Global marketing is nothing but marketing done on a national and international level and involves understanding the similarities, dissimilarities and taking advantage of the opportunities to attain the goal. Concentrating on global marketing is as important as concentrating on domestic marketing if a company is aiming to increase sales.
The domestic market has become saturated in most categories of products and services, in all industrialized countries and hence, they started to deal with other countries to increase their sales. Usually, in such cases, goods that are too expensive for domestic customers to buy are exported to other well-off countries.
When a company does marketing within the boundaries of a specific county, it has to compete with other domestic companies as well as international companies who are a part of the market. The marketing steps taken by the professionals are based on the taste of a specific audience. The product might not suit the taste of customers at a higher level. The other domestic companies that plan to go global hinder the growth of such companies. They become invisible at the international level as they are unable to cope with the growing competition and might not be aware of potential competitors. The product development is dependant on the need of the residents. Such kinds of businesses are ethnocentric and are only bothered about their performance in the domestic marketplace.
Companies planning to go global should start with exporting to a foreign client first. The returns wouldn’t be satisfying in the beginning. The export department can be introduced at the headquarters that deals with all the laws. There can be a possibility of becoming secondary exporters by bringing export management companies into the picture, who will deal with the language problem, time difference, paperwork, and customers. If managing the exports without any help, the export department can be started at an office located abroad. This office works in collaboration with the regional headquarters. But the respective offshore offices take the marketing decisions, as they will have the best knowledge about the particular market they are operating in.
Multinational marketing involves marketing in many countries. The marketing is based on the requirements of different countries and the returns are rewarding. Each region should be studied individually based on development, production, and marketing. Such kinds of markets are known as region-centric. Global marketing involves the whole globe. The entire world is summarized as a single market and the products that are released in the market should fit the needs of any regional marketplace. Marketers all over the world make marketing decisions. Such a kind of market is known as geocentric.
The automotive industry is one such market that saw a global boost in sales during the last fifty years. Earlier only the local companies like Ford and General Motors used to produce cars in America, but today other international competitors like Toyota and Honda are operating in the same market and have outdone the local companies. Another key factor to global marketing is the Internet, which introduced e-commerce. Businesses went going online and globally. This encouraged the sales of the company and the figures are only increasing because of ever-increasing Internet users. The geographical location of customers is no longer a hindrance. Global marketing management and business-to-business e-commerce are growing rapidly.
Product, price, placement, and promotion are the elements of global marketing. The product created should be such that it can sell anywhere using the same method. It should consider the primary elements of all the markets. However, the language in which the product is named can be changed, whereas the content can remain the same. The price is never constant. It should be decided after reviewing the market and the currency of the country. The variables which affect prices are the location where the product is being produced, cost of ingredients, transportation charges, labor charges, etc.
Placement is how the product is distributed and how it reaches the targeted market. Like in third world countries, there is a lack of superstores, so they can be placed or sold at ordinary shops. After the product is developed and distributed, it should be promoted precisely known as advertising, promotion is one of the major steps of marketing and consumes a major part of the budget. If it is possible to send out the same message worldwide in a relevant and cost-effective way, it sure must be put into practice but the challenge is really big.