Globalization: Challenges of New Product Development

Globalization: Challenges of New Product Development

MKT640-1310A-01: Unit 1 -Individual Project

Abstract

In the course I will be taking, MKT640-1310A-01: A Managerial Approach to Marketing, over the next five weeks I will be researching , discussing, and applying the concepts that I will be learning in order to later build a strategic marketing plan for a new product and/or service that I wish to introduce to the market. The first thing that I, as a marketer, must learn to do is solid research to support my upcoming project or projects. Therefore, I will research and share with you all that I have found.

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Globalization: Challenges of New Product Development

Introduction

As I have learned in the my first week of my course, A Managerial Approach to Marketing, there are many challenges that a company could face on a daily basis when dealing with the development or launching of a new product and/or service in the global market. Marketing is a very difficult area of decision making due to the outside market; customers, competitors, and technological changes. However, with the right marketing research and development these challenges can be learned and become very beneficial to an organization and its managers. There are several issues that could arise in today's marketplace becomes more overwhelmed with technology, global applications, and/or one of the many legal and ethical consequences. It is factors such as these that a business must be able to handle first in order to ensure the success of the product's launching and market implementation. Each of the product's or service's benefits and challenges must be considered and thoroughly evaluated by such factors as "how relevant is the product or service" to the success of the market.

There are certain considerations that must be given great attention to when launching and new product or service, this is due to the many different factors and details that could have influence over a buy or the very decisions that a consumer might make. Therefore, when it comes to a company developing products within a global economy they have to stop and give consideration to such challenges such as the demographic and cultural factors that could greatly exists. The fact is that the demand for certain products can differ greatly from one country to the next, or simply put from one state to the next. There could also be language differences that exist that must also need to be considered. This due to the fact that there are marketing messages or words that do not translate well from their original form into another language and if not broken down correctly could be mistaken as meaning something entirely different from what the marketer's is trying actually state. If and when this language difference takes place, this is when room for offense to be taken. Another type of challenge that comes to mind for a company that might be globally expanding in the market could be in the company's determining which channels would be best suitable to use for promotions and distribution of their product(s) or service(s).

Challenges That Exist in New Product Launches

There are several companies' well-known companies in the marketplace today that have been successful at overcoming challenges that could have destroyed their companies, let us take a look at one of those companies. Samsung Electronics is a company that believes in global harmony with people, society, and the environment; and as far as I can see, they are a company that is very successful at facing challenges in the global market and keeping that global harmony. Samsung Electronics has become a leader in the global smartphone market with their best-selling smartphone, the Galaxy S, which was introduced to the global market in June of 2010 and has sold 22 million units since.

As an overall company, Samsung Electronics pushed hard to generate economic profits and simultaneously tries to overcome global issues like the polarization of society, poverty, and famine in order to pass on their positive values to the society in which they operate in. Part of their contribution to the societies in which they operate and live in, they also make sure to engage in many local activities and programs that provide support for the youth, teen education, medical benefits for low-income families and their global social contribution initiative, the Samsung Hope for Children.

In order for Samsung to fulfill their environmental obligation as a global citizen announced the "Eco-Management 2013" in 2009. In accordance with this announcement in 2009 they promoted several environmental programs such as the reduction of greenhouse gas emissions and the development of some eco-friendly products. As of the year of 2011, they reduced greenhouse gas emissions by 40% compared to that in 2008, and even increased their eco-friendly products by 97% for Good Eco Product, and by 85% for Good Eco Device which is very close to their targeted 100% they are reaching for by 2013.

It is in my opinion the way that Samsung Electronics gives to the global economies in which they operate and live in the way they do is what strengthens them globally. This is a company that strengthens the communities and people whom work for them in these areas in which they operate in. I feel that any country that denied a company such as Samsung Electronics to setup within their region or community would be what I call "out of their mind" due to the good things this company does for the community and people where they operate.

Challenges: Example #2

The biggest challenges that Johnson & Johnson faces are things such as:

* The Threat of Substitutes- the FDA requires that generic drugs be bioequivalent to their brand name counterparts, making them serious substitutes. Once a patent expires, generic manufactures are quick to reverse-engineer the formerly proprietary drugs and sell generic versions at a fraction of the cost. That means that virtually all pharmaceutical companies, including Johnson & Johnson, tend to face an influx of upcoming expiring patents. The impending loss of sales wen a generic version of a drug hits the market becomes a serious threat to profitability to many players in the industry.

* Bargaining Power of Buyers- in this industry, buyers include patients, medical staff who write prescriptions, pharmacists, hospital boards, insurance