Globalization of Business Marketing: Issues and Challenges
Key issues in Global Marketing:
Typically, marketing includes the following activities: –
- Market research.
- Concept & idea generation.
- Product design.
- Prototype development & test marketing
- Choice of brand name
- Selection of packaging material, size and labeling
- Choice of advertising agency
- Development of advertisement copy
- Execution of advertisements
- Recruitment and posting of sales force
- Sales Promotion
- Selection and management of distribution channels.
Some of these activities are agreeable to a uniform global approach. Others involve a great degree of customization.
A global marketing strategy typically evolves over a period of time.
- Decision to enter the market
- The mode of entry.
- To expand across several markets, simultaneously or one at a time.
- Customization of the marketing mix or development of completely new products.
- In the final phase, global companies examine their product portfolio across countries, strive for higher levels of coordination and integration and attempt to strike the right balance between scale efficiencies and local customization.
Entering new markets
While choosing new markets, MNCs need to consider several macro and micro factors.
- Political/regulatory environment,
- Financial/economic environment,
- Socio cultural issues and technological infrastructure.
- Competitive considerations and
- Local infrastructure such as transportation & logistics network
- Availability of mass media for advertising is important.