Global Marketing Perspectives
What is Global Marketing?
A global firm “is one that, by operating in more than one country, gains marketing, production, R&D, and financial advantages that are not available to purely domestic competitors” (Armstrong & Kotler, pg. 509). The world is seen as one market in which the importance of boundaries is minimized and global brands are developed.
There are policies and restrictions which need to be considered by companies who aim to enter the global market world. Steps to consider are:
- Look at the global marketing environment
- Decide whether to go global
- Decide which markets to enter
- Decide how to enter the market
- Decide on the global marketing program
- Decide on the global marketing organization
There are five strategies that “allow for adapting product and marketing communication strategies to a global market” (Armstrong & Kotler, pg.523). Three strategies pertain to the product and the other two involve communication strategies.
- Straight product extension
- Product adaptation
- Product invention
- Communication adaptation
- Dual adaptation
When considering straight product extension, companies should ensure that there is a customer base for their products, and then task their employees with selling the products without any changes. This strategy has its perks because there are no extra product development costs, changes in the manufacturing or marketing processes necessary.
Product adaptation calls for changes to adapt the product to comply with conditions in the foreign market. The textbook underlines Nokia’s efforts to cater to “people living in developing countries” (Armstrong & Kotler, pg. 526) by introducing dust-proof keyboards for areas like Nairobi and raising the ring-volume so phones may be heard in crowded streets in Asian countries.
Reinventing an established product and/or developing an entire new product are called product invention. An example is Sony who added a new personal computer line to meet a need for smaller laptops in Japan.
Communication adaption is a global communication strategy of fully adapting advertising messages to local markets. An example is the Kellogg Company which advertises their cereal as healthy and nutritious versus other brands in the U.S. However, in France where consumers drink little milk and do not indulge in breakfast as much; marketers need to point out how tasty and healthy the product is.
Dual adaption calls for adapting the product as well as its promotion. Playtex had to reinvent their bras to sell on Asian markets because of Asian women being shaped differently. In Moslem countries women are forbidden to model underwear; hence fully clothed models hold up bras on hangers.
Sustainable marketing is “socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs” (Armstrong & Kotler, pg.539).
In contrast to sustainable marketing, societal marketing efforts only concentrate on the consumer’s welfare, and the strategic planning concept only addresses the company’s needs. Sustainable marketing aims to meet both, the consumer’s and company are immediate and future needs.
In the U.S. corrupt actions are considered unethical and are not condoned. Ethical values are as such:
Being truthful to customers and stakeholders is an extremely important key factor in building trust and a long lasting relationship with customers and stakeholders. Taking responsibility and accepting consequences of the marketing decisions and strategies are vital for this relationship as well. Being fair enables companies to balance the buyer’s and seller’s needs in order to enjoy a “win/win” situation. Communicating and making reasonable efforts to oblige customers, suppliers, intermediaries and employees shows a level of respect necessary to do business in a proper, safe and profitable way. Openness creates transparency in marketing operations; communicating with customers, accepting criticism and full disclosure of pricing lists and terms are vital to doing business. Fulfilling economic, legal, philanthropic and societal responsibilities through giving back to the community and striving to protect natural resources and participating in fair trade, constitutes citizenship.