International Marketing Strategy
MARKETING ESSAY
In affluent societies, one observes a growing fragmentation of markets, buyers requesting more and more products adapted to their specific needs. How can we reconcile this fact with the objectives of global marketing that emphasises a strategy of standardisation of products and brands across the entire world?
Executive Summary:
Companies developing a global marketing strategy must consider its impact and influence on the company. Crucial for development of global marketing strategy is clear segmentation and positioning of product and company on the market. Advantages of global strategy could also come from using cheap local and national sources, global marketing operation, global brand name, advertising campaign and better knowledge of customer’s problems. There is a trade-off between standardisation and adaptation. The essay suggests that a company should have an optimal marketing mix to balance the increasing demand for products adapted to customers’ needs and its own global marketing objectives that emphasise standardisation.
Why Adaptation?
Customer needs and markets are becoming increasingly global for many products and services. But the extent of globalisation varies considerably from market to market. Hence, a global marketing strategy and the associated marketing mix have to take into account of the following factors in the market environment: customer needs, culture, language, technology and legal factors. Culture determines customer behaviour strongly and therefore the products, branch names or advertising may have to be varied on a local basis to account for regional cultural differences. Language enables understanding in communication and for that may require local variations in packaging, labelling, brand name and advertising. The level of technology in a country or differing technological standards may require variation in products. Legal factors also play role in variations in packaging, advertising and the information of
In affluent societies, one observes a growing fragmentation of markets, buyers requesting more and more products adapted to their specific needs. How can we reconcile this fact with the objectives of global marketing that emphasises a strategy of standardisation of products and brands across the entire world?
Executive Summary:
Companies developing a global marketing strategy must consider its impact and influence on the company. Crucial for development of global marketing strategy is clear segmentation and positioning of product and company on the market. Advantages of global strategy could also come from using cheap local and national sources, global marketing operation, global brand name, advertising campaign and better knowledge of customer’s problems. There is a trade-off between standardisation and adaptation. The essay suggests that a company should have an optimal marketing mix to balance the increasing demand for products adapted to customers’ needs and its own global marketing objectives that emphasise standardisation.
Why Adaptation?
Customer needs and markets are becoming increasingly global for many products and services. But the extent of globalisation varies considerably from market to market. Hence, a global marketing strategy and the associated marketing mix have to take into account of the following factors in the market environment: customer needs, culture, language, technology and legal factors. Culture determines customer behaviour strongly and therefore the products, branch names or advertising may have to be varied on a local basis to account for regional cultural differences. Language enables understanding in communication and for that may require local variations in packaging, labelling, brand name and advertising. The level of technology in a country or differing technological standards may require variation in products. Legal factors also play role in variations in packaging, advertising and the information of
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