Free Marketing Dissertations - Is It Possible To Gain Power Over Producers By Reducing Competition And
Is it possible to gain power over producers by reducing competition and utilising the techniques of what Kotler calls "Mega Marketing"? What forms of power might a supplier employ, and are there any risks in following this type of strategy? Suggest specific ways in which a supplier might achieve a competitive advantage through the general strategy of offering higher perceived value.
The globalisation of trade and increasing competitiveness are issues of critical concern to businesses. The internationalisation of competition has created the reality that the competitive advantage of a wide variety of enterprises is declining. Changes in the marketing landscape have led to a concomitant re-examination and expansion of the underlying principles of marketing strategy. This essay explores some of these factors including the evolution of the marketing concept, domestic and global marketing challenges together with a discussion on generic strategies as a mechanism to achieve a sustainable competitive advantage through differentiation from a supplier perspective.
Entry into one or many of the world’s 200 country markets is a function of the marketing strategy followed by a firm, and local country conditions. Marketing aimed at a national market (ie domestic marketing) faces a single set of competitive, economic and market issues across market segments including the tailoring of products to address export markets. International marketing is the next level of complexity whereby the firm becomes more directly involved in multiple marketing environments with adjusted market strategies as to how they sell, advertise and distribute to meet local conditions. Truly global marketing is achieved when a single strategy is followed for a product, service, or company in the global market that encompasses many markets or countries simultaneously. (Jeanette and Hennessy, 1998 and Kotler, 2000)
The effects of globalisation and growth in competition may be beneficial to consumers and suppliers of goods and services given the potential for decreases in price and improvements in quality. The downside of global competition is its impact on domestic producers whose livelihood is threatened. Governments, and the local firms and constituencies that influence governments, can create barriers and uncompetitive conditions to limit foreign entrants to local markets. (Jeanette and Hennessy, 1998)
The marketing oriented view of the marketing concept is that a firm bases its activities on the needs and wants of customers in an exchange relationship in selected target markets. Constraints in terms of the environmental milieu, such as laws, industry agreements and norms, influence marketing strategy. (Gronroos, 1994) This implies a balancing act to optimise production relationships to meet the ultimate customers’ needs and wants which become more complex in a multi-national or global marketing environment.
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