Global Marketing


Global marketing, as the name suggests primarily involves about selling a product in the international market. Every country (or a region) is different from one another. Same strategies might not work everywhere. Hence it requires for the companies to plan and promote their products differently in different countries / regions. There are various strategies a company can use to market their product globally.

Various options to enter into Global Market

Earlier only large companies who could afford to transport their goods overseas and also had the capital to maintain offices abroad where able to market and sell their products internationally. But with the advent of internet and also improvements in transportation technology, even medium and small companies are also venturing abroad and started taking active part in global marketing.

With the latest technologies like Data analytics and AI, companies are able to find and segment their target market anywhere in the world. In this era of big data and cloud computing, abundant data for any part of the world is available, making it easy for companies to select and plan and sell to their target audience by customizing their marketing plans. Initially companies depend on the local networks already present in the target countries (by acquisitions, forming joint ventures) and over a period of time, by gaining experience, start establishing their own network. 


GLOBAL MARKETING STRATEGIES 

Product Strategies

A product can be marketed by using the standard product everywhere or by adopting the product to the local market.

Marketing the standard product -

A product has a distinct characteristic(s) which attract customers across the world. The features and aesthetics of the product give it a unique value. For example, Apple’s iPhone is known for its OS and User Interface which is liked by millions across the world. These distinct features should be maintained and are not customized based on the region. There is a standard maintained by Apple throughout the world where it markets and sells its products.

Marketing the product by adopting it to the specific country / region -

Some products cannot be marketed the same way across the regions. They need to be modified and altered to suit the needs and tastes of the local population. It is important to spend time and resources for research on understanding the cultural differences and learning about the languages, terminology etc. of the local population before planning on marketing strategies for that region.

In some countries, a color might be associated with bad luck and hence it is important to not use that color in your product or brand designs even if it is an integral part of your product.


Pricing Strategies

Deciding the price of the product in different countries is a very important decision in global marketing. Due to difference in economics situations of the country and fluctuating exchange rates, it requires good amount of research and planning before fixing the price structures of a product.

If a company sets a same price for the product in different countries, then it will generate different profits from different countries for the same product. Also, if the product is fixed high, a country where the economic situation of its citizens are better will see more sales compared to a country where the economic situation is not very good despite similar necessity for the product. At the same time companies can’t mark the price of their products very different when the cost of making the product is high as it will lead to company not earning any profits in regions where it will sell the product for a less cost.

 

Communication Strategies

A product can be marketed in different ways in different regions. There can be different approaches a company can use while communicating their product’s message. First approach is having the common message translated into the local language and keeping the content same. Second approach is about using the similar content but changing the way it is communicated. Third approach is to adapt a totally different theme and content for different regions. This approach can be used when the message has to be conveyed to two totally separate cultures like for example, say USA and the Middle East.

The main motto is to market the product effectively by clearly conveying the message. It is also important to choose the right platform for promoting your product. For promoting in urban and semi-urban areas, online advertising and hi-tech techniques can be used but it is better to go for offline advertising for rural areas.

 

Below are 2 examples of companies who have successfully marketed their products in global markets -

 

KFC in India

Kentucky Fried Chicken (KFC) is an American fast food brand and is the second largest brand after McDonalds. KFC started its first franchise in India in 1995 by opening a two storey outlet in Bengaluru. Only in 2004, almost a decade later it started to grow outside Bengaluru. KFC have realized that it cannot cater to the Indian audience by using its main products without any modifications. The menu in India is the most meat-free menu of KFC across the world. In order to be relevant to the all the sections of the consumers, KFC started many vegetarian options. In 2014 they have launched a menu – “So Veg, so good”, on the similar lines of their tagline, “finger licking good” in order to reach out to the large vegetarian population. KFC have always priced their products with the middle class in the mind and have started the 5-in-1-meal box which helps in satisfying the “lunch time meal” for the millions of customers. They have customized their tastes by using Indian spices to connect with the customers better.

 


Airtel in Africa

Bharati Airtel is one of the largest mobile service operators in India with over 310 million subscribers according to TRAI. Next successful region for Airtel outside India (Asia) is Africa continent where it has around 100 million subscribers. It has penetrated into the African market by buying the African assets of Zain Telecom in 2011. Airtel has followed different strategies to become a key telecom operator in Africa. First it has started embracing 3G technology, thus giving the growing urban population of Africa, a faster internet. They started providing faster speeds at a lower cost enabling more and more people to subscribe to Airtel, thus increasing their consumer base. Second, Airtel has outsources services like Support and IT services to local companies thus needing Airtel to focus only on core areas like product development and marketing & distribution. Third, Airtel has done major acquisitions and mergers in order to expand their base. They have entered the market by acquiring Zain Technologies and later have acquired Warid Telecom in Uganda and Yu Mobile in Kenya. These major strategies have made Airtel a formidable player in Africa’s telecom industry by attracting the urban customers and penetrating into the rural markets.


For any company to successfully create a place for them in an international market, they need to cleverly appoint the right strategies to enter into the market and capture the consumer base thus improving their brand image and revenue. Companies which have been successfully in doing these have gone great places becoming the top MNCs in the world, like Apple, Samsung, Procter & Gamble, Walmart, Coco Cola etc. to name a few.



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