Meaning of Global Marketing and advertising
Global marketing as “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives.” It is not a revolutionary shift; it is an evolutionary process. While the following does not apply to all companies, it does apply to most companies that begin as domestic-only companies.
- Domestic marketing - A marketing restricted to the political boundaries of a country, is called "Domestic Marketing". A company marketing only within its national boundaries only has to consider domestic competition. Even if that competition includes companies from foreign markets, it still only has to focus on the competition that exists in its home market. The biggest obstacle these marketers face is being blindsided by emerging global marketers. Because domestic marketers do not generally focus on the changes in the global marketplace, they may not be aware of a potential competitor who is a market leader on three continents. These marketers can be considered ethnocentric as they are most concerned with how they are perceived in their home country.
- International marketing - If the exporting departments are becoming successful but the costs of doing business from headquarters plus time differences, language barriers, and cultural ignorance are hindering the company’s competitiveness in the foreign market, then offices could be built in the foreign countries. Sometimes companies buy firms in the foreign countries to take advantage of relationships, storefronts, factories, and personnel already in place. These offices still report to headquarters in the home market but most of the marketing mix decisions are made in the individual countries since that staff is the most knowledgeable about the target markets. These marketers are considered polycentric because they acknowledge that each market/country has different needs.
Elements of the global marketing mix
The “Four P’s” of marketing: product, price, placement, and promotion are all affected as a company moves through the five evolutionary phases to become a global company. Ultimately, at the global marketing level, a company trying to speak with one voice is faced with many challenges when creating a worldwide marketing plan. Unless a company holds the same position against its competition in all markets (market leader, low cost, etc.)
- Product - A global company is one that can create a single product and only have to tweak elements for different markets. For example, Coca-Cola uses two formulas (one with sugar, one with corn syrup) for all markets. The product packaging in every country is different. The contour bottle design can also include the country’s native language and is the same size as other beverage bottles or cans in that same country.
- Price - Price will always vary from market to market. Price is affected by many variables: cost of product development (produced locally or imported), cost of ingredients, cost of delivery (transportation, tariffs, etc.), and much more. Whether this product is considered the high-end, expensive choice, the economical, low-cost choice, or something in-between helps determine the price point.
- Placement - How the product is distributed is also a country-by-country decision influenced by how the competition is being offered to the target market. Using Coca-Cola as an example again, not all cultures use vending machines. In the United States, beverages are sold by the pallet via warehouse stores. In India, this is not an option. Placement decisions must also consider the product’s position in the market place.
- Promotion - After product research, development and creation, promotion is generally the largest line item in a global company’s marketing budget. The global corporation seeks to reduce costs, minimize redundancies in personnel and work, maximize speed of implementation, and to speak with one voice. If the goal of a global company is to send the same message worldwide, then delivering that message in a relevant, engaging, and cost-effective way is the challenge.
Advantages of the global marketing and Advertising
- Lower marketing costs
- Power and scope
- Consistency in brand image
- Uniformity of marketing practices
- Benefits of eMarketing over traditional marketing
- Economies of scale in production and distribution
- Ability to leverage good ideas quickly and efficiently
Disadvantages of the global marketing and Advertising
- Differences in administrative procedures
- Differences in product placement.
- Differences in consumer response to marketing mix elements
- Differences in consumer needs, wants, and usage patterns for products
- Differences in the administrative procedures and product placement can occur
- Differences in brand and product development and the competitive environment
