What is Global Marketing? Surely you have heard the concept many times in the current globalized market. But what is the exact concept of Global Marketing? Is this strategy necessary in business? What should you pay attention to when applying this marketing strategy? Let Tanca answer each question through the following article!

What is Global Marketing?

Global marketing is the focus on promoting a business's products or services in international markets - and in today's globalised society, where markets are more connected than ever, this is an important marketing strategy that is increasingly being adopted.

Global marketing treats the world as a single market. This means that a business's marketing message and strategic approach will be largely the same regardless of where they are seen or heard.

Marketing strategies are often developed and coordinated from a single central location, such as the organisation's headquarters, rather than from individual markets.

Products and services are largely the same regardless of location. For example, the ingredients and processes used to produce a can of Coca-Cola are the same in all countries.

Marketing campaigns and brand images are often the same in all countries.

Global marketing is particularly suitable for products or services that have universal appeal and market research has shown that the product or service is likely to be well received and responded to.

The difference between global marketing and international marketing

Global marketing and international marketing are similar in their focus on developing marketing strategies to reach people around the world.

However, there is an important difference: While global marketing focuses on a single marketing strategy for the global market, treating the world as a single market - international marketing will tailor marketing strategies and tactics to different countries, often through marketing professionals who understand the specifics of the region, and who will customize marketing activities to suit different markets, different languages, and different cultures.

However, it is worth noting that in a global society, marketing is not necessarily a single choice, with global marketing on one side, international marketing on the other, and there is no common ground between them. For example, in an article in the Harvard Business Review, John Quelch and Edward J. Hoff at Harvard Business School asserted that a global approach can fall anywhere on a “value spectrum” of effectiveness in strategy:

“In applying the global marketing concept and making it successful, flexibility is essential,” they wrote. “Managers need to tailor the approach they use to each element of their business system and marketing program. For example, a manufacturer might market the same product under different brand names in different countries or market the same brands using different product formulations.”

The Salient Features of Global Marketing

Global marketing is characterized by the use of standardized marketing strategies and their uniform application to all markets regardless of differences.

Global marketing focuses on resources and objectives to exploit global opportunities and needs. Global markets are the geographical expansion of domestic markets.

An important task in global marketing is to recognize that marketing plans and programs can be expanded globally, but at the same time they must be adapted to these specific locations.

Some researchers believe that, in the context of an increasingly global business environment, businesses operating in the field of global marketing need to be flexible and ready to adapt. However, this does not necessarily mean standardizing all aspects of products such as price, advertising or distribution.

In fact, today's consumer markets are diverse and multidimensional, with differences in preferences, tastes and consumption habits between countries. Therefore, applying a standardization approach to the entire product may not be appropriate. However, in the field of manufacturing and supplying industrial raw materials, demand is often quite homogeneous globally.

Take Black & Decker, a leading name in the production of industrial tools and machinery, for example, they have implemented globalization wisely. Instead of standardizing each product, they focus mainly on standardizing key components such as motors and fans. This helps them maintain a diverse product range and create a strong image of quality and performance. Importantly, they provide additional services to support customers in optimizing the use of their products.

Why do businesses need to apply global marketing strategies?

In the era of globalization and economic integration, global marketing has become extremely important for businesses. Here are the important benefits it brings:

Adapting to the multinational business environment

Global Marketing helps businesses easily adapt to the business environment in different countries, including culture, politics, law, geography, trade and economic blocs. This helps create a solid foundation for expanding business scale and taking advantage of global opportunities.

Increasing the ability to expand market share in new countries based on collected economic information. Businesses can learn from developed markets and seek new opportunities to expand their business scale.

Optimizing profits and adjusting business plans

Global Marketing helps optimize profits by understanding national markets and adjusting business and financial plans to suit each specific market. This helps increase efficiency and achieve better results globally.

Reducing risks and complying with regulations

Diversifying markets through Global Marketing helps reduce risks and stabilize revenue. Businesses also need to comply with legal and political regulations in each country to reduce legal risks and ensure sustainable operations in the global market.

Enhance Competitive Position and Optimize Resources

Global Marketing helps to reduce cultural and cognitive gaps to adapt to the global market. By understanding global competitors, businesses can improve their competitive position abroad. At the same time, Global Marketing also helps to optimize resources and capabilities through understanding global marketing and applying effective methods on a large scale.

Knowledge needed when approaching a global marketing strategy

A global marketing strategy has many similarities with other types of marketing strategies. It should present the four most basic elements of any marketing mix - product, price, place and promotion - and base the strategy on evidence gathered from the market.

Can be based on a consistent, global brand that will resonate with audiences around the world.
Include a strong digital element to enhance the organization's ability to reach people in any country.
Be flexible to adjust as needed, especially when dealing with cultural differences and sensitivities that may arise.

Global Market Research

To be successful in reaching global markets, marketers need to learn about the economies, cultures, politics, societies, trade blocs, and legal regulations of the countries they want to reach. Researching these factors will help marketers gain an overview of the global market and how to reach customers.

Define the Goals

Next, in the global marketing strategy, you need to set specific goals for your global marketing campaign. The goal could be to increase sales or increase brand awareness.

Choose the approach

Based on the goals and global market research, the global marketer will choose the appropriate approach. It can be a direct approach, online, through local distribution channels or through partners.

Define the customer target

It is extremely important to understand the potential customer target in the target global markets. Grasp information about customer demographics, including age, gender, income, interests and product needs.

Set the marketing strategy

Based on the information collected, you will build an appropriate marketing strategy. This may include producing products that suit market needs or distributing products through online sales channels.

Implement and Evaluate the Campaign

Finally, the global marketer will implement the global marketing campaign and evaluate its effectiveness. If necessary, you can adjust the strategy to suit the global market situation and achieve the set goals.

Note, when developing a global marketing plan, make sure to comply with the legal regulations of each country. This helps the global marketer avoid legal risks and maintain the reputation of the business.

Obstacles that businesses need to face

Implementing a global marketing strategy is a big challenge for many businesses. This requires them to overcome many difficulties and adapt to the diverse international business environment. Below are some common obstacles that businesses often encounter in the process of implementing a global marketing strategy.

Cultural and market differences

One of the main difficulties is understanding the culture and target market. Each country and region has its own values, customs and culture. Businesses need to master these factors to create content and marketing campaigns that are suitable for local customers. This requires understanding information and creating connections with local partners or hiring experts who understand the local culture.

Language

Another issue is language. Each country has its own main language and different expressions. Businesses need to translate and adapt their marketing content to suit the local language. Additionally, creating effective SEO keywords in the target language is also a challenge. This requires businesses to have knowledge of local keywords and understand how people search for information online in that language.

Choosing the right access channel

The next challenge is related to access channels. Each country may have different social networks, search engines, application technologies and advertising channels that are preferred by local users. Businesses need to learn about these channels and come up with a suitable access plan. At the same time, the issue of distribution is also an important aspect. Businesses must ensure that their products or services can effectively reach customers in the target country.

Managing and monitoring the strategy

Finally, the challenge of managing and monitoring the global marketing strategy is also an issue. Businesses need to have a clear management mechanism to effectively monitor the effectiveness of marketing campaigns across multiple countries and regions. This requires coordination between departments within the business and the use of appropriate tools to collect and analyze data.

In the difficulty, there are also valuable opportunities. Building a Global marketing campaign not only expands the market but also promotes creativity and flexibility in the business process. This not only helps businesses overcome risks but also creates a sustainable competitive advantage. On this path, businesses can explore new aspects, find local partners and adapt to the requirements of each market. Overcoming these challenges will make a significant difference and bring long-term benefits to the global development of the business.

It can be seen that the Global marketing strategy is an increasingly popular strategic trend. With the above content, Tanca hopes that you have understood "What is Global Marketing?" and related content to be able to apply it to your business development plan in the best way. Don't forget to follow Tanca to quickly update other useful articles.