercultural sensitivity: An empirical analysis of Hammer and Bennett’s Intercultural Development Inventory. International Journal of Intercultural Relations, 27: 467-486.

The Global Market For Drip Irrigation Growing With High Pace: Consumer Awareness Is Fuelling Market

Demand for drip irrigation systems is escalating in the global market. China, India, and other developing nations are stepping up their agricultural output and encouraging farmers to use modern methods of irrigation with a view to achieve higher yield. The ever-increasing population in Asia-Pacific and higher food demand are the key forces that continue to drive the demand for efficient irrigation systems. It is expected that farmers, especially those in more developed agricultural economies, will strive to enhance productivity to maximize returns from each acre. This is expected to maintain sustained growth over the next five years in the global drip irrigation market.

The global drip irrigation systems market report defines and segments the market, with analysis and forecast of revenue. The global drip irrigation market is estimated to grow from $1.8 billion in 2014 to $3.2 billion by 2019, at a CAGR of 11.9% from 2014 to 2019.

High efficiency for every crop type is likely to boost the demand for drip irrigation systems and this systems are used more often in recent years due to their prospective yield increase properties with water use efficiency, effective fertilizer application, and reduced labor requirements. Compared to flood or furrow irrigation, water usage in orchards with micro irrigation systems is less than 20%.

On the basis of crop type, the orchard crops market dominated the global drip irrigation systems market in 2014. The Vineyard market is projected to grow at the highest CAGR during the period under review.

With Extensive R&D, Manufacturers Are Finding Competitive Edge In The Market

Substantial investment is made by global players in R&D to manufacture substitute products, which are environment-friendly such as fertilizers and soil improving agents. Modern methods of gardening, landscaping, and horticulture invests in drip irrigation systems due to their higher efficiency. The global market for this systems is witnessing newer product innovations and patent registrations, signifying the progressive demand for latest technologies, especially for the past couple of decades. Companies such as Netafim Limited (Israel), Jain Irrigation Limited (India), The Toro Company (U.S.), and Lindsay Corporation (U.S) are the most active market players, and are constantly updating their product portfolio by means of constant innovations.

Increasing knowledge and consumer awareness is likely to drive its demand

Irrigation with the help of drip system has gained a wide acceptance in the global market over the last decade. Initially, several irrigation installers and other service providers did not include drip irrigation in their offerings because they were not familiar with the components and proper installation practices. However, the benefits of drip have slowly made it an indispensable part of the irrigation machinery manufacturers’ and installers’ portfolio.

There are various components that are assembled for installation of a successful drip irrigation system. Understanding what these components are and their roles in the successful customization of this systems helps farmers to utilize it to its fullest advantage.

Looking forward

The global demand for drip irrigation systems is expected to grow at a significant rate in the coming years. Although Netafim Limited (Israel) and Jain Irrigation Limited (India) are the largest supplier of such systems in the world market currently, The Toro Company (U.S.) and Lindsay Corporation (U.S) are likely to pose significant competition in the coming years. Historically, the global market for drip irrigation systems has been dominated by Asia-Pacific and Europe, owing to agriculture modernization and optimum use of water per hectare cultivated area. However, over the last decade, the demand for this systems from the RoW region has significantly increased. This has been primarily due to water scarcity and demand for water for irrigation.