1. According to the book “Marketing”, global marketing strategy is the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ. In addition, multi-domestic marketing strategy means that they have many different products variations, brand names, and advertising programs as countries in which they do business (Kerin 168.)
Global marketing has benefits, including cost advantages and brand consistencies. Because we don’t change anything from the products, we will have an advantage in the cost system. Usually, people can recognize a certain product from the brand or logo. If we keep it same, the loyal customers will buy our products continuously. On the contrary, the products and messages can’t be work in some market area, because of the external factors. For instance: place, people needs, season, or religion matter.
While for multi-domestic company, they have their own benefits too, such as product variances and updated responses. Because of the fact that we have to change or modified the products, it will be match with the people in certain area. Based on people’s season, region, and other factors, the demand of the products can increase easily because it is what they need and
…show more content…
Furthermore, they can save and use the remaining cost for other expenses. They don’t need to change the brand too, since Callaway Group is a popular brand in America. They also can add the promotion into something like “this is a number 1 best seller in America”, so new people get assumption that Callaway brand is trusted and worth to buy. The only problem if they want to expand their investment to Asian market is they have to consider how small the Asian land is, which lead into limited golf field, and lack of people’s interest in golf. What we can do to face this is on number
By observing the PEST-C variables, international businesses are able to make smarter choices in their global marketing decisions. These attributes that must be thoroughly understood and analysed in order to succeed in the international marketplace. All of the variables relate to global marketing. Global marketing can be defined as marketing on a worldwide scale. All variables must consider the understanding of the advantages of global operational differences, similarities, threats, and opportunities that can be used to meet international objectives.
International marketing is the sales and promotion of an organizations good and services to customers in global countries. It needs huge amount of finance to run the business. It is a complex process because each countries has own culture, law and legislation and own currency. Global business companies need to follow different marketing strategies based on customers’ needs, wants and demand.
There are many critical factors contributing to the success of a global company. Some significant aspects that I had seized are the global brands (Holt et al., 2004), the distance matter (Ghemawat, 2001), the international strategy (Ghemawat, 20...
1. A key point in taking a company international is arbitrage or taking advantage of a price difference. Take for instance Samsung in China. They are dominating the market against their rival Apple 3-1. Apple introduced a cheaper international version of the iPhone in response but is losing its high-end market to Samsung. Samsung mobile devices are the first choice among corporate executives. Also, politically, Chinese officials are familiar with Samsung products with a committee following its moves. However, the Chinese media is increasingly critical of Apple. Secondly, even though the Chinese market knows that Samsung is Korean, they have targeted a niche market in the world’s largest economy.
All sizes and types of companies can take advantage of the globalization of markets with the following potential benefits such as 1) reduced marketing cost by distributing and promoting the standard products or services globally with standardized approach (e.g. Coca-Cola and McDonald’s companies, 2) bigger market opportunities to increase revenues with access to broader coverage in the global marketplace, 3) enable more stable income with diversify markets globally for better granularity to compensate the impact of certain seasonal goods or services from only one domestic market, 4) lower risk from inconsistent or unexpected short product life cycle
In internationalization, the most challenging decision faced by the company to choose between standardization and adaptation in its operations, products or services. It has been one of the important and most popular research topics since 1960s to understand whether standardization is better or adaptation for marketing mix in international marketing. The increasing role of international expansion of business across the borders has also increased the focus of companies towards the international marketing strategies. It is also a biggest challenge for companies to better understand the different needs and choice of customers due to the huge differences among the cultures from various nationalities. This leads to the dilemma in the mind of marketers to understand which strategy is effective and good - standardization or adaptation. There is a significant impact of standardization or adaptation on all avenues of business such as research & development, structure, marketing mix, production, finance and marketing mix. The attitude of a company towards the culture of a particular country in which it is going to enter or start its operations decides to choose between standardization and adaptation. Consider the different views and arguments for each standardization and adaptation, this essay critically analyze which strategy is better to choose for international marketing.
Finally, according to Schulling and Lambin (2003) there are two ways on which the companies can become global. The first case are the companies that started as ‘local brands’ and due to the success they became ‘global’. And the second one, the brands launched in a specific market environment.
Today, many companies enter the global market, and some companies have become extremely successful in the global marketplace and others still struggling. In Theodore Levitt’s article “The Globalization of Markets”, he states that a well managed corporation focuses on selling standardized products with high quality and low priced instead of focuses on selling on customized products with high cost. Levitt defines the differences between multinational corporation and global corporation, and adopts many specific examples to proves his view. He defines the multinational corporation who operates in many countries and adjust its product based on the taste of specific region. This will result in a high cost to produce the product because company have to input more resource into each individual product. However, global corporation sells similar product worldwide at relative low cost. According to Levitt, the cultural differences are becoming more and more “homogenized”; therefore, becoming a global corporation will lead to the successful of the company in the global market.
Along with increasingly liberalised trade policies, economic integration, higher stability of monetary transaction and development in transportation as well as communication, international business has experienced a dramatic rise (Czinkota and Ronkainen, 2001). This rise is also accompanied with enormous challenges that generate from differences between multinational companies’ home countries and foreign markets. Therefore, international marketing strategy that aims to achieve business success in competitive overseas markets has become a focus of studies especially in terms of standardization and adaptation. Years of fierce debates generate three basic perspectives. From a standardization perspective, reasons for standardizing strategy can be growing market similarity, economies of scale, homogenized customers, technological advance and consistent corporate brand (Levitt, 1983; Theodosiou and Leonidou, 2003). By
Global segment include relevant new global markets, existing market that are changing, important international political events, and critical cultural and institutional characteristic of global market. When company entering the global, it automatically can increasing number of people believe or consumer in the multiple nation and this si...
Finding the balance between standardisation and localisation is one of the towering problems that companies encounter when tapping international markets. So many times companies choose to standardise their marketing mix for international markets, either for cost efficiency reasons or the lack of reasonable global marketing strategy. (Singh, 2016)
In week five we learn about the importance of globalization and how it can help your company’s profits grow. There are many things to look at when selling globally as different cultures need to be looked at differently when making a marketing strategy. If you understand how to market your products to different cultures in different countries you can take advantage of the profits that can be made through globalization.
In conclusion, it can be said that global marketing has been emerged very rapidly in recent years. It has provided various opportunities for the companies to expand their business to the other regions of the word. However, there remain certain environmental issues that need to be considered before entering in to the desired region. These issues can be resolved with designing the strong global marketing plans and strategies, the data for which can be gathered through conducting global market research. Despite numerous issues, one can easily say that globalisation has reduced the global reach of the organizations as well as customers. It would not be wrong to conclude that
Nowadays, Global marketing is developing in this modern and competitive era, Country of Origin, as a significant parameter, has been studied by several researchers and has been shown that it has an effect on the behavior of consumers and on their purchasing. Other studies say that consumers also care where the products came from, where they were made and that, consumers are considering these things when evaluating the quality of products, (Parkvithee & Miranda,
International Marketing, at its simplest level, involves the firm making one or more marketing mix decisions across national boundaries (Jobber, 2010). At its most complex level, it involves the firm establishing manufacturing facilities overseas and coordinating marketing strategies across the globe (Jobber, 2010). There are various reasons for going global, some of which are: to find opportunities beyond saturated domestic markets; to seek expansion beyond small, low growth domestic markets; to meet customers’ expectations; to respond to the competitive forces for example the desire to attack an overseas competitor; to act on cost factor for example to gain economies of scale in order to achieve a balanced growth portfolio. The methods of market entry that could be used are indirect exporting (for example, using domestic –based export agents), direct exporting (for example, foreign –based distributors), licensing, joint venture and direct investment. I found this par...