International Marketing Global Marketing Essay
Steve Carter defines the term of marketing as “the process of building lasting relationships through planning, executing and controlling the conception, pricing, promotion and distribution of ideas, goods and services to create mutual exchange that satisfy individual and organisational needs and objectives - International Marketing Global Marketing Essay introduction. ” To start with a generally known fact, each firm uses its own type of marketing strategy. Therefore, companies in different countries must think about their marketing strategies relative to different cultural values, for instance the mentality of a foreign country’s population as well as their demands and needs.
We can divide marketing into three dimensions – domestic, international and global. Domestic marketing deals with the country’s local market. The last two types are considered foreign marketing. Some authors characterize international marketing and global marketing as being the same thing. There are marketing textbooks that differentiate international marketing from global marketing because international marketing in its literal sense signifies marketing between nations. On the other hand, some authors outline differences between them when the take a deeper look into the theory of marketing.
More Essay Examples on Marketing Rubric
In the following paragraphs, we will discuss international and global marketing. Although both dimensions share similar things in common, such as marketing research, there are notable differences. For instance, international marketing faces more risk variables such as exchange rates, different incomes of consumers or legislations. 2. What is meant by International Marketing International marketing is simply the application of marketing principles to more than one country by focusing on markets outside of a country’s local market. Of course, there are some similarities between nations including traditions, religion or behaviour.
However, there are several differences among countries. The marketing strategy for foreign companies must take these differences into account when trying to launch their products abroad. For example, the provocative campaign of United Colors of Benetton made by Oliviero Toscani used a picture of a newborn child in their advertising. When this advertising strategy was first used, there were protests in Italy and the campaign subsequently became censured. This was a result of the cultural differences in Italy, such as their religion and ethical code. Therefore, companies usually customize their strategies or products by region.
The main purpose of international marketing is to set up a successful campaign or promotion according to the varying country environments. It also includes the process of deciding which countries to enter, as well as which products to sell there. The company will then customize their marketing strategy and products to the needs and regulations of each country. By understanding and adapting to different cultural values in each country, a company will be able to stay competitive against other companies, whether that may be domestic or foreign competitors. Why is the international marketing so important?
The reason is simple, it helps to diversify their business and avoid problems which could arise in some countries. Furthermore, there are different approaches of international marketing based on the orientation of managers or companies towards the international environment. Firstly, an ethnocentric approach maintains a domestic marketing policy. Secondly, a manager who is polycentric-oriented distinguishes between domestic and foreign markets and therefore modifies their approach to foreign countries. Moreover, a regiocentric approach takes into account countries involved in a group.
All over the world there are countries who share similarities. Thus, one region can be created by adding those countries into one group (e. g. Sweden, Norway, Finland and Iceland could be added in a group named NORDIC). These grouped countries could therefore share a common policy. Lastly, geocentric orientation has the conception that there is only one market all over the world. For instance, their marketing policy is applied for the world as a whole. Companies can make some exemptions in their policies but changes are not that significant.
3. What is meant by Global Marketing Global marketing seems to be quite similar to international marketing at first glance. Although some authors state that both terms can be used interchangeably, there are a lot of differences between both terms when you analyze them in more detail. Due to marketing theories, international marketing was a stage in the evolution of global marketing. The Oxford University Press defines global marketing as “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives. It seems like international marketing only deals with the selling of products all over the world, but there are a lot of other aspects to it. For example, the marketing strategy or production of goods should be taken into consideration more seriously. When a company is applying global marketing, it looks at the entire world as one market instead of looking at the different countries as single markets, which is known by international marketing. That is, global marketing makes no difference between the local market and the market of another country.
This means that the company tries to launch one product which fits to the demands of all consumers regardless of the different needs in each country. The production also becomes centralized and specified so that one integrative system is built up to use the advantage of cost cutting. In contrast to international marketing, global marketing also tries to follow a standardized marketing strategy which holds worldwide. This could become the most challenging factor, because for setting up a worldwide marketing plan, the company needs to hold nearly the same position against its competitors in all markets.
Muhlbacher, Helmut and Dahringer include all the mentioned aspects in their definition of global marketing as a global approach to international marketing: “Rather than focusing on country markets, that is, the differences due to the physical location of customers groups, managers concentrate on product markets, that is, groups of customers seeking shared benefits or to be served with the same technology, emphasizing their similarities regardless of geographic areas in which they are located. To give an example, global marketing is used by international companies and huge chain stores that only sell certain products. They usually would not create a product that is specifically made for a product based on its religious, cultural and ethical values. 4. Conclusion International and global marketing together create the group of foreign marketing. Some experts distinguish between international and global marketing. However, others state both terms as interchangeable.
The purpose of these terms is to focus on markets out of the company’s home country and therefore adjust their marketing strategy according to the different needs and cultural values of consumers. An example of the international marketing approach could be McDonald’s, which customized their menu in India. Due to religious reasons, they do not serve beef in their restaurants, so they have to take these differences into consideration when entering the Indian market.
One could use Coca Cola as an example of a global marketing firm because they are selling the same products all over the world. In addition, the advertisements of Coca Cola are globally made and are only translated into the national language of each country. Coca Cola also uses the geocentric approach and world market strategies to produce their products, which leads to an integrative system and specialization of production in each place.