New Dynamics in Global Marketing
The world is amuck with many products and services that although of high quality and excellent viability they do not get into consumers’ hands. What makes this phenomenon important is that that the core catalyst to making these products and services successful offerings is marketing! Whether a strategy or technique is first intended for global use and then adapted for local market variations or the idea comes from the home country and then is used in a host country, marketers must know where to look for possible differences between marketing domestically and marketing internationally. Sometimes the differences are great; at other times, there may be few or even no differences.
Marketers must know their markets; develop products or services to satisfy their customers’ needs; price the products or services so that they are readily acceptable in the market; make them available to buyers; and inform would-be customers, persuading them to buy.
To forward these objectives marketing managers must muster more courage to be willing to innovate and design programs to lure prospects from afar. The best marketing leaders have a view which have people centered approach that frames and enhances that perspective. Among the most common mistakes marketers make when they ascend is ignoring the importance of their responsibilities with the chief executive officer (CEO) and building alignment with peers within the C-suite. Chief marketing officers (CMOs) and global brand leaders embrace new quantitative results and transparency on the effectiveness of their programs. (Peng 2014)
In a Wall Street Journal Article, there is a story about how Mongolia’s capital of Ulan Bator, where half the population of the country lives, and where the hillsides are covered by the gers, a kind of yurt or portable dwelling, of 700,000 destitute former nomads. In 1993, a statue of Lenin was removed from the capital’s Sukhbattor Square. This statue has been replaced by a Louis Vuitton store! Because of Mongolia’s vast natural resources and China’s insatiable appetite for raw materials, Mongolia has grown a few thousand people who can afford luxury goods. (Orth, 2011) And that, says Louis Vuitton CEO Yves Carcelle, is enough. “One to two thousand people is all you need. You can’t judge by average income—average does not mean anything. “A few hundred miles south in Beijing, the numbers are much larger scale. British luxury fashion house Burberry is outfitting its stores with digital technology, including customer touchscreens the size of full-length mirrors. China will become the world’s largest market for luxury goods by 2020, and the fashion houses are pouring in. (Burkitt, 2011)
The best global marketing frontrunners are natural global citizens and have been all their lives. They love nothing more than working their charms across borders. They have confidence in in the serendipitous “je ne sais quoi” or “I know not what. . “quality that occurs only when people from various cultures mix and merge. With nonstop acculturation of the masses inspired to consumerism many opportunities will arise around the world. Although the basic functions of domestic and international marketing are the same, the international markets served often differ widely because of the great variations in the uncontrollable environmental forces—sociocultural, resource and environmental, economic and socioeconomic, legal, and financial—that we examined in Section Two. Moreover, even the forces we think of as controllable vary across markets within wide limits. For example, supply channels to which the marketer is accustomed may be unavailable. This is the case in Japan and in China. Certain aspects of the product may need to be different, for a few reasons that range from local taste and appeal preferences to voltage patterns and a multitude of specific issues. Then, too, the promotional mixes often must be dissimilar. Also on practical note marketing should always be boiled down to selling. Selling requires communication and we at gblcenter.org have an assessment program in global marketing that can directly help you with your selling.
Burkitt, Laurie “Burberry Dresses Up China Stores with Digital Strategy,” The Wall Street Journal, April 14, 2011, B9.
Orth, Maureen. (2011, July/August). The luxury frontier; what happens when a country previously hindered by vastness and foreign rule awakens to wealth on its doorstep? with Louis Vuitton on one corner and one of the world's largest gold deposits down the road, the previously nomadic society of Mongolia is putting down some rich roots. WSJ : Magazine pp. 60–67.
Peng, Mike W. (2014). “Global Business” Mason Ohio: Cengage Learning, 3e
Dr. Edward Goold
Edward Goold has taught classes in International Business, Management, Leadership, Entrepreneurship, and Project Management and trained Realtors in real estate courses and helped in training openings for restaurants. He has taught at the undergraduate, graduate level and doctoral level. He launched a real estate career which led him to owning a one-stop shop real estate company. He oversaw agents offering loans, property for sale, business opportunities, property management and commercial multi-unit property sales. In the Hospitality Industry, he did several trainings, apprentice, restaurant management, chef and owned his own wholesale focused catering company. Goold has a doctorate from United States International University with a major in International Business and a minor in Strategic Management. He also obtained a Master’s in Business Administration from Cal State University Long Beach with an emphasis in Management. An inspiration from his love of education, culminated in co-founding the Global Leadership Association where he is Partnering Professor Emeritus, teaching business programs.