Global marketing strategy is a vital 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 and transportation breakthroughs. This new 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. As a result, they can gain more customers with appropriate budgets and marketing creativity.
However, 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. In addition, it helps in converting leads into clients.
This post will cover everything there is to know about global marketing strategy. However, we will first review the basics.
What is Global Marketing?
The act of centering a product on the potential customer’s needs is global marketing. Keep in mind that the customers are international.
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.
A global marketing strategy often requires a company to:
- Conduct new market research.
- Identify areas where the company’s product may be successful.
- Localize 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.
However, localization is not always required. Instead, some businesses go for global marketing standardization.
What Are the Benefits of Global Marketing?
Global marketing has several benefits if executed properly. Here are some benefits:
- 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 on scale with other markets. It also helps 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 that is looking to expand.
When entering global markets, a company must consider a few things. How it would handle marketing, PR, channels, and more. These countries have diverse values, traditions, and languages.
For example, suppose you’re a Western corporation attempting to sell products in Asia. In this case, you will 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, many companies do 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 are called Hungry Jack ever since.
Global Marketing Strategies
The digital revolution is becoming an essential element of a global marketing strategy. Where you invest your cash and effort now depends on the demographics and location. Owned, paid, and earned promotional channels compromise 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, they sell poutine in Canada and Crock Brie in Italy. That is 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 you offer your services?
- 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 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, however, 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. This will help provide insight into what a successful global marketing strategy looks like.
These companies are making great efforts to establish a solid presence around the globe. They have changed their social strategies. They even translate languages and alter their menus to cater to the needs of diverse groups.
In addition, 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 a lot 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 the local country with native 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.
Worldwide travelers use it, allowing the homes to ‘belong anywhere,’ as Airbnb’s slogan says.
Ever since its foundation 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.
Sector(s): Consumer Cyclical
Industry: Footwear & Accessories
Nike is an athletic apparel, footwear, and equipment corporation based in the United States. Creative innovation is at the heart of international marketing strategies. It is a decisive advantage for a brand to keep dominance over competitors.
Phil Knight believed that using manufacturing plants in regions other than the United States would benefit the firm. The idea was that the labor costs would be less expensive. The manufacturing factories were relocated to Indonesia and China. Athletic footwear, apparel, equipment are now produced in over 700 factories across 42 nations, with none of the factories being owned by Nike. Instead, all production processes are outsourced, which is much more cost-effective.
Nike has developed itself as a famous worldwide brand through sponsorships based on the popular sport in various nations. Soccer players like Cristiano Ronaldo are the most well-paid sponsors in Europe, being that soccers most popular in Europe. However, in the US, basketball players are more likely to receive the top sponsorships.
NikeID’s co-creation platform is another strategy employed to connect to global markets. Nike provides customized items that match diverse cultural tastes and trends. They are doing so by placing the power of design in the hands of the user.
Sector(s): Consumer Cyclical
McDonald‘s is among the largest fast-food restaurant franchise in the world. They own and manage 32,000+ restaurants that serve over 60 million+ people every day. McDonald’s franchise model is the cornerstone to their rapid and successful global development.
McDonald’s realized that the international market required a high level of local responsiveness. They needed to manage operations across several countries. Hence, they changed their strategy to a “Transnational Strategy.”
The value chain is built with the cultural, legal, and economic contexts of the region in mind. Understanding the difference between Global vs Regional marketing remains essential. That is why “Think Global, Act Local” worked for McDonald’s.
McDonald’s tailored its business approach to the local demands to be successful. They developed a regional strategy when they began expanding in Asian countries being that the culture of these countries is quite different from that of the Western world.
McDonald’s used product localization and innovation based on local tastes and demands. Here are a few examples of regional marketing:
- Herb Peterson, a McDonald’s franchisee, invented the “Egg McMuffin” in 1973.
- The McFlurry, in 1997, was created by a Canadian franchisee.
- In India, McDonald’s uses chicken instead of red meat due to the traditional view that cows are sacred.
Sector(s): Consumer Defensive
What makes Coca-Cola a marketing success on a global scale?
Coca-Cola knows a thing or two about international marketing success. After all, it is the world’s most recognizable brand. Coke has been around for almost a century. It continues to be a global leader in both product sales and marketing.
Coca-Cola is a perfect example of a company that uses worldwide marketing to its advantage. Coca-Cola, despite its size, concentrates on modest community projects. It devotes a significant amount of time and money to modest charitable efforts.
Here are a few examples,
- Coca-Cola has installed 650 clean water systems in the remote town of Beni Suef in Egypt.
- It supports Ramadan dinners for children around the Middle East.
- The company supports the Support My School campaign in India. The aim is to enhance facilities at local schools.
Coca-Cola’s success is driven by its focus on the brand before the product. Coke doesn’t offer drinks in bottles; instead, it sells “happiness” in bottles.
A worldwide marketing plan focusing on the products would be challenging to maintain. There are thousands of distinct products and packaging designs that change by location. That’s why Coke wants to offer its customers the brand’s experience and lifestyle. For example, they announced a new packaging campaign in which 2 million bottle designs were personalized.
Sector(s): Consumer Defensive
Industry: Household & Personal Products
Colgate has adopted a different strategy over the years. The strategy has helped the company become one of the world’s top and most recognized toothpaste brands. It has chosen to educate consumers. A video demonstrating how your product may benefit them is very positively viewed. This approach may seem straightforward for a toothpaste company, but numerous other companies have also found success through the educational strategy.
Although marketers argue that Colgate has a multi-million-dollar marketing budget and thus can create flashy videos and content, a compelling video can be created on a small budget, as well.
What Should You Avoid in Global Marketing?
Creating a global marketing plan is a daunting task for most businesses. There is a lot of risks involved.
Even after you’ve made a successful push, a company needs to maintain on top of its game. Please consider creating 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 erroneous. To make a single market country for Asia is detrimental.
The nature of international marketing strategies 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 everything from the distribution of products to the delivery of content. Facebook has a massive presence in Indonesia, making it an attractive distribution route. However, E-commerce is not popular there. In consequence, 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 e-mail support channel?
No Change in Product Offerings
Your product can be a massive success in the local market. Yet, it may not have the same success in global markets. Companies often 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. Companies must 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 in order to obtain specific data sets.
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 and standardization vs. localization remains an essential part of global success. However, it is easier than ever before due to digital advancements that allow firms to evaluate customers, where they are situated, and what the buy worldwide.
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.
Xinergy Global is proven to be an expert in global expansion. More than that, we are the key to turning your international expansion plan into reality. Please feel free to contact us today for a free consultation.