Topic > Global Marketing Strategies - 1811

Two opposing points of view are commonly presented for developing a global marketing strategy. According to one school of thought, marketing is an inherently local problem. Due to cultural and other differences between countries, marketing programs should be customized for each country. The opposite view considers marketing as know-how that can be transferred from one country to another. It has been argued that the world market has become so homogenized that multinationals can market standardized products and services worldwide with identical strategies, thus reducing costs and earning higher margins. Localized Strategy Proponents of localized marketing strategies argue their point of view based on four differences between countries:19 (a) buyer behavior characteristics, (b) socioeconomic status, (c) marketing infrastructure, and (d) environment competitive. A review of the marketing literature shows how companies often encounter difficulties in foreign markets because they do not fully understand the differences in buyer behavior. For example, Campbell's canned soups, mostly combinations of vegetables and beef packaged in extra-large cans, have not caught on in soup-loving Brazil. A post-mortem study showed that most Brazilian housewives felt they were not fulfilling their role if they served soup they could not call their own. Brazilian housewives had no problem using dehydrated products from competitors, such as Knorr and Maggi, which they could use as starters for soups and still add their own ingredients and flavor. Additionally, Johnson & Johnson baby powder did not sell well in Japan until its original packaging was changed to a flat box with a powder puff. Japanese mothers feared dust would fly around their little...... middle of paper......xporter to build stable overseas markets through better product alignment with market needs and/or cultural preferences . The efforts of the Swiss pharmaceutical manufacturer Ciba-Geigy in adapting its products to local conditions are noteworthy. Quality circles are fundamental to the company's adaptation program. These circles include local managers with line responsibilities for packaging, labeling, advertising and production. They are responsible for determining (a) whether Ciba-Geigy products are appropriate for the cultures in which they are sold and meet the needs of users, (b) whether the products are promoted in such a way that they can be used correctly for their intended purposes, and (c) if, when used correctly, the products do not pose irresponsible risks to human health and safety.