Market opportunities stem from both external and internal forces, technological developments, and changing market environments, whereas research and development, and modifications of products, packages, marketing channels, and advertising campaigns, are internally based. To go global, companies should take into account cultural differences and perceptions, unique values, and demands of consumers. For two products, personal computers, and washing machines, the global strategy will be used. For an online MBA degree, a multicultural approach will make better strategic sense.
The global strategy will suit the best personal computers and related products because great similarities between buyers and products exist. The rationale for this strategy is that the very perceptions and interpretations of environmental developments by consumers create product opportunities (Doyle & Stern 2006). Personal computers are popular in all countries around the world and sold in similar modifications. Companies can consider the lifestyle factors influencing product development. Urbanization, leisure, competition, discretionary income, travel, styles, tastes, informality, and convenience have led to the emphasis on product form, readiness, packaging, combination, and selection convenience. Only with a mass-market can the necessary conformity result that assures the success of the global strategy. This strategy is effective because significant demand for personal computers exists in all countries (Fill, 1999).
Since products are basically means of solving problems for buyers and sellers, physical environment, technological, and cultural forces influence perception of them. It is not merely individualism or the willingness to accept something new that supports innovation; conformity plays a large part. Although people may enjoy purchasing, especially where new items are concerned, demand does not exist automatically. It must be created by marketing techniques, just as the products themselves must be created by manufacturing techniques. It is necessary to utilize efficiently such marketing tools as advertising, personal selling, pricing, sales promotion, and channels of distribution to create demand. Manufacturers and distributors must learn how to create and extend demands (Hollensen, 2007).
The global strategy will be effective in selling washing machines because this strategy will help companies to concentrate on competitive advantage and compete with national and domestic companies. Reliance on habit is especially evident in many purchases of convenience products. Here the expectations are based on past experience and learning and circumvent the decision process. However, in situations involving important decisions, where there is less experience available, buyers will go through a more intensive process of information gathering and decision making (Hollensen, 2007). Where incentives are strong enough, and the expectations are high or great, the buyer does not act habitually and is willing to put some effort into solving his consumption problems. Markets have been greatly interested in the role of habit, impulse, and drives in buyer selections and decision making. There are many situations in which each consumer choice does not involve a new decision process but becomes rather habitual (Doyle & Stern 2006).
Companies should take into account that buyers are not totally inept or irrational in making purchases, particularly household purchases. Actually, consumers have become quite professional in some areas of consumption. Veritable purchasing agents often plan their purchases, especially of high-priced durable goods such as automobiles and washers and dryers. Information is important to them about the advantages and limitations of various types of items (Kotabe & Helsen 2003). However, for many products such as personal computers and washing machines, it should be noted that even given the technical information, consumers do not have the background necessary to interpret the data and make the wisest purchasing decisions. The household that shapes the learning of tastes and preferences is a very influential force in personal consumption. As a result of past experience, customers have preconceived notions or attitudes that shape their view of reality and hence their decisions (Hollensen, 2007).
A multicountry strategy will help online MBA programs to reach the target audience and inform potential consumers about this service. This strategy is selected because market conditions differ in all countries (Pittengrew et al., 2006). Online MBA course is a customized product interested for a limited number of buyers. In this case, purchase responses are shaped by communications which, in part, are controlled by the seller in the form of advertising and selling. Seller-dominated market communications do not furnish all the information necessary to satisfy the curiosity and needs of buyers. Moreover, mass advertising and selling may not be fully trusted by potential consumers in all countries. Buyers, therefore, turn for information to the external informal groups with whom they are in contact (Paley, 2006). Buyers’ demand for MBA online courses exists in few countries with high English language skills and international relations. A reaction may be influenced by opinions and preferences, which, in fact, shape consumption. Both opinions and preferences are acquired and not inherited-they must be learned. Two major strategies can be employed to alter it. First, companies can adopt a marketing program that seeks to change the product, price, package, distribution, advertising campaigns, or other components of the marketing mix to bring them closer into line with customer desires and induce consumers to react favorably. Second, companies can try to change buyers and their reactions and responses to correspond with company needs and desires.
Bibliography
Doyle, P., Stern, Ph. 2006, Marketing Management and Strategy. Financial Times/ Prentice Hall; 4 edition.
Fill, C. 1999, Marketing Communication: Contexts, Contents, and Strategies 2 and. Upper Saddle River, NJ: Prentice-Hall.
Hollensen, S. 2007, Global Marketing: A Decision-Oriented Approach. Financial Times/ Prentice Hall; 4 edition.
Kotabe, M., Helsen, K. 2003, Global Marketing Management. Wiley.
5. Paley, N. 2006, The Manager’s Guide to Competitive Marketing Strategies. Thorogood.
6. Pettigrew, A. M., Thomas, H. Whittington, R. 2006, Handbook of Strategy and Management. Sage Publications.