Now it has become evident that companies cannot insulate itself from Global marketing competition by remaining in the domestic market or a few select markets. Start Your Free Marketing Course. Global marketing strategies require considerable investment in money, resources, manpower to understand various markets, the country, cultures, local tradition, manners and etiquette.
Here are some strategies for companies to follow:. When it comes to consumer tastes, preferences and interests, there is nothing universal about it.
The engine power, fuel variants, design specifications were all altered in different countries to suit local tastes.
This has made it the much talked about automobile in the past 10 years since its launch in Nike had to recall its products that featured an illustration resembling Allah in Arabic.
An improper brand name in a particular cultural or linguistic milieu can cause huge damage to the company and its marketing efforts may go down the drain. T-shirt campaign by Abercrombie been dubbed racist and led to protests by consumers in US while Fitch also had similar campaign.
Naming liquor in the name of Hindu gods also had invited ire of the large Asian community in USA leading to recall of such brands.
In many countries, it is not mass media campaign, money pumped into marketing and distribution that will bring result. A good understanding of the local market is a pre-requisite for success and the best way to ensure is through a joint venture global marketing partnerships or marketing tie-up with a local partner in the same business.
This will enable the global firm to attain market supremacy at a much rapid pace. Tie-ups can be in the form of joint ventures, or marketing tie-up.
Companies confident of going ahead on its own can set up fully-owned subsidiaries. The joint venture arrangements can be for a specified period after which both companies are at liberty to launch their own brands.
When Hero severed its ties with Honda for two wheelers, Renault for cars with Mahindra, the companies concerned launched their own products. Until a few years ago, it was not easy to have multi-locational operations to deliver a product. With advances in technology, better logistics and economies of scale, it is possible for the parent company to design a product in their headquarters or in an emerging market, get them fabricated in a different country, do the manufacturing there and export it other countries.Cambridge Business Advantage Advanced Student's Book CD1
Many global brands such as HP, Toshiba, Acer follow the strategy of manufacturing in China, Taiwan, Thailand or some other nation where it is cheaper to manufacture. And it is shipped to the consuming country and still enable good margins on sale of products. Once a product is launched the global campaign has to begin.
It has to be undertaken by a global marketing agency.
They have to take care of the creative, media planning, hoardings and other mass publicity campaigns in association with the marketing team in the global marketing company. The campaigns have to be translated, localized and relevant new ones created for specific markets. It is important to set key metrics and goals such as CTR click-through-ratesimpressions per pages for web based advertising, return on investment for global ads, social media campaign targets.
It is essential that the marketing team has got the budget for all these including campaigns in electronic media and got approval from the headquarters. The marketing teams across the globe should be in constant communication between themselves to evolve strategies.Strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and objectives and thereby achieving the organizational vision.
The process of strategy formulation basically involves six main steps. Though these steps do not follow a rigid chronological order, however they are very rational and can be easily followed in this order. It is known that strategy is generally a medium for realization of organizational objectives. Objectives stress the state of being there whereas Strategy stresses upon the process of reaching there. Strategy includes both the fixation of objectives as well the medium to be used to realize those objectives.
Thus, strategy is a wider term which believes in the manner of deployment of resources so as to achieve the objectives. While fixing the organizational objectives, it is essential that the factors which influence the selection of objectives must be analyzed before the selection of objectives. Once the objectives and the factors influencing strategic decisions have been determined, it is easy to take strategic decisions. Evaluating the Organizational Environment - The next step is to evaluate the general economic and industrial environment in which the organization operates.
This includes a review of the organizations competitive position. It is essential to conduct a qualitative and quantitative review of an organizations existing product line. Setting Quantitative Targets - In this step, an organization must practically fix the quantitative target values for some of the organizational objectives.
The idea behind this is to compare with long term customers, so as to evaluate the contribution that might be made by various product zones or operating departments. Aiming in context with the divisional plans - In this step, the contributions made by each department or division or product category within the organization is identified and accordingly strategic planning is done for each sub-unit.
This requires a careful analysis of macroeconomic trends. Performance Analysis - Performance analysis includes discovering and analyzing the gap between the planned or desired performance.
A critical evaluation of the organizations past performance, present condition and the desired future conditions must be done by the organization. This critical evaluation identifies the degree of gap that persists between the actual reality and the long-term aspirations of the organization. An attempt is made by the organization to estimate its probable future condition if the current trends persist. Choice of Strategy - This is the ultimate step in Strategy Formulation. The best course of action is actually chosen after considering organizational goals, organizational strengths, potential and limitations as well as the external opportunities.
View All Articles. Similar Articles Under - Strategic Management. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link s to ManagementStudyGuide.Market segmentation is a marketing strategy which involves separating a wide target market into subsets of customers, enterprises, or nations who have, or are perceived to have, common requirements, choices, and priorities, and then designing and executing approaches to target them.
Market segmentation approaches are basically used to identify the target clients, and provide assisting data for marketing plan components like positioning to get certain marketing plan objectives. Businesses may discover product differentiation approaches, or an undifferentiated approach, including specific goods or product lines relying on the precise demand and attributes of the target segment. Dealers can segment market according to geographic criterion that is nations, states, regions, countries, cities, neighborhoods, or postal codes.
The geo-cluster strategy blends demographic information with geographic data to discover a more precise or specific profile.
For example, in rainy areas dealers can easily sell raincoats, umbrellas and gumboots. In winter regions, one can sell warm clothing. A small business product store focuses on customers from the local neighborhood, while a larger departmental store focuses its marketing towards different localities in a larger city or region.
They neglect customers in other continents. This segmentation is very essential and is marked as the initial step to international marketing, followed by demographic and psychographic segmentation. Segmentation on the basis of demography relies on variables like age, gender, occupation and education level or according to perceived advantages which an item or service may provide.
An alternative of this strategy is called firmographic or character based segmentation. This segmentation is widely used in business to business market. According to firmographic or character based segmentation, the target market is segmented based on characteristics like size of the firm in terms of revenue or number of employees, sector of business or location like place, country and region.
This divides the market into groups based on their knowledge, attitudes, uses and responses to the product. Many merchants assume that behavior variables are the best beginning point for building market segments. Psychographic segmentation calls for the division of market into segments based upon different personality traits, values, attitudes, interests, and lifestyles of consumers.
Mass media has a dominating impact and effect on psychographic segmentation. To the products promoted through mass media can be high engagement items or an item of high-end luxury and thus, influences purchase decisions.
Occasion segmentation is dividing the market into segments on the basis of the different occasions when the buyers plan to buy the product or actually buy the product or use the product. Some products are specifically meant for a particular time or day or event.
Any company on the marketing platform is expected to have a detailed analysis of the choices and preferences of the customers in the target market. That is where the company will be selling the products. This will help the company produce the products according to the demands of the customers and this will eventually lead to a win-win situation between the buyer and the seller.
The plan that leads to the analysis is a step by step approach wherein the analysis is done on cultural, economic, and political situation prevailing in the target market or the country. The aim is to match the requirements with the needs based on the analysis.By: Pamela Hyatt.
Many companies adopt an incremental approach to marketing—they start local and then go international. For those companies that go international, several distinct evolutionary stages have been identified:. Companies in this category are primarily preoccupied with their domestic markets and management is typically not interested in exporting. Management is willing to fill unsolicited orders from abroad but makes no effort to explore the feasibility of active exporting or to assign specialized staff to this function.
This will involve some in-depth international trade research. One of the most important things to determine during this stage is the market segment and therefore audience you will be targeting with your new strategy. The inherent nature of a specific market segment or geographic market can vary greatly from one target market to another.
Based upon the market intelligence for the particular target market and the customer profile for this market, the company can decide if this market has the potential to meet its objectives. For example, attempting to sell energy-efficient heating systems to markets within tropical climates would be a failure.
This is an obvious example, but it illustrates the importance of proper target market selection. These factors become even more important when considering international market selections and options.
Companies start limited international trading. In Canada, the company experimentally exports to some culturally close country like the United States or the United Kingdom. The company becomes an experienced exporter to that country and adjusts exports to optimize changing exchange rates and tariffs. Management explores the feasibility of exporting to additional countries and allocates its resources to international opportunities.
Decisions to enter foreign markets and resulting successes are related to the level of management commitment; time, human and financial resources available; and the expectations of satisfactory profits. Once companies have become familiar with the intricacies of international business—even if they have no obvious cultural links to any market—they may venture into more challenging markets.
They may address markets such as Japan where language, culture and business practices are completely unfamiliar. Alternatively, they may look to complex markets such as India in which many different languages and cultures co-exist. The point is that companies generally tend to tackle challenges that are more complex only when they have gained the insights and experience needed for success in a larger arena. The basic principle of marketing revolves around the two-way communication between a company and its customers.
Customer focus is one of the core tenets of marketing. One of the goals of successful marketing is to create value for customers. The roadmap for all marketing efforts for any company is set down in the corporate marketing plan.
There are several marketing concepts that are applied in the development and implementation of a marketing plan; some are more relevant than others depending upon the nature of the company and the product or service that it is marketing. In addition, there exist many marketing functions within the company and the marketing plan itself.
In order to make this transition successfully, companies must understand the reasons for attempting to enter foreign markets. They must also understand that foreign markets are different and will require a thorough knowledge of the market to develop the appropriate strategies and activities that will form the international marketing plan. Apply now. You can find some of my work on TradeReady. My background is in copywriting, journalism and social media. My passion lies in connecting people to the stories that are most important to them.
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Content Marketing News Featured. By Christine Schrader May 17, Too often when companies are looking to get started with integrated marketing, they go straight to the tools. What are the right keywords to rank for? Should we be writing content four times a day or fifty seven times a month? Should we invest in this trade show or sponsor that event? SEO, content, paid search, and social efforts are all fundamental pieces to a successful marketing approach that avoids siloing.
But they are simply tools. Your efforts will be much more successful and a whole lot easier to get off the ground if you start with goals and KPIs. As a result, it can be a struggle to prove that our efforts are actually going to provide a ROI.
And we know that the secret of truly spectacular marketing is well-founded and measurable goals. SMART marketing goals is a framework for successful goal setting. When it comes to earning buy-in and winning over even the most skeptical executivethe SMART goal framework can move mountains.
More importantly, using it provides you the opportunity to define the purpose of your efforts. Working through this framework will also help you determine whether your goals are possible, and when exactly it will be accomplished. The goals you define for your company — both for your specific marketing initiatives as well as for your company as a whole — set the tone. Brand marketing goals are more difficult to measure but incredibly important to set. Your company may want to set a specific brand goal to be known as the go-to expert in your industry for analytics software.
Setting both revenue and brand marketing goals up front will help you convey the importance of both types of goals in your marketing approach.Sales affect the entire business, and your sales staff requires an in-depth plan to succeed. A good sales plan is specific and lays out tasks, realistic goals, and a base strategy for individuals to develop.
Creating ideas and plans for marketing is time-consuming and difficult — which is why most businesses opt to do that once a year. A marketing plan is different for the simple fact that it is used differently: the purpose of marketing is to generate leads and then turn those leads into sales.
Your sales plan will include all of this, and then some. Use this guide on how to create a sales plan template to create your new strategy for Create a checklist and have it handy in the days before as you prepare research and paperwork to create a good sales program. Your sales, marketing, and accounting teams should participate in shaping the methodology everyone will use for the next year.
A sales plan will lay out strategy, but it is meant to focus on the bigger picture. In the war that is business, these details are just small battles. A good plan targets the right customers, sets realistic revenue goals, involves strategies, looks at pricing and options for promotions, outlines deadlines and responsible individuals, creates a team structure, and observes market conditions. Most companies have a mission statement and operate based on that concept. For sales, you must use that idea to create a specific aim for the sales department.
Steps in Strategy Formulation Process
Does your company have certain principles that separate it from the rest? Next are your sales objectives. You should lay out full goals for where you want the company to be next year.
How many new customers do you want to bring in? Is there a marketing campaign you want to start? Consider your goals in terms of events. This will create a framework for strategic and budgetary planning. This is where you work with your teams to estimate the costs of what you want to achieve this year. Realism is essential for staff and morale. Once your team feels like they can readily attain those marks, they can see and feel a real sense of accomplishment — and you will too.
Your projected revenue should be based off previous years or market research. Look at your top competitors and see what their yearly earnings are tax records are publicly available for many enterprises and the predictions for your industry.
Technology offers all company the chance to track their customers and learn about their demographics, so that marketing campaigns are more specific and therefore more profitable. This has to be an accurate representation of your product or service and the type of individual that would seek it out. Demographics should include the usual things like age, location, and gender.
The 5 stages of evolution in your international marketing plan
Use technology to go one step further and create a psychological profile for your customer.But how does the company create this customer value?
The marketing strategy addresses exactly that. It is the marketing logic by which the firm wants to create this customer value and achieve these profitable customer relationships. But consumers are in the centre of marketing. Therefore, we should not just establish a marketing strategy — it should be a customer-driven marketing strategy. How to create customer value and how to achieve profitable relationships?
First of all, the company has to know which customers it will serve. It must segment the market based on certain criteria that are relevant to the company.
Then, it has to select one or several market segments to serve. We call these two steps segmentation and targeting. Finally, the company decides how it is going to serve the selected customers. In order to do so, the company must identify the total market, then divide it into smaller segments. Next, select the most promising ones and then focus on how to serve and satisfy the customers in the selected segments. But before we can satisfy customers, we first have to understand their needs and wants.
Therefore, the process of establishing a marketing strategy requires thorough and careful customer analysis. Segmentation, Targeting, Positioning and Differentiation — necessary for an integrated Marketing Strategy. Any company should know that it cannot serve all consumers in the total market — at least not profitably and in the same way.
The variety of different kinds of consumers and their needs is simply too large. There are too many differing types of customers, characteristics, needs, wants, and behaviours. Thus, every company should not try to focus on the complete market. Instead, it should divide it up into small segments. This is the first step of setting up a marketing strategy. The market can be seen as a huge pie.