North Western University, Khulna

Assignment
On
“Global market challenges and its impact on businesses”
“Marketing strategy and role of technology in it”
Course Title: Business Marketing
Course Code: MBA-5201

Submitted to
MD. Sohel Rana
Senior Lecturer
Department of Business Administration
North Western University
Submitted By
MD. Ezazul Islam
ID: 20193008501
Department of Business Administration

Date of Submission: June 15, 2020

Global Market challenges and its impact on Business:
The globalization concept and activities of commerce and business have converted into a remarkable
reality worldwide. In 2000, in goods and services, the global trade accomplished world GDP of 25%, and
on the basis of manufactured goods, the global trade had multiplied 100 times more than in 1955. This
increase in globalization posits several notable challenges to seek international business presence. This
research review paper tries to explore and identify the major issues that affect global businesses,
including the impact on accounting practices, strategic choices, cultural issues, along with political risk
factors in various countries to market.

Integrity
The moral challenges faced by business firms presently are something that was unheard of in the past.
Everybody is in a race to get success. People are also struggling to keep their jobs, to earn more and be
competitive than the rest. This has led to a practice where people are omitting important information and
follow whatever practices comes to the mind. The aim is to get ahead of the others even if it requires
cutting corners indiscriminately. This approach turns into a habit and subsequently employees feel that
lying a bit, stealing a chunk, misleading occasionally is all part of the game and is ok. And, this is not a
long term approach at all. At the end of the day, the trust that should be there among employees,
employers, stakeholders or partners is gone.

Resource and Cash

Money is King. Therefore, if the expenses incurred are on the higher side and are not under control,
things cannot run for long. It is to be noted that this aspect has got nothing to do with the financial report
of the company. What is important is the ratio. If the cash flow is not strictly monitored, business won’t
stay afloat for long. Mid-sized business houses and financial executives need to be very careful about this.
This aspect of cash management becomes even more important during dull periods or recessions. In this
situation, the cash flow slows and creditors are less inclined to extent repayment time. Another challenge
is that banks may not be willing to ease their lending policies.

Increased options and competition

Starting up a business is pretty easy now. There is no need to go through heaps of forms. Buying a
domain is a walk in the garden. Thereafter, the registration needs to be completed and that’s it. However,
the real challenge is continuing with the business that has been started. This is primarily because others
would be following the same approach. Hence, the frequency of new businesses or start-ups coming up
will be on the higher side. This leads to a situation where the suppliers are more than required compared
to the buyers. So, the market share per business goes down especially when the buyer has the choice to
change the supplier by a screen tap.

Market strategy and Customer Retention

Similar to the above factor, another key aspect is reaching out to potential buyers and then ensuring that
they are retained as well. There are lots of choices these days to reach out to your prospects – Email,
Social media, twitter, text message and whatsapp have changed the approach altogether. Therefore, a lot
of information is being passed to prospects by many.

Rules & Regulation

The prime factors that affect any businesses are – finance, environment and energy. If there is instability
in these factors, the progress will always be.

Too much information

Presently, nothing is undergoing any change or expanding than information. An estimate suggest that
almost 20 EB (Exabyte) of date exchange happened in 2010. Two years back that went up to 1 zettabytes.
On top, nearly 2.5 quintillion new data is coming up. Therefore, to process and conclude the information
is a major task.

The remedy for the challenges being faced by businesses:

As discussed, trust factor is above all. The infectious approach of a short cut has to be stopped. Systems
should be in place so that the basics are under control. This will drastically reduce the scope to
manipulate. Continuous monitoring of all details need to be avoided as this can hinder creativity which in
turn can affect the motivation level. Without trust and transparency, business will eventually die. Firms
need to be adequately funded and there should be a reserve policy so that obligations are covered
especially during the slide phase or emergencies.

Professional help is strongly recommended apart from the finance being handled by the directors directly
A good marketing policy is essential to ensure that the attention of the potential buyers is grabbed.
Identifying the key requirements of the buyers and accordingly promoting the right products or services is
the trick. In the process, developing a personal relation also helps. Going over the top to retain clients and
managing the same with a budget-friendly method can be a game changer. A lot of problems can be
solved if business owners can precisely understand the meaning of the regulation(s) applicable for them.
Internal resource must be in place to cover this. Taking care of two things would be enough – Tax and
Health Care. Outsourcing can be a good option to handle these aspects.

To manage the data or information flow which is the key factor of any business currently, technology like
Big Data has to be adopted. If required, it could be a combination of both technology and offline but
information should not go waste. Another factor affecting the business is complacency. The thought that
someone will continue to exist simply because they have been around for a while is nothing short of
living in a fool’s paradise. There has to be regular update and re-structuring so that business are up-to-
date with the constantly changing market scenario. This can be achieved by on boarding new suppliers,
renewing contracts, employee development and upgrading or replacing technologies in use
Marketing strategy and role of technology in it:

A marketing strategy refers to a business's overall game plan for reaching prospective consumers
and turning them into customers of the products or services the business provides. A marketing
strategy contains the company’s value proposition, key brand messaging, data on target
customer demographics, and other high-level elements.

It could be shown that technology has a strong impact on the marketing strategy in terms of
collect, handle, interchange, communicate, analyse, personalise and customise information,
leading to cost reductions, more effective marketing procedures and improved customer
satisfaction.

There are three ways to compete--product, service, and price. That's it! The rest is about
execution. Sure, there are all kinds of other details to be worked out to craft a killer strategy.
Decisions related to marketing, distribution, operating models, physical location, and the like are
all essential considerations. But the choices made in those areas only serve to further inform your
product, service, and pricing strategies. Indeed, these three strategic elements are the only levers
you need to create a successful business. Let's explore how they work.

1. Product strategy.

This lever is about what is being delivered to the marketplace and consumed by the customer.
The opportunity for differentiation relates to perceptions about quality, value, features, and
functions. Commodity companies spend little time with product strategy, relying more on service
and pricing to compete, while other businesses fine-tune their product strategy by varying their
combination of quality, value, features, and functions to meet the perceived needs of a specific
market niche.

To illustrate, let's compare Lamborghini and Ford. The former is offering a superior quality and
feature-rich product, while the other ratchets the product lever down a bit to produce a value-
based product for the market. Both are competing on product but they move the lever in very
different ways.
2. Service strategy.

This lever is about defining how to provide customer support to the marketplace. Differentiation
happens on the quality of the service provided and the customer experience. Lloyds of London,
for example, provides concierge-level service to its high-end insurance clients, who are willing
to pay higher premiums to receive exceptional service. Lloyds is competing on service. Its
product (i.e., insurance coverage) is very similar to what can be obtained elsewhere, but Lloyds
has made a strategic decision to attract its clientele by offering impeccable service.

3. Pricing strategy.

This lever is about determining the rate to be charged for the product or service being offered.
Walmart is competing on price, so don't expect outstanding service to be part of the package. By
comparison, your local boutique may have a personal shopper option to go with the hot lattes and
imported wood paneling that covers the walls at the store, but don't expect to find bargain-
basement pricing there--because the boutique's strategy is tipped toward an emphasis on product
and service differentiation.

Impact of Technology In Marketing

Technology and Communication helps businesses grow and prosper, creates relationships,
strengthens the effectiveness of organizations, and allows people to learn about one another.
Technologies, such as the Internet, mobile phones, social media, and customer relationship
management systems greatly affect the way companies communicate with prospective
customers. These new forms of communication are changing the media landscape and the type
of messaging strategy organizations use. Many of the consumers and business professionals seek
information and connect with other people and businesses from their computers and phones.

With access to many sources of information and an interest in interactive media, consumers may
collect more product information on their own. Work environments are also changing, with more
people having virtual offices, texting on their cell phones, or communicating through social
media sites such as Facebook, LinkedIn, Pinterest, and Twitter. As the media landscape changes,
the money that organizations spend on different types of communication and technology will
change as well. Once companies have developed products and services, they must communicate
the values and benefits of the offerings to current and potential customers.
Young population today is part of the millennial generation, and it is consumers from this
generation who are driving the change toward new communication technologies. A young
consumer might opt to get promotions via mobile marketing for example say, from stores on
your cell phone as you walk by them or via a mobile gaming device that allows you to connect to
the Web. Likewise, advertisements on Facebook are popular as businesses continue to utilize
more social media. Traditional media such as magazines, newspapers, television compete with
media such as the Internet, texting, mobile phones, social media, user-generated content
such as blogs, and YouTube as well as out-of-home advertising such as billboards and movable
promotions. Therefore, all forms of marketing media have been forced to come up with new
innovations to remain relevant. With high consumer expectations and an explosion in
engagement devices and channels, marketers today are faced with a sprawling matrix of
disconnected figures to make sense of them. Some tools today provide a more consolidated view
of figures, but still around 71% of Chief Marketing Officers (CMOs) feel unprepared for the
data explosion they face. Collecting metrics today means going beyond tracking the transaction
and business objectives. In order to leverage metrics strategically to create loyal and engaged
clients, businesses need to look at creating consolidated, personal views of their customers that
span channels. They need metrics that can come together to help paint a picture of the end-to-end
client relationship and show how to better target messaging to drive engagement. Marketers need
to find a way to break down the silos and connect the data sources. Only then can they get a
complete view of client interaction and transactions and leverage this data to build strong
relationships.