Designing Global Market Offerings
I. Deciding on the Marketing Programs
International companies or marketers may choose between two alternative approaches in developing its marketing strategies or marketing mix. These two approaches are: a. Global Marketing Strategy – defines a standard marketing mix and implements it with minimal modifications in all of its domestic and foreign markets. This standard approach saves money because it allows large-scale production runs and reinforces the brand’s image. It can foster collaborative innovation. Through global marketing strategy, Global firms can effectively market some goods and services to segments in many nations that share cultures and languages. This approach works best for products with strong, universal appeal such as McDonalds and for luxury products that target upscale consumers everywhere. b. Multidomestic Marketing Strategy- assumes the differences between market characteristics and competitive situations in certain nations require firms to customize their marketing decisions to effectively reach individual marketplaces. In other words, it is an application of market segmentation to foreign markets by tailoring the firm’s marketing mix to match specific target markets in each nation. Keegan has distinguished five adaptation strategies of product and promotion to a foreign market (see figure below).
1. Global Product Strategies
a. Straight Extension – introducing the product in the foreign market without any changes. This strategy permits economies of scale in production and marketing, for it involves no additional R&D expense, manufacturing retooling, or promotional modification. Once implemented successfully, it cerates universal recognition of a product for consumers from country to country. b. Product Adaptation- involves altering the product to meet local conditions or preferences. There are...