In deciding whether to pursue a global strategy (central management of a coherent marketing message) or...

In deciding whether to pursue a global strategy (central management of a coherent marketing message) or multi-domestic (each country develops its own message and strategy), what are the considerations which might come to mind in marketing such a decision?

Expert Solution

The considerations which come to mind first and need to consider while making a decision about whether to opt for a global strategy or multi-domestic strategy in a particular market are as follows:

Brand image- If a company plans for expansion of its current brand image then, in this case, it is wise to pursue a global Strategy, because customers identify the company by its global brand image, if any changes will be done according to the area then its core values and brand image will be diluted in the perception of consumers.
Standardized products- In the case of Standardized products, No changes are required for the product depending on countries as these products can be sold directly to all Countries. For example, consider the Refrigerator, Specifications may be varied depending on the company but the product will be directly sold anywhere, No changes are required for a particular country. Hence a global strategy should be ideal.
Rapidly growing market- Consider a company wants to start a business in County 'X'', where the market is growing rapidly due to that reason the product needed frequent changes to sustain the aggressive marketing. In this scenario, the company cannot plan and operate according to the global strategy in that particular country 'x', if it does it cannot able to sustain the competition from the local market and incur huge losses. In order to beat the competition and operate effectively, it should opt for a multi-domestic strategy in that country'x' where there is a rapidly growing market.
Customized products- As the name itself indicates customization of products. Many products required some sort of change for marketing in a particular country. In this case, the multi-domestic approach is followed and products will be customized according to the needs of the particular market. For example, consider the mobile companies. If Xiaomi produces a mobile phone of a particular model, its specifications (RAM, Internal Memory ) will be varied for its Chinese version and Indian version, it customizes the specifications as per the needs of the particular market.
Critical market- A Company should pursue a multi-domestic strategy in a country where critical market exits in order to have more concentrated efforts in that particular country.

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keosha answered 1 week ago

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