Brands identify the product from the rest of the world. Although there may be differences in most parts of the world as to what characteristics of a certain product he or she prefers, a particular brand will always stand out among the rest. This one that has made its value comes across to its target market. The product in question therefore would still require the value-added component, regardless if it is meant to be for national or international consumption. There are four categories that describe a product: a. Local Products – a product that is solely in distribution within a certain region.
For example, the “Anything” and “Whatever” drinks can only be found in Singapore. b. National Products – products that can only be found in a single national market. Some Sony products were produced in Japan but were not available outside the country. c. International Products – these are products that are sold in regional, international areas, but not to the entire world. d. Global Products and Global Brands – these are the products available to the universe, regardless of region or stage of development. A global product is not equivalent to a global brand.
Global products are convertibles, cars, while global brands are BMW or Chevrolet. 12. GLOBAL PRICING As a business entity, the main driver and goal of the company is profitability amongst all reasons. This is the win-win situation. Therefore, the pricing strategy in the marketing mix of a product is very crucial. It is a determinant factor of absorbing costs of R&D and production, and at the same time, setting of appeal to the target market. The pricing scheme should be able to address these without compromise. Three alternative approaches for global pricing can be used to remain cost-efficient and competitive:
a. Market Skimming – this approach reaches a niche market at first, who are willing to pay extra. Companies using this method must be able to create a high-value product. As soon as the reputation for high-product value has already been established, the company has reached its goal of strong branding & product awareness. b. Penetration Pricing – this scheme is quite risky for new players in the market, as this strategy uses prices (drops excessively) as a means to attain market leadership. Costs will be over and beyond the returns for a certain period of time.
The losses in turn should be countered with a new marketing strategy when the aimed position is obtained. This is highly recommended for those who aspire for global leadership. It should be noted however the ramifications on their revenue generation. c. Market Holding – this is a reactive form of pricing in reference with the company’s competitors. This is a safe approach especially to those who wants to maintain their market share. 13. FACTORS IN CHANNEL STRUCTURES & STRATEGIES Global competition and sustainability may indeed pose several difficulties and challenges to the company.
Marketing research may likely indicate the presence of the existing players in the industry, which are always on the lookout for new entrants. It is therefore important that effective and established channels are identified and utilized when penetrating the market. Incentivizing them to promote and distribute the company’s product may be one way. But one should also keep in mind that the incentive has to be substantial for a channel to leverage on a new player versus those of the existing market leaders. Another channel can be the direct sales force.
Although it is proven to be more expensive, this one is the most effective form. An investment on training and more R&D is needed. In this manner, the company is able to focus their resources on a strong potential market, and capturing them for brand building. 14. BENEFITS FROM GLOBAL BRAND & ADVERTISING Once a product is out in the market, the next step is to communicate its presence and value effectively. This is the main job of advertising, where a unique mix of messages, photos, testimonials, graphics, and videos are in place.
For a company to be able to create a global advertising is indicative of how strong and how imperative the product is to the market. The global advertising will be aligned with the global strategies of the product, as the messages to be sent across should reflect what the product is for and what needs does it address. The personal and psychological aspect of the product is discreetly being dealt with. With a strong global advertising, the company, the products are both in good hands, no matter what market they pursue. Consumers feel that the product is one with them, and that it goes across geographical and cultural borders.
15. SALES PROMOTION This refers to any entity or institution being able to add a tangible value to the product. Across the globe, this may vary accordingly: promotional schemes, raffle promotions, games, merchandising materials, the list goes on. Basically, what the promotional scheme is trying to do is to enable consumers to give the new product a try and perhaps simultaneously, purchase it at a discounted rate. Again, keep in mind the value equation, if consumers find the value of the product accompanied with a good & reasonable price, the probability of purchase is almost one hundred percent.
This may be a huge draw to consumers, but conducting promos should always be taken with careful review and consideration, given the increase in the company’s accountability in terms of costs and quality of the product. Global Marketing will continue to grow and improve over time. Globalization is on the rise and everyone in the loop is affected. Global markets will consequently grow in number and the quest to become market leaders will always be the driving force of most companies. But in totality, we can still reiterate the fact, that knowledge is indeed power.
How one manages this powerful tool to create a win-win situation should be carefully carried out. Global markets are constantly changing and a simple miscommunication, and improper delivery of required demand may hamper the company’s growth. There will always be the competition, and as a player, it is a corporate etiquette despite profit-driven goals, to always be the first to ensure that there exists a healthy competition. Source Keegan, W. 2002.
Global marketing management. Prentice Hall: New Jersey.