Globalization Marketing

Subject: Marketing Management

Professor: Farouk Heiba

Research Paper:

The cultural study of Marketing in Albania and in U.S.A

Student: Ertigel Haxhisalo

History

Marketing in every which way, has been around for a long time. Modern marketing as we know it was born in the period 1900Ð'ЁC19401, especially between the years 1910 Ð'ЁC 1925, when several practical and theoretical marketing aspects came together. During the 20th century it made its most rapid development and consolidated itself as an important business function and as a way of doing business. The majority of this development took place in the United States. A big contribution came also from Britain due to the industrial revolution. By the late 1990s, all types of organizations in the USA and Western Europe had adopted a marketing orientation and looked for a way to become even more customer focused (i.e. through relationship marketing).

The development of marketing

The roots of marketing lie back in the time when people began to produce crops or goods which were surplus to their own requirements. They bartered for other things they wanted. In the early days, the late 19th and early 20th centuries, goods were scarce and competition sufficiently underdeveloped so producers did not really need marketing. In the words of an anonymous author in Scientific American in 1923; Ð'ÐŽÐ'®When our grandfathers wore homespun clothes, raised most of the food they ate and chopped the wood for their home fires, the cost of distributing the essential commodities was practically nil.Ð'ÐŽÐ'Ї2

They could, without a problem, sell whatever they produced. Most communities were self-sufficient, and even when they were not, goods were shipped only short distances and sold on local markets where the buyer and seller knew each other. As markets and technology developed, competition became more serious and companies began to produce more. Therefore they would have surplus to sell and usually at a profit.

Culture plays a primary role in marketing sector especially in undeveloped counties as Albanian is. It is essential to establish that Albanian market is on her first stages of growing, especially in the marketing sector. I choose this particular topic for my research paper, for the simple fact to go more deeply on the problems that Albanian marketing faces among U.S.A3. Well U.S.A it is consider and is actually the top county in advertising and Marketing sector. So I founded challenging to look into through these two different countries in a more detailed point of view. Moreover I would like to mentioned that consumers today play the most important role in marketing, so even if Albanian consumers are use to different culture of marketing, it is time to change it.

Albania is a lower middle income country with a gross national income per capita of US$1,740 in 20034. It is a largely agricultural economy. However, the share of agriculture in total GDP has declined in recent years. Services accounted for more than half of GDP in 2003, followed by agriculture and industry. The country has made significant progress since its transition from rigid communism to a market economy. It has achieved high growth, albeit from a low base, while containing inflation in almost every year since transition, despite bouts of domestic and regional instability.

It has pursued far-reaching structural and economic reforms and has made advances in establishing democratic institutions. Nonetheless, the country faces considerable challenges. While recorded per capita income has increased steadily, Albania remains one of the poorest countries in Europe. According to the 2002 Living Standards Measurement Survey5, a quarter of AlbaniaÐ'ÐŽÐ'Їs population lives in poverty and about 5 percent in extreme poverty-defined as the inability to meet basic food requirements. In addition, weak and deteriorating infrastructure and services throughout the country have left one-third of households without access to necessities such as basic education, water, sanitation, and heating. Weak governance, feeble institutions, and a tenuous rule of law are at the root of the countryÐ'ÐŽÐ'Їs problems.

AlbaniaÐ'ÐŽÐ'Їs impressive performance since transition began in 1991 but came to a halt during the large-scale civil disturbances of 1997. The well-publicized collapse of fraudulent pyramid schemes underscored the fragility of the countryÐ'ÐŽÐ'Їs institutions.

After the crisis, the country restored and maintained macroeconomic stability and put structural reforms buck on truck. AlbaniaÐ'ÐŽÐ'Їs initial reform program enabled strong private-sector activities, especially in agriculture.

The economy has been growing since 1999 at an average annual rate of almost 7 percent, despite the shocks of transition and the 1997 civil disturbances. Average inflation has been kept very low, and in 2004 was estimated to be 2.9 percent6. reforms back on track.

Despite the Kosovo conflict and the massive influx of refugees in early 1999, the Government remained committed to implementing structural reforms, aided by generous external assistance. Know as referring on the marketing sector Albania is still behind from other European countries.

Albanian facing the problem of marketing and advertising because of the luck of education, experience and cause of the small per monthly income. These factors indicate on the marketing sector in a certain way. Albanian have not understand yet the idea or the impact that marketing is it for. And by not understanding that, Albanian customers donÐ'ÐŽÐ'Їt really know what should except from the service in which they do provide them. As an example customer services in which every European banks have, is there, for every need that a consumer needs for, as on the other hand in Albanian banks the customer service it let most of the times the customer dissatisfied and with ought a proper information in which the customer is needed for, well all these happened because the employee have not the proper information which they should and although cause of luck of education. But since the year 2000 the marketing culture have started to make some important steps on improving themselves, even if Albania is on the first stages