Global Marketing Strategies

1846 Words Mar 26th, 2008 8 Pages
Two opposite viewpoints for developing global marketing strategy are commonly expounded. According to one school of thought, marketing is an inherently local problem. Due to cultural and other differences among countries, marketing programs should be tailor-made for each country. The opposing view treats marketing as know-how that can be transferred from country to country. It has been argued that the worldwide marketplace has become so homogenized that multinational corporations can market standardized products and services all over the world with identical strategies, thus lowering their costs and earning higher margins.

Localized Strategy The proponents of localized marketing strategies support their viewpoint based on four
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Nestlé, for example, achieved more than a 60 percent market share in the instant coffee market in Japan but less than 30 percent in the United States. Nestlé had to contend with two strong domestic competitors in the United States, namely General Foods, which markets Maxwell House and other brands, and more recently Procter & Gamble, which markets Folgers and High Point. Nestlé faced relatively weak domestic competitors in Japan. IBM, which is the leading computer company in the world, slipped to third place in the Japanese market behind Fujitsu Ltd. and NEC Corporation in terms of total revenue. Nestlé and IBM must reflect differences in their competitive environments in such marketing choices as pricing, sales force behavior, and advertising.

Standardized Strategy In contrast to the view that marketing strategies must be localized, many scholars and practitioners argue that significant benefits can be achieved through standardization of marketing strategies on a global basis. As a matter of fact, some people recommend an extreme strategy: offering identical products at identical prices through identical distribution channels and supporting these identical products by identical sales and promotional programs throughout the world. Levitt asserts that "commercially, nothing confirms this as much as the success of McDonald 's from the Champs Elysees to the Ginza, of
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