Marketing Challenges in the Global Economy Essay

AbstractThis article discusses some ch on the wholeenges faced with product ontogeny in the orbicular economy. Brief case studies of Apple, eBay, and Levi Strauss & Co., provide real- humans examples of the challenges competition, reach of exploits, infringement, etc. Embracing technical schoolnological advances, much(prenominal) as social media, is essential for leveraging a warlike edge, provide the company tooshie blend in estimablely.Marketing Challenges in the Global EconomyIntroductionThe world is getting smaller, figuratively speaking, and companies must continually reinvent themselves to remain competitive in the international economy. A constant introduction of seemingly ever-changing variables execute challenges for big businesses and start-ups alike, and while engine room creates its own set of challenges, leveraging its benefits in trade can propel a company to the leaders board. But while technology has created new marketing opportunities break aparticul arly in engaging with consumers companies need to be ever cautious about maintaining an ethical marketing strategy.Challenges in New Product LaunchesCompanies face various challenges when developing products in the global economy. Some of these challenges ar more distinct to specific industries, while differentwises are universal. Twenty years ago, the biggest challenges with product development in the global economy were communication with manu concomitanturers, especially when dealing with manufacturers halfway around the world, and the speed of production. Rapidly evolving technology has on one hand eased these, but also created new sets of challenges. The same technology that brought the world 24-hour news service also meant greater access for scrutiny, as well as a greater consumer expectation for full disclosure of business practices. Increasingly, people want to know that companies are running ethical production operations (Pelsmacker, Driesen & Rayp, 2005). Environmenta l sustain efficiency, fair trade and wages, and safe and healthy work conditions are issues that companies begin to consider more than ever.While technological advancement has granted easier interaction with manufacturers around the world, it has not changed the fact that reach of influence is still a challenge. Independent start-ups now bear virtual(prenominal)ly the same global market access as multinational corporations. Big businesses can no longer assume the competitive edge. And all of these companies, big and small, operating internationally, have to compete with local businesses. This is wherefore operating across a spectrum of socioeconomic and ethnic consumer bases requires an understanding of the psychographics for each target audience. Another challenge in product development, especially for technology-based companies, is the risk of patent infringement. More tech dollars are spent in the courtroom than on the inquiry and development (Duhigg & Lohr, 2012). applied science firms make money suing each other abide and forth. oddball Study 1 AppleUnder the direction of Steve Jobs, Apple seemed to have no problem delivering products to the global market that transcended cultural boundaries iPod, iPhone, iPad, Macbook. The key was simple, user-friendly products. Are Macbooks worth their price tags? Was the first iPhone worth $500? Product evaluation has been a question largely irrelevant For Apple. It was able to defy the odds by creating a pick out for the products, a key to pricing a product line (Guiltinan, 2011). Still, Apple, as with any tech firm, is at risk of being overshadowed by the next greatest innovation, as seen in the latest battle of the smartphone wars (Reuters, 2012).It is a back-and-forth war that extends beyond the front line that is the retail floor. Behind the scenes, Apple and every other tech device and software developer are engaged in costly patent litigation. Apple new-madely won more than $1 billion from Samsung (Pe pitone & Goldman, 2012). Likewise, Samsung is taking legal action against Apple for patent infringement on the iPhone 5 (Musil, 2012). Other challenge that Apple provides a prime example is ethical oversight of offshore production. Apples Chinese factories, run by Foxconn, have received a lot of high temperature for work conditions and unfair wages that have resulted in mass suicide of employees, brawls, and halting production (Garside, 2012).Case Study 2 eBaySince 1995, the internet auction giant has been providing a consumer-to-consumer (C2C) service that revolutionized e-commerce, but its success has not been without challenges. Acting essentially as nothing more than an internet moderator between C2C transaction, eBay has not had to deal with all of the same issues as Apple, such as the controversy of sub-par factory conditions. But it has faced some of the other challenges synonymous with technology firms. Patent infringement has haunted eBay. For example, MercExchange sued e Bay for unlawfully using its patented software to create the eBay Buy It Now feature (Larson, 2010). Likewise, eBay has had to compete with other e-commerce auctions around the world.It is the standard in most Hesperian markets, but could not win in China against TaoBao (Ou & Davison, 2009). After battling for market dominance eBay conceded to TaoBao, showing that charge corporate giants are sometimes challenged in reach of influence. But eBay celebrates its failures just the same as its successes. With apace advancing technology, the minds behind eBay have sometimes had to make decision quickly, without conclusive research, and adjust later. If the decision resulted in a failure, they at least knew what direction not to evolve in (Ignatius, 2011).Case Study 3 Levi Strauss & CoThe apparel industry is probably most notoriously associated with running factories in sub-par conditions (Brown, Deardorff, & Stern). Even iconic American denim patsy Levis is not innocent of this. Compet ition in the 1990s oblige the company to move much of its production offshore, where it was soon implicated along with dozens of other brands in sweatshop operations (Shenon, 1993). More recently, ease of access into the market has created a lot of competition for Levis. Furthermore, acclivitous fashion markets have been turning their focus to local designers, further challenging Levis reach of influence (Grail Research, 2009). To ensure survival, Levis has taken steps to reinvent its image through fresh marketing campaigns to jeer its fresh designs (Frey, n.d.), like its recent Go Forth campaign.Technology and New Product Development mixer media has radically changed the marketing landscape. Advertising used to be a one-directional conversation television, radio, and magazines told consumers what to buy, and consumers were limited in their ability to denounce these sales pitches. Now marketing is most certainly dialog that requires input from consumers.Technology FacebookMySpac e qualification have introduced the world to the concept of social media, but Facebook took it beyond peer-to-peer and created an environment where businesses and consumers can engage in meaningful dialog (Wilkinson & Thelwall, 2010). This has allowed companies to get direct feedback from consumers, while making consumers feel like they are part of the company. Companies of varying sizes have staged successful Facebook campaigns. Even anti-Facebook campaigns have found success on the virtual playground. As a tribute to Facebooks IPO, the magazine Fast Company published what it considered to be the louvre all-time best Facebook campaigns (Iezzi, 2012).Technology YouTubeCelebrities like Justin Bieber and Soulja Boy have defined a new picture of stardom, achieving fame through the use of viral video. Social media users are always looking for their 15 minutes of fame, and companies have picked up on this. Numerous brands have launched user-generated content campaigns. This has allowe d fresh vision to emerge, while build brand evangelism. One successful campaign of this nature was the Doritos Superbowl ad contest, in which the best user-submitted video was aired during the Superbowl.Technology Google AdSenseThe ever-innovative Google developed a method for posting advertisements based on the users shop habits that, is ads related to page content. Logging onto Gmail, it is no coincidence that the right-column ads share subject matter with the inbox emails. Even the Facebook ads reflect browsing history. While web ads, especially pop-ups, generally invoke negative connotations, they have a certain imperceptible effect on consumers. reasoned and Ethical Implications in New Product DevelopmentAs previously stated, advances in technology have allowed easier access for consumers to see the skeletons in the closet, so to speak, of companies. This means companies should be on their best behavior, or expect to have their dirty little secrets discovered. Still, compan ies continue to engage in unethical, and even illegal marketing. This questionable activity can come in such forms as misrepresentation and misinformation, stain against competition, omission of facts, or outright lying. It can even involve deliberate manipulation of emotions to achieve a desired effect.Legal and ethical implications Dannon ActiviaDespite inconclusive evidence in studies (Walker & Buckley, 2006) regarding the benefits of probiotics, Dannon chose to market implied digestive benefits of Activia and DanActive. In turn, the yogurt company found itself engaged in a lawsuit. This is a clear example of why companies should not mislead consumers for profit.Legal and ethical implications Feed the ChildrenThe Feed the Children campaign releases videos that use techniques to deliberately provoke guilt, thus inspiring the the viewer to donate. What they fail to include in the commercials is the fact that the majority of donations goes to administrative costs, that is, salarie s (Defoor, n.d.)Legal and ethical implications Techie trash talkIf it isnt enough to sue each other back and forth over patent infringement, smartphone companies have taken to slandering each other for the competitive edge. Samsung accused Nokia of this with its recent Blown Away by Lumina campaign, in which it allegedly misrepresents the capabilities of the Nokia Lumina against other smartphones (Mukherjee, 2012).ConclusionThe examples presented here provide deal for the challenges of product development in the global economy, and the benefits of technology in marketing. While technological advancement brings along new sets of challenges, the benefits vastly amount to more. Leveraging these benefits in marketing is key for companies to succeed in an progressively competitive global market. However, under the looming microscope of public scrutiny, companies need to be ever cautious about maintaining ethical marketing strategies.ReferencesBrown, D., Deardorff, A., & Stern, R. NATIO NAL BUREAU OF ECONOMIC RESEARCH, (2003).The effects of multinational production on wages and on the job(p) conditions in developing countries(Working Paper 9669). Retrieved from website http//www.nber.org/papers/w9669 Defoor, A. (n.d.). Who do they feed?. Retrieved from http//www.themarketingscene.com/index.php/site/topic/who_do_they_feed Duhigg, C., & Lohr, S. (2012, October 07). The patent, used as a sword. Retrieved from http//www.nytimes.com/2012/10/08/technology/patent-wars-among-tech-giants-can-stifle-competition.html?pagewanted=all&_r=0 Frey, U. (n.d.). Reinventing levi strauss & co. CalBusiness, Retrieved from http//www.haas.berkeley.edu/groups/pubs/calbusiness/stories/levi1.html Garside, J. (2012, March 29). Apples factories in mainland China are breaking employment laws, audit finds. Retrieved from http//www.guardian.co.uk/technology/2012/mar/30/ apple-factories-china-foxconn-audit Grail Research. Integreon, Grail Research. (2009). The global fashion industry growth in e merging markets. Retrieved from website http//www.grailresearch.com/pdf/ ContenPodsPdf/Global_Fashion_Industry_Growth_in_Emerging_Markets.pdf Iezzi, T. (2012). The 5 all-time best facebook campaigns. Retrieved from http//www.fastcocreate.com/1680811/the-5-all-time-best-facebook-campaigns Ignatius, A. (2011). How eBay Developed A Culture of Experimentation. Harvard Business Review, 89(3), 92-97. Mukherjee, W. (2012, April 11). Samsung Nokia lumia campaign unethical. Retrieved from http//timesofindia.indiatimes.com/tech/enterprise-it/strategy/Samsung-Nokia-Lumia-campaign-unethical/articleshow/12620894.cms Musil, S. (2012, September 10). Samsung will reportedly sue apple over lte use on iphone 5. Retrieved from http//news.cnet.com/8301-13579_3-57510080-37/samsung-will-reportedly-sue-a