What is the Importance of Global Marketing?
During the 1960s, way before high-tech computers and smartphones hit the market, before Facebook or the internet, Canadian media theorist and professor Marshall McLuhan coined the term “global village”.
According to McLuhan, the advent of marketing, media, and communication was bridging the nations to such an extent, that everyone on the planet would soon be living in a global village. Distance and seas between continents would disappear in the light of extensive communication through mass media. (McLuhan)
This theory is even more applicable to today's world where most communication between businesses and customers is online.
McLuhan was hailed as a visionary for his accurate predictions of the future. His vision of the world as a Global Village has indeed come true.
The importance of global marketing is this: When the world is as interconnected as it is today, businesses must consider upscaling their operations. Focusing on global branding and global marketing can help them capture the larger market.
This blog post will explain what global marketing is, along with a few real-life examples of companies and their global marketing strategies.
We will learn about the benefits of investing in global marketing, how global marketing affects business, and the differences between international marketing and global marketing while also understanding the key challenges professionals encounter when implementing global marketing strategies. Click here to read on best practices in Global Marketing strategies.
What is global marketing?
Global marketing is essentially marketing for the specific needs of a global audience. While you would generally develop marketing strategies for a target audience in a particular country, global marketing investigates marketing strategies to promote a product to a global audience.
It is important to note that global marketing practice often involves the sale of commonly needed items such as FMCGs (fast-moving consumer goods) or other life necessities. The only prerequisite for a product to qualify for global marketing is this: the product's usefulness must be universal to all people.
Take Coca-Cola for example, the product is the same in several countries making it a great global marketing example. Even the recipe of the product is the same and the brand does not change the product to suit each country it is sold in.
However, the same rules do not apply when marketing medicines as they differ from nation to nation as most countries have their own medical supplies and healthcare.
The global healthcare market is usually geared towards procuring healthcare professionals for national needs. You can see examples of the demand for healthcare professionals in many countries like the UK, Singapore, and the US.
Global marketing vs international marketing
Global marketing refers to efforts to increase the sales and promotion of a product across the globe. International marketing, however, refers to the practice of marketing products to a targeted number of international locations.
International marketing could be described as a subset of global marketing.
Although both sound similar, there are several differences between the two. Take a look at the table below.
Differences between Global marketing and international marketing
No specific audience, targets the market of the entire globe
Specific target audience from international locations
· To increase the usage of the brand product across the globe
· To increase brand awareness and sales across the global market
· To capture higher revenue and income through demands from other markets across international borders. The number of nations it is marketed in can be endless depending on the global demand for the product.
· To promote international brand placement
· To carve recognition for the brand in the international marketplace
· Looks to promote the sales of a specific product made especially for the market in a target country
· Is often looking at accomplishing business sales goals within a small area of the global market
· Looks to increase brand awareness and recognition across borders in one or two foreign nations
Promote the sales of a single product across various markets around the globe.
Promote sales of a product within a few targeted nations across the globe, the product may have been designed according to the needs of the targeted countries
The product must have a universal demand across various countries around the world. Coming up with such a product requires careful consideration and time.
The product being marketed in an international location may not have much of a demand in the local market where the business is based, hence sales and revenue from the product come only from the targeted locations across the border.
The product usually has a global need attached to it, like Coca-Cola, KFC, H&M, etc.
The product is relative only to the international location it is being marketed, for example, Coca-Cola’s Green tea product being sold in China.
Subject to revenue from different markets across the globe.
Subject to revenue only from the international locations it is marketed in.
What are the benefits of global marketing?
- A global approach helps a business scale its products for a larger customer base thus aiding in business expansion.
- Businesses can make various investments spread across global markets which in turn helps them avoid many losses that usually occur within a local economy.
- Global marketing helps a business increase its overall revenue.
- Global marketing helps a business in improving its brand name, brand recognition and brand awareness across the globe.
- Global marketing strategies help in multiplying the income streams of a business.
- Businesses are more resistant to market turmoil overall due to being spread across many markets in many nations.
What are the challenges in global marketing?
Global marketing has many benefits, however, every opportunity comes with unique challenges. There are a few hurdles marketers face in global marketing. Some common global marketing challenges are listed below:
- Neglecting the need for in-country marketing partners and brand awareness creation within each country
- Not hitting the mark in targeting the needs of specific customers
- Misunderstandings and misconceptions due to lack of research
- Neglecting country-specific adjustments to social media and brand products
- Lack of knowledge in the efficient management of global services
What is the main aim of global marketing?
Global marketing aims to provide businesses with an arena to market their products across international markets.
- Global marketing aims to increase business profits
- It aims to help increase business revenue
- It helps businesses achieve their goals of making valuable investments across the globe
- Global marketing helps in increasing brand awareness
- Global marketing efforts ensure long-term brand recognition and help in obtaining loyal customers across the globe
How does global marketing affect business?
Global marketing and global branding largely affect a business. It has both positive and negative effects depending on how your global marketing strategies have performed in the live market.
Essentially speaking, global branding efforts can greatly upscale your trade and improve revenue if your efforts have paid off and the consumers in the international market receive your product well.
However, an equally opposite effect can be expected in case your product has not been received well with the international audience. Global marketing could be a costly venture for your business if it has succeeded.
There are a few steps you can follow as a business to ensure your global marketing efforts succeed.
If you are a business and are looking to invest in global marketing strategies, you must ask these questions first:
- Is my product marketable globally, is there a universal need for it?
- Is there enough capital within the company to create new products for each market within a new nation?
- How do we market our international product within a new country?
- Is the marketing campaign relatable to the local audience of the new country?
- Have we completed fact-checking and intensive research on the new nation's locality and market needs?
- Have we completed a business competitor analysis according to the market of the target nation?
- Is my brand and product performing well in the first six months of being launched? Regular quarterly or half-yearly sales and revenue analysis are essential.
In conclusion, nothing can prepare you for the unique experience global marketing has to offer, however, you can equip yourself to be competent via a reputed business degree. The London School of Business and Finance, UK (LSBF) has multiple celebrated business programmes to offer you in this arena. You can browse through the list of courses and choose one that suits you the best.
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