I'm a serious beginner (I just got the game today) and I started playing as Dudley. I got to Balrog in arcade mode on easy and I was immediately killed over and over and over again. I was doing pretty well on all of the previous fights, but Balrog is just killing me.  Before I looked at some videos of the match up online I wanted to see if any of the hosers on the GB forum have any tips.      

What do you keep on getting hit by the most ? His head butt ?

Playing him on Easy?  Just go up to him and grab him.  He should be retarded and fall for it all the time.

I bet you could be me as Balrog.

American born boxers kill.

I use Balrog as my main and basically (I'm giving you my strategy! Listen up!) I punish any guy who tries to jump and box me into a corner. So as soon as I see someone try to jump towards me, I hit them with my uppercut or lunging jab.  Balrog has a pretty slow recovery time after he completes one of those punches. That's when you strike. Also, I don't have a kick, so if I try to jump in, you can easily hit me. Those are the weak spots in Balrog's game (or my game).

" I use Balrog as my main and basically (I'm giving you my strategy! Listen up!) I punish any guy who tries to jump and box me into a corner. So as soon as I see someone try to jump towards me, I hit them with my uppercut or lunging jab.  Balrog has a pretty slow recovery time after he completes one of those punches. That's when you strike. Also, I don't have a kick, so if I try to jump in, you can easily hit me. Those are the weak spots in Balrog's game (or my game). "

I've had a fairly easy time dealing with Balrog myself so far (I'm not all that good at this game either). What I've found that works pretty well is a combination of using some of Dudley's target combo's, and link those into a machine gun blow, or high riser (Dragon Punch). What's good about that is that if you're able to hit him with a light high riser, you should land with enough time to hit him with another one on the way down as well.  
 
If you can stay in a crouched guard position, it should allow you to block a fair number of his attacks as well as setting you up to respond with one of the target combos. The crouched position will also let you charge the thunderbolt move that you can use to close distance and knock him down if it lands. Also if you find that you're getting headbutted a lot... try and get Dudley's cross counter move down. It only works on some attacks, and you'll take a little damage, but you'll put a nice dent in his face.

Oh wait, AI balrog?   
 
Easy: What JJOR said, grab -> grab -> grab, he'll fall for it every time. 
 
If you want to practice against him though, figure out what patterns the AI likes to use go into training mode, pick him as player 2 and then go into the training mode options and set him to CPU. 

You need to be more classy. 
 
Rid yourself of this ruffian menace! 
 
Seriously on easy you can just walk up and do c.LP x3 > uppercut every time.

put it on one round and hope to get lucky

" @turbomonkey138:  his ultra. "

Take this with a grain of salt; I've never played Dudley, but I've played against him a lot (but I'm not a balrog so....)
 
I think they AI in vanilla just spammed TAP didnt he? You smack him out of that, uppercut, or even ultra that shizz on reaction if you buffer it when you're at like... midscreen.
 
I think Dudley has better footsies too, you gotta know what your sexy pokes are. I think your crouching strong will beat out rush punches if you time it early, and it's uppercut cancel-able (Right? I think I've been hit by low jab, low jab, low strong, mgb) if he does an EX rush.

You can bust through most of Balrog's moves with a well timed uppercut or a focus counter, sometimes I'll just jump over him and whip out a rocket punch into his back as well. 
 
Boxer vs boxer is a lot of fun, good luck!

Crouch + Taunt, 10x better version of hadoken

On easy Balrog is basically a paraplegic on meds who can't remember where he is, I'm shocked people have trouble with arcade mode. Don't think of fighting an opponent, think of exploiting the A.I. because they're hella dumb.

" On easy Balrog is basically a paraplegic on meds who can't remember where he is, I'm shocked people have trouble with arcade mode. Don't think of fighting an opponent, think of exploiting the A.I. because they're hella dumb. "

Don't play Pessh then.