What is the importance of marketing in a global economy?
Marketing plays an important role in how businesses operate. According to the 4Ps of marketing (Marketing Mix), the process is focused on 4 aspects of the business, which are Product, Price, Promotion, and Place. Marketing ensures that the product produced is needed in the market and can satisfy those needs. The process also ensures that the price set for the product or service is both profitable to the business and affordable to the target customers. Additionally, marketing ensures that the market is informed and made aware of the product and the problem it solves. The process also ensures that the product is available when and where the customer needs it.
Based on the 4Ps, marketing is important in the global marketplace place because it keeps the business aware of the challenges and opportunities of logistics and diversity presented by the global marketplace. For instance, the global marketplace provides a larger customer base as an opportunity but also presents challenges because of the diverse needs presented by the different customers. Thus, marketing would help ensure that the business produces products that meet the demand and satisfy the needs of the consumers.
Marketing will also provide information about the existence of the product and the problem it solves to the wider customer base presented by the global marketplace. The creation of awareness can be achieved by using emerging technology platforms such as websites, search engines, and social media websites. Marketing will also address the logistical challenges brought about by the need to distribute the product to far-flung regions of the world. These logistical challenges can be addressed through localized warehousing and overseas production licensing among other interventions.
Marketing in a global economy has the importance of being the avenue for maintaining competitiveness among an increasing number of competitors; addressing changing consumer needs and patterns; addressing the burgeoning markets that are opened through the introduction of new technological access; meeting the challenge of the accelerating shift toward e-commerce as it supplants traditional commerce in physical locations; and meeting the challenge of building strong customer relations in a global marketplace with highly divergent tastes, preferences, needs, wants, backgrounds, and demographics.
An example of these areas of importance (among other possible areas of importance not mentioned, like establishing community partnerships when the "community" is a global one) is presented in the October 2016 DKSH Market Expansion Services Report that highlights and focuses on the Asian marketplace:
The study. . . delivers surprising insights on the rapidly changing conditions in Asian markets and describes the challenges when expanding to and in Asia.
The study highlights, among other things, how the development of new technological capabilities—which are delivering Internet access and Internet e-commerce capabilities to remote, previously technologically isolated areas—is rapidly increasing the size, depth, and range of the Asian marketplace and altering consumer demographic profiles. In order to maintain (or gain) a foothold in the global or—for the sake of illustration—in the Asian marketplace, a carefully thought-out, developed, and executed strategy for marketing is crucially important to succeed in building strong customer relations in an expanding and divergent global marketplace.