Strategies That Develop Global Marketing In Online and Offline

Globalization created
a new avenue of the market for businesses to expand worldwide and scale-up. We
can name soft drink brands like Coca-Cola or Pepsi and supermarket chains like
Walmart because they grew their businesses in Asia, Africa and Europe.

Similarly, we have
several TV shows, movies, sporting events, etc., are finding the audience from
across the world. Global marketing methods have contributed to this phenomenon.

How can a company
strategize to reach the global market? By considering cultural, social and
economic differences across the countries, an organization can reach out the
global market. We need to strategize and need to learn so many different
marketing strategies to implement best practices to make a local store into an
international company.

Quick Takeaways from the Article:

  • What are the ways for enter into Global markets
  • How can companies can leverage International marketing with
    global strategies
  • How a company can achieve competitive advantage over other
    companies in global market.

Global Marketing:

A market that has
expanded its operations worldwide or operates in more than a country and offers
products and services to the customers from more than one country can be called
as a global company. For example, Apple Incorporation has a worldwide market.
It serves its operations worldwide, and its manufacturing units are divided
into different parts of the world like China, South Korea, etc. However, still,
its products reach all over the world.

We might be seeing McDonald’s and Starbucks in different parts of the world. These companies are a perfect example of global marketing companies. The lightning speed of technology and communication are one of the reasons for the local companies to become global markets.

online and off line marketing strategy

Global Marketing
Strategies
:

Starting small is a
safe strategy. It gives a company enough time to understand the market and
correctly target the audience. Colgate’s decision to enter the Chinese market
is an example. There are several questions to address the cultural barriers to convince
Chinese customers to use toothpaste daily. Tooth Brushing is not a part of
their daily routine, especially in rural villages. After considering all the
factors, Colgate entered into the Chinese market, and its market share expanded
7% in 1995, and now it is more than 40%.

Deciding on which
business will sustain is the most significant decision of any business’s
marketing strategy.

Exporting:

Without changing its
product line and investment, a company can enter into new markets with
exporting policy. It offers a chance to build consumers internationally
organizations. Before entering, they need to set up a sales branch, customer
service centre, and a marketing team or sales team of their own in the
exporting country. Once the operations are set-up in the new territory, the
company should be ready for the expansion based on the potential growth in
demand.

Licensing:

Licensing is similar
to contract manufacturing by one company to another company in different
markets. For example, a company offers its proprietary assets to another
foreign company with a royalty fee. In this way, a company can enter new
markets by holding a royalty share through licensing.

Franchising:

More than 80% of
McDonald’s business is franchise based. Franchising is the form of licensing
that we have discussed above. In the franchising method, franchiser provides
all the information relating to his business marketing plan, including revenue
model, business model, brand, logo everything required to start a business. The
franchisee needs to take care of the legal aspects of the company to set up his
shop. In Franchising, the risk is less, and the business model is already a successful
one.

Joint Ventures:

Resources are
available in other countries, and we can utilize those resources by entering
into a joint-ventures with other companies. For example, Tesla cars run through
battery power, but lithium mines are more in china, that is why Tesla started
its manufacturing centres in China. 

Companies enter into
joint-ventures so that they can use the host country’s resources while
expanding the business in partnership with the public of the host
country. 

Direct Investment:

Setting up
manufacturing centres with massive investment in other countries with the
foreign government’s permission to develop that country’s local areas by using
their natural resources, hiring cheap labour, creating new jobs, etc. is
another strategy to globalize a company.

Developing products
that suit the local market by keeping full control of investments, direct
investment comes with colossal risk; global marketers should consider the
foreign government policies and changing market conditions.

Product
Differentiation
:

When entering into the
new markets, it is essential to differentiate products with the competitors.
Competition is everywhere globally, but adapting to the latest trends and
knowing the unique needs is very important in product differentiation strategy
to survive and grow.

Cost Leadership:

Understanding the
global market perspective in terms of cost is a critical aspect to
consider. 

Pricing is the main
factor that drives business into profits or drags it into losses. To make an
excellent price; we need to make sure our costs do not go overboard.
Socio-economic differences in the country will impact pricing and cost. Before
entering into any new country, we need to have a clear understanding of the
target market.

Why Do We Need Global
Marketing
?

The competition is
everywhere, and if we do not change our marketing strategies, it is the most
significant risk that a company will take. The foreign market is a boon to
domestic companies for expanding their operations internationally. It is not
actually an easy process to enter, but if we cope up to strategize then there
are remarkable results in the global market, some of them as follows

  • Expand their marketing activities into different countries
  • Grabbing a vast customer base and satisfying their needs internationally
  • Advantage of investing in foreign countries significantly when they are growing economically
  • Overcoming home competition and exploring to the potential markets
  • Discovering new ways to improve the product in different markets by customizing them according to their need.

Conclusion:

Risk is the chance of
loss or success, and the reasons are captivating in Global marketing strategy
to expand internationally and provide services globally. 

If any company decides
to become global, they have to be committed to their goal. All strategies
should focus on gaining profits in the hosting company by having a grip in
their marketing activities.

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  • ONPASSIVE
  • ONPASSIVE
  • 17 January, 2021
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