Chapter 6 (Global growth)

A Global Brand

When entering an overseas market businesses have the options of:

  • standardising their marketing mix or
  • adapting the marketing mix to the local preferences and market characteristics.

Global branding requires large budgets but the use of technology such as websites and social media can make global campaigns affordable for businesses all sizes.

Benefits of a global brand

  • Consistency
  • Low risk
  • Lower cost
  • Easier to manage
  • Better differentiation

When to go global

Feasibility: the potential of a market

  • the market size
  • competitors in the target market
  • capital requirements to launch and sustain the business
  • considering the experience and expertise of staff and partners

Other factors to consider:

  • Level of consumer demand
  • Consumption patterns
  • Competitor activity

Information can be:

  1. Primary data: research and observation, involve extensive time spent in the target country conducting market research and includes exploiting competitor websites, outlets, patents and pricing
  2. Secondary data: published form and includes government publications, trade shows, media reports, advertising, competitor annual reports and product brochures
  3. Anecdotal data: comes from discussions with suppliers, customers and past employees of competitors

Competitor activity that supports market entry includes:

  • few competitors
  • customers unsatisfied with products on offer
  • products that are easily copied or substituted
  • competitors not offering choice or value for money
  • competitors missing a market need or niche market

Competitor activity that makes it difficult for market entry includes:

  • size, market dominance and wealth of competitors
  • that they’re an established brand that is part of the country’s culture
  • established distribution channels with strong working relationships with suppliers and retailers

Adapting strategies for international markets

A business conducts international market research and is aware of the differences between international markets to devise better marketing strategies. The differences between markets has an impact on the design and implementation of strategies and form the basis of the identification of target markets.

Adapting market strategies increases the costs involved in strategy implementation. It is less expensive to standardise strategies across foreign markets, but treating markets as homogeneous may result in marketing failure.

Approaches to strategy adaption are:

  • Use domestic strategies internationally with no change.
  • Adapt strategies based on generalizations about a region
  • Adapt strategies to countries based on national market research
  • Adapt strategies to regions or target markets in countries based on market research

Elements of the marketing mix

  • Positioning
  • Product features
  • Process
  • People
  • Product name and slogans