Marketing strategies in a globalized environment

Marketing strategies in a globalized environment

In recent decades, the world economy has been characterized not only by technological advances but also by the phenomena of Globalization and Integration, the product of numerous free trade agreements, which forces companies to better understand these trade paradigms in order to formulate coherent strategies and achieve success against these processes.

Introduction

Globalization implies operating at relatively low costs, as if the entire world or the most important regions were a single entity. Selling the same and in the same way will result in a significant change in deciding to adopt new forms of management within companies framed in the new current of the global market, since the base of support for this process is a high level of competitiveness. On the other hand, Economic Integration is aimed at removing economic barriers to trade in goods and services between countries.

Integration efficiency is based on the benefits of trade expansion. These derive from the advantages offered by an expanded market by enabling greater interregional efficiency in the use of resources, greater conditions of competitiveness and higher overall levels of productivity.

The issue of Globalization and Integration takes on special relevance for the practice of marketing in any economy in the world, due to the extraordinary impact of the massive importation of first-class articles that exert a competitive pressure that can displace relatively easily national manufactured products. with inferior technology. Poor marketing practice would be the best ally of our commercial enemies.

Globalization and Integration.

The globalization process consists of operating at relatively low costs as if the entire world or the most important regions of the cities were a single entity. It is to consider the world as a market, a source of inputs and a space for action, both for production and for the acquisition and marketing of products. Its main characteristic is that it is a phenomenon that has as an engine of economic growth an international trade that increases predominantly, having its base of support in a high level of competitiveness and that focuses on addressing other economies to serve them with quality., price and reliability in a regulatory framework that must make trade the new driver of the world economy. As a market phenomenon,Globalization has its basic impulse in the technical process and particularly in the capacity that a country has from it to move goods, services, money, people and information.

Drivers of Globalization.

The drivers of globalization represent the market conditions that determine the potential and the need to compete with a global strategy. Basically there are 5 types of drivers, classified by their origin, in order to help administrators identify and manage them more easily, these are:

to. Market. They depend on customer behavior, the structure of distribution channels and the nature of marketing in the company. For example, the growth of global and regional channels; movement for the development of global advertising; increased travel, which creates global consumers; organizations that behave like global customers and leveling lifestyles and tastes.

b. Of Costs. They depend on the business economy, for example accelerated technological innovation; the continued effort to achieve economies of scale; the emergence of industrialized countries with productive capacity and low labor costs; the rising cost of product development relative to life in the market;

c. Governmental. They are determined by the laws that the governments of the different nations dictate, thus, we could speak of the reduction of tariff barriers; the creation of commercial blocks; the privatization of economies previously dominated by the state.

d. Competitive. They depend on the acts of the competitors. Here we could mention the continuous increase in the volume of world trade; turning more countries into key competitive battlegrounds; the emergence of new competitors determined to go global; increase in companies that are globalizing instead of staying focused; increasing training to achieve strategies.

and. Other Drivers. Globalization of financial markets; greater ease of business travel, and the revolution in computing and communications.

Drivers are for the most part uncontrollable to global business as each market has its potential level of globalization that is determined by external drivers. Each group of drivers is different for each market and can also change over time. Consequently, some markets have greater potential for globalization than others and that potential also varies.

Integration: Advantages and Disadvantages.

The most obvious benefits of trade integration come from the intensification of trade between partner countries. Among the most important we can point out:

1. Free trade, which implies having access to greater possibilities of supply and demand. Better allocation of resources. Greater competition; that in addition to the pro-competitive effect, it serves to eliminate inefficiency and discrimination. Better use of economies of scale, within broader markets. Better satisfaction of consumer preferences or preference for variety, with a greater diversification in the supply of articles. Possible increase in the economic growth rate of the countries, as a result of the expansion of the market and therefore of increased investment opportunities. Tariff harmonization.

With regard to the negative aspects of integration, the main ones are those that derive from the uneven incidence on sectors and groups, as well as the costly and often painful adjustments that the reorganization of the productive apparatus can originate in each case.. In this sense, the magnitude and distribution of these costly adjustments will critically depend on the flexibility conditions of each particular economy. The benefits of an integration process can be seriously diminished if there is not a sufficient response from investment and production flows to the new economic conditions determined by trade liberalization. Another negative or disadvantage of integration is the adoption of more aggressive strategies,as well as the non-conclusion of trade agreements which could imply a significant cost of exclusion; since this cost of being excluded would lead to a deterioration in the terms of trade of the country in question, and thus may decrease in the negotiating power of that country with the rest of the world.

The company facing the phenomenon of globalization and integration.

The increasing globalization and integration of markets and technological change characterize today's businesses. Managers face new challenges every day; Global competition, complex social forces, innovations and technological changes, which is why companies require executives with the capacity to maintain and increase customer satisfaction, market share and profits. These new processes are already demanding that new patterns be taken into account when developing a business strategy; that is to say, the courses of action and application of the company's resources with the purpose of reaching the determined objectives, which yield positive results.

The New Guidelines for the Company within the Globalization and Integration Area.

There are new guidelines to which the companies of the world must adjust to adapt to the processes of globalization and integration. Some of the most important guidelines to follow for companies seeking to survive in the current economic order are:

• Orientation of the company in the face of strong internal competition with freely imported products and others should be oriented to exports, and therefore to a more competitive scheme. This implies that the operating systems acquire a specialization and automation, accompanied by a state-of-the-art technology that allows them to be more agile and efficient in addition to staying at the trot of the technological revolution and the changes it sponsors. Introducing the concepts of quality and services that guide them to the incessant search for quality in all the activities that a company carries out and compete in a market where their new clients look for goods and services that comply with the values ​​they desire, regardless of where they come from or where they have come from. created.Due to the great advancement in technology and its rapid dispersion, companies must partner with even their own competitors as a way to keep up-to-date. Companies must be more agile and efficient in all their processes since the incessant changes in the world economy cause deviations in market behavior.The faster companies can change their course to where the market is headed, the better positioned they will be to continue competing, which implies:They will be in a better position to continue competing, which implies:They will be in a better position to continue competing, which implies:

1. That the planning, organization and control mechanisms are flexible enough to allow them to adapt to the new prevailing conditions. Companies must be oriented towards the future, with a long-term mentality and with an offensive, growth-oriented strategy, through of innovation and change.

But for a company to develop global strategies requires a series of qualities, so that they can offer competitive advantages over other companies. Despite these, it should be noted that this is a necessary condition, but not sufficient, since it is also required that the company be sufficiently trained in organizational aspects, financial capacity, commercial capacity and experience of the company, in order to implement the advantage condition. competitive.

The globalization of companies can cause considerable administrative expenses due to the increase in coordination and the need to inform, and even due to the increase in personnel. Globalization can also reduce the efficiency of administration in each country if excessive centralization damages local motivation and lowers morale. A company suffers a global strategic disadvantage if it uses a less globalized strategy than the potential offered by its market.

Marketing aspects of the company against Globalization and Integration of markets.

The world as a globalized and integrated market is an established and growing reality and this growth is the product of the insatiable search for the satisfaction of man's desires. To adapt to these processes, companies that decide to operate in international markets must necessarily focus their marketing from national to international; For companies that have achieved great success in national marketing have no assurance that they will also achieve it in international markets. A satisfactory performance in them requires: Knowing the international market environment and determining which management methods and elements of the national marketing mix have to be transferred directly to international markets, which ones need to be modified and which ones will be dispensed with.

An organization is said to have international marketing if its products are marketed in two or more countries. For this, it is necessary to discover the needs and desires of the different international markets in order to satisfy them, analyze consumer preferences, as well as production decisions, all these elements are tasks designated for international marketing. However, this concept not only covers selling products, but also includes the set of actions necessary for the expansion of the company abroad.

This marketing takes into account that each market has its own characteristics and different levels of competition, it is for this reason that it is said that international marketing should not act as a unique and identical instrument to operate in any foreign market. But it should be noted that the free flow of information, goods and services endows consumers with international power, thus turning them into "citizens of the world", resulting in the creation of global strategies and organizations that can meet the needs of this «world without borders», thus emerging a global marketing.

A business does global marketing when it uses the same or similar approach or content in different countries for one or more elements of the marketing mix. But global marketing does not mean standardization of the marketing process. Every element of the marketing mix is ​​capable of globalization: product design, product and brand positioning, trademark, packaging, price, advertising strategy, execution of advertising, promotion and distribution. Like other levers of globalization, global marketing can also be flexible. A business can make certain elements of the marketing mix more global and others less.

Global marketing can also vary in terms of geographic coverage. Few are the global marketing programs that can realistically apply to the entire world market. In global strategy, the key is to find the best balance between local adaptation and global standardization. Global marketing does not mean blind adherence to the standardization of all elements of marketing itself, but a different global approach to strategy and program development, combining flexibility with consistency.

Global marketing can achieve one or more of the four main categories of potential benefits of globalization such as:

• Cost reduction. In global marketing, cost reduction comes from savings in both workers and materials. Personnel costs are reduced when marketing functions in multiple countries are consolidated and duplication of activities is eliminated. Material costs are saved because advertising is globalized, as are promotional materials and packaging printing. More customer preferences. Global marketing helps create global recognition, which increases customer preference through reinforcement. A uniform message, whether communicated through the trademark, packaging or advertising, reinforces your awareness, your knowledge and your attitude towards the product or service.Greater effectiveness of the programs. Increased program effectiveness is the greatest benefit of global marketing. Good marketing ideas are rare, so a globalization program that overcomes local objections and allows the geographic spread of good marketing ideas can enhance the average effectiveness of programs around the world. Greater competitive efficiency. Global marketing can increase competitive efficiency by concentrating resources on fewer programs which greatly increases the competitive power of marketing efforts.

The alternatives that have been given in the basic way of operating of companies caused by the globalization and integration processes have made them consider the world as their new market, within which they have to carry out all their activities and operations. Consequently, companies must know or develop experiences worldwide, but it is no less true that they must analyze whether their organizational structure will help them stay in an increasingly changing world. This is why when deciding to penetrate a foreign country, company managers must select the most suitable organizational structure that allows them not only to adapt but also to face these processes.

Conditions to analyze in Operations in Foreign Markets.

The strategies used to launch an international marketing program on a regular basis are quite different from the strategies regarding the degree of organizational participation to operate in each foreign market. Operations in the international market are more complex and there are a number of very peculiar factors surrounding each market; Each country is different from another in its economic and political conditions as well as the cultural characteristics of each nation. This is why an analysis of these factors is necessary before deciding on the international marketing program to use.

Economic environment.

This is where the economic structure and income distribution must be analyzed. When talking about economic structure, he basically refers to the stage of development the country is in and the degree of industrialization, which will help determine the types and characteristics of the products that can be commercialized, as well as the volume that can be absorbed the market depending on the purchasing power of the different strata of the market. Knowing the types of economic structures allows us to have a notion of the main peculiarities of consumption of the countries in their different stages of development and that is that as long as the main characteristics of consumption are known, a clearer idea of the marketing activities that will be carried out.

The second economic factor is the distribution of income that has to do directly with the purchasing or purchasing power of a given population. In countries with a high level of development, the distribution of income in the countries is of vital importance for the implementation of an international marketing program, since, as this distribution becomes more equitable, a greater number of People enter the consumer market and marketing opportunities increase.

Political environment.

Trade between nations is more complex than local trade, due to the political barriers that may be encountered. The degree of economic activity that a nation possesses in international markets depends largely on the international economic activities and policies that the government of that country executes. The truth is that political influences can be due to various reasons, such as: the protection of national companies in order to ensure employment, contributions or taxes in many cases are aimed at achieving certain economic stability, in other cases imposed to increase public fundraising.In either case, adopting a fiscal policy, the government must be aware that the money collected in contributions has an impact on the economic activities of the country.

Cultural environment.

Although selection is an individual expression, each person is a product of the culture in which they live. Consumer reactions and buying habits may be individual, but they are fundamentally nuanced by the many forces that surround them. Therefore, the marketing plan must be in accordance with the values ​​of the culture, tradition, level of education, uses and customs of the population; These are all some of the main factors to consider for an international marketing program.

Marketing Mix in International Markets.

In order to carry out an effective marketing action, the global market has to be divided into a series of sub-markets, or significant groups of buyers or potential buyers, in such a way that, by better adapting the actions to the particular conditions of each One of these groups, you can achieve the full satisfaction of your needs and get a better return on the resources used by the company.

Market Segmentation.

The division of the total market into sub-markets or significant groups of buyers or potential buyers, is what is known as market segmentation, and constitutes the basis on which all marketing actions are based. Segmentation is carried out according to certain criteria that allow the different members of the market to be grouped, based on some common characteristics. The target market or target market is the group or groups selected within the basic markets, towards which all marketing activities aimed at promoting and selling the product or service will be channeled. The company can select its target market within the consumer market, or the industrial or intermediary market, as the case may be, using segmentation criteria such as: behavioral,psychographic, socioeconomic, among others.

Having examined the environment of an international market, the company is ready to design a marketing mix that meets the needs of consumers and achieves the objectives of the organization. For this reason, it is necessary to modify national practices or to completely replace it in international marketing. From a theoretical point of view, there is a market opportunity anytime, anywhere that there is a person or company with a need to satisfy. However in reality the opportunity of a company is much more limited, therefore, the choice of a target market requires the evaluation of the market opportunities available to the organization; because market demand is determined by economic capacity,of purchase and the behavior and consumption habits of the given population. Market analysis is where the influence of socio-economic and cultural variables is most clearly observed. When analyzing the cultural elements, the following should be taken into account: The Family, Customs and Religion, Education, Language Differences, Political Situation, International Competition, Government Media, Society and Culture.

Product.

Once the market in which the operations are expected to be developed has been selected, the first step in the activity planning process is product planning. The product is the starting point of all marketing activities, since it is impossible to set prices, search for distribution channels or make promotion plans without having previously defined the specifications of products that will be offered in the new market. In the marketing approach, the product is seen as "a set of attributes that satisfy consumer demand." The product must not only be capable of satisfying the needs, requirements and wishes of the consumer to whom it is directed, but must also be within the reach of the economic possibilities of said consumer and also includewith competitive strength against the offers of the competition.

Therefore, international marketing must take into account that not all products are global and that it is necessary when designing a policy for new products to analyze the economic, commercial, technical and cultural problems of each country, since knowing the difficulties From each market, their needs can be met without having to sacrifice the personality of the company, thus obtaining everything they want. If this product is capable of satisfying the needs of customers, is within their economic possibilities and has competitive strength, it will obviously be a salable product.

Price.

Pricing is another fundamental aspect of the product planning process. It is one of the essential tasks and with more responsibilities that corresponds to the management is the fixing of prices, and that is that the price represents an obstacle to consumption. Hence the importance of the company developing or implementing a sensible pricing strategy taking into consideration the company's requirements and market circumstances. The price policy chosen by the company can make it obtain good results despite the prevailing market situation.

The most appropriate method for pricing in the international marketing operation is the demand-oriented one. And more specifically, the one oriented towards the existing market price in those countries towards which it is intended to penetrate. In practice, price fixing requires, on the one hand, knowing the price levels existing in the market into which the product is going to penetrate, and on the other, a knowledge of the basic costs of production. The market price determines the price level accepted by the average consumer and, therefore, constitutes the upper limit of the sale price; production costs are those that establish the lower limit of the mentioned price.The important thing is to take into account that the difference between the costs of the product and the market price will be the one that determines the margin within which the company will have to set the sale price of its product, so that it not only adapts to the economic possibilities of the consumer and have competitive strength against the offers of the competition but also allow to cover the administrative and commercial costs, plus the expenses incurred in the process and thus achieve the desired percentage of profit in the operation.cover administrative and commercial costs, plus the expenses incurred in the process and thus achieve the desired percentage of profit in the operation.cover administrative and commercial costs, plus the expenses incurred in the process and thus achieve the desired percentage of profit in the operation.

Distribution channels.

The distribution of the product in international marketing operations is a very complex matter, due to the different forms and characteristics that it can acquire, for the same product, in the different markets. A distribution channel in general terms, is a structure formed by the producer's own sales organization, plus the individual sales organizations of each of the intermediaries that participate in the marketing process, through which the product or service is transferred to the consumer or end user. In other words, it is a complex structure that starts from the producer in the country in which it is installed, and reaches the consumer or the fan user, as the case may be, in the country where the latter resides.Distribution in international marketing operations requires the establishment of a structure that allows, firstly, to introduce the product in the country in which it will be marketed and secondly, once introduced, make it available to the consumer or the end user, so that it can acquire it. Such requirements are covered, in the first case, by export methods and in the second, by internal distribution channels, which, by integrating the distribution structure, make up what is known in international marketing as the total distribution channel.; that is to say, the channel that allows the product to reach from the producer to the final consumer, wherever the latter is, in the different international markets.firstly, to introduce the product in the country in which it will be marketed and secondly, once introduced, make it available to the consumer or the end user, so that the latter can acquire it. Such requirements are covered, in the first case, by export methods and in the second, by internal distribution channels, which, by integrating the distribution structure, make up what is known in international marketing as the total distribution channel.; that is to say, the channel that allows the product to reach from the producer to the final consumer, wherever the latter is, in the different international markets.firstly, to introduce the product in the country in which it will be marketed and secondly, once introduced, make it available to the consumer or the end user, so that the latter can acquire it. Such requirements are covered, in the first case, by export methods and in the second, by internal distribution channels, which, by integrating the distribution structure, make up what is known in international marketing as the total distribution channel.; that is to say, the channel that allows the product to reach from the producer to the final consumer, wherever the latter is, in the different international markets.put it within the reach of the consumer or the end user, so that he can acquire it. Such requirements are covered, in the first case, by export methods and in the second, by internal distribution channels, which, by integrating the distribution structure, make up what is known in international marketing as the total distribution channel.; that is to say, the channel that allows the product to reach from the producer to the final consumer, wherever the latter is, in the different international markets.put it within the reach of the consumer or the end user, so that he can acquire it. Such requirements are covered, in the first case, by export methods and in the second, by internal distribution channels, which, by integrating the distribution structure, make up what is known in international marketing as the total distribution channel.; that is to say, the channel that allows the product to reach from the producer to the final consumer, wherever the latter is, in the different international markets.integrating the distribution structure, they form what is known in international marketing as the total distribution channel; that is to say, the channel that allows the product to reach from the producer to the final consumer, wherever the latter is, in the different international markets.integrating the distribution structure, they form what is known in international marketing as the total distribution channel; that is to say, the channel that allows the product to reach from the producer to the final consumer, wherever the latter is, in the different international markets.

Promotion.

Depending on the product or service in question, and the way in which it will be marketed, different types of promotional actions may be required, which may change even at different levels of the selected distribution system, as the product or the service moves from the manufacturer or producer to the consumer or end user. Promotion is a fundamental element in the marketing plan since it deals with all problems related to communication between the company and its buyers, be they intermediaries, consumers or end users. In relation to this particular aspect of marketing, Phillip Kotler states: "Promotion comprises all the tools of the marketing mix, the primary function of which is persuasive communication."

The promotional activity carried out by the company constitutes the support on which the sales operations are carried out in the considered market. Every promotional program is developed based on the basic information regarding the product, the markets in which it will be marketed, and the particular situation under which the actions will be carried out.

The globalization of the economy results in an increasing number of companies operating in markets where competition is global. International strategies actually concern all companies, whether they are actively engaged in foreign markets or not. Companies should internationalize their basic strategy, through the international expansion of activities and adaptation of the basic strategy. The objectives pursued in an international strategy can be varied:

• Expand potential demand, which allows for a greater volume of production and thus obtain superior results thanks to the economies of scale realized. Diversify commercial risk, relying on customers operating in different economic environments and knowing more favorable situations. Extend the cycle of product life implanting in markets that are not at the same level of development and in which global demand is expanding, while it is maturing in the company's domestic market. Protect yourself from the competition, on the one hand by diversifying their positions, and on the other hand, monitoring the activities of competitors in other markets. Reducing their supply and production costs, exploiting the comparative advantages of different countries.

General Implications for Marketing Management.

At the management level, the changes in the environment involve a whole reinforcement of marketing in the company. In order to face the new challenges of the economic, competitive and socio-cultural environment, companies must renew their basic options. This reinforcement of marketing in the company implies, among other things, the adoption of the following new priorities:

• The reorientation towards activities of greater added value, capable of giving a defensible competitive advantage in front of the new competitors. The adoption of development strategies differentiated by segment and products-market, based on a precise analysis of the expectations of the buyers, facing new problems. A systematic interest in the activities of competition and the adoption of strategies aimed at disrupting the actions of priority competitors. An increasing control of the economic and financial implications of marketing management, which very often lacks rigor in its decision procedures. The adoption of forecasting systems that must be completed by forecasting systems, in order to face the turbulence of the environment.A strengthening of the vigilance of the structure of the activity portfolio, with the concern of maintaining a balance between growth and profitability objectives. Awareness of the need for the company to organize dialogue with its social and political environment and cultural within the framework of a social marketing perspective; It is a management orientation that recognizes that the priority task of the organization is to study the needs and desires of the target markets and satisfy it in a more effective way than the competition, but also in a way that maintains or improves the well-being of consumers and of the community.Awareness of the need for the company to organize dialogue with its social, political and cultural environment within the framework of a social marketing perspective; It is a management orientation that recognizes that the priority task of the organization is to study the needs and desires of the target markets and satisfy it in a more effective way than the competition, but also in a way that maintains or improves the well-being of consumers and of the community.Awareness of the need for the company to organize dialogue with its social, political and cultural environment within the framework of a social marketing perspective; It is a management orientation that recognizes that the priority task of the organization is to study the needs and desires of the target markets and satisfy it in a more effective way than the competition, but also in a way that maintains or improves the well-being of consumers and of the community.but also in a way that maintains or improves the well-being of consumers and the community.but also in a way that maintains or improves the well-being of consumers and the community.

For marketing management, changes in the environment imply a reinforcement of strategic marketing in the company. In order to meet the challenges of the economic, competitive and sociocultural environment, marketing executives must seek to renew strategies in different alternatives. This reinforcement implies the adoption of new priorities.

Analysis of the national economy

From the end of the 1980s, a series of structural reforms began in the country, aimed at modernizing the economy, dynamically inserting it into world markets, modifying the role of the State, through new territorial development and a new structure. relations with civil society, and to incorporate the environmental dimension of development, that is, the concept of sustainable development. In this context, in the early 1990s, the new development model that sought the modernization and internationalization of the economy was adopted, which was known in Colombia as "openness."

The analysis of the economic situation in the current decade cannot be isolated from those structural changes suffered in Colombia. Broadly speaking, the behavior of the Colombian economy during the course of the 1990s can be characterized by moderate, acceptable and constant growth, a gradual reduction in inflation, a dynamic external sector, a relatively high level of international reserves, a Financial system definitely stronger than the Latin American average, advances in physical infrastructure, particularly in telecommunications, some advances in education, in health and safety coverage, and a deficit current balance but financed with long-term capital.

However, the great economic and social problems that the country has faced in the same period cannot be ignored. Economically, the situation of public finances has been deteriorating and now requires the adoption of a serious and sustainable adjustment in the fiscal field; the behavior of variables such as the interest rate and the exchange rate has been volatile, generating uncertainty in the business sector; Unemployment rates have increased in recent years, and the above is compounded by the very difficult, and long, situation that the country has experienced in its international relations and in the intense fight against drug trafficking and against the insurgency; generally against many types and factors of violence.

Regarding growth, in the period 91-97, the Colombian economy registered an average annual growth of 4%, which compares favorably with the 3.5% observed in Latin America. The Colombian growth during this period analyzed, this mainly marked by the non-tradable goods producing sectors. In the case of construction, double-digit growth until 1994, before entering a phase of deceleration and services that maintained high growth throughout the period. It is also worth highlighting the effort in the field of telecommunications.

Contrasting with the above, the difficult situation of the agricultural and industrial sectors, which grew below total GDP during practically the entire period, reaching an average growth of only 1.5%, highlighting a worrying process of deindustrialization. The slowdown in these sectors is due, among other things, to the adjustments that normally occur when exposing national production to greater external competition and also, and in our opinion with great importance, to the revaluation process of the peso that characterized a large part of the period.

The country has recently faced a difficult situation due to the situation of political, economic and social uncertainty, translated into high instability in the exchange market and a significant increase in interest rates. As a consequence, economic activity has suffered and a modest growth is expected for the current year. Towards the future, once the fissures of form and substance are defined in the government's economic program, particularly in relation to the fiscal situation, this is expected to change favorably.

Taking a look at the external sector, a good performance is observed judging by the evolution of the relationship between foreign trade and gross domestic product, which could be interpreted as an index of the internationalization of the economy. This indicator went from an average of 23% in the 1980s to 30% in the 1990s. However, the penetration of imports exceeded the export opening, and how can the country's trade balance go from a surplus situation at the beginning of the nineties, to a growing deficit from 93. To the above is added the deficit in the services account which also shows a growing trend, as a result of the revision of profits from foreign investment and the greater service of the external debt. Currently the trade deficit is equivalent to almost 3% of GDP,while the current account is at an alarming almost 6%.

It is important to note that the structure of the Colombian balance of payments has been characterized by its solidity to the extent that the deficit has been offset by long-term resources, foreign direct investment and long-term external debt as well. Even in most of the period these long-term resources have exceeded financing needs, which has translated into an accumulation of reserves. Among the long-term resources, the participation of foreign investment stands out, which on average represented 70% of long-term income in the 1990s. In the same direction, the external strength of the country is manifested in the level of international reserves, a little more than 9,000 million dollars today, corresponding to almost eight months of imports of goods,and almost six months of imports of goods and services.

As for the exchange rate and the currency, with the adoption of the openness model, the exchange management also underwent radical changes that went from a gradual devaluation system that made history, to a mechanism of exchange rate bands, which has recently disappeared. Thus, when analyzing the behavior of nominal devaluation, it went from devaluation pressures from mid-95 to June 96, to revaluation pressures from that date to the end of 97. Today the exchange market, it can be said that it has recovered somewhat its stability. Despite the devaluation episodes, the real exchange rate registered a clear decreasing trend throughout the 1990s. This is how the index decreased from 177 in December 1990 to only 90 points in April 98, that is to say,Despite a very high nominal devaluation, we have a real revaluation of the Colombian peso. In this regard, it is important to remember that before adopting the new exchange rate regime, there was a significant devaluation of 31% in nominal terms and 9% in real terms.

Closely linked to the behavior of this exchange market is the evolution of domestic interest rates. In the 91-97 period, real interest rates stood at an average of 5.4% for deposits and 13.7% in real terms for loans. These levels are similar to the long-term interest of the Colombian economy, although they are very high internationally.

Let's look at public finances. The most pressing problem facing the Colombian economy is the deterioration of its public finances. In recent years, public spending has grown significantly, as a result of the greater commitments imposed by the 1991 Constitution, due to the adoption of a decentralization model that has not been fully consolidated and due to the persistence of immense flexibilities in the preparation of the budget. national.

These higher expenses have not been offset by higher revenues, more efficient management, or better control of evasion, avoidance, or corruption. Consequently, the balance of the central government went from a relative balance in the first half of the 1990s to a growing deficit, with the aggravating circumstance that in the future the decentralized sector will not present the surplus observed in previous years, which was deficit financing.

Globalization, integration and marketing in Colombia

Colombia has directed its efforts towards formulating agreements that allow it to integrate into different trade blocs in countries, aware that this reality implies greater competitiveness both within our market; for the entry of products similar to those that we produce due to the commercial opening, as to the external of the same; Since integration allows us to access other markets on equal terms, it is logical to suppose that in addition to being involved in an efficient production process; that allows us to adapt to the new rules of the game that will also be established, these processes will also have a direct impact on our marketing practice,therefore, our companies must adequately align the critical elements of the Marketing Mix for the successful commercialization of their goods and services and in this way be able to compete and succeed in relation to offers from other markets.

Regarding the product, our companies, especially manufacturers, must take into account that it must not only be capable of satisfying the needs, requirements and wishes of the consumer to whom it is addressed, but must also be within reach. of the economic possibilities of these, having sufficient quality to perform the required functions, and having competitive strength against the offers of the competition. In addition, it must have the attributes that the consumer wants or expects to have the item that they buy or want to buy; These attributes may provide the latter with a differential advantage as a result of characteristics that are its own, and that therefore do not possess the similar products of the competition.Therefore, marketing experts should carefully study the cultural and economic environment of markets, both international and domestic, before planning the corresponding products.

All this because the opening of markets puts us in front of more and more demanding people with tastes and needs not only local but also global.

It should be noted that marketing and production are two activities that are closely related to the conquest of markets and that one must support the other, so that as a country we must have the conviction that we must focus on producing efficiently, that is, increase the quality, quantity and presentation of our products and at the same time lower costs and consequently their prices. On the other hand, after efficient production, we have to design marketing strategies that make it possible for our products to penetrate into consumer preference.

Colombia cannot enter to compete at once, with all of its products, due to the existence of certain protection regimes for certain products that countries accept in the discussions prior to the agreements; when these are at a disadvantage with their similar ones produced in other countries of the block, but this protection is for a certain time until achieving a certain competitive parity, which implies that the market strategies of our companies should be oriented, in principle, to products with which we are in condition to be competitive in the commercial exchange.

From a marketing point of view, one of the strategies that the country must resume according to the new times is the reform of industrial reconversion, aimed at efficient production, this, together with the tariff cut that should benefit the import of raw materials, will have a significant impact on the product; that is, in its quality, quantity, presentation and cost. If the products meet the new market requirements and are produced at relatively low costs, this would impact prices favorably, which means that even with the margins assigned to the distribution channels, these would reach consumers at affordable prices and Competitive giving significant advantages to the marketing activity to penetrate the preference of consumers.

In addition, our companies must bear in mind that the pricing for international marketing must be done with an orientation towards demand, taking into account not only the cost of the product or service that you want to offer, but also the possibilities of the consumer that It is intended to achieve and the action of the competition to be faced, that is, that on the one hand they must know the price levels existing in the market that the product will penetrate, and on the other, a knowledge of the costs basic production.

The important thing is to take into account that the difference between the costs of the product and the market price will be the one that determines the margin within which the company will have to set the sale price of its product, so that it adapts to the economic possibilities of the consumer and at the same time have competitive strength against the offers of the competition, in addition to allowing to cover the administrative and commercial costs, plus the expenses incurred in the process and thus achieve the desired percentage of profit in operation by the company.

Regarding distribution channels for international marketing operations, it should be borne in mind that it requires the establishment of a structure that allows, firstly, to introduce the product in the country in which it will be marketed and secondly, once introduced, make it available to the consumer or the end user, so that he can acquire it. You can choose between carrying out an indirect export or a direct export to introduce the products and thus, together with the distribution channels available internally in the considered market, form the total distribution channel that will allow these products to arrive from their establishment, to the consumer or end user.

One of the easiest ways to get started in the export business is indirect export, which requires little investment and involves less risk. This can be done through the use of agent intermediaries or merchant intermediaries, taking into account that perishable products require a distribution where the smallest number of intermediaries intervene and that others require that their handling be through intermediary agents due to their volume or large weight. For this, the company must consider its economic and technical possibilities in order to decide which distribution method will be the most convenient since the costs involved in said process are an important factor that will directly affect the choice of said decision.

Mercadologically, it is important that our country adopt agile or dynamic mechanisms in its foreign trade and for this it must reduce bureaucracy to its minimum expression. The promotional activity carried out by the company will constitute the support on which the sales operations will be carried out in the considered market. The company must take into account that the first step in the promotion process is the one that refers to the definition of the objectives of the promotional program and that said objectives must respond to the general guidelines of the marketing plan, and at the same time must indicate very clearly what you want to obtain through the promotional effort you plan to make.

This promotion strategy must be adequate, aggressive and well planned that makes it possible for us to compete with the advertising and marketing designs that other markets use. It is our opinion that if we have a clear vision of the competition strategy and a strategic advertising design, our country would be in a position to compete and succeed in opening markets.

Internally, our country is endowed with sufficient means of communication, which is important in market development, in addition to the fact that we have good professionals, this, together with goodwill, vision, strategy and aggressiveness, could ensure successful penetration in the foreign markets with which we project integrationist agreements. Our problem lies in the sum of factors external to the economy (violence, drug trafficking, corruption, etc.) that make our economic and marketing environment somewhat remote from the reality of the rest of the continent and the world. The internationalization of our economy must overcome this gap with good marketing strategies and above all with the reiteration of products with broad competitive advantages for the respective market.

We have said that for the success of our country in the integration processes, both in internal and external markets, it requires, among others, efficient production and a good design of our marketing strategies, now we add that all this must be accompanied by a timely and aggressive vision, we must know and interpret our marketing role and be clear about the objectives we have and the opportunities that may arise, since carelessness on our part would be well used by our competitors and consequently we would be losing ground in the preferences of the consuming public.

So with market, product, price, distribution and promotion management, but without a strategic vision, we would be at a competitive disadvantage and our success as a country in the globalization and integration processes would be in danger.

From a marketing point of view, we must also develop the quality of services to consumers; the culture of "Just in Time", so that our customers and consumers adopt and maintain an attitude of acceptance towards our offer and it becomes part of their own consumption habits. We affirm this because although it is true that many markets are captive by the quality, the price, among others, it is no less true that others are conquered by the quality of the service offered to them.

Finally, it should be noted that for the market activity to be continuous, our country must adopt a system or mechanism that allows it to maintain quality control in its foreign trade not only in services but also in products and the market policy adopted, such that there is continuity of our general strategy through the supervision, encouragement and motivation of all the sectors involved in the success of our globalization and integration

conclusion

We can affirm that Globalization and Integration processes have a positive impact on our economy due to the same continuous trend of the internationalization of production factors. Given this trend, developing countries like ours cannot influence the international sphere, except through an integration process, so we have the possibility of influencing by making strategic alliances at the external level and reinforcing our policies and institutions at the internal level; which should give way to existing internal conflicts.

On the other hand, given the changes taking place in the world economy, no country can be isolated, the tendency to the formation of economic blocks is precisely determined by the need to expand markets where companies can place the surplus of their productive capacity, since over time due to the improvement of said capacity; As a result of the use of technology and the process of capital accumulation, segments of larger markets and economies of scale are required.

Another advantage that companies in our country acquire from Globalization and Integration processes is determined by the concept of specialization of production in those goods that give us comparative advantages compared to other countries, this together with an efficient production process It allows us to insert ourselves in the international market by selling our products and buying others produced externally that are demanded by the internal market.

In addition to the advantages outlined, many others that present the current integration schemes can be cited, among these the following are presented as a balance in favor:

• Greater interconnection of markets which allows companies to have a greater circulation of their products, people and services. Better communication, by creating new frameworks for international relations with a view to maximizing growth and profits. Induced adaptation of structures productive to the trade flows of the integrated market, and Generation of external economy capable of contributing to industrial and commercial development.

The opening of borders, the regulation of tariff laws and their internationalization, have turned the markets that were previously local into large commercial blocks. This opening will soon produce the exit from the market of all those companies that are managed inefficiently. It is obvious that the companies that best handle high technologies and the most advanced knowledge will be the ones that will have the singing voice in the face of these processes, since free competition between companies is now not local but global.

Organizations today must modify their local strategies and visualize them towards a global perspective, adapting their products or services to the demands of today's world and adopting an attitude of flexibility in the face of the changes that are coming, in order to minimize their costs and maximize the benefits that can be obtained from said change.

The globalization of markets requires the participation of people capable of analyzing and designing mechanisms aimed at administrative improvement and increasing the quality of the goods and services that are produced or marketed in the country.

Companies currently face a considerable challenge in adopting new concepts of strategies, both international and global, all in order to survive the worldwide marketing battle. The correct answer would be that companies learn to penetrate foreign markets and increase their competitiveness because the longer companies take to internationalize, the greater the risk of being left out of growing markets, so marketing is of importance at this time. vital for the survival and development of companies.

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