Question

What factors can complicate a sound Marketing approach to a global market? Please explain the possible pitfalls that can arise, and cite the course textbook in your response. Hill, C. W. L., & Hult, G. T. M. (2018). Global business today. New York, NY: McGraw-Hill Education.

Answer 1

Not paying adequate attention to the internal data. Developing a plan for globalized market entry involves more nuanced and advanced market research. The most important data points in the vast data universe that can help you figure out which markets are best for you are: 1) how many projected opportunities are open in that market, 2) how easy it will be for your company to do business in that market, and 3) how much success you have already had in that market.

Not tailoring their channels of sales and marketing. Most companies (especially Western ones) assume that by following the same formula that brought them domestic success, they can enter new markets. Although continuity of the products is important, different markets prefer different approaches to sales and marketing. For example, in countries where partnerships have a greater cultural significance, such as Japan, selling products and services through local partners, such as resellers or channel partners, is achieving faster success than direct selling models. In comparison, SaaS, online, and "touchless" sales models are often common in markets where the cost of living is higher and automation, like the Nordic market, is highly prized.

Pricing is something similar. Since the value proposition varies from one market to the next, it will vary in price. Although adjusting their pricing structure for international markets is not always necessary for businesses, many companies find they are able to grow much faster by making adjustments at the local level. Paid types vary widely from country to country. For example, marketers need to consider different market pricing strategies which are primarily cash-based versus credit card-oriented.