Global marketing strategy is an important component of a larger plan. It helps your business develop into new markets around the globe.
For today’s modern businesses, global marketing is essential. Globalization has influenced the flow of consumer products. It can dictate how firms operate and communicate with stakeholders and staff.
Markets were very different before the internet age and transportation breakthroughs. This era allows firms to sell their products and services to consumers worldwide in a matter of days.
Firms of all sizes can create global marketing campaigns without specialized marketing teams. They can gain more customers with appropriate budgets and marketing creativity.
Before global marketing campaigns, you must first develop a clear global marketing strategy.
A planned approach improves your chances of engaging with your target market. It helps in converting leads into clients.
This post will cover everything there is to know about global marketing strategy. First, let’s go over some basics.
What is Global Marketing?
The act of centering a product on the potential customer’s needs is global marketing. Remember that these are international customers.
Global marketing strategy boils down to one thing: an audience. It is like other forms of marketing in this regard.
Consider who needs your products. Plan how to provide it in the most effective way and how it supports the brand. These are all essential components of successful global marketing.
A global marketing strategy often entails a company:
- Conducting new market research,
- Identifying areas where the company’s product may be successful,
- Localizing the brand to meet the requirements of those regions.
For example, the items served in a restaurant will depend on whether it is in Europe, Asia, Africa, etc.
Localization is not always required, though. Instead, some businesses go for global marketing standardization.
What Are the Benefits of Global Marketing?
Global marketing has several benefits with proper execution. Here are some:
- It provides organizations with additional revenue sources. It increases brand awareness and reputation in the world.
- It is a chance for businesses to learn more about their goods to improve the quality.
- You can get a significant competitive advantage. It is easier for businesses to compete in their local market. Yet, on a global scale, only a few firms are capable of doing so. If you can compete in the market while your competitors can’t, you become a significant player in the international industry.
- Global marketing can help you save money by cutting your cost. Focusing on standardizing allows you to achieve economies of scale in other markets. It also helps in the cost reductions that come with using the internet.
What is a Global Marketing Strategy?
A global marketing strategy is the planning phase of a company looking to expand internationally.
When entering global markets, a company must consider a few things. How it would handle marketing, PR, channels, and so on. These countries have diverse values, traditions, and languages.
For example, suppose you’re a Western corporation attempting to sell products in Asia. In that case, you’ll need to figure out how to access that market by conducting market research in Asia.
Some aspects of your company will likely remain the same as you grow, such as your name and logo. Albeit companies may use different names in different countries.
Burger King ran into several difficulties when it wanted to enter Australia. The firm’s famous name for Australia was already trademarked by another corporation.
Burger King offered its Australian franchisee, Jack Cowin, a list of alternate names. Cowin chose Hungry Jack, and Australian Burger Kings is Hungry Jack ever since
Global Marketing Strategies
The digital revolution is becoming an essential element of global marketing strategy. Where you invest your cash and effort depends on the demographics and location. Owned, paid, and earned promotional channels make up the majority of digital strategies.
These are the things that should be part of any global marketing strategy:
- Unified brand name
- Similar goods
- Identical packaging
- Coordinated messages
- Similar pricing
- Synchronized product releases
You can look to group comparable countries together to establish a geographical segment. This will simplify your marketing efforts.
Strategies for Successful Global Marketing
- Create a well-known and well-recognized brand image and reputation.
Let’s say a company is successful and well-known in its home country. The outsiders eager to test out its products will develop an interest in it.
- Use a consistent marketing strategy across borders.
Use a marketing plan for your firm as if there were no international boundaries. This will help to better assess engagement with content from region to region.
- Develop a marketing plan.
Investigate your company’s goals. Learn about the needs/wants of a country within the global marketplace. Then, develop a marketing strategy based on the information gathered.
- Change your strategy.
Marketing plan success in a company’s domestic country doesn’t guarantee international success. Several factors like distinct values, culture, and language can affect it.
- Make promotions more personalized.
When promoting a product or service to a foreign audience, you must learn more about them. Keep in account their language, traditions, and festivals.
- Observe and learn about your target audience’s origins.
Businesses can build stronger marketing campaigns that reach their target audiences. Google Analytics and Shopify can help to pinpoint customers by a particular region. There are several other technologies as well.
- Keep your brand in mind.
A firm must ensure that everything they use, from the company name to the logo, is distinct from other businesses in the region. Their branding must translate into another language and is well-known.
- Customize your items according to where you sell them.
McDonald’s serves ethnic cuisine staples depending on the localization of each franchise. For example, poutine in Canada and Crock Brie in Italy. That’s how they became a fast-food giant.
- Are your services or goods culturally objectionable in any way?
- Is your company abiding by the norms and regulations of a foreign government?
- Is your company’s trademark exclusive to the place where services are being offered?
- Bring on a local marketer to your team.
Hiring a local to customize your marketing approach guarantees better communication. It translates better to the firm’s targeted people.
- Change your message based on location.
Most people have different wants and needs. This is especially true for those who live in other regions. A company must ensure that its campaigns connect to its clients, both domestic and international.
- Make the most of the information available to you.
Firms can be more imaginative in contacting potential clients through internet marketing campaigns. This is possible because of the current digital landscape’s growth.
- Make use of the appropriate technologies and applications.
Suppose Instagram is the most popular social media site in a foreign state. The company’s global marketing plan must be around its usage of that platform. It will help the company to reach its target audience in an effective way.
What is Global Standardization Strategy?
A firm’s capability to employ standardized marketing strategies and campaigns across markets, countries, and societies is referred to as a global standardization strategy.
Global standardization saves money by requiring less advertising and fewer campaigns than localization. Localization involves a unique marketing strategy for each region.
The trick, though, is determining whether a global standardization strategy will be successful. It relies on a universal appeal despite cultural or geographic variabilities. You’ll need to investigate how customers perceive your items depending on their market.
A globally standardized approach is workable if:
- There is no significant difference in usage
- The perception doesn’t vary from country to country.
Developing a robust global marketing strategy needs a decision, localization, or global standardization.
Globalization Marketing Examples
We’ve put together a list of brands with the best marketing strategies. These brands understand it. Provides an insight into what a successful global marketing strategy looks like.
These companies are making efforts to establish a solid presence around the globe. They have changed their social strategies. They translate languages and alter their menus to cater to the needs of diverse groups.
Check out these globalization examples of successful companies from different sectors and industries. The marketing approach of these brands can give you ideas to create your international marketing strategy. It can also help you to increase your company’s brand awareness.
Sector(s): Communication Services
As a marketer looking for ideas about going global, you can learn from Netflix’s global marketing strategy.
Netflix has captivated us all, drawing us in one episode after another. Still, the streaming television phenomenon is much more than binge-worthy episodes.
Netflix’s marketing strategy emphasizes innovation and cutting-edge technology, and it has paid dividends. The company’s massive global marketing highlights the importance of language and cultural connections. Within a worldwide infrastructure, Netflix commissions local productions.
Netflix has become the go-to site for anyone looking for a new title that’s making waves across the world. The material is in the local language and shot in their own country with local actors and crew.
Sector(s): Communication Services
Industry: Internet Content and Information
Airbnb, more than any other brand, exemplifies disruptive innovation. This home-sharing service has made accommodation more available and affordable than ever before.
Travelers worldwide use it, allowing them to ‘belong anywhere,’ as its slogan says.
Ever since its start in 2008, Airbnb has introduced massive innovation to the global tourism sector. It has changed the notion of traditional accommodation and holiday experiences for millions of people.
Over 2 million visitors stay in an Airbnb property on any given night. The company’s meteoric rise has been fueled by a well-thought-out marketing strategy. It cultivates an inclusive community of guests and hosts through creative digital marketing.
Airbnb has a digital core. Yet, the brand’s massive advertising budget also supports offline and outdoor promotion. The mixed-media delivery of its major campaigns has proven to be successful. Three million people all across the globe created content and connected with the site. The movement is its “One Less Stranger” campaign.
Industry: Video Sharing
ByteDance, the Beijing-based founder of the widely popular 15-second video app TikTok, is one of the fastest-growing digital firms. With over 1 billion downloads in 150 regions and 75 languages in just two years, TikTok has become a competitor to YouTube, Snapchat, Netflix and Facebook.
Chinese entrepreneurs like ByteDance founder Zhang Yiming are proving that they can flourish in a global market, rather than only in China, where the Great Firewall censors the internet and restricts access to numerous American social media sites. His method of creating two versions of Tik Tok, one for China’s regulated internet market and the other for the rest of the world, might serve as a model for other digital content firms seeking a worldwide appeal.
Despite various barriers, ByteDance is constructing an empire of applications for a new generation and pushing the boundaries of traditional digital entertainment.
If ByteDance can continue to accomplish its objective of creating a borderless organization with game-changing innovations, it may lead to the formation of more borderless companies and encourage other developing market tech pioneers to branch out as well. In the end, this tendency will result in a broader selection of digital services for consumers and businesses throughout the world.
Uber is a forerunner of both ridesharing platforms and the notion of on-demand markets, making it one of the major inventions of the twenty-first century. Uber’s diverse marketing approach, in addition to its technological achievements, was a critical contribution to its enormous success. Any marketer would be prudent to research Uber’s marketing approach to learn how the firm grew from the ground up.
Uber, like other companies, had to strike a balance between satisfying fast-paced expansion expectations and meticulously managing such a high-risk operation. Uber’s worldwide expansion was built on a locale-by-locale strategy, which is the only way to go.
No matter how much money you have, you won’t be able to go everywhere at the same time. Every location necessitates in-depth study and a rethinking of the brand and product. Every place is a test, and each location offers a lesson, just like it did at Uber.
There are numerous elements of Uber’s business model that companies should consider. One of them is the company’s ability to localize its brand and product successfully.
When Uber moved to a new country, the app’s user experience had to be adjusted to match the demands of local users while maintaining the Uber brand’s identity. The consumer needed to recognize the brand and what it stood for. Therefore the design had to be consistent across the board. However, it had to allow for changes to make the brand seem more personalized and make the app simple to use.
What can we learn from Uber’s International Expansion?
- Localization is critical for both usability and branding. In these areas, international marketing services and a localization specialist may be invaluable partners.
- Local regulations are not optional. Become informed of them and figure out how to meet them in the best manner possible. Legal issues briefly harmed Uber’s international performance, but identical issues might bankrupt a firm without Uber’s vast finances.
- Tailor to the local market and keep an eye on your rivals. Be practical and devise a strategy to maximize what you have.
Sector(s): Consumer Cyclical
Industry: Auto Manufacturers
Tesla, Inc is a company that designs, produces, and sells electric automobiles and energy storage systems. Tesla, founded in 2003 by Elon Musk, CEO, provides renewable energy generation, storage, and consumption technologies with the mission of accelerating the world’s transition to sustainable energy.
What makes Tesla a marketing success on a global scale?
Tesla entered three important international customer categories with a standardized product offering.
- The high-end sports cars are a very small sector targeted by Tesla’s first Model, the Tesla Roadster, whose manufacturing ended in 2012.
- Second, the luxury car and SUV market, which Tesla plans to target with the Model S and Model X, is a more competitive area with larger sales potential.
- Finally, the mainstream car consumer sector enables mass vehicle manufacturing, designated as Tesla’s next step, with Model 3 production started in the second quarter of 2017.
Since these market sectors are transnationally homogeneous, Tesla is under less pressure to respond locally and offer a standardized product with minimal differences across countries.
Tesla’s market segmentation reveals the company’s high-end disruptive innovation strategy, in which it first infiltrated the higher end of the automotive industry, where buyers are prepared to pay a premium before dropping prices to create a wider audience with a large unit volume.
Due to the low demands on Tesla’s local responsiveness, the business has been able to standardize its products and, as a result, focus on lowering customer switching costs.
Furthermore, Tesla’s channel length is reduced through direct-to-consumer distribution, which is made possible by its extensive online presence. The latter has built a worldwide customer-centric supply chain that allows Tesla automobiles to be mass customized. Because most purchases are now made online, this presence has a high level of consumer involvement.
Ingvar Kamprad started IKEA in the year 1943. Since his boyhood, the entrepreneur maintained a business-oriented attitude. He put in a lot of effort when he first started IKEA and started selling furniture.
IKEA stores began to spring up all over the world, and the company’s products became extremely popular. IKEA’s global marketing strategy allowed it to reach millions of individuals, transforming the company into a success story.
IKEA emphasizes its international marketing approach by the low costs it offers, as well as reasonable quality standards, which allows it to reach out to the global middle class. The company’s approach is largely focused on Guerilla Marketing.
IKEA, for example, puts a focus on giving customers an experience before they purchase goods. IKEA’s catalogue app, “Place in your room,” allows customers to check out goods in their own homes.
IKEA aspires to improve the lives of many people throughout the world. They strive toward this objective by concentrating on the people’s “affordability factor” so that the masses can maintain a reasonable quality of living. Their mission isn’t limited to making high-quality furniture; it also includes improving the quality of life for the common people. IKEA strives to improve every day cost-effectively and efficiently.
IKEA’s global marketing approach has become a model for other companies across the world. The company has been able to maintain a large client base because of the approach. It is based on consumer feedback and their average perceptions of a product, ingrained in its work structure.
Furthermore, the organization’s emphasis on price and quality retains existing consumers while attracting new ones, resulting in a larger customer base.
What Should Be Avoided in Global Marketing?
Setting up a global marketing plan is a daunting task for most businesses. There’s a lot that can go wrong and a lot that will go wrong.
Even after you’ve made a successful push, you need to keep on top of your game. So, you can put in place some corrective practices to avoid some of the difficulties.
Undefined Goals & Objectives
The world is a massive place. It’s also jam-packed with people. Many C-level and marketing executives may discuss their desire to “expand into Europe” or “earn a market share in Asia.”
This is the most common mistake made by companies. It’s vital to mitigate the problem.
With more than 4.6 billion people, Asia is the world’s most populated continent. It is made up of more than 50 countries and thousands of languages. Japanese is different from Chinese, which is different from Hindi or Urdu.
Marketers who group these countries in a single category are not doing it wrong. It is almost suicidal to make a single market country for Asia.
The nature of international marketing strategy is different. At the local level, customers always identify themselves. That is something that marketing professionals should be aware of. They can use it to define the goal and objectives of their company.
Sales and Marketing Channels Aren’t Evolving
The people and the processes are required to transfer product ownership from production to the point of consumption. They all come under the marketing channels.
Sales and marketing channels vary by region. It includes the distribution of products to the delivery of content. Facebook has a massive presence in Indonesia, making it an attractive distribution route. E-commerce isn’t used there, and that’s the problem.
So, the channels for Indonesia include online content distribution and offline product distribution.
Every region requires a unique channel strategy. Take, for instance, customer service. If your target market prefers live chat, what’s the sense of having a comprehensive email support channel?
No Change in Product Offerings
Your product can be a huge success in the local market. And yet, it may not have the same success in global markets. Companies try to wing it. They introduce the same product in different markets and adjust it based on the feedback.
For a variety of reasons, products fail to function. The product may be too sophisticated for emerging economies. You may need to start with a simplified version of your services. You can devote some effort to adding new features. Price parity is another issue that businesses grapple with. Adopt and adapt to the market needs.
Little Emphasis on Internal Information
Your company’s structure becomes more defined and uncompromising as it grows larger. The more complex the chain, the bigger the animal. On-their-feet marketing has always been a challenge for companies with larger workforces.
As mentioned before, market research is the bedrock of every successful global marketing strategy. Companies use third-party companies to obtain data. To ensure that everyone in the organization is on the same page, you must master the art of data governance.
For global marketers, internal campaign coordination between business units is a challenge. The most effective method is to have customers provide you with the data over time. You’ll need specific data sets regardless of how you get them.
It’s not easy to expand a company into global marketing. It takes a significant amount of preparation, planning, and research. Understanding of Global vs. Regional, Standardization vs. Localization remains an essential part of it. However, owing to digital advancements that allow firms to evaluate customers, where they are situated, and what they buy on a worldwide level, it is easier than ever before.
Transportation innovations also make it easier for businesses to ship goods throughout the world. For firms wanting to expand and provide value, global marketing is the way to go.