Selecting a Global Target Market Strategy

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SELECTING A GLOBAL TARGET MARKET STRATEGY
If, after evaluating the identified segments in terms of the three criteria presented earlier, a decision is made to proceed, an appropriate targeting strategy must be developed. There are three basic categories of target marketing strategies: standardized marketing, concentrated marketing, and differentiated marketing. Standardized global marketing is analogous to mass marketing in a single country. It involves creating the same marketing mix for broad market of-potential buyers. This strategy calls for extensive distribution in the maximum number of retail outlets. The appeal of standardized global marketing is clear: greater sales volume, lower production costs, and greater profitability. The same is true of standardized global communications: lower production costs and, if done well, higher quality and greater effectiveness of marketing communications. Coca-Cola, one of the world's most global brands, uses the appeal of youthful fun in its global advertising. Its sponsorship program is global and is adapted to events that are popular in specific countries ]The second global targeting strategy involves devising’ a marketing mix to reach a single segment of the global market. In cosmetics, this approach has been used successfully by the House of Lauder Channel and other cosmetics houses that target the upscale prestige segment of the market. This is the strategy employed by the hidden champions of global marketing: companies that most people have never heard have that have adopted strategies of concentrated marketing on a global scale. These companies define their markets narrowly. They go for global depth rather than national breadth. For example, winter halter (a German company) is a hidden champion in the dishwasher market, but the company has never sold a dishwasher to a consumer. It has also never sold a dishwasher to a hospital, school, company, or any other organization. It focuses exclusively on dishwashers...
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