June 13, 2014

International and Global Marketing - Review Notes




Marketing Management Revision Article Series




In Edition 13 of Marketing Management by Kotler and Keller, this topic was covered under the title "Tapping into Global Markets."

International marketing is marketing and selling in more than one country. The normal evolution of a company is success in one domestic market that is followed by sales in some other countries. Global marketing refers to those companies, whose present operations are globalized to that extent that their marketing strategy is now decided by global demand and consumer desires instead of any domestic factors determining it. In international marketing organizations, still the parent country dominates its market strategy decision making.

Many companies ave conducted international marketing for decades. Global firms is relatively recent phenomenon. A global firm operation in more than one country and captures R&D, production, logistical, marketing and financial advantages not available top purely domestic competitors.

International marketing, in initial stages has certain challenges which are to be overcome with exertion of effort. Why organizations put in that initial effort which is significantly large and lumpy?

The reasons can be:

* The company might find markets with higher margins in foreign countries.
* Economies of scale of manufacture and marketing may demand big market which the domestic market does not provide

* Attack by global companies on its domestic market. The company may wish to attack the global competitors in its strong market to force it to defend its position there.
* Diversifying the demand risk for the product from a single country.
* The company's customers might have already gone international and persuading the company also to service them in international markets.

If a company decides to enter into international marketing, it has to understand the market first from the ground.


International Marketing Programs

International companies have to decide the adaptation level of their marketing strategy. There are companies that use a globally standardized marketing mix worldwide. This would give lower costs.  But at the other end of the spectrum, there are companies practicing adapted marketing mix on the idea that consumer needs vary across countries and regions.

Adaptation can be incorporated in:

Product features
Labeling
Colors
Materials
Sales promotion
Advertising media
Brand name
Packaging
Advertising execution
Prices
Advertising themes

Cultural differences

Hofstede identified four cultural dimensions that differ across countries.

1. Individualism vs. collectivism
2. High vs. low power distance
3. Masculine vs. feminine
4. Weak vs. strong uncertainty avoidance

Global Marketing and Brand Management
_______________________________

_______________________________


Updated 13 June 2014, 11 Dec 2012

2 comments: