This article will focus on how organizations can position themselves for successful global marketing. When entering the global market, social, economic, political, technological, and institutional factors are added into the equation as multinational corporations develop global marketing strategies. In order to be successful in global marketing, organizations will have to integrate their marketing initiatives into different countries. Given the changes that are occurring in the way business is conducted today, marketing professionals must be prepared to create campaigns that appeal to a global clientele. Global marketing is successful when there is coordination between the marketing policies for different countries and when the marketing equation for different countries can be adapted to the local market.
There is much activity between people, products, and organizations crossing over borders, which has led to the creation and growth of new global market segments. In addition, there are many forces that are transforming markets and changing the way that business is conducted. Factors that influence marketing include the marketing environment, the types of customers, and the competition in the market. When entering the global market, social, economic, political, technological, and institutional factors are added into the equation as multinational corporations develop global marketing strategies.
In most cases, global marketing generally manifests itself in two different phases (Caslione, 2003). The first phase is usually when an organization experiences rapid growth, high sales and high profits. During this period, there tends to be an increased level of competition for limited resources. In addition, customers, suppliers and governments tend to be difficult to work with, and it is hard to develop relationships among these groups. However, "there is a specific infrastructure and unique behavioral mode of collective thinking and actions, which is referred to as the accelerated reactivity phase of globalization" (Caslione, 2003, p. 1).
The second phase occurs when an organization experiences slower economic growth, lower sales and profits, and reduced competition for limited sources. During this period, it is easier to gain access to customers, suppliers and governments. Collaboration between these three groups is positive as all are attempting to find ways to improve the situation. Unlike the first phase, this period is categorized as a "decelerated proactivity phase of globalization due to a different type of infrastructure and behavioral mode dominating" (Caslione, 2003, p. 2).
Caslione (2003) believes that successful marketing professionals will be able to recognize and master the two different phases mentioned above by:
- Measuring results within each country and region;
- Using a combination of marketing communication media;
- Using a globally centered mix of communications, marketing and advertising;
- Building the corporate brand globally, country by country; and
- Appointing an experienced, highly motivated multicultural marketing team.
Marketing professionals will be required to understand the marketing concepts and practices needed to penetrate the political, economic, and social environments of potential markets (Kahle, Marshall & Kropp, 2003). In the era of global marketing, many organizations will be challenged to keep abreast of events effecting the marketing environment if they want to survive (Lin & Kao, 2004). In order to be successful in global marketing, organizations will have to integrate their marketing initiatives into different countries.
Preparing Marketing Professionals
Given the changes that are occurring in the way business is conducted today, marketing professionals must be prepared to create campaigns that appeal to a global clientele. Globalization is reshaping business strategy, especially marketing strategy, and marketing professionals will have to transition from a domestic focus to a global focus (Caslione, 2003). It will be imperative for marketing professionals to become well versed in the profiles of different segments that their organization plans to pursue. Unfortunately, many in the field are not prepared to make the transition. In a study conducted by the Massachusetts Institute of Technology, researchers found that 29% of the organizations surveyed did not have enough global marketing leaders in their organizations, 56% of the organizations believed that they did not have sufficient numbers of global marketing leaders to take their organization to the next level, and 80% were concerned that they lacked the global marketing professionals needed to staff their global marketing initiatives (Caslione, 2003). Therefore, marketers will need to upgrade their skill set in the field in order to be competitive in the market. As the marketing professionals become equipped for the challenge, they will be tasked to deal with the issues that have arisen in the field.
Global Marketing Strategies
Globalization is not a new trend (IMF, 2002). With the prospect of conducting business on a global scale, global marketing professionals should create global strategies that will allow their organizations to reap the benefits instead of getting trapped by the pitfalls. In order to be successful in global marketing, organizations will have to integrate their marketing initiatives into different countries. Reddy and Vyas (2004) created a list of advantages and disadvantages of globalization as it pertains to marketing; information that is beneficial as global marketing professionals continuously improves upon their strategies in order to stay competitive.
- Globalization leads to more economic growth. Economic growth is important to every country because it makes them feel strong, safe and secure. Effective marketing approaches will lead to economic growth. Therefore, marketing is essential for economic growth and development (Reddy, 1996), and a major reason for globalization for multinationals, governments, and United Nation agencies.
- Globalization causes rapid technology transfer. Rapid technology transfers from one country to another are a result of increased globalization. Once there is a transfer of an organization's management and logistic expertise, there is potential for improvement in efficiency and reduction of costs for products and services across the world.
- Globalization is becoming effective as a result of more countries becoming democracies. There were many communist countries seeking a democratic state after the fall of the Soviet Union. In a globalized economy, democratization became easier than in a closed communist world where the information flow is restricted.
- The rapid spread of free enterprise system. Capitalism has been key in the success of the United States and western countries, and many countries desired to pursue their model in order to own and operate business corporations.
- Unification of culture, living norms, and work ethic. Values and work ethics are becoming homogenous as a result of...
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