It is a mistaken belief that ‘what works for me will work for you’. This approach, taken
by companies who sometimes assume that what works in their home country will work in another country. They take the same product,
same advertising campaign, even the same brand names and packaging, and with virtually no chance to try to market it the same
way in another country. The result in many cases is failure. This is because
differences exist between countries and cultures. This is where international and global marketing come in. While many companies
who sell internationally are successful following a standardized marketing strategy, it is a mistake to assume this approach
will work without sufficient research that addresses this question. (Knowthis, 2007).
Many reasons explain why economies today are global. Technological advancements
generate accessibility of products on an international level. Trade has a major role to play in the globalization of products
and companies. Increasingly rapid technology
lifecycles also raises the competition among countries as to who can produce the newest in technology. In order to accommodate
the international and global marketing, countries in the last several decades have taken steps to promote global trade through
agreements such as the General Treaty on Trade and Tariffs, and trade organizations such as the World Trade Organization (WTO),
North American Free Trade Agreement (NAFTA), and the European Union (EU).
Rather than aiming at the domestic market, (as was the earlier practice) focus has shifted to the
world market.
Consumerpsychologist.com states that the International Product Life Cycle suggests that countries
will differ in their timing of the demand for various products. The international and global marketing strategy will have
to be applicable to the country they are sold in. Products tend to be adopted more quickly in the United States and Japan,
for example, so once the demand for a product (say, VCRs) is on the decline in these markets, an increasing market potential
might exist in other countries (e.g., Europe and the rest of Asia). (Consumerpsychologist, 2006)
International and global marketing is a “social process which satisfies consumers' wants. The term includes advertising,
distribution and selling of a product or service. It is also concerned with anticipating the customers' future needs and wants,
often through market research.” In their book, Global Marketing Management—3rd
Edition, 2004, Kotabe and Helsen identify some of the reasons why global and international marketing have acquired
so much popularity. Saturation of Domestic Markets is a major cause for this. For a company
to keep growing, it must increase sales. (Kotabe & Helsen, p.3)
One of the product categories in which international
and global marketing competition has been easy to track is in U.S. automotive sales. Three decades
ago, there were only the big three: General Motors, Ford, and Chrysler. Now, Toyota,
Honda, and Volkswagen are among the most popular manufacturers. Companies are on a global playing field whether they had planned
to be global marketers or not. (Kotabe & Helsen, p.3)
With the proliferation of the Internet and e-commerce if a business is online, it is a global business. With more people
becoming Internet users daily, this market is constantly growing. Customers can come from anywhere. (Kotabe & Helsen,
p.4)
References:
KnowThis.com, Global marketing, 1998. Available at www.knowthis.com/internl.htm
ConsumerPsychologist, The Global Marketplace, Perner, Lars. Available at www.ConsumerPsychologist.com/international.htm
Global Marketing Management—3rd Edition (2004) by Masaaki Kotabe and Kristiaan Helsen
Wikipedia, Global Marketing. Available at http://en.wikipedia.org/wiki/Global_marketing
