Is marketing on a wider scale to take commercial advantage of local differences, similarities and opportunities to meet global objectives
Increasing intensity of competition is a challenge facing companies at all stages of expansion. As markets open up the pace of change accelerates. Technology shrinks distances between markets and can reduce the scale advantages of large firms so new sources of competition emerge.
Low cost markets such as China, Malaysia, Turkey are on the rise, so too Brazil and India, albeit with infrastructural challenges. Cash rich markets in the Gulf are taking advantage of regional and global opportunities – as their own domestic markets open up to foreign competition, stimulating greater awareness of international market opportunities and of the need to be internationally competitive. On the other hand E-commerce and 3D printing, while currently in its infancy, have the potential to once again completely re-draw geographic influences.
Being ahead of the competition ultimately relies on delivering superior value to consumers. However, success in new markets depends on knowledge, insight and smart implementation.
A solely local company only has to consider local competition even if that includes companies from abroad. Products and services are developed for local customers, often without thought of how the product or service could be used in other markets.
One obstacle is being blindsided by emerging global marketers. Local only companies may not be aware of a potential competitor from elsewhere until they simultaneously open new stores, or distribution, in your market.
International marketing is the export, franchising, joint venture or full direct entry of an organization into another country.
Development of the optimal marketing mix for those countries is then required. It can be as straightforward as using and adapting existing marketing strategies and tools for export, or can require complex new relationship strategies including localization, local product offerings, special pricing, production, packaging and distribution with customized promotions, offers, websites, social media and local leadership in all areas.
A smart marketing plan takes into account the unique similarities and differences between markets and exploits that understanding for the greater profitability of the client
The smart global firm thus grows the capability, reach, knowledge, staff, skills, insights, and expertise to deliver value to customers worldwide. It services customers locally with global standard solutions or products, and localises the product as and when required to maintain the most effective balance of cost, efficiency, customization and local relevance.
Here, global marketing and global branding are integrated. Branding involves an ongoing process of analyzing and valuing the “soft” assets and “hard” assets of a firm’s resources.
Economies of scale in production and distribution
Lower marketing costs – adaption costs are generally lower than invention costs
Increased power and scope with suppliers/partners
Consistency in brand image, with the ability to leverage good ideas quickly and efficiently
Deployment of best marketing practices
Ability to leverage investments in, and cost-effectively roll-out, Emarketing and Ecommerce