What is global marketing? How does it differ from “regular” marketing?
Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
One difference between "regular" marketing and "global" marketing is the scope of activities. Marketing activities center on an organization’s efforts to satisfy customer wants and needs with products and services that offer competitive value. The marketing mix (product, price, place, and promotion) comprises a contemporary marketer’s primary tools. Marketing is a universal discipline – as applicable in Argentina as it is in Zimbabwe.
An organization that engages in global marketing focuses it resources and competencies on global market opportunities and threats. A fundamental difference between “regular” marketing and “global” marketing is the scope of activities.
Global marketing may also take the form of a diversification strategy in which a company creates new products or services and introduces them into new geographical markets. Companies that engage in global marketing frequently encounter unique or unfamiliar features in specific countries or regions of the world.
Global Marketing: What it is and what it isn’t
The discipline of marketing is universal. It is natural, however, that marketing practices will vary from country to country, for the simple reason that the countries and peoples of the world are different. A successful marketing approach in one country may not necessarily succeed in another.
To what extent marketing plans and programs can extend worldwide and to what extent they must be adapted is one of the important tasks of the global marketing manager.
The way a company addresses this task is a reflection of its global marketing strategy (GMS).
What are the two core issues of a firm’s GMS?
Just as in single-country marketing, choosing a target market and developing a marketing mix are the two core issues of a firm’s GMS
Global market participation – the extent to which a company has operations in major world markets. b)
Standardization versus adaptation – the extent to which each marketing mix element can be standardized (used the same way) or must be adapted (used in different ways) in different country markets. c)
Concentration of marketing activities – the extent to which activities related to the marketing mix (such as pricing decisions) are performed in one or only a few country locations. d)
Coordination of marketing activities – the extent to which marketing activities related to the mix are planned and executed interdependently around the globe. e)
Integration of competitive moves – the extent to which a firm’s competitive marketing tactics in different parts of the world are interdependent.
GMS should enhance the firm’s performance on a worldwide basis.
Some brands are found in virtually every county of the world. Coke is an example. However, companies that engage in global marketing do not necessarily have to be in every country. The recorded music market is an example – 12 countries make up 70 percent of sales.
Global marketing does mean widening business horizons to encompass the world in scanning for opportunities and threats.
What countries make up BRIC?
The four emerging markets of Brazil, Russia, India, and China represent significant growth opportunities. They are known as BRIC.
The issue of standardization versus adaption has been at the center of a long-standing controversy among both academicians and business practitioners. Much of the controversy dates back to the days of Theodore Levitt’s (1983) “homogenized global market.” Levitt envisioned a global community where standardized, high-quality world products would be marketed in a standardized manner.
The “homogenized global market” view didn’t work. Even those...
Please join StudyMode to read the full document