Nova Southeastern University International Marketing Discussion Responses

I’m working on a marketing discussion question and need support to help me study.

I’m working on a marketing discussion question and need support to help me study.

1- Hi

In recent years has there been a trend toward or against liberalization of trade? Have the barriers to trade been increased or decreased?

2-Professor and Class,

Integration can be considered as the ultimate goal of the cooperation, but this cannot be analyzed as a phenomenon that arose immediately and independently, on the contrary, it is necessary to travel along the path traced by progressive cooperation in the different spheres, which they are projected towards a single direction, to achieve the harmony of interests even when it is necessary to subordinate their own interests to a common one for all (Pearce & Tavares, 2000). Integration constitutes a complex phenomenon that can be approached from different contexts such as political, legal, ideological, cultural, religious, geographical, historical, sociological, economic, military, and others (Pearce & Tavares, 2000).

At the end of the Second World War as a result of the very difficult situation that European countries were going through, cooperation and agreement between states reached a new content clearly influenced by the need to work together in the reconstruction of the countries that were devastated and destroyed in the war (Pearce & Tavares, 2000). The model that was developed at this time was very supportive and philanthropic, however, from the 1960s onwards, governmental international cooperation policies were established that seek to safeguard collective interests against problems as crucial for humanity as what they are peace, the care and conservation of the environment and the sustainable development of the states (Pearce & Tavares, 2000).

Integration must not only be explained as an objective necessity of development but also as part of political aspirations, geostrategic interests, and contradictions of the centers of power (Pearce & Tavares, 2000). At present, integration expresses a stronger tendency towards the simple creation of regional economic blocs, although for many years there has been the creation of large economic spaces that have configured a true world in blocks. They are made up of different groups of countries that make up a region or have a certain degree of geographic proximity and make use of a great variety of forms and degrees of association (Pearce & Tavares, 2000). Today some of them can be mentioned, such as the European Union, the North American Free Trade Agreement, MERCOSUR, and others that represent the most important ways by which the regionalization of markets can be accessed (Arribas, Pérez & Tortosa-ausina, 2014).

The efficiency of integration is based on the benefits of expanding trade. These derive from the advantages offered by an expanded market by enabling greater intraregional efficiency in the use of resources, greater conditions of competitiveness, and higher general levels of productivity (Pearce & Tavares, 2000). All these processes of economic integration favor international trade between member countries by eliminating customs barriers, restrictions on free trade, and favoring the exchange of goods and services (Pearce & Tavares, 2000).

The issue of globalization and integration acquires special relevance for the practice of marketing in any economy in the world, due to the extraordinary impact of the massive importation of first-class articles that exert a competitive pressure that can displace with relative ease national products made with inferior technology (Pearce & Tavares, 2000). Poor marketing practices would be the greatest strength for business enemies.

References,

Arribas, I., Pérez, F., & Tortosa-ausina, E. (2014). The dynamics of international trade integration: 1967-2004. Empirical Economics, 46(1), 19-41. doi:

http://dx.doi.org/10.1007/s00181-012-0679-9

Pearce, R., & Tavares, A. T. (2000). Emerging trading blocs and their impact on the strategic evolution of multinationals. Managerial Finance, 26(1), 26-40. doi:

http://dx.doi.org/10.1108/03074350010766459

3-According to Cateora, Money, Gilly, and Graham (2020), the economic level of a country is the single most important environmental element to which the foreign marketer must adjust the marketing task. Typically, marketers adjust their marketing functions to meet the economic development level of the target market (Cateora et al., 2020): more-developed countries (MDCs), less-developed countries (LDCs), and least-developed countries (LLDCs). Each level of economic development brings unique challenges for the marketer. For example, MDCs typically feature vibrant and dynamic economies with well-developed markets (Cateora et al., 2020). Marketing functions designed for this type of economy would encounter significant challenges in the static markets and economic conditions of a LLDC (Cateora et al., 2020). As a result of these differences and challenges, the environmental factors affecting these strategies must be fully considered when developing and executing marketing strategies in international markets and firms must determine which elements of the foreign market will be useful in executing a marketing plan and which elements of the marketing strategy will need to be adjusted in order to carry out the marketing objectives (Cateora et al., 2020).

Global policy mandates and market policies can significantly impact marketing functions. Free market policies, regional trade alliances, common markets, bilateral trade agreements, and multilateral trade agreements can all impact the marketing functions used to successfully compete in the international economy. For example, the European Union (EU) is the world’s largest economic area (Thorne LeClair, 2000). As such, its economic and trade policies carry significant weight throughout the world. Given the number of countries that makeup the EU, some of the best food and wine in the world is produced by its member states. In recognition of this fact, the EU established its Protected Designation of Origin program to help consumers identify that food and wine products from various regions of the EU are authentic (European Commission, 2021). By establishing this program, food and wine bearing this logo can benefit from additional marketing strategies designed to highlight the authentic nature of these products.

Typically, international firms adopt one of five primary marketing strategies in response to global economic and trade policies: sales driven, relationship driven, international boutique, arbitrager, and market sector (Battisti, Jurado, and Perry (2014). Each strategy has particular strengths and weaknesses that lend itself to a particular marketing approach. A sales-driven approach is usually adopted by firms that lack market power, is primarily customer-driven, and generally involves one-off transactions with little market adaptation (Battisti et al., 2014). On the other hand, an international boutique approach operates under a context of overseas markets recognizing reputation and primarily rely on sales to a small group of product distributors in relatively price insensitive market niches (Battisti et al., 2014). Each of these strategies respond differently to differing levels of economic and trade policy with varying levels of market power and market adaptation (Battisti et al., 2014). By carefully selecting the appropriate strategy, firms are able to achieve maximum return on investment on their marketing dollars.

Reference:

Battisti, M., Jurado, T., & Perry, M. (2014). Understanding Small-Firm Reactions to Free Trade Agreements. Journal of Small Business and Enterprise Development, 21(2), 327-344.

Cateora, P. R., Money, R. B., Gilly, M. C., & Graham, J. L. (2020). International Marketing (18th ed.). New York, NY: McGraw-Hill Education.

Quality schemes Explained. (2021, March 02). Retrieved from

https://ec.europa.eu/info/food-farming-fisheries/f…

Thorne LeClair, D. (2000). Marketing Planning and the Policy Environment in the European Union. International Marketing Review, 17(3), 193-215.