Posted in Marketing and Strategy Terms, Total Reads: 404
Definition: Global Marketing
According to the Oxford University Press’ Glossary of Marketing Terms, Global marketing is “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives"
What this means is that MNCs like Toyota, Nike, PepsiCo, McDonalds etc. - companies which now have a universal customer base - tend to exploit the differences between the operational costs, competitive advantages and expertise of the different parts of the globe and integrate them together in order to function most optimally.
These companies often also change their offerings based on a local region’s specific interest. For example, in India McDonald’s offers vegetarian burgers and ‘eggetarian’ burgers. Or that PepsiCo changes its form factor (labelling, size, packaging etc.) in each market.
Considerations in Global Marketing
○ The same positioning for a product may not work well for a company in different markets. For example, in the US, McDonald’s positions itself as a cheap fast food joint to eat in while in India it’s entry was positioned as more an aspirational eating joint. Dominos, iPhone etc. follow similar strategies.
○ While developing a brand message, the company may either choose to keep one integrated message or simultaneously develop local brand propositions.
○ For example, Surf used the same “Dirt is good” and “Daag achhe hain” in the US and Indian market respectively to great success while Old Spice could not translate its “Smell Like a Man / Be Mantastic” brand campaign to India successfully.
○ Another choice that companies have to make is regarding the language of their marketing campaigns. For example, Garnier and Dove often use foreign ads with dubbed voice-overs, while Axe often goes for English-speaking ads and Maggi goes for Hindi ads in North India.
○ Sometimes the name of the product may also require changing due to the lingual differences. For example, the Chevy Nova didn’t sell well in Spain, as “no va” in Spanish means “no go”.
● Distribution Network
○ A global company when setting up a distribution network in another country may choose to do so independently (eg: Amazon)or in partnership with a local firm (eg: Tata Starbucks, Tata Sky, Maruti Suzuki, Hero Honda).
○ Once the market has matured or the MNC has gained enough experience in the market, they may even decide to separate. For example, Honda’s separation from Hero.