Global marketing strategy is an enterprise from the perspective of the world to examine the production, distribution, and all other marketing activities, according to the principle of optimization, the different companies in different countries to organize themselves at the lowest cost, optimization of marketing programs to meet the market needs. Its purpose is to emphasize the marketing of international comparisons. Global marketing strategy to break the concept of borders, from the world market scope to consider the development of marketing strategies in order to achieve the enterprise’s overall competitive advantage.
Global marketing strategy is different from the general nature and content of the multi-national marketing, first proposed the most influential view is standardized view. Livett clear: global marketing strategy is the production of standardized products; I believe that when a company uses the same marketing plan in Middle East countries, namely the implementation of standardized marketing process, this company is also implementing a global marketing strategy. This view of the large number of treatises on the topic of standardization and adaptation is reflected. Levitt’s theory of standardization strategy is a sign of global marketing strategy, and therefore constitutes an important component of the global strategy. The idea that standardized communications and transportation have made tremendous progress in the world trend of homogenization, the world's consumers for the same product in different countries showed the same tendency preferences and needs. Thus, the production of a large number of high-quality and low-priced products as a major source of competitive advantage in the global market. Specifically, the st...
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...ong-term interests of the company. Cross cultural disadvantage. Different cultures have different time social outlook, values, objectives and management style, etc. when in a foreign culture as a reference; the national cultural characteristics become even more prominent, people will be more emphasis on and maintain their own culture.
Many large companies in the world is known around the world adopted this strategy, recognizing the global market segment needs, take appropriate marketing actions to create a market . The Coca-Cola Company is the successful use of a model of global marketing, today became the world’s largest and most successful soft drink companies. The Coca-Cola Company's products to anyone who is not required, but because of the company's marketing operations , making today the per capita consumption of soft drinks in some countries over the demand f
Kotabe, M., & Helsen, K. (1998). Global marketing management. Temple University. New York: John Wiley & Sons.
Global marketing is defined as marketing on a worldwide scale, or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives. Marketing managers are also tasked with the responsibility of “wringing the pennies out of the activities.” Basically, they are responsible for and add value to their activities that will contribute to a higher value in the mind of their consumers. Managers must understand the role of their salespeople as marketers – they must collaborate and support them. They must work with their supply chain functional managers to accommodate international customer preferences. Communication must flow up and down the chain quickly in order to respond to emerging international marketing threats and opportunities. It is essential to monitor the firm’s global marketing efforts in a global market.
Coca cola has always dominated the markets outside United States unlike Pepsi’s internationalization strategy that took too long. Therefore, the long-term brand of Coca cola and better pricing strategies would help in competing with Pepsi. Unlike, Pepsi, Coca cola had targeted entering into partnership and alliances with local distributors and firms. This helps to develop strong relationship within the domestic firms to reduce the domestic barriers and thus, enhance the company’s competitiveness (Thabet, 2015). Lastly, the Asian markets consist of related and supporting industries to the soft drink industry that helps the companies in gaining a strong competitive position in the markets. Based on the competitive advantage of nation’s model, Coca cola has more home based advantages to develop a competitive advantage in relation to other countries on a global
Analysis of the Coca-Cola Company The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Company markets many of the world's top soft drink brands, including Coca-Cola, Diet Coke, Sprite and Fanta. Through the world's largest and most pervasive distribution system, consumers in nearly 200 countries enjoy the Company's products at a rate of more than one billion serving a day.
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.
The proponents of standardization approach in international marketing views the globalization trends as a facilitation of technological uniformity, greater level of similarity, and higher convergence of consumer preference, taste, and needs. The growth of international communication channels also facilitate the standardization including th...
The differences in language; distribution facilities; retail structure; topography; climate; regulations governing marketing, cultural features (color, taboos, history political make-up, religion, education) between countries are so great that pure, comprehensive standardization of marketing mixes is not feasible. Yet, the main characteristic of global marketing is the attempt to standardize all elements of the marketing mix as much as possible. (van Mesdaq, 1999) A study on emerging positioning strategies in global marketing says:
Solid Global Marketing decisions involve months of research. They also include a high degree of planning and internal strategizing. Factored accounts in the strategies are where the organization would like to be in three years, target audiences, spending and profit margins and eventually how to achieve the companies' ultimate goals. Advanced planning gives a number of advantages:
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...
Market opportunities for breakfast cereals is vast, some segments of the market have been neglected, most notably that of the over-50’s. Insightful presentations were given at the “Older, Richer, Wiser” Conference that would suggest the over 50’s market segment is targetable.
Through global marketing, companies market their products to appeal to customers within different markets, so one marketing campaign maybe different to another, even if there for the same product, for the same company. Now not all markets are different in each country, some countries have similar cultures and very similar marketing campaigns can be used in the two, if not for some minor changes. The problems in global marketing campaigns arise when a company is dealing with a brand new culture, and cultural differences arise, is when there can be problems. To account for these cultural differences company’s construct specific global marketing strategies to target specific global
Because in case of global marketing analyze the factors that need to be taken into account are significantly more, including the economics, environment, cultural differences that is going to affect the analysis of situation. The issues of marketing strategy were covered in detail during classes and this knowledge was cemented with the report I had to write as a part of project assessment that marketing analysis .It was very challenging and interesting at the same
Regardless of the success of your company on a national scale, to engage yourself in a successful venture outside of your borders requires several critical elements that one must acknowledge and apply with great care. One of those requirements would be to thoroughly research the cultural environment in which you wish to launch your product no matter how popular and indispensable you believe it might be. In the past, many national giants have hit the wall when introducing a foreign market or launching a new marketing campaign because of the cultural gap they encountered on the other side of their borders. Another way of preventing a flop on an international market is to carefully study the economical past of this country, which might differ quite a bit from the one the company flourished in. In addition to the previous precautions, it Would be advise to make sure that your product will blend seamlessly within the spending habits of the consumers. Overall, meticulous market studies and patience often constitute the way to success on a foreign soil.
Jeannet, J. and Hennesey, H. (1998), Global Marketing Strategies, 3rd ed., Houghton Mifflin Company, Boston, MA.
Sonderberg, A-M & N Holden. (2002), Rethinking cross cultural management in a globalizing business world' International Journal of Cross Culture Management 2(1): 103-121