Tuesday, January 19, 2010

Global Marketing Strategies

Global Marketing Strategies Other marketing activities also need to be examined carefully for their globalization potential. Dell Computer is a good example of a company which has replicated its direct selling practices across the world. In 1998, Dell generated approximately 31% of its sales in overseas markets. Dell’s sales persons directly target large international accounts. Retail customers can dial toll free one of its call centres in Europe and Asia. A truly global marketing strategy would aim to standardize some elements of the marketing mix across the world, while customizing others. The correct approach would be to identify the various value chain activities within the marketing function and decide which of these can be performed on a global basis and which can be localized. Typically, marketing includes the following activities: - · Market research. · Concept & idea generation. · Product design. · Prototype development & test marketing · Positioning · Choice of brand name · Selection of packaging material, size and labeling · Choice of advertising agency · Development of the advertising script · Execution of advertisements · Recruitment and posting of sales force · Pricing · Promotion · Selection and management of distribution channels. Some of these activities are amenable to a uniform global approach. Others involve a great degree of customization. Within a given activity, parts can be globalized and others performed locally. Product Development Product design & development is an activity where the potential to globalize needs to be examined carefully. A globally standardized product can be made efficiently at a low cost but may end up pleasing few customers. On the other hand, customized products targeted at different markets across the world may be too expensive. The trick, as in the case of other value chain activities is to identify those elements of the product which can be standardized across markets and those which need to be customized.