Global marketing – definition and meaning
Global marketing involves planning, producing, placing, and promoting a business’ products or services in the worldwide market. There is significantly more to global marketing than simply selling goods and services internationally. It is the process of conceptualizing and subsequently conveying a final product or service globally. The company aims to reach the international marketing community.
Global marketing is a specialized skill. If marketing professionals do their job properly, they can catapult their company to the next level.
Several different strategies are possible. Which one to implement depends on the company’s target area. For example, the menu of a fast food restaurant will depend on whether it is in Europe, Asia, Africa, etc.
For companies that produce and sell products and services that have universal demand, global marketing is crucial. Food, smartphones, and cars, for example, have universal demand. In other words, people all over the world want and buy them.
Global marketing is part of marketing. Marketing refers to analyzing the market, finding out what consumers want, and determining whether you can make it at the right price. You then produce it and sell it.
Global marketing – not just large companies
In the past, global marketing was mainly the domain of multinational corporations. Since the emergence of the Internet and e-commerce, even small firms can reach customers across the world.
For example, if you are a small company that makes software, apps, etc., today the world is your oyster.
If your company is in Canada, for example, you can sell to people in the USA, Latin America, Europe, Asia, etc.
As long as you have an online store and credit/debit card payment facilities, you can reach customers globally.
To reach customers abroad, you will need to let them know that you exist. If possible, you should also get others to sell your product on your behalf. You will also need to convince people that your product or service is worth buying. That is where global marketing comes in.
Global marketing – universal demand
Global marketing is especially crucial for products and services that have universal demand. For example, food is a product with universal demand, i.e., everybody needs and buys food.
Insurance is an example of a service with universal demand. Every country in the world has people and businesses and need and buy insurance.
Successful global marketing – an example
Red Bull, the Austrian drinks company, has done a fantastic job with global marketing. In fact, many Americans, Britons, Germans, etc., think it is a local brand.
One of Red Bull’s most successful strategies is to host extreme sports events at several venues across the world.
For example, the company holds the Red Bull Air Race in the UK and the Red Bull Indianapolis Grand Prix in the USA. It also holds the Red Bull Soapbox Race in Jordan.
Red Bull’s powerful event marketing strategy exposes the brand name to people everywhere.
In a Fast Company article – ‘It’s a (Red) Bull Market After All‘ – Harvard Business School professor Nancy F. Koehn writes:
“Red Bull really looks like a product from a global economy. It doesn’t look like a traditional American soft drink – it is not in a 12-ounce can, it’s not sold in a bottle, and it doesn’t have script lettering like Pepsi or Coke. It looks European. That matters!”
Fast food restaurant KFC (Kentucky Fried Chicken) has several very clever strategies. For example, in Japan, it has managed to associate its food with Christmas. Consequently, every year Japanese consumers line up to get the Xmas KFC chicken.
Video – Global marketing mix
In this video, Tine Wade talks about the global marketing mix. In other words, to what extent the marketing mix should be standardized or adapted.