Question

4. What global marketing strategy actually is? What potential benefit that can be obtained by implementing it? Give example of companies pursuing this strategy.

Answer 1

Global marketing strategy is a strategic move where the company opts for country-specific marketing needs. It is not just selling the goods globally, but changing the marketing strategies as per the country you want to sell the good in. It consists of the entire process of planning, creating, positioning, and promoting the products in a global market. This is mainly achieved by setting business in the country of interest. For instance, many multi-national countries have their offices in India, China etc. due to high demand for goods owing to large populations.

Several potential benefits of implementing global marketing strategy can be:

a) It increases brand awareness among people not just at home but at an international level. The more customer base you reach, the better it is.

b) It gives you an advantage over local markets. When a firm takes operations at a global level, it learns from different markets and because of the flexible marketing techniques, you can learn from the errors and correct them for the specific market. Such an advantage may not be available to the local level firms which have only limited feedback.

c) Overall, the number of companies operating at a worldwide level is very small. If you can compete at an international level and your rival firms can not, you get an edge over other firms in the industry. The market share at a global level for you is higher.

A significant example of companies pursuing this strategy is the food industry. Chains such as Mc Donald's and KFC have varying menus depending on the country they are selling in. For instance, Mc Donalds provide a wide variety of vegetarian burgers in markets such as India whereas, for markets in Europe, it has numerous non-vegetarian options with one or none vegetarian option. Other examples are Starbucks, Dunkin Donuts. Such examples exist in the clothing industry as well such as H&M. Small companies like Airbnb are expanding gradually following a similar strategy