Without proper planning, an organization will not achieve workable strategies. Whereby an organization lacks effective advertising strategies, financial strategies as well as marketing strategies it becomes a challenge for the organization to predict with certainty external and internal processes.
Through global advertising, many car manufacturing companies have been able to diversify their product base to cater for the needs of different cultures. For instance, General Motors has come up with a wide range of products able to serve the interests of its client base regardless of cultural backgrounds. Globalization has made it very possible for car manufactures to enter into mergers and joint ventures even with companies from different countries as well as regions of the world who manage to overcome challenges such as environmental and economic pressures which have been occasioned by globalization.
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The above calls for the companies to engage fierce marketing to reposition the company’s products so as to better tap into market opportunities and threats in the company’s endeavor to penetrate global market (Kotler, 1986, 12). Lack of effective analytical ability on the part of the organization can spell doom for global advertising efforts as the organization is likely to in the end, experience significant losses occasioned by failure to attain forecasted sales in the new markets. Therefore, global companies have a responsibility to put in place strategic planning, business planning, project planning, and financial planning as well as staffing planning if entrance into global markets is going to be a success for the company. The above problems facing the planning function of global companies in the endeavor to penetrate at the subsidiary level can be overcome through the organization engaging in global marketing.
Often global companies fail to appreciate the fact that penetration into new markets calls for a rethinking of strategies even if the strategies in place have worked in home countries. One of the often ignored strategies which is very crucial in the success of global advertising is change of packaging. Different cultures have different values and for a very long time manufacturers and marketers have understood this fact. However, many still fail to put the strategy in place something which results into failure in new markets for companies which have shown great potential at home markets. The fact that most consumers rely on the sense of sight to make consumer related decision has been acknowledged for a very long time in marketing circles. However, global companies continue to ignore the power in packaging by carrying on same packaging styles in home markets to global markets something which backfires causing global companies huge losses.
Branding is an issue which has bee subject to debate amongst global market strategies. Companies including global companies appreciate the importance of having strong brands and indeed appreciate the fact that in order to come up with a strong brand a lot of resources must be put in the process of branding and bringing out the uniqueness in a given brand. Often successful branding goes hand in hand with strong marketing together with a careful analysis of competing brands. Global marketing cannot over rely on a given brand just because that kind of brand has recorded success in the domestic market. This calls for rebranding of products whenever global companies undertake to penetrate into global markets. Therefore, as a strategy aimed at successful global marketing global companies must undertake to rebrand every time a brand is being introduced into new markets. This is especially true in the case whereby there is a date to reposition a given product to a global market.
Competitor knowledge and analysis is a strategy that can save global companies a lot of profit loss (Lages, Luis Filipe, and Montgomery, 2004, 45). In some cases global companies ignore the strength of local companies even when the portfolios of such companies are too small compared to the global outfit of the incoming global player. This in the end has cost companies huge amounts of resources as it has turned out that however small a competitor is the fact that they have been in a given market for long periods gives them an upper hand. Careful competitor analysis can result into careful market entry plan and save a global company millions of dollars in potential losses.
The other global marketing strategy that is very crucial for global companies to overcome planning challenges in the global market is a good understanding of the target customers in relation to the product (Kashani, 1989,18). It has been noted that most global companies fail to concentrate on understanding the customer but rather turn into analyzing market as general entities. This in the end can be costly and therefore global companies must always undertake customer analysis so as to be aware of their target customers’ preferences before product launch. This calls for organizations to embrace customization of consumers by producing products that are particularly designed to meet specific needs of the customers. In addition, global companies must endeavor to foster a sense of trust in their relationship with customers in the new markets (Kashani, 198943).
In conclusion, it is evident from the discussion above that global companies are faced with planning challenges when it comes to penetrating global markets. Such challenges include financial constraints, realignment of organization vision and mission to reflect the change of strategy as well as constantly reviewing the vision mission as well as objectives to respond to global market which is dynamic. To solve such challenges global marketing strategies such as repackaging, rebranding, customer analysis, cultural environment analysis as well as a good understanding of competitors is the solution to ensuring that global companies are well prepared to offer customized products to global markets.
Kotler, Philip (1986). Global Standardization—Courting Danger. Journal of Consumer Marketing 3(Spring):pp.34-57
Kashani, Kamran (1989). Beware the Pitfalls of Global Marketing. Harvard Business Review 67(September–October):pp.89103
Lages, Luis Filipe, David B Montgomery. 2004. Export performance as an antecedent of export commitment and marketing strategy adaptation: evidence from small and medium-sized exporters. European Journal of Marketing. Bradford: Vol. 38, Iss. 9/10; p. 1066.
Lemak, David (1997). Global business strategy: A contingency approach. Multinational Business Review (spring). Pp.24-32.