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Global Marketing
Global marketing is nothing but marketing
done on national and international level and which involves
understanding the similarities, dissimilarities and taking
advantage of the opportunities to attain the goal.
Concentrating on global marketing is as important as
concentrating on domestic marketing if a company is aiming to
increase sales.
The domestic market has become saturated
in most categories of products and services, in all
industrialized countries and hence, they started to deal with
other countries to increase their sales. Usually in such case,
goods that are too expensive for the domestic customers to buy
are exported to other well-off countries.
When a company does marketing within the
boundaries of a specific county, it has to compete with other
domestic companies as well as international companies who are
a part of the market. The marketing steps taken by the
professionals are based on the taste of a specific audience.
The product might not suit the taste of customers at a higher
level. The other domestic companies that plan to go global
hinder the growth of such companies. They become invisible at
the international level as they are unable to cope with the
growing competition and might not be aware of potential
competitors. The product development is dependant on the need
of the local residents. Such kinds of businesses are
ethnocentric and are only bothered about their performance in
the domestic marketplace.
Companies planning to go global should
start with export to a foreign client first. The returns
wouldn’t be satisfying in the beginning. The export department
can be introduced at the headquarters that deals with all the
laws. There can be a possibility of becoming secondary
exporters by bringing export management company into the
picture, who will deal with the language problem, time
difference, paperwork and customers. If managing the exports
without any help, the export department can be started at an
office located abroad. This office works in collaboration with
the regional headquarters. But the respective offshore offices
take the marketing decisions, as they will have best knowledge
about the particular market they are operating in.
Multinational marketing involves
marketing in many countries. The marketing is based on the
requirements of different countries and the returns are
rewarding. Each region should be studied individually based on
development, production and marketing. Such kinds of markets
are known as region centric. Global marketing involves the
whole globe. The entire world is summarized as a single market
and the products that are released in the market should fit
the needs of any regional marketplace. Marketers all over the
world make the marketing decisions. Such a kind of market is
known as geocentric.
Automotive industry is one such market
that saw a global boost in sales during the last fifty years.
Earlier only the local companies like Ford and General Motors
used to produce cars in America, but today other international
competitors like Toyota and Honda are operating in the same
market and have out done the local companies. Another key
factor to the global marketing is the Internet, which
introduced e-commerce. Businesses went going online and
global. This encouraged the sales of the company and the
figures are only increasing because of ever increasing
Internet users. The geographical location of
customers is no longer a hindrance. Global marketing
management and business-to-business e-commerce is growing
rapidly.
Product, price, placement and promotion
are the elements of global marketing. The product created
should be such that it can sell anywhere using the same
method. It should consider the primary elements of all
the markets. However, the language in which the product is
named can be changed, where as the content can remain the
same. The price is never constant. It should be decided after
reviewing the market and the currency of the country. The
variables which affect prices are location where the product
is being produced, cost of ingredients, transportation
charges, labor charges, etc.
Placement is how the product is
distributed and how it reaches the targeted market. Like in
third world countries, there is a lack of superstores, so they
can be placed or sold at ordinary shops. After the product is
developed and distributed, it should be promoted precisely
known as advertising, promotion is one of the major steps of
marketing and consumes major part of the budget. If it is
possible to send out the same message worldwide in a relevant
and cost-effective way, it sure must be put into practice but
the challenge is really big.
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