The world already tends towards a globalization of spirit, of culture and … Today, thanks to the Internet, people know about certain products or services even if they are not currently present in their countries; you can observe whether there is a gap in the market somewhere and go to fill it, knowing that your customers are already lined up. Those products which are produced in one country but sold in other countries under the same brand name are called International products or global products. Global brand recognition is another advantage. The better you promote your product, the bigger the chances of success. One of the main advantages of global products is the achievement of economies of scale on the basis of production, i.e., it becomes easier and the per unit cost required to produce the product decreases, as the number increases. When goods are produced in bulk, the cost of manufacturing per unit product reduces. This an effective cost-cutting measure. Here are a few of them: 1. The technology, infrastructure, and communications have developed so much that it is no longer impossible or that difficult to open up to new business markets. Perhaps you can keep parts of the packaging, but the way you advertise has to be different; although you’re selling the same product, how you present it can be totally different from country to country. What Is the Essential Equipment You Need to Start a Butchery? Moreover, you can easily see how people react to similar products, or what marketing strategies function with them. Global marketing strategy is not important just because it brings your company more money and recognition, but also because it can save the company money in those places where advertising or packaging are standardized. A manager should also consider the upcoming business trends. 3. Positioning a global product is a complex task. AllBusinessIdeas.Net © 2020 All Rights Reserved! 4 tips on choosing the best logistics provider for your business. It doesn’t matter if you have to change things drastically for each country; be glad that you have the tools and resources to adapt. On the other hands, there are domestic products which are produced and sold in the same country or region. The first thing that you need to understand about it is that it definitely is not something standardized; you need to ply your product for the consumers, you need to adapt the product itself, or the way it is promoted. The promotion & global marketing strategies that are used for such products should ideally remain more or less similar across all regions. Economies of Scope- When brands produce different kinds of products (which is required to capture international markets), the overall cost is lower than what they would bear if the products are produced separately. India imports Apple products. All you need is for your product to be valuable, for it to be demanded; or you can create demand for it, and that could be part of your global marketing strategy. The Importance of Global Marketing Strategy. Nowadays, for many businesses, expanding means going global; it means managing to bring your products or services to more and more target markets around the world. The world already tends towards a globalization of spirit, of culture and ideas, and getting globalized products and services is just a natural step. Different Government rules and regulations in different countries also may force these companies to slightly tweak the features of the global product. Increased brand awareness and reputation. Foreign companies face serious competition from local players in terms of price. Basically, when a firm sells the same products to the global market, then it is known as Global marketing. Your global marketing strategy is only an aspect of your global strategy, and it has to take into consideration several details, such as research and development, finances, market trends, surveys and so on. Economies of scope can also be achieved. Huge capital requirement- Expansion requires building capacity and drawing huge sum of investments. Learn everything you can about each target and see what they respond to; that way you’ll be able to adopt an appropriate position and become “familiar” with your new customers. New revenue opportunities.This is probably the biggest driver of global expansion. If a global marketing strategy is implemented correctly, it can have many benefits for a business. Expanding globally can naturally increase awareness of your brand. The legal regulations and financial condition may need tweaking with the product features and marketing accordingly. Global brand recognition- Firms, as they grow in popularity in the domestic market, tend to diversify and expand. Furthermore, a global approach is not always suitable for any business. This is because separate product lines use much of the same resources. First of all, you have to define your goals; think of what you are trying to achieve by going global, about the challenges and difficulties you face with a new market, or the competitors you may or may not have. 2. This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. However, in order to be successful in this endeavor, you need to have a global marketing strategy. Quizzes test your expertise in business and Skill tests evaluate your management traits. Some challenges faced by companies in driving global products are: 1. Some benefits of international products for a business are: 1. 2. Positioning a global product is a complex task.
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