What is Global Marketing ? Advantages & Disadvantages

What is Global Marketing ? Advantages & Disadvantages

What is Market ?

Market is a place where people gather at one place to sell or buy their commodity. The market is a system, an institution and a complete process. Where the entire infrastructure related to it is developed. so that the parties can exchange their goods or services.

Definition

According to Professor Jevons, market means any body of person who are in intimate business relations and carry on extensive transactions in any commodity. According to Mr. Pyle, the market includes both place and region in which buyers and sellers are in free competition with one another.

According to Professor Behham, a market can be any place where buyers and sellers connect with each other. There can be any way for them to connect, whether they are connected directly or through dealers. Prices affect the market. If a price is taken from one place in the market, it will affect the other place in the market as well.

The market has its own infrastructure. In which exchange of goods, services and currency takes place. The market can either be related to a single commodity or it may contain many goods. Or it can be a market for many goods. If the market belongs to a particular commodity, then there are many varieties of that commodity.

Types Of Markets

There are many types of markets. Like the physical market, there are two types of markets in this. One is the retail market and the other is the wholesale market. Retail market is for direct customer. Whereas the wholesale market is for industrial, commercial, retailers etc. Apart from this, there is also a non physical market.

Such as internet market, (this includes e-commerce etc.) artificial market and media market. Apart from this, there is also finance market, which includes bond market, stock market, money market, capital market, currency market, insurance market etc. There is also an unauthorized and illegal market which is called gray market.

What is Marketing ?

Marketing is an action to sell or promote your product or service. In which advertising plays an important role. Marketing is a complete process consisting of several stages. First of all, you have to find the target market according to your goods and services.

Accordingly, you have to create, explore and deliver value. The most important thing in this is the target customer. You have to do the design, packaging of your product in such a way that the buyer gets attracted by seeing your product. You have to keep the price, discount and warranty of your product keeping in mind the customer.

Your advertising campaign should be such that it can convert only one line about your product. What is your product and how can it solve your customer’s problem. The theme of your product should be very creative, innovative and positive feeling.

Examples

For example, if we look at iPhone advertisements or their tagline, they are very clear and focused. Like the advertising tagline of Apple’s mobile phone. Privacy that’s iPhone, that is, they explained in 3 words. What the iPhone is all about and why you should use it. The iPhone is known for its privacy.

That’s why he has kept very simple lines. Similarly, when we talk about Coco Cola, then the tag line of Coca cola was Open a Coke Open Happiness. That is, Coca cola had a clear and simple message. That if you drink coke you will get happiness. You open the bottle of coke.

When you open a bottle of coke, you open happiness. Similarly, if we look at the Walmart company, it has also kept the tagline of its advertisement very simple. Like Save Money Live Batter, that means save money and live a good life. Goods are available very cheap in Walmart.

Where you save your money, they have tried to get their message straight to the customer. That’s why you should buy the same from Walmart. The advertising campaigns of all the big companies are very simple and focused.

Definition

According to Dr. Philip Kotler, Marketing is an art of exploring, creating and delivering value to meet the needs of the target market. That too with profit. The market identifies the desires or needs that have not been fulfilled. It tells in which segment the company can serve better. Accordingly, this company designs or promotes its products and services.

According to the Board of Directors of the American Market Association, marketing is a type of activity and process. One that creates, communicates, delivers and exchanges value for customers, clients, partners and society.

Types Of Marketing

There are four types of marketing. First, business to business, in which business people do business with the merchant itself. In this marketing strategy is made to attract other business or organization to buy your product or towards your product.

The second is business to consumer marketing, in which the businessman creates a marketing strategy to attract the consumer or buy his product and service. Similarly, the third is consumer to business marketing, in which the consumer markets the businessman to buy his product or service. The fourth is consumer to consumer marketing, in which the focus of one consumer is on the other consumer.

What is Global Marketing ?

Marketing your product or service world wide or globally is called global marketing. This is done through a complete process. There are four processes in this, namely planning, producing, placing and promoting. Through which world wide marketing is done.

In today’s time all the companies adopt internet marketing, it is also called digital marketing. Through which small to big companies can market themselves world wide.

Definition

According to Kotler, global marketing is concerned with integrating and standardizing marketing actions that occur in many geographic markets.

According to Graham, when any goods or services reach from one country to another to the consumer or client. So the activities that take place in that process are to plan, price, guide and make a profit of the product or service. So it is called global marketing.

The biggest formula of global marketing is,  Think Globally and Act Locally. Because under global marketing, the same market strategy is adopted for all the markets of the world. Under this, no special facility is given in any country or market. All countries or markets are facilitated equally.

Whereas marketing varies from country to country. Because every country and its people are different. Their behavior, food, culture and thought process are all different.

Global Marketing Strategy

Any company needs a global marketing strategy before entering the global market. 

Global marketing strategy is one in which a company formulates its market strategy, how it wants to sell its product globally. She ensures that the needs of her potential customers are met. Her customer can be completely satisfied, in all the countries in which she is going to enter.

The main features of a global marketing strategy are two things. First to choose the target market and secondly to develop the marketing mix. When marketing plan is done under marketing mix. So it focuses on multiple areas. In global marketing, each company has to choose between standardization and adaptation.

Examples

For example, Colgate has a tagline in America. It also cleans your breath, when it cleans your teeth. Whereas Colgate has a tagline of India. Toothpaste contains salt or Ayurvedic herbs in it. Because Ayurveda is an Indian culture, Colgate focuses more on Ayurveda.

McDonald’s is the best example of global marketing. Because the test of its product remains the same in every country. The second is Coco cola. The one who uses the same syrup in every country and its taste remains the same in every country. Third is Starbucks coffee, the taste of Starbucks copy remains the same in every country, but they adapt a little to the local taste.

Global Marketing Components

Global marketing has four main components.

Product

The first is the product, the company brings different products according to every country. For example, in America, people like Diet Coke more. Because people are too fat. That’s why he avoids simple coke.

Whereas in South Asian countries people are found to be thin. That’s why he likes to drink sugary coke. That’s why Coco cola has introduced Diet Coke in America and Sugar Coke in South Asian country, which has been successful.

Price

Second is the price, companies launch their product with 1 target price. However, the price also depends on the production cost, supply and demand etc. Price differs from market to market. The image of the product is also formed by the price.

Place

Third is the place, for example a high price product is not distributed in a dollar store in the US. Similarly, Burberry company is opening more of its flagship stores in major cities of America like Los Angeles, San Francisco, New York, London and Hong Kong etc. So that from there they can generate more revenue.

Promotion

Fourth is promotion, companies promote themselves through social media and online channels like Twitter, Instagram and advertising, press reports, incentives, awards etc. Some also give incentives to their customers. Like prize, direct marketing etc.

Companies use data analytics in global marketing. Accordingly, they modify their products. She makes her product more potential by adding new categories. Simultaneously invests in the under-penetrated market as well.

Levitts

In 1983, Professor Theodore Levitts wrote an article entitled Globalization of Markets, which was written in the Harvard Business Review, in which he recommended that companies develop standardized, high quality world products. They should be marketed with the help of or using standardized advertising, pricing and distribution.

Although this strategy will not work for all target audiences in all countries. Companies should develop low cost products with less packaging. So that low income consumers can use them.

McDonald

McDonald’s is a great example of effective global marketing. McDonald’s sells burgers with chicken in Europe and North America. Because most of the people in India are vegetarian. That’s why McDonald’s sells Aloo Tikka, Potato Burger in India. His strategy is very successful.

Advantages

In Global Marketing you get Uniformity. It is not like international marketing. Along with this, the scope is very much in it. The cost of marketing is also not high.

If you do electronic marketing, then you will get a lot of benefit from it. If you do business in your country. So you may have to face political interference. Whereas it is rarely seen in global marketing.

America’s Example

America has the highest national income in the world. America accounts for 25% of the world market. If US companies want the remaining 75%, they will have to go global. Today Coca Cola is a global brand. If only he had lived in America.

So it is not able to be as successful or generate that much revenue accordingly. as much as he is doing today. Similarly, the revenue of Walmart today is 500 billion dollars. If he had not expanded himself globally, he would not have been able to grow that much.

Globally it enhances the quality of the product or service. Because you live in global competition. You reach a wider target audience. Along with this, you also get new markets. So that your diversification happens. If there is an economic crisis in any one country.

So you can easily avoid it. If your brand is global. In every country in the world, there are people of all kinds. That is, talented people also live in every country. You also get access to those talented people. So that your company grows even more.

Disadvantages

Along with this, it also has some disadvantages. As the needs of the consumer are different in every country. The consumer response to the marketing mix also varies. Along with this, there are differences in product development and brand as well. Every country’s legal system is different. So that’s why differences are found even in a legal environment.

Along with this, there is also a cultural barrier. Because every country has different language, culture, religion and traditions. Along with this, political and legal restrictions also come. Along with this comes financial risk. Because no one knows when what is going to happen in which country.

such as Ukraine and Sri Lanka. Globally brands have suffered a lot due to the war between Russia and Ukraine. The global brand has also suffered financially due to the bankruptcy of Sri Lanka.

Orientations

• Poly Centric Orientation
• Ethnic Centric Orientation
• Geo Centric Orientation
• Region Centric Orientation

Things Influence Global Marketing

Trade Agreement

Multilateral trade agreement, if two countries sign a free trade agreement with each other. So business activities get a lot of benefit from this. For example, General Agreement on Tariffs and Trade, European Union etc.

Internet

Changing market needs, like in some countries very few people drink soft drinks. Or they do not need to drink soft drinks. While it is widely consumed in many countries. The Internet Revolution has also changed the entire market.

Like the TV network CNN, MTV has brought a revolution. As well as the Internet such as Facebook, Twitter, YouTube and other social media. Along with this, Netflix has also become a global brand.

Transportation

Transportation has also improved a lot. For example, the unit cost of shipping has also come down significantly. 20 to 40 feet container which is made of metal. It can be transferred anywhere by truck, railroad, ship etc. At the same time there has been improvement in communication as well. Like Skype, Google etc. have started new communication channels.

Product development

Product Development also affects global marketing. Because major investment is required to develop a new product. At the same time it also takes a lot of time. It costs several million dollars to put in place a new research setup.

Quality also affects global marketing. For example, the US’s demand for Ford Endeavor has fallen drastically. Because its quality and durability is equal to that of Toyota’s Fortuner of Japan.

Economic Crisis

The trends of the world economy also affect global marketing. Like the economic crisis that came in 2008. In some countries like India, China, people’s per capita income is increasing. Due to which middle class consumers are also increasing.

Due to this the market is also growing. It has immense potential for doing business. Along with this, due to the economic crisis, policy makers do not promote free market, privatization to protect the domestic market.

Somewhere the global company also gets a leverage. Or they get a chance to develop a leverage like Apple. Apple is known for its uniqueness. Apple projects its products as a status symbol.