Global Marketing

Global marketing strategy:

The planning, producing, placing and promotion of a businesses products in a worldwide market.

Global localisation (Glocalisation).

'Think global, act local'.

The business should adapt to local expectations in order to succeed in international markets.

Glocalisation takes into account local tastes, customs and traditions.

In Saudi Arabia men are served separately to women and children:

Different marketing approaches in international business:

Ethnocentric (domestic) approach:

Overseas markets are  seen as identical or similar to domestic markets.




Businesses make little or no attempt to adapt their product for different markets.

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Advantages of this approach:

Economies of scale.

Because a product is standardised across markets, the scale of production is much larger.

Purchasing economies can be made.

Disadvantages of an ethnocentric approach:

Products may not sell well if they are not adapted to local markets.

Missed opportunities by not changing products to suit local tastes.

Are Pizza Express losing potential revenue by not adapting their menu?

Polycentric (international) approach:

Businesses adapt their products to the local markets.

Developing and marketing different products to the demands of different markets.

By tailoring products to specific customer needs, the product can be targeted precisely within the particular market.

Selling cars in India. Click on the picture.

The major disadvantage of this approach are the costs involved.

Geocentric (mixed) approach: 

Businesses which use a combination of ethnocentric and polycentric approaches.

This would be considered to be 'glocalisation'.


Adapting and applying the marketing mix and Ansoff's Matrix to global markets.



Before deciding on an appropriate marketing mix in an overseas market the most important step is thorough market research.

How consumers in different cultures shop, eat, use social media, spend their disposable income.

Price

Decisions around price need to take into account local factors like incomes, taxes, rent and other costs.

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Product

To what extent should a company modify or adapt its product for global markets?

Promotion

When promoting products a business needs to take into account language differences.

International business failures. Details here.



Place

Businesses need to take into account how local consumers typically buy their products.

Ansoff's matrix is a strategic tool to help a business achieve growth.

Uber:

Niche Markets

Culture is a pattern of learned behaviour.

Religion is a significant influence on culture in many parts of the world.

Cultural diversity in marketing. Details here.

Global niche markets

Examples of possible global niche markets here.

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Global niche markets target a very specific range of people, often known as subcultures.

Small specialised parts of the global market. 

On a country by country basis they do not offer enough market value to be successful.

However the combination of all the niche markets in each country allow for the scale ability to present profits.

Higher prices can be charged in niche markets.

The features of a successful global niche business:

A clear understanding of the needs and wants of the market segment.

An emphasis on quality and customer service.

Expertise in the product area.

Innovation.

Click on the picture.

Customers are prepared to pay for a luxury flight experience.

It does not matter whether the customer is from the home country or abroad.

Aspirational niche brands in the UK are likely to be similarly aspirational in other countries.

Why?

The internet and e-commerce have proved to be an important marketing tool.

Social media and 'vloggers' reviewing niche products.

Application and adaptation of the marketing mix to suit global niches.

1. Product

Global niche products often place an emphasis on quality.

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Price

The point of niche marketing is the ability to charge premium prices. https://www.virginatlantic.com/ 

Demand may be more price inelastic.

Promotion

Businesses need to be sensitive to national and cultural differences.

Promotional costs may be higher which may impact on price and competitiveness.

Place

A business must study local distribution channels before entering a market.

Networks of exclusive dealers are a common method of selling goods to global customers. 

Cultural / Social Factors

In order to market effectively in other countries, businesses must overcome ethnocentrism.

This is the tendency of people to view their own culture, ethics and norms as superior.

Each culture has its own set of values. 

For an international business to succeed each step in conducting business needs careful preparation.

Unintended meanings:

Gestures common in one region may have differing meanings in other regions and cultures.

Differing tastes:

Depending on the product and country, there there may be the need for more or fewer adaptations.

Coca Cola tastes slightly differently depending on the country where it was bottled.

Other differences can based on religious beliefs.

Some adaptations to products are based on legal requirements.

Inappropriate branding and promotion:

There are many accounts of mistakes involving language, mistranslations and unintended meanings when businesses operate abroad.

Why did this image cause minimal sales of a baby food in some African countries?