Analyze the Opportunities and Challenges That Firms Practice Global Marketing
Introduction
Global marketing refers to marketing activities coordinated and integrated across multiple country markets. The concept of this involves the creation of a single or standardized strategy for a product, service or a company (Johansson, 2006). Those markets are not only defined within country boarders, but are also defined by buyer preferences that are similar across countries.
Recently, going global becomes a trend. As Crespy (1986) indicated, firms should turn themselves into global corporations otherwise they will lose out to the new wave. Therefore, not only big sized business, even the smallest businesses have already extended their businesses to foreign markets. One of the best examples is Coca Cola which is the champion of “Best Global Brand” in last ten years. Its brand promise of fun, freedom, spirit and refreshment resonate the world over and it excels at keeping the brand fresh and always evolving. It produces standardized products of coke and similar message of fun and freedom in its worldwide promotion to gain customer loyalty and enlarge its business share. Many businesses also use internet marketing to expand their business such as online shopping, e-commerce and social networking (Arora and Gambardella, 2005). For example, Starbucks developed a Facebook page to promote its brand and allow its customers to share their experience and photo in this platform.
The reason of the firms go global is because there are many opportunities of practicing global marketing and the above example gain benefits in this practice successfully. In this article, I will focus on three aspects which are extension of product life cycle, cost effectiveness and reduction of market risks. When a global firm can enjoy many advantages, however, it also needs to overcome many challenges and drawbacks, including selection an appropriate market, implement and sustaining the business in the market. Similarly, I will deeply discuss some aspects of each part
Global marketing refers to marketing activities coordinated and integrated across multiple country markets. The concept of this involves the creation of a single or standardized strategy for a product, service or a company (Johansson, 2006). Those markets are not only defined within country boarders, but are also defined by buyer preferences that are similar across countries.
Recently, going global becomes a trend. As Crespy (1986) indicated, firms should turn themselves into global corporations otherwise they will lose out to the new wave. Therefore, not only big sized business, even the smallest businesses have already extended their businesses to foreign markets. One of the best examples is Coca Cola which is the champion of “Best Global Brand” in last ten years. Its brand promise of fun, freedom, spirit and refreshment resonate the world over and it excels at keeping the brand fresh and always evolving. It produces standardized products of coke and similar message of fun and freedom in its worldwide promotion to gain customer loyalty and enlarge its business share. Many businesses also use internet marketing to expand their business such as online shopping, e-commerce and social networking (Arora and Gambardella, 2005). For example, Starbucks developed a Facebook page to promote its brand and allow its customers to share their experience and photo in this platform.
The reason of the firms go global is because there are many opportunities of practicing global marketing and the above example gain benefits in this practice successfully. In this article, I will focus on three aspects which are extension of product life cycle, cost effectiveness and reduction of market risks. When a global firm can enjoy many advantages, however, it also needs to overcome many challenges and drawbacks, including selection an appropriate market, implement and sustaining the business in the market. Similarly, I will deeply discuss some aspects of each part