What is Global Marketing?

Sales & MarketingBusinessManagement

Definition: Global Marketing

Businesses often market their products locally. However, foreign items have been regularly launched in various markets throughout history. Salespeople have modified, updated, or revised their techniques to establish themselves in the local market.

Global marketing is defined as "marketing on a global scale, in different nations, reconciling or taking economic advantage of global operational differences, similarities, and possibilities in order to fulfil global objectives." In simple words, when a company sells the same products worldwide, it is called Global Marketing.

Examples - The Samsung Galaxy S series is an excellent example of global marketing because it is distributed internationally and is not customised for each country. PepsiCo, Airbnb, Coca-Cola, and H&M are perfect examples.

Why is Global Marketing Important?

Although a worldwide marketing plan may appear difficult, the benefits far outweigh the drawbacks.

  • Provides Businesses with New Income Opportunities

The capacity to promote products and services abroad opens enormous commercial opportunities. When the domestic marketplaces get saturated, moving beyond national borders helps a company profit from countries experiencing economic and population growth.

Combining local and overseas sales to supplement uneven income streams will help balance the cash flow and help the organization grow.

For example, if you make suntan lotion that is often purchased during the hot summer months, marketing to a new country with extended summers may provide you with the opportunity to double your sales.

  • Minimize Costs and Lower Bottom Line

Globalization of manufacturing and distribution may assist your organisation in reducing costs and increasing profits.

For example, Nike is a mostly American company with an "all-American" name, but their items are made in other nations to save money.

  • It Affects Us All

Although not all of us are business owners, knowing what the prominent players are doing offers advantages. Everything they do impacts other businesses and consumers at one point or another. It could either benefit or harm you, so becoming acquainted with their techniques will assist you in adapting to changes (whether that be from a buying or selling standpoint).

Being aware of what's going on is never a bad thing. Consider the American automobile industry. A few decades ago, General Motors, Ford, and Chrysler were the industry leaders. However, companies like Toyota, Honda, and BMW have revolutionized today’s industry.

  • It is The Future

It is perhaps ‘the future’ of marketing too. With the rise of internet users worldwide, reaching out to customers across the globe has become more accessible. Firms can conduct proper market research outside of their local market and create a foothold worldwide.

It isn’t easy to envision today's world without e-commerce platforms. Thanks to the internet, small enterprises and even individuals can now directly target consumers in other locations.

Even though most small businesses capable of worldwide distribution are yet to do so, the tendency is growing. Technology has greatly enhanced the possibilities of both b2b and b2c business operations, and it is a constant reminder of how marketing will continue to grow in the future.

What are the Types of Global Marketing?

Of the many approaches to global marketing, the three fundamental types are as follows −

Standardisation

You sell the same products in every location when you use a standardisation strategy. A standardisation strategy keeps all the company's control centralised. A standardisation strategy has several advantages, including developing products faster and efficiently coordinating activities across locations.

For example, when Volkswagen expanded on a global scale, it used the standardisation strategy to sell the same cars at each location. This strategy requires only minor variations in your products or services and allows one to maintain consistency across all markets.

International

Importing and exporting items are part of a global strategy. Working with foreign suppliers and selling to customers worldwide while preserving your physical location in your native country is possible with an international system. While doing business abroad, most international strategies continue to focus on the company's home market.

Multinational

A company may tailor its products to each specific market while adopting or incorporating a global strategy. This includes both physical business premises and employees who work from them.

A car manufacturer can design distinct luxury cars for each region it sells in by using the multinational strategy. With this technique, more variety in the products or services is critical. This gives a company the flexibility to tailor their cars to different markets. Prices may also change depending on a market's demographics or demand for a particular product.

For example, considering the Indian market, the geography and demography, a number of luxury car brands have tweaked their products to suit the need. This included a change in the cars’ suspension systems or ground clearance as well.

What are the Advantages of Global marketing?

The following are some of the significant advantages of global marketing −

  • Wider reach

It is a straightforward supply and demand situation. You can reach out to more people if you connect with customers globally rather than locally. Global marketing can allow you to target communities everywhere in the world as long as there is some level of demand for what you have.

  • Possibility of Increased Revenue

The revenue math improves dramatically if you can target worldwide customers at 1 million people.

  • Inspiration for New Ideas

When a company promotes global marketing, it exposes itself to fresh ideas while interacting with people from different cultures. This can help innovation, propelling the company to new heights while still allowing you to make money from your current portfolio.

For example, the Finnish telecom giant NOKIA, when they expanded to India, understood the market here and started improvising their phone as per the Indian demand. Anti-slip grip, flashlight, etc., were some innovations they incorporated into their products.

  • Increase in Brand Visibility

Branding is at the heart of global marketing. As your brand expands into new markets, so does its visibility. With each new campaign, it becomes easier to build on these possibilities.

  • Increase in Company's Stability

Every industry's trends are constantly changing. What was hot five years ago may no longer be trendy today, but each local market is distinct. What’s popular today in Europe, could tomorrow be Asia’s favourite, allowing one to produce new items for an evolving market while keeping the value proposition of an earlier product for the new market.

  • Strong Competitive Advantage

It is simple for businesses to compete in their local market. However, only a few companies can do so on a global scale. Customers want the best product with the best value proposition from the most experienced brand.

These three factors will outweigh local loyalty and bring customers to your establishment. For example, the automobile sector in India can be a good example to look at. Hindustan Motors, Premier Automobiles, and Standard Cars all closed down when the international car manufactures brought in economical cars in the market.

Conclusion

As we can see, many global corporations maintain offices in various countries where they do business. With the growth of digital media and the internet, even tiny businesses can now reach a wider market in a short amount of time and with minimal expenditure.

raja
Updated on 08-Jun-2022 09:20:58

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