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TrendsandGlobalmarketing

Ecommerceiscapturingalmostallthegainsinretailsales.
Since 2000, fully threequarters of retail sales growth has occurred through online
channels.Theonlinechannelnowaccountsforabout8percentoftotalretailsales.But
threesectorshavebeenlargelyuntouchedbyecommerce:cars,gasolinestations,and
groceries.Becausethesecategoriesaresignificant,responsibleforalmosthalfoftotal
retail sales, onlines penetration of its addressable market in other words, its
availablepoolofrevenueiscloseto16percent.Anditisexpandingrapidly,atan
annualpaceofabout15percent,wellbeyondthetraditionalretail,GDPlikegrowth
rate.
Insteadofsoundingthedeathknellforbricksandmortarstores,thesteadygrowthof
online sales is breathing new life into the physical stores of some retailers. These
companiesunderstandthatevenasecommercethrives,itisbecomingincreasingly
difficulttodistinguishanonlinesalefromanofflineone.
Todaysglobalconsumers,whowanttomoveeasilyacrosschannels,havemanyretail
andproductoptionsattheirfingertips,anddemandfullvisibilityintoinventoryand
pricing.Omnichannelshoppingisheretostay,andweexpectthatoverthenext12
months and the years to follow, it will evolve in unpredictable, organic ways as

consumers increasingly create their own paths to purchase. In fact, as we see it,
shoppersaremovingsoeffortlesslyamongchannelsthatitwillsoonbecomeafutile
exercisetopinpointtheshareofonlinesalesintotalretailrevenue;beforelong,that
number may be of interest only to the accounting department, not to the retailers
buyers,seniorexecutives,andstockholders.
Globalmarketingisafirm'sabilitytomarkettoalmostallcountriesontheplanet.With
extensivereach,theneedforafirm'sproductorservicesisestablished.Theglobalfirm
retainsthecapability,reach,knowledge,staff,skills,insights,andexpertisetodeliver
value to customers worldwide. The firm understands the requirement to service
customerslocallywithglobalstandardsolutionsorproducts,andlocalizesthatproduct
as required to maintain an optimal balance of cost, efficiency, customization and
localization in a controlcustomization continuum to best meet local, national and
globalrequirementstopositionitselfagainstorwithcompetitors,partners,alliances,
substitutesanddefendagainstnewglobalandlocalmarketentrantspercountry,region
orcity.Thefirmwillpriceitsproductsappropriatelyworldwide,nationallyandlocally,
andpromote,deliveraccessandinformationtoitscustomersinthemostcosteffective
way.Thefirmalsoneedstounderstand,research,measureanddeveloployaltyforits
brandandglobalbrandequity(stayonbrand)forthelongterm.

Atthislevel,globalmarketingandglobalbrandingareintegrated.Brandinginvolvesa
structuredprocessofanalyzing"soft"assetsand"hard"assetsofafirm'sresources.The
strategic analysis and development of a brand includes customer analysis (trends,
motivation, unmet needs, segmentation), competitive analysis (brand image/brand
identity,strengths,strategies,vulnerabilities),andselfanalysis(existingbrandimage,
brandheritage,strengths/capabilities,organizationalvalues).
Further, Global brand identity development is the process establishing brands of
products,thefirm,andserviceslocallyandworldwidewithconsiderationforscope,
product attributes, quality/value, uses, users and country of origin; organizational
attributes(localvs.global);personalityattributes(genuine,energetic,rugged,elegant)
and brand customer relationships (friend, adviser, influencer, trusted source); and
importantly symbols, trademarks metaphors, imagery, mood, photography and the
company's brand heritage. In establishing a global brand, the brand proposition
(functional benefits, emotional benefits and selfexpressive benefits are identified,
localized and streamlined to be consistent with a local, national, international and
globalpointofview.Thebranddevelopedneedstobecredible.
Aglobalmarketingandbrandingimplementationsystemdistributesmarketingassets
(website,socialmedia,GooglePPC,PDFs,salescollateral,pressjunkets,kits,product
samples,newsreleases,localminisites,flyers,posters,allianceandpartnermaterials),

affiliate programs and materials, internal communications, newsletters, investor


materials,eventpromotionsandtradeshowstodeliveranintegrated,comprehensive
andfocusedcommunication,accessandvaluetothecustomers,thatcanbetrackedto
buildloyalty,casestudiesandfurtherestablishthecompany'sglobalmarketingand
brandfootprint.

Globalmarketingspecialization
Global marketing is a field of study in general business management to provide
valuable products, solutions and services to customers locally, nationally,
internationallyandworldwide.

Elementsoftheglobalmarketing
Notonlydostandardmarketingapproaches,strategies,tacticsandprocessesapply,
globalmarketingrequiresanunderstandingofglobalfinance,globaloperationsand
distribution, government relations, global human capital management and resource
allocation,distributedtechnologydevelopmentandmanagement,globalbusinesslogic,

interfirm and global competitiveness, exporting, joint ventures, foreign direct


investmentsandglobalriskmanagement.
ThestandardFourPsofmarketing:product,price,place,andpromotionareall
affectedasacompanymovesthroughthefiveevolutionaryphasestobecomeaglobal
company.Ultimately,attheglobalmarketinglevel,acompanytryingtospeakwithone
voiceisfacedwithmanychallengeswhencreatingaworldwidemarketingplan.Unless
a company holds the same position against its competition in all markets (market
leader,lowcost,etc.)itisimpossibletolaunchidenticalmarketingplansworldwide.
NisantChakram(MarketingManagement)

Product
A global company is one that can create asingle product and only haveto tweak
elementsfordifferentmarkets.Forexample,CocaColausestwoformulas(onewith
sugar,onewithcornsyrup)forallmarkets.Theproductpackagingineverycountry
incorporatesthecontourbottledesignandthedynamicribboninsomeway,shape,or
form.However,thebottlecanalsoincludethecountrysnativelanguageandisthe
samesizeasotherbeveragebottlesorcansinthatsamecountry.
Luxury products, hightech products, and new innovations are the most common
productsintheglobalmarketplace.[5]Theyareeasiertomarketinastandardizedway

thanotherproductsbecausetherearenotraditionalculturalvaluesattachedtotheir
meanings.

Price
Pricewillalwaysvaryfrommarkettomarket.Priceisaffectedbymanyvariables:cost
ofproductdevelopment(producedlocallyorimported),costofingredients,costof
delivery (transportation, tariffs, etc.), and much more. Additionally, the products
positioninrelationtothecompetitioninfluencestheultimateprofitmargin.Whether
thisproductisconsideredthehighend,expensivechoice,theeconomical,lowcost
choice,orsomethinginbetweenhelpsdeterminethepricepoint.

Place
Howtheproductisdistributedisalsoacountrybycountrydecisioninfluencedbyhow
thecompetitionisbeingofferedtothetargetmarket.UsingCocaColaasanexample
again,notallculturesusevendingmachines.IntheUnitedStates,beveragesaresoldby
thepalletviawarehousestores.InIndia,thisisnotanoption.Placementdecisionsmust
also consider the products position in the market place. For example, a highend
productwouldnotwanttobedistributedviaadollarstoreintheUnitedStates.

Conversely,aproductpromotedasthelowcostoptioninFrancewouldfindlimited
successinapriceyboutique.

Promotion
Afterproductresearch,developmentandcreation,promotion(specificallyadvertising)
isgenerallythelargestlineiteminaglobalcompanysmarketingbudget.Atthisstage
ofacompanysdevelopment,integratedmarketingisthegoal.Theglobalcorporation
seekstoreducecosts,minimizeredundanciesinpersonnelandwork,maximizespeed
ofimplementation,andtospeakwithonevoice.Ifthegoalofaglobalcompanyis
tosend the same message worldwide, then delivering that message in a relevant,
engaging,andcosteffectivewayisthechallenge.
Effectiveglobaladvertisingtechniquesdoexist.Thekeyistestingadvertisingideas
using a marketing research system proven to provide results that can be compared
across countries. The ability to identify which elements or moments of an ad are
contributingtothatsuccessishoweconomiesofscalearemaximized.Marketresearch
measuressuchasFlowofAttention,FlowofEmotionandbrandingmomentsprovide
insightsintowhatisworkinginanadinanycountrybecausethemeasuresarebasedon
visual,notverbal,elementsofthead.

AdvantagesandDisadvantages
Advantages
Theadvantagesofglobalmarketinclude:

Economiesofscaleinproductionanddistribution

Lowermarketingcosts

Powerandscope

Consistencyinbrandimage

Abilitytoleveragegoodideasquicklyandefficiently

Uniformityofmarketingpractices

Helpstoestablishrelationshipsoutsideofthe"politicalarena"

Helpstoencourageancillaryindustriestobesetuptocaterfortheneedsofthe
globalplayer

BenefitsofeMarketingovertraditionalmarketing

Reach
The nature of the internet means businesses now have a truly global reach. While
traditional media costs limit this kind of reach to huge multinationals, eMarketing
opensupnewavenuesforsmallerbusinesses,onamuchsmallerbudget,toaccess
potentialconsumersfromallovertheworld.

Scope
Internetmarketingallowsthemarketertoreachconsumersinawiderangeofwaysand
enables them to offer a wide range of products and services. eMarketing includes,
amongotherthings,informationmanagement,publicrelations,customerserviceand
sales.Withtherangeofnewtechnologiesbecomingavailableallthetime,thisscope
canonlygrow.

Interactivity
Whereastraditionalmarketingislargelyaboutgettingabrandsmessageoutthere,
eMarketingfacilitatesconversationsbetweencompaniesandconsumers.Withatwo
way communication channel, companies can feed off of the responses of their
consumers,makingthemmoredynamicandadaptive.

Immediacy
Internetmarketingisableto,inwaysneverbeforeimagined,provideanimmediate
impact.Imagineyourereadingyourfavoritemagazine.Youseeadoublepageadvert
forsomenewproductorservice,maybeBMWslatestluxurysedanorAppleslatest
iPod offering. With this kind of traditional media, its not that easy for you, the
consumer,totakethestepfromhearingaboutaproducttoactualacquisition.With
eMarketing,itseasytomakethatstepassimpleaspossible,meaningthatwithinafew
shortclicksyoucouldhavebookedatestdriveororderedtheiPod.Andallofthiscan
happen regardless of normal office hours. Effectively, Internet marketing makes
businesshours24hoursperday,sevendaysperweekforeveryweekoftheyear.By
closingthegapbetweenprovidinginformationandelicitingaconsumerreaction,the
consumersbuyingcycleisspedup.

Demographicsandtargeting
Generallyspeaking,thedemographicsoftheInternetareamarketersdream.Internet
users, considered as a group, have greater buying power and could perhaps be
consideredasapopulationgroupskewedtowardsthemiddleclasses.Buyingpoweris
notallthough.ThenatureoftheInternetissuchthatitsuserswilltendtoorganize
themselvesintofarmorefocusedgroupings.Savvymarketerswhoknowwheretolook

can quite easily find access to the niche markets they wish to target. Marketing
messagesaremosteffectivewhentheyarepresenteddirectlytotheaudiencemost
likelytobeinterested.TheInternetcreatestheperfectenvironmentfornichemarketing
totargetedgroups.
The youth is an example of a global demographic. In particular, teenagers share
commoncharacteristicseveniftheyarefromdifferentculturesandnations.Thisyouth
marketgenerallyhasmoremoneytospendandisaffluent.However,thismarketis
difficulttotargetbecausetheyarealwaysonestepaheadtheyaremoreawareof
marketingtacticsandareverycynical.Theyaretrendsettersthatdefinethemselvesin
oppositiontotheestablishment.[6]Sincetheyouthmarketisgrowing,itwouldbenefit
thecompanytotargetthem,asitwouldbringinmorerevenue.Youthsarealsohighly
activeonsocialmediaandintherecentyears,manyadvertisingcampaignshavegone
viralthroughsocialmedia.[7]Withtheconstantflowofmediaandinformation,brands
continuetoincreasetheirawareness,andincreaseconsumerconsumption.Targeting
theyouthmarketisbeneficialbecausetheyaremoreopenminded,haveinternational
contacts,andtravelmore.[8]

Crossculturalnegotiation
Thedimensionsofculture,suchaspowerdistance,thecontextofthecultureandthe
localworkethicisanareaofmarketingandsocialsciencethatiscloselyrelatedto
Globalmarketing.Theabilitytodiscernculturaldifferencesthroughinitialassessment
ofanothermarketisconsideredacriticalenablertoprogressinGlobalmarketing.
Effectivemarketingrequiresadaptingtoculturalvalues,andHofstedesfivecultural
dimensionstheoryhelpscomparepracticesofconsumptionandconsumermotivations
forbuyingproductsandservices.[9]Whenacompanycanadvertiseeffectivelytoits
foreignmarkets,itbringsbenefitstobothsides.Thecompanygainsmorerevenueand
relations,andtheforeignmarketshaveaccesstobetterproductsandservices.Hofstede,
through thefive cultural dimensions, reveals how cultures are different and value
differentthings.Typically,thewestisdifferentfromtherest.Thewesttypicallyvalues
individualism,highneedforautonomy,modernity,andamoreexplicituseofsexuality
whereas eastern values include family oriented, respect for elderly, submission to
authority, traditional collectivism, and Confucianism.[10][11]When designing an
advertisement, cultural value differences must be considered to be effective since
advertisingcampaignsdonotworkthesamewayindifferentcountries.

Adaptivityandclosedloopmarketing
ClosedLoopMarketingrequirestheconstantmeasurementandanalysisoftheresults
ofmarketinginitiatives.Bycontinuouslytrackingtheresponseandeffectivenessofa
campaign,themarketercanbefarmoredynamicinadaptingtoconsumerswantsand
needs.WitheMarketing,responsescanbeanalyzedinrealtimeandcampaignscanbe
tweakedcontinuously.CombinedwiththeimmediacyoftheInternetasamedium,this
meansthattheresminimaladvertisingspendwastedonlessthaneffectivecampaigns.
MaximummarketingefficiencyfromeMarketingcreatesnewopportunitiestoseize
strategiccompetitive advantages. Thecombinationof all thesefactors resultsin an
improvedROIandultimately,morecustomers,happiercustomersandanimproved
bottomline.

Disadvantages

Differencesinconsumerneeds,wants,andusagepatternsforproducts

Differencesinconsumerresponsetomarketingmixelements

Differencesinbrandandproductdevelopmentandthecompetitiveenvironment

Differencesinthelegalenvironment,someofwhichmayconflictwiththoseof
thehomemarket

Differencesintheinstitutionsavailable,someofwhichmaycallforthecreation
ofentirelynewones(e.g.infrastructure)

Differencesinadministrativeprocedures

Differencesinproductplacement.

Differencesintheadministrativeproceduresandproductplacementcanoccur