Applying a Complete Marketing Strategy in Global Markets

Companies are being asked more and more often to design their marketing strategies from a global point of view. Globalized marketing strategies require an ability to look at business and competitive developments on a worldwide basis and to incorporate often conflicting information into a single, workable global marketing plan. Global marketing strategies require skills and conceptual understanding that are different from those required for developing domestic marketing strategies. The slogan “Think globally, act locally” is frequently used to describe the managerial challenge faced by global marketers. It captures the need to think in global terms about a business or a market while at the same time tailoring a product or service to meet the particular requirements of the local customers. Hence, we have to clarify what is meant by thinking globally. If this thinking is truly different, and thus requires a new mindset (namely, a global mindset); one should be able to differentiate it from a more traditional and ordinary mindset prevailing in local marketing context. Therefore, we have to offer ideas about what a new global marketer with a global perspective ought to do, how he or she should be able to think, and what kind of skills could be expected from such a person. Companies pursuing global marketing strategy must determine the type of presence they expect to build in every market where they intend to compete. One major choice concerns the method of entering any selected market. A company may want to export to the new market, or it may prefer to produce locally in the new market. A second major choice involves the amount of direct ownership desired. Should the company strive for full direct ownership of its local operation, or is a joint venture preferable? These initial decisions about market entry tend to be of medium- to long-term importance, leaving little room for change once a commitment has been made. Therefore, it is important to treat these decisions with he outmost care. The financial return to the company is not the only issue at stake. The extent to which the firm’s existing marketing strategy can be employed in the new market also depends on these decisions. Introduction of one or two examples may be helpful here. Until 1990s, American visitors to the Soviet Union and Eastern Europe could be almost certain that they would be approached by young people asking weather they had any extra pairs of Levi’s jeans they were willing to sell. Such was the strength of Levi’s as a worldwide brand. Since the 1990s, however, something has changed. Levi’s made up 31 percent of the jeans sold in the US market in 1990, a market share that had shrunk to 16.9 percent by 1998 and to 12.1 percent by 2002. What happened in so short a time? How could a world renowned brand from a world renowned company have stumbled so badly? Today’s young people do not want to be seen in the same jeans that their parents wore. In order to recover, in 2002 Levi’s decided to supply Wal-Mart, the largest company in he United States, with a set of brands from low-end to high-end. Can this multiple-brand strategy revive the value of Levi’s products and lead the company back to the status it had prior to the 1990s? Many large business firms; such as GE, IBM, Intel, Dow Chemical, Alcoa, Texas Instruments, Boeing, Caterpillar, and Motorola derive a significant portion of their sales and profits from international markets. These firms also have extensive operating facilities dispersed around the world. For example, in China alone, Motorola employs more than 12,000 people. Likewise, countless small firms with less familiar names enjoy strong ties with international customers. In addition to extending a firm’s base of operations and thereby enhancing sales and profits, participation in global markets can provide an important pathway to a competitive advantage. Meeting the needs of diverse international customers may speed learning in the firm and spawn improvements in product features and quality.However, regardless of weather the company is serving a consumer or a business market on a global basis having clear and practical responses for the following problems is essential in order to craft an effective marketing strategy: •What are reasonable sales and market share goals for the company in terms of sales volume, sales dollar, or any other measure(s)? •To which customer(s) should the company market? Should those customer bases be defined by age, income, region and similar descriptors or other kinds of variables such as lifestyle, purchasing behavior, degree of market professionalism, and so on? •In a market where the brands are physically similar, how should the company differentiate its product offerings from the competition? •Over time, how should the company adapt its marketing strategy to changes in competition, customer awareness and usage of alternative brands, or other changes in the environment? A COMPLETE MARKETING STRATEGY FRAMEWORK The following depicts a marketing strategy framework:

Keywords:

marketing strategy , value proposition , global logic , triad , must-win markets , lead markets