The first article selected is “The Great Recession: A Self-Fulfilling Global Panic” by Philippe Bacchetta and Eric van Wincoop. The scholars explain that as long as there is minimum integration between two economies, both will be significantly affected when one falls.
Bacchetta and Van Wincoop’s (2013) argument is based on the fact that, despite the 2008 recession in the US, various countries were negatively affected. The scholars go further and identify some of the economic elements that generated vulnerability during the great recession. Some of the identified issues include, but are not limited to, loaning and credit, fiscal policies, economic integration, and zero lower bounds (Bacchetta & Van Wincoop, 2013).
In conclusion, Bacchetta and Van Wincoop (2013) explain that the close business cycle co-movement during the recession led to the worldwide impact.
The second article selected is “Social Media Marketing Communications Effect on Attitudes among Millennials in South Africa” by Rodney G. Duffett and Myles Wakeham. Duffett and Wakeham (2016) highlight some of the marketing issues in Africa and tie them to global marketing and trade.
Duffett and Wakeham (2016) argue that digital communication has become the primary marketing platform in many countries. However, one challenge marketers are facing in Africa is that a significant number of countries, and people, still cannot access the internet. This is in comparison with internet reach in developed countries.
In conclusion, the scholars explain that the significant strides that have been made to ensure Africans access the internet have opened up marketing possibilities, particularly in regards to global trade. However, much still has to be done to ensure the entire market (Africa) is connected to the internet.
The first topic is “major changes of the world economy in the past twenty years.” One of the most crucial changes in the global economy was the 2008 recession. Eaton et al. (2016) explain that the recession occurred due to several systematic, political, and economic reasons. As Bacchetta and Van Wincoop (2013) note, the impact of the recession was felt on a global scale. The fact that globalization allowed for the close business global economy ensured that other countries were also negatively affected by the financial crisis. Interestingly, this ties closely to both global economic environments and global marketing. As mentioned previously, the global economic environment allowed for a global financial crisis despite the chaos originating from the US because of a close and interlinked worldwide business economy. On the other hand, global marketing was a significant contributor to the interlinked global financial system as marketers heavily explored investment opportunities for both locals and foreigners online.
“Marketing issues in Africa” is the second chosen topic from the list provided. Amankwah-Amoah et al. (2018) argue that marketing issues in Africa affect global trade and marketing because many Africans both purchase and sell products to the rest of the world. Global marketing has evolved over the decades, with more companies and individuals relying entirely on digital platforms to interact with their target audience. This creates a significant challenge for marketers in Africa, and those target African markets, as a significant percentage of the continent’s population does not have constant access to the internet. As Duffett and Wakeham (2016) observe, there have been various efforts that have opened up the continent to the rest of the world in regards to the digital space. However, much still has to be done to ensure that the larger population of the continent population can access the internet at all times.
Analysis on the Topic
First Topic
Relation to global marketing. There are several ways in which the first topic relates to some of the aspects of global marketing taught in class. First, the 2008 recession offered marketers both opportunities and threats. In regards to the opportunities, the recession opened up the world as an equal marketing platform. Before the 2008 recession, marketers used digital platforms to reach out to markets they already had a presence in at the time. However, the fact that the close business economy affected a significant number of countries also revealed more markets to be explored. On the other hand, the event caused the loss of income; thus, making marketing more difficult as a significant number of people became restrictive with their finances. Additionally, the topic can be linked to the marketing mix as a lack of disposal funds also affected consumer behavior.
Relation to economic and trade environments. The marketing mix mentioned is affected by economic and trade environments in various ways. First, as stated previously, a lack of disposal funds affects consumer behavior regardless of whether or not there is a financial crisis. In particular, the marketing mix is affected by weak economic environments. For instance, promotion budgets have to be reduced in an attempt to lower the price of the product or service offered significantly. Second, consumer behavior is affected by changing economic situations because when people have access to money, they are more willing to purchase items that are priced higher than when they have no access to liquid cash. On the same note, when the trade environment is favorable, marketers can manipulate the four Ps of the marketing mix to suit the needs of their target audience.
Second Topic
Relation to global marketing. The second topic also relates to global marketing in numerous ways. First, the main issue identified, which is the lack of constant access to the internet, creates an opportunity for global marketing. Internet providers are businesses whose principal mandate is the bottom line. Through collaborations, opening up Africa to easier access will be beneficial to both the providers and marketers of various brands and products. It is important to note that a competitive advantage can be ensured through the expansion of the internet base and accessibility in Africa. The premise suggests that more marketers will either have or neutralize the competitive edge of local firms in Africa when targeting the same audience. In turn, this would make global marketing more effective as the target audience (which is assumed to be more conservative and prefers local products and services) will be more open to international trade.
Relation to economic and trade environments. The issue of competitive advantage is also affected by economic and trade environments. It is vital to point out that there are two primary ways in which competitive advantage applies in trade environments. The first is that a brand has some elements that make it significantly better than similar brands in the same market. The second is the opposite, where no brand has a significant advantage over the other. An ideal trade environment allows for healthy competition. Thereby, the competitive advantage often shifts from one brand to another. However, some products have created a monopoly in the market in some markets, giving them the competitive advantage they need to continue holding a more significant percentage of the market share. The nature of the economy, in turn, wither allows for or rejects a competitive advantage. Thus, a growing economy will better support such critical advantages compared to a restricted and narrow one.
References
Amankwah-Amoah, J., Boso, N., & Debrah, Y. A. (2018). Africa rising in an emerging world: An international marketing perspective. International Marketing Review, 35(4), pp. 550-559.
Bacchetta, P., & Van Wincoop, E. (2013). The great recession: A self-fulfilling global panic. National Bureau of Economic Research, 19062(E32), 1-43.
Duffett, G. R., & Wakeham, M. (2016). Social media marketing communications effect on attitudes among millennials in South Africa. The African Journal of Information Systems, 8(3), 20-43. Web.
Eaton, J., Kortum, S., Neiman, B., & Romalis, J. (2016). Trade and the global recession. American Economic Review, 106(11), 3401-38.