I believe that Every country has their own perspectives and views on global marketing. As you read this blog, you will see what I learned about how American firms approach with the idea of global marketing.
As we live in globalization era, people should realize the cultural differences that affect country’s view on global market.
With fast shifting technological development, businesses are expanding into global marketing to earn profits. Here are some of the lists that I learned about global marketing and its marketing strategies while living and studying in the U.S.
First of all, what is the difference between domestic versus global marketing? The answer is very simple, but has complex components to it. In my understanding, the domestic marketing happens when firms operate their business without selling and exporting products or services to other nations/countries.
On the other hand, when firms open a branch of their company to one or more nations or offer their different types of products or services to other countries, then it seems like the firms operate their business on a global market.
Meanwhile, from my learning in the U.S., it is easier for firms to start a business domestically and then shift from domestic to global marketing because when firms operate business in domestic scale it is easier for them to keep track of what customers want because they share similar beliefs and traditions.
“Global Marketing in the U.S. is important as much as in other marketing fields”
How global marketing viewed in the U.S.?
While studying at the University of Northern Colorado in the U.S., I have learned that here are many American companies that used right marketing strategies and successfully shifted from domestic to global marketing.
(1). Multi-domestic marketing strategy.
I think that multi-domestic strategy is being used by variety of firms in global marketing. A recent study by Mason Carpenter & Sanjyot P. Dunung show that multi-domestic strategy “maximizes local responsiveness by giving decentralizing decision-making authority to local business units in each country so that they can create products and services optimized to their local markets,” which allows minor or small changes or adaptations to the product or service. For instance, McDonald’s in India does not include any sandwiches or burgers with beef meat because the culture and traditions of Indian people does not allow them to eat beef meat. So McDonald’s in India became successful by using multi-domestic strategy by changing the meat of the burgers.
(2).Globalization marketing strategy.
To me, globalization strategy is when a home country centralizes, distributes and controls the exact same product throughout the world without making any adjustments to products or service. Microsoft is a successful company who uses globalization product strategy in that the Microsoft Office product does not change; Microsoft Office sells the exact same software program to different countries without implementing any changes to it.
(3). Transitional marketing strategy.
A study by Mason Carpenter & Sanjyot P. Dunung state that transitional marketing strategy“combines firm-wide operating efficiency and core competencies with local responsiveness tailored to different country circumstances and needs,” in which I believe that this strategy combines global and multi-domestic strategies. A good example of transitional strategy that I could think of is McDonald’s in France because it has the same menu items offered in the United States, but it added new products such as wine to meet the local peoples’ needs and taste.
I think that it is important to keep in mind what type of country the firm is entering and what type of products will be introduced.
If a firm is entering a new market,I believe that it is a must to do a research and analysis on the environment and market of the country that firm is getting into.
“Marketing strategies could be helpful based on what type of products or services that firms are going to offer in global market.”
What other marketing strategies could be helpful for American firms who are entering a global market? Can you think or recall of any? Please comment below.
Image credit: Enkhamar Amarsaikhan
Written by: Enkhamar Amarsaikhan