Global marketing
Global marketing is “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives".
Global marketing is also a field of study in general business management that aims to market products, solutions and services to customers locally, nationally, and internationally.
International marketing is the extension of an organization's product or services into another country. This can be achieved by exporting a company's product into another location, entry through a joint venture with another firm in the target country, or foreign direct investment into the target country. The development of the marketing mix for that country is then required - international marketing. This can include the use of existing marketing strategies, mix and tools for export on the one side, or a relationship strategy including localization, local product offerings, pricing, production and distribution with customized promotions, offers, website, social media and leadership etc.. Internationalization and international marketing meets the needs of selected foreign countries where a company's value can be exported and there is inter-firm and firm learning, optimization, and efficiency in economies of scale and scope.
Evolution to global marketing
The international marketplace has been transformed by shifts in trading techniques, standards and practices. These changes have been reinforced and retained by new technologies and evolving economic relationships between the companies and organizations involved in international trade. The traditional ethnocentric conceptual view of international marketing trade is being counterbalanced by a more global view of markets.
Domestic marketing is the limited commercialization of goods and services to a single, home country.
The advantages of domestic marketing include familiarity with the extent of political risk, the quality of skilled human resources and of natural resources, and the ramifications of existing and likely legislation in relevant areas such as safety, hygiene, employment, and ownership of capital.
These markets are restrained by the laws and regulations of the country. Domestic marketing is typically organized in the headquarters.
Global marketing requires a firm to understand the requirements associated with servicing customers locally with global standard solutions or products, and localizes that product as required to maintain an optimal balance of cost, efficiency, customization and localization in a control-customization continuum to meet local, national and global requirements.
Global marketing and global branding are integrated. Branding involves a structured process of analyzing "soft" assets and "hard" assets of a firm's resources. The strategic analysis and development of a brand includes customer analysis trends, motivation, unmet needs, segmentation, competitive analysis brand image/brand identity, strengths, strategies, vulnerabilities, and self-analysis existing brand image, brand heritage, strengths/capabilities, organizational values.
Global brand identity development is the process of establishing brands of products, the firm, and services locally and worldwide with consideration for scope, product attributes, quality, uses, users and country of origin; organizational attributes; personality attributes, and brand customer relationship; and importantly symbols, trademarks metaphors, imagery, mood, photography and the company's brand heritage.
A global marketing and branding implementation system distributes marketing assets, affiliate programs and materials, internal communications, newsletters, investor materials, event promotions and trade shows to deliver an integrated, comprehensive and focused communication, access and value to the customers.
Elements of global marketing
The product must deliver a minimum level of performance.
A global company must be able to tweak elements of a product for different markets. For example, Coca-Cola uses two formulas one with sugar, one with corn syrup for all markets. The product packaging in every country incorporates the contour bottle design and the dynamic ribbon in some way, shape, or form. The bottle can also include the country's native language and is the same size as other beverage bottles or cans in that same country.
The price of a product varies based on factors such as costs of production, target segment, and supply-demand dynamics. There can be several types of pricing strategies, each tied in with an overall business plan. Pricing can also be used as a demarcation, to differentiate and enhance the image of a product.
Price will always vary from market to market.
Refers to the point of sale.
How the product is distributed is influenced by how the competition is being offered to the target market. With Coca-Cola, not all cultures use vending machines. In the United States, beverages are sold by the pallet via warehouse stores. In India, this is not an option. Placement decisions are also affected by the product's position in the market place. For example, a high-end product would not be distributed via a dollar store in the United States. Conversely, a product promoted as the low-cost option in France would find limited success in a pricey boutique.
Activities undertaken to make the product or service known to the user and trade including advertising, word of mouth, press reports, incentives, commissions and awards to the trade. It can also include consumer schemes, direct marketing, contests and prizes.
A firms's arguably most valuable asset are its people. The personality form the company's brand personality which engage with customers customer experience, vendors, partners, shareholders and other "publics." The firm's core values, integrity, honesty, leadership, social responsibility, drive for profit, drive for quality products and services are reasons why customers choose to buy from one firm or another. And a reason why firms fail e.g., dishonesty and fraud of Enron, Arthur Anderson, Worldcom.
Processes for creative and delivering products and services have inherent value. It is an intangible asset that improves the quality of the product and service if well-designed.
In today's digital economy, may firms provide non-physical services over the internet and companies' products are Software-as-a-Service Saas. Historically, banks have many retail locations to signal the financial strength of their institution. Retail locations for consumer brands give evidence of the popularity and reach of their brands.
Because there is a requirement for trust before a customer buys from a company, some companies without brick and mortar understand that they must provide some proof of existence that their software company is real, significant or legitimate.
Advantages and disadvantages
The advantages of global marketing include:
The internet provides a low-cost means for businesses to expand their reach globally. Global reach was traditionally limited to multinationals with large budgets, but eMarketing opens up new avenues for smaller businesses to access potential consumers from all over the world.
Internet marketing provides flexibility to marketers in terms of product offerings and channels to reach consumers. eMarketing includes information management, public relations, customer service and sales.
eMarketing facilitates conversations between companies and consumers. With a two-way communication channel, companies can adapt to the responses of their consumers.
Internet marketing is able to provide an immediate impact. eMarketing enables businesses to effectively operate 24/7.
Internet users can be considered a demographic group skewed towards the middle-classes.
Marketers can also access niche markets through eMarketing more easily.
The dimensions of culture is an area of marketing and social science that is closely related to Global marketing. The ability to discern cultural differences through initial assessment of another market is considered a critical enabler to progress in Global marketing.
Cultural value differences are a factor in the effectiveness of an advertisement campaign as advertising campaigns will be perceived differently in different countries.
Closed loop marketing requires the constant measurement and analysis of the results of marketing initiatives.
With eMarketing, responses can be analyzed in real-time and campaigns can be tweaked continuously.