Global marketing strategy and global localisation (glocalisation) - 4.3.1
Global marketing strategy - A product strategy to increase sales through promotion and advertisements to the international market. It focuses on the 4Ps - Price, Place, Promotion and Product - on a range of foreign markets.
Marketing strategy - A process to allow a bsuiness to focus limited resources on the best opportunities to increase sales and thereby achieve a sustainable competitive advantage.
Glocalisation - is the adaptation of a global marketing strategy in order to meet the requirements of local geographic markets. The term is a mix of globalisation and localisation.
MNCs such as Coca-cola and McDonald's use the same global marketing strategies in each market in which they operate, which has the advantage of economies of scale across global markets, called global brands. This would be a transnational corporation approach which is also used by Rolls-Royce cars, Chanel handbags and Tiffany jewellery, all luxury products.
However, businesses increasingly have found that markets are more sophistocated and competition is more intense, so glocalisation has become a preferred approach for many global marketing strategies. An example of a failed global marketing strategy was the launch of Toyota's Fiera car across a number of global markets, including Puerto Rico. Unfortunately, unknown to Toyota, the word translated to "ugly old woman", so the marketing strategy failed and the result was a negative impact on the brand and sales.
Businesses have found that they're more likely to be successful if its global product can meet local requirements and fit in with the customs and religions of the geographic area. Although global companies would love to sell a standard product in a global market, it requires significant investment in market research in order to understand local requirements which may not adhere to what the standard product contains.
The traditional marketing mix or 4Ps is used with the aim of sending an identical message to all countries regarding the product. This may have to be adapted e.g. in terms of language or religion but changes are kept to a minimum in each market.
Marketing strategy - A process to allow a bsuiness to focus limited resources on the best opportunities to increase sales and thereby achieve a sustainable competitive advantage.
Glocalisation - is the adaptation of a global marketing strategy in order to meet the requirements of local geographic markets. The term is a mix of globalisation and localisation.
MNCs such as Coca-cola and McDonald's use the same global marketing strategies in each market in which they operate, which has the advantage of economies of scale across global markets, called global brands. This would be a transnational corporation approach which is also used by Rolls-Royce cars, Chanel handbags and Tiffany jewellery, all luxury products.
However, businesses increasingly have found that markets are more sophistocated and competition is more intense, so glocalisation has become a preferred approach for many global marketing strategies. An example of a failed global marketing strategy was the launch of Toyota's Fiera car across a number of global markets, including Puerto Rico. Unfortunately, unknown to Toyota, the word translated to "ugly old woman", so the marketing strategy failed and the result was a negative impact on the brand and sales.
Businesses have found that they're more likely to be successful if its global product can meet local requirements and fit in with the customs and religions of the geographic area. Although global companies would love to sell a standard product in a global market, it requires significant investment in market research in order to understand local requirements which may not adhere to what the standard product contains.
The traditional marketing mix or 4Ps is used with the aim of sending an identical message to all countries regarding the product. This may have to be adapted e.g. in terms of language or religion but changes are kept to a minimum in each market.
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