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".
* Evolution To Global Marketing :-
- Domestic Marketing :-
A marketing
restricted to the political boundaries of a country, is called "Domestic
Marketing". A company marketing only within its national boundaries only
has to consider domestic competition. Even if that competition includes
companies from foreign markets, it still only has to focus on the competition
that exists in its home market. Products and services are developed for
customers in the home market without thought of how the product or service
could be used in other markets. All marketing decisions are made at
headquarters.
The biggest obstacle
these marketers face is being blindsided by emerging global marketers. Because
domestic marketers do not generally focus on the changes in the global
marketplace, they may not be aware of a potential competitor who is a market
leader on three continents until they simultaneously open 20 stores in the
Northeastern U.S. These marketers can be considered ethnocentric as they are
most concerned with how they are perceived in their home country.
Domestic market is a
large market that every nation needs. These markets are all restricted to be
under control of certain boundaries in that company or country. This type of
marketing is the type of marketing that takes place in the headquarters. The
disadvantage that this brings is that they really don't have that much of a say
of what happens within the company. In domestic markets it helps reduce the
cost of competition. By reducing competition the company has a better shot of
being more successful in the long run. Also if the company’s competition is not
a big factor that will affect their business, they have a good shot at making
prices higher and people will still purchase that product.
A domestic market also
gets the opportunity to operate in different areas and this gives the company
an opportunity to have bigger markets to advertise to. Even in Domestic markets
businesses are still trying to trade with each other to promote their business
to other businesses in the area. A good thing that helps out Domestic market is
that they might be able to receive tax benefits, because they offer jobs to the
nation and give people opportunities for work. Domestic market helps country’s
out by offering more jobs bring in good business to the market and also helps
with the trading around the market.
- International Marketing :-
International
marketing is the export, franchising, joint venture or full direct entry of a
marketing organization 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. It can be as straightforward as using
existing marketing strategies, mix and tools for export on the one side, to a
highly complex relationship strategy including localization, local product
offerings, pricing, production and distribution with customized promotions,
offers, website, social media and leadership. 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. The firm does not need to export or
enter all world markets to be considered an international marketer.
- Global Marketing :-
Global marketing
is a firm's ability to market to almost all countries on the planet. With
extensive reach, the need for a firm's product or services is established. The
global firm retains the capability, reach, knowledge, staff, skills, insights,
and expertise to deliver value to customers worldwide. The firm understands the
requirement to service 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 best meet local, national and global requirements to position
itself against or with competitors, partners, alliances, substitutes and defend
against new global and local market entrants per country, region or city. The
firm will price its products appropriately worldwide, nationally and locally,
and promote, deliver access and information to its customers in the most
cost-effective way. The firm also needs to understand, research, measure and
develop loyalty for its brand and global brand equity (stay on brand) for the
long term.
At this level, global
marketing and global branding are integrated. Branding involves a structure
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/identity, strengths, strategies, vulnerabilities), and
self-analysis (existing brand image, brand heritage, strengths/capabilities,
organizational values)
Further, Global
brand identity development is the process establishing brands of products, the
firm, and services locally and worldwide with consideration for scope, product
attributes, quality/value, uses, users and country of origin; organizational
attributes (local vs. global); personality attributes (genuine, energetic,
rugged, elegant) and brand customer relationships (friend, adviser, influencer,
trusted source); and importantly symbols, trademarks metaphors, imagery, mood,
photography and the company's brand heritage. In establishing a global brand,
the brand proposition (functional benefits, emotional benefits and self-expressive
benefits are identified, localized and streamlined to be consistent with a
local, national, international and global point of view. The brand developed
needs to be credible.
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