DEVELOPING GLOBAL MARKETING STRATEGIES
Planning the marketing strategies of global business firms starts on the dilemma on which is more effective, the standardization approach or the localization strategy (1996). The (2007) cites that a correct global marketing strategy lies on the ability of the firm’s managers to determine the various value chain areas of the marketing function and decide which elements can be facilitated on a global basis and which can be tailored to local preferences. (1996) assert that global firms should plan and organize their marketing strategies by considering five important guidelines: standardization works best for cost-based competition; localization is required for firms aspiring to get intimate to customers; standardization is the best way to achieve product leadership in global markets; a “Goldilocks strategy” wherein a firm decides to balance global strategies with localization can be an effective approach especially if the firm’s products require some degree of adaptation with local preferences; and the top management must be able to guarantee that the company has mastered and displayed competitive advantage at the home territory since strengths and weaknesses can be brought to new locations ().
Reaching the global markets does not stop in planning. After the marketing approach is determined, product design and development comes in. Two aspects have to be determined in product development – level of development of the country where the product would be introduced and the nature of the product. In developing countries, products have to be generally uncomplicated and strongly built. This is due to the fact that most people in these countries have lower level of literacy and skills which make them less competent to operate or consume complicated products. Companies seeking to market in developing countries have to innovate to match the sophisticated preferences of these markets (2006). Furthermore, firms have to know that some products can be marketed globally while others cannot. Global products are cameras, pocket calculators, watches, premium priced fashion goods and luxury automobiles. However, there is still a need to tailor features of these products to local tastes (2007).
The global business firm has to introduce its products in a worldwide context. Thus, there is a need for a powerful tool that would ensure that consumers from various points of the globe can have access to a global business firm’s products and services. (2004) claims that Integrated Marketing Communications (IMC) is the key to attaining competitive advantage in marketing (). IMC integrates all aspects of the promotional mix such as advertising, sales promotion, public relations, and direct marketing to guarantee that consumers receive uniform messages regarding the firm’s product and service offerings (2007). International advertising is one of the most important aspects of IMC since communicating with the consumers in the global markets occurs in a complex context with factors such as cultural differences, language, literacy, laws and regulations, and social norms posing immense constraints. International advertising as an area of IMC requires the advertiser to conceptualize the appropriate message for the target consumers; encode the message so that it would be comprehensible across various cultural contexts; and select the best media channel that can bring the message to the target consumers. International marketing channels are entities that assist the firm in bringing its products or services to the target locations and may include agents, retailers, wholesalers, trading partners, and export companies ( 2007). One of most common international marketing channels is through exporting. Within the exporting category, a company may have its own export department, or division, and engage in direct exporting. The company and its customers will negotiate agreements of purchase and sale. An alternative within this category is where an export merchant buys products in the country of origin and sells abroad at his own risk ( 2004). Inherent in the marketing channels are the concepts of sales management and personal selling. Sales management comprises the planning activities of a firm’s overall selling program, implementation of the program and oversight of the personal selling effort of the firm. Personal selling may come in a face to face or over telecommunication tools interaction between buyer and seller to influence the purchase decision. A global firm must ensure that the people who facilitate sales management and personal selling are knowledgeable of the market’s distinct characteristics since these individuals represent the company and would help determine if the consumers will gain a positive or negative image of the products and the company as a whole (2007).
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