Question

why cant you use the same marketing strategy you used for a local business when considering taking your business global?

Answer 1

We can't use the same marketing strategy use for a local business when considering taking the business global.

Because both the market have different set of opportunities and difficulties.

First lets take the case of local market.

In case of local market there is different sets of opportunities and difficulties. The sellers have almost all knowledge about the customer, market and selling strategies, that's the opportunity.

On the other hand, the extent of the market is very limited.

There are very less number of the buyers, buyers know all about the local market, sellers can't exploit them.

In case of global market, the seller may not have all knowledge about the market, he have to thoroughly study, analyse and research the market before entering into the market.

As this is the global market, there is lots of competition, they can't charge high prices.

The seller can of advantage of economies of scale, because they will produce large amount of the output.

This will lead to specialisation in production activity, which will further reduce the cost of production.

So, buyers can also benefitted with lower prices.

It will enhance overall development of all nations, because every nation would produce the good in which he has specialisation.

So because of the different sets of opportunities and benefits we can't use same set of strategies in both the markets