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To compete in world markets, firms must have an in depth understanding of customers needs. If customers needs differ dramatically across countries and regions, a company must consider how to adapt its products and various elements of the marketing mix to customer needs. If prices must be lowered, the company needs to consider how to design a product to lower manufacturing costs and decide whether to manufacture the product at home or overseas to achieve lower cost. A well-articulated distribution and logistics system is needed to make goods and services available at the point of sale in sufficient quantities. Firms also need to develop global customer database and information systems to understand and respond to customer needs and purchasing decisions.
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Firms must contend with both domestic and global competition. Global competitors could include large multinational and state-owned enterprises that might be market share oriented rather than profit oriented as well as small local firms with other goals. Long-term success comes in part from monitoring, assessing and responding to actions by all sorts of competitors, especially through understanding the competitive and comparative advantages enjoyed by competitors, and finally ensuring success by offering more value, developing superior brand image and product positioning, broader product range, lower prices, higher quality and superior distribution services to more effectively meet customers need.
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