GLOBAL MARKETING
Question 1
What is global marketing?
Global marketing is the process of realigning a company’s promotional strategies to adapt to set conditions in its operational markets. As such, a wide range of information is provided to business executives to help them incorporate decision making vital for an organization’s success from a global perspective. Therefore, global marketing articulates that a business engages in diverse activities than merely selling products and services from a global perspective (Lewis, 2018). However, big businesses tend to have a strong marketing presence globally, thus increasing their market share to increase their revenue margins (Wei & Yazdanifard, 2014). The term global marketing has been years for years being a subcategory of international promotion due to its significance in contemporary society.
Pattern advertising is a technique in global advertising
Pattern advertising is a combination of standardization and adaptation with the latter being used in the middle. As such, pattern advertising is thereby produced as a standardized version draft which requires marketers and producers to adopt distinct elements utilized to fulfil customers’ market needs (Content Marketing, 2018, pp.1). Therefore, managers have to standardize their products if they have to market in different countries based on the customers market needs. So, managers are allowed to utilize similar marketing strategies in two or more different places to ensure the products meet the minimum requirements despite geographical disparities (Lewis, 2018). Consequently, pattern advertising tends to be between 100% standardization and adaptation to ensure marketing managers develop unique elements vital in meeting the needs of the target market. For instance, companies such as Coca-Cola uses pattern advertising through a strong standardization approach which makes local adjustments based on its country of operation.
Therefore, pattern advertising has been utilized as a technique in global marketing based on its dominant visuals elements. Some of the visual elements used by pattern advertising in global marketing include alluring shapes, colour, and texture, which form the basic building block in international promotions. The visual elements must possess strong relationships with each other to raise its promotional levels. However, each of the elements must be used differently to stress on the importance of the adopted marketing campaign, thus governing a company’s target market (Lewis, 2018). Besides, pattern advertising is utilized as a global marketing technique based on the campaigns brand signature and slogan, thus fostering organizational efficiency while marketing a firm’s products and services. The promotional initiatives adopted by pattern advertising are thus crucial in achieving set market goals, thus achieving sustainability into the future (Wei & Yazdanifard, 2014).
The Z pattern advertising is mostly used by marketers to influence target viewers towards focusing on intended information. As such, good designing techniques are utilized and aligns to how individual’s view and process information from online databases (Hieu & Truong, 2010, pp. 240). Z pattern advertising has been used as a critical global marketing technique in developing the most noticeable elements that need to be visually captured, thus influencing customers decisions positively (Content Marketing, 2018, pp.1). Consequently, a strong layout is developed and addresses core requirements for an effective site based on branding hierarchy and structures utilized in global marketing. Nevertheless, Z pattern advertising has not been approved as the best approach in global marketing since different market prefers diverse designs to meet the needs of its customers. So, the marketing approach has to provide its products and service based on the needs, laws, and culture in the country of operation.
Pattern advertising technique in managing the standardization-adaptation tension
Pattern advertising technique has been used in global marketing to manage tensions exhibited in standardization-adaptation pressures. “Meet me halfway” is a good example of the pattern advertising campaign in Singapore, which was developed to celebrate the modern generation of Chinese women. The women are celebrated since they undertook different paths in life contrary to their parents and later being ended up being successful. The pattern advertising addresses tensions currently experienced in standardization and adaptation of different lifestyles in Singapore, thus absolute critical in evaluating individual persona (Hatzithomas, Fotiadis & Coudounaris, 2016, pp. 1099). As such, the advertising technique was used in a manner which helped personalize its brand’s message towards empowering Chinese women in the large Southeast Asia region. The campaign’s approach was successful in addressing problems faced in addressing the needs of different women age groups to achieve stability in the contemporary society.
As such, the pattern advertising technique in global marketing addresses standardization-adaptation tensions by integrating globalization influences towards fostering international trade. So, the technique is vital determining the best-suited decisions which work best for distinct international marketing campaigns adopted by different organization in fostering their portfolio (Virvilaite, Seinauskiene & Sestokiene, 2011, pp. 4). Based on program perspective marketing approaches, the technique is used to separate market mix elements towards fostering a firm’s ability to meet international market standards. Therefore, the advertising technique enables a company to outline internal and external factors based on their impact on the adopted promotional campaign to achieve the needs of the target market. Hence, the technique provides a detailed analysis of the organizational factors which would be aligned to achieve marketing efficiency. Also, it is possible to develop best-suited marketing strategies needed to standardize and adapt products based on market needs.
Besides, the global marketing technique addresses the continuous pressure placed on service providers towards improving organizational transactional efficiency from an international perspective. As such, the technique is crucial in the provision of specialized services and partnerships needed to develop a competent outsourcing strategy (Hatzithomas, Fotiadis & Coudounaris, 2016, pp. 1101). As such, the technique ensures that service providers address inherent tensions experienced while carrying out their duties such as customizing and adapting their services based on market characteristics. For instance, prices would be standardized in different countries to develop high client loyalty levels. In such a scenario, it is easy to provide long-lasting solutions to paradoxical situations which arise due to standardization and adaption tension in international markets (Virvilaite, Seinauskiene & Sestokiene, 2011, pp. 3). For example, spatial separation is utilized by the global marketing technique to address concerns from the different levels of operation, such as individual, micro, and macro portfolio. The technique addresses global marketing problems from a company’s financial perspective as outlined a firm’s business life cycle.
Finally, the technique addresses the market tensions by developing competent links between standardization and adaptation decisions in governing international marketing strategies. So, company performance is addressed as one of the most important aspects that helps achieve organizational efficiency (Virvilaite, Seinauskiene & Sestokiene, 2011). As a result, standardized decisions are developed to achieve a positive impact on the company’s performance and sustainability into the future. So, strategy formations are developed to measure performance outcomes to help minimize tensions between standardization and adaptation in global marketing. Company performance is, therefore perceived as an antecedent to adaptation and standardization decisions required to develop a strong international marketing strategic approach. Thus, the technique helps develop direct links between standardization/adaptation variables to improve the company’s performance from a global perspective (Hieu & Truong, 2010, pp. 242). Evaluating a company’s performance is critical in fostering a firm’s commitment towards meeting set market goals based on stipulated promotional strategies. Performance improvement helps an organization meet its set goals and objectives within the stipulated timeline, thus achieving long-term sustainability in the market.
Question 2
Global marketers use different marketing expansion strategies such as product standardization to improve quality and enhance customer preferences. As such, product standardization proves critical in reducing cost, thus enhancing a firm’s sustainability despite increased competition in the labour markets. On the other hand, global marketing utilizes market entry strategies such as licensing, partnering and direct exporting to enter new markets and develop a strong presence (Agosin, Alvarez & Bravo‐Ortega, 2012). The market entry strategies analyze available market opportunities, and device means to exploit them based on the firm’s internal capabilities. However, businesses tend to low strategic risk approaches during the initial investment period to ascertain the market’s viability to achieve growth (Chollete, Pena & Lu, 2011). Consequently, the approaches mentioned earlier have proved vital in helping businesses develop a competitive edge in the market.
Difference between concentration and diversification approaches
The diversification approach is supported by the finance theory hence beneficial if the firm’s portfolio is greatly diversified. As such, the diversification approach helps curtail volatility presented by available investment options. Therefore, stocks available in the same operational sector have high correlation degrees though firms operating in diverse sectors have low correlation levels (USnews, 2020). Besides, the approach is well documented and helps to strategically allocate resources in diverse investment portfolios, thus pooling its risks. However, there is no guarantee that the diversification approach would increase a company’s performance and protect the business from incurring losses. So, diversification approach is not concerned with the individual performance of individual stock but articulates the overall firm’s results.
A firm is likely to utilize the diversification approach if it plans to increase profitability, thus achieving high sales volume. The approach can be implemented in the corporate and business levels in a company to achieve greater sustainability (Chollete, Pena & Lu, 2011, pp. 404). Besides, the approach can be utilized if a firm aims at expanding into new market segments in the industry already in operation. In other cases, the approach would be used to expand into a scope that hosts a current unit within the business’s portfolio. Therefore, an organization has to follow the four main growth strategies as outlined by Ansoff’s market matrix.
On the other hand, the concentration approach differs from the diversification perspective since it entails the purchase of small stocks. Hence, an investor with high concentration levels is closer to reaching the broadened market performance. Consequently, investors are aware of the company’s portfolio to minimize loopholes leading to investment losses (Buriankova, 2016). Besides, correlation approaches do not mind the firm’s correlation levels but are concerned about the quality of the services provided by the firm. As such, the approach ensures that companies dedicate time towards improving their overall organizational competence.
Concentration approach would be utilized by small firms which need to gain a larger market share and cut down their operational costs to achieve market growth. Hence, the approach is viable for small firms which seek to account for a huge percentage of its total market. Thus, the concentration approach is used as a measure of its dominant sales in a particular market to exemplify a company’s ability to grow and capture new markets (USnews, 2020). The strategic approach is key in expanding potential markets to achieve stipulated growth and development despite barriers posed by high competition levels. So, the approach is capable of aligning a firm’s internal factors to achieve set goals and objectives in the market.
Difference between waterfall and shower approach
A shower strategy is a simultaneous approach which articulates for a short time to reach different markets. As such, the approach slowly analyzes the different advantages held by distinct countries it projects to enter its markets. Based on the approach’s findings, some countries are easier to enter its markets than others due to legal and cultural factors. The strategy is complex since it is difficult to create branches which would generate successful and short product cycles. On the other hand, the waterfall strategy allows firms to take advantage of gradual changes and development in their markets (Agosin, Alvarez & Bravo‐Ortega, 2012, pp. 301). The approach is applicable to small firms have limited resources to cater to its markets simultaneously. As such, the company’s products are first introduced in the firm’s home markets then advanced to external time as time passes. The introductory phase helps a company evaluate viable places that the product would thrive with minimal external market forces.
A company is likely to use the waterfall approach if it has limited resources which would inhibit the internalization process and achievement of set global marketing goals. Thus, the approach is utilized if a firm would use a phased manner to govern its target markets (Buriankova, 2016). Also, the approach is used whenever a company needs to reduce the risk in each market segment due to its limited resources. On the other hand, a company is likely to use shower strategy if it requires a simultaneous market entrance. So, a firm requiring market entry within a short timespan should use the approach since it helps speed up a firm’s set up in new markets. Consequently, the strategy helps achieve a successful market entrance due to its ability to carry out long and comprehensive research of its target market. Finally, a company wishing to create barriers for its competitors should use the approach since it helps develop a strong image profile relative to its rivals.
Exporting entry mode
Exporting involves the sales of a company’s products and services in foreign markets and sourced from the home nation. As such, exporting has developed as the most common and effective approach to enter international markets. The market entry mode is advantageous since it is fast and involves low-risk ventures (EntryModes, 2016, pp.1). Thus, a company is capable of expanding its markets through increased production. As a result, a firm is capable of utilizing economies of scale to achieve huge revenue and profit margins. However, the market entry mode is disadvantageous since negative environmental impact would hugely impact on the company’s operations in foreign markets. Also, a company would have low control of its operations hence resulting in a significant market loss. Finally, a company that uses exporting entry mode has low knowledge of local culture, thus inhibiting its ability to grow.
Wholly owned subsidiary entry mode
The wholly-owned subsidiary is a market entry strategy used by firms seeking to have a direct operating system in foreign markets. As such, the firm is required to establish its company from scratch, or it can buy an existing company in the foreign market. High commitment levels are required since the international markets pose a wide range of risks such as political, financial, and economic (EntryModes, 2016, pp.1). The advantages for the market entry mode include its ability to gain an insight into the local knowledge. Also, the company would achieve maximum control of its operations, thus managing its portfolio in the best possible manner. However, the strategy is disadvantageous since it involves high operational cost thus inappropriate for small companies (Hieu & Truong, 2010). Finally, the approach involves high risks due to the unknown and the changing market portfolio in foreign nations. Hence, there is a possibility of slow entry due to time accrued while aligning to laws in foreign countries.
References
Agosin, M.R., Alvarez, R. and Bravo‐Ortega, C., 2012. Determinants of export diversification around the world: 1962–2000. The World Economy, 35(3), pp.295-315. Link: https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1467-9701.2011.01395.x
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Le Hieu, H. and Truong, Q., 2010. Internationalization and its impacts on the standardization/adaptation mode of operations: a study of two Italian firms in Vietnam. Asia Pacific Business Review, 16(1-2), pp.239-257. Link: https://www.tandfonline.com/doi/abs/10.1080/13602380802697111
Lewis, M.O., 2018. Managing the Tension between Standardization and Customization in IT-enabled Service Provisioning: A Sensemaking Perspective. Link: https://scholarworks.gsu.edu/cis_diss/24/
USnews.com, 2020. Diversified Strategy Versus Concentrated Strategy — Which Is Best For You? | WTOP. [online] WTOP. Available at: <https://wtop.com/news/2020/06/diversified-strategy-versus-concentrated-strategy-which-is-best-for-you/> [Accessed 23 June 2020].
Virvilaite, R., Seinauskiene, B. and Sestokiene, G., 2011. The link between standardization/adaptation of international marketing strategy and company performance. Engineering economics, 22(1). Link: http://www.inzeko.ktu.lt/index.php/EE/article/view/11748
Wei, S.Y.P. and Yazdanifard, R., 2014. Comparison of the impact of standardization and adaptation on international marketing. Global Journal of Management and Business Research. Link: http://journalofbusiness.org/index.php/GJMBR/article/view/1430
