Global Marketing
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Introduction
Understanding the market is the most necessary thing for the organization and the market can be domestic, international or global. Organizations need to analyze precisely about the market where they are targeting. If the market is domestic, understanding about the local customer is priority for the organization. Organization needs to emphasize the culture of local. Most of the companies are expanding their industries to abroad when they can manipulate the domestic market well. It is more challenging for the company when they get into the foreign market. The emphasis will be on different culture of different when the organization is international. Organization needs to go through different series of stages to enter international market. International market will be more competitive for the organization and strategies for fulfilling the customer wants will be more variety. Since the organization starts to export its product, it needs different method to set the brand positioning. The stages which are gone through by the company to become global from domestic will be explained detail in this essay step by step and the example will be followed.
The evolution of global marketing
There are several approaches to become global marketing from domestic marketing. When the organizations want to fulfill the demand beyond the domestic market, it needs to set the international trading to grow its market. International business refers to trade internationally and locate its manufacture in foreign country. All the stages which supports to the evolution of the market are set in domestic marketing, export marketing, international country-by-country marketing, multinational region-by-region marketing and global marketing.
Domestic marketing
Domestic market refers to market the product within the country without considering the effects of global competition. Even though there is impact of global competition in the domestic market, organization is focusing only on the local customer segment and local product competition. As long as the organization does not consider about its product globally, there is no way expand the business and it is disadvantage of domestic marketing.
Domestic marketing is the first stage of an approach to marketing for organization and it is focusing on the local market. It is most important stage for the organization before it enters into the foreign market because organization needs to set their products brand well and fulfill the local demand first. The marketing strategies in domestic market are based on the information about the local customers needs and wants. The product of organization can be growth based on the technology and political of the country. All the competitors are mostly local businesses and sometime foreign investors are involved. The strategy of domestic market is trying to pay attention the updated thing such as new technology and products from global market and emerge it in the domestic for a better competition. The example of domestic marketing is like local restaurant in a particular country.
Export marketing
Export marketing is playing as the second stage when the business considers being an international marketing. After organization can handle the domestic market well, there is a shift of business to the boundary of country for exporting its product. This stage is a consequence of domestic marketing and organization is trying to engage with the foreign businesses. When the organization is attending only on the domestic market, there may be a lack of paying attention what customer needs in the future. When the business gets into the foreign market by starting to export, it can improve the strategy for marketing and fulfill domestic customers upcoming demands (Douglas and Craig, 1989).
In the earlier part of this stage, business tries to deal with foreign trader by indirect exporting. When the business can run well in export management, all the key resources will be enough to commit and there will be direct exporting. Export marketers analyze about foreign customers needs like they do in domestic marketing. Business serves the domestic customer with the priority and there is a limited adaption for the foreign customers needs. Super coffee mix product from Malaysia is the example of export marketing. The business is located in Malaysia and it is exporting its product to foreign countries.
International (country-by-country) marketing
This is kind of marketing which is expanded from the export marketing. In this stage, business is adapting foreign customer with the marketing strategy and all the emphasis about the product and promotion are for foreign demand. When the organization has a certain level of demand in foreign market, it starts to establish subsidiary in each country and all of the subsidiaries are running independently and this is also known as multi-domestic marketing.
International marketing stage usually occur when organization want to involve in the marketing environment more than just distributing its products. All of the subsidiaries are developing their sale strategy by analyzing its market situation. The development of the product is now based on the international customers instead of considering only what domestic customer wants. For example, some kind of clothing companies such as Guess and Prada are adapting their product with country marketing. Most of their clothes designs are based on the country weather such as summer costume.
Multinational (region-by-region) marketing
In multinational marketing stage, organization is running its subsidiaries region by region. Organization considers more detail in its product for development, manufacturing and marketing. In this stage, business shed its image based on the country and does acquisition from the region. This stage is upgraded from international marketing stage. The product is delivered from the home country in international marketing stage. In this stage, the products are produced in the countries where the subsidiaries are located. The assets, labors and resources are taken from the host country and it is cost less for the organization compares to the international marketing. There is product strategy development for each country and it is more challenging for the organization. Each country has to seek an appropriate way to serve the customer such as distribution channel, supply chain management and etc. (Cant, Strydom, Jooste &Plessis, 2006). For example, Nike Company has established an industry in Asia and does acquisition. It is cost efficient