Page 223 - DMGT545_INTERNATIONAL_BUSINESS

International Business

notes 11.7 Global marketing strategies

A global marketing strategy that totally globalizes all marketing activities is not always achievable
or desirable (differentiated globalization). In the early phases of development, global marketing
strategies were assumed to be of one type only, offering the same marketing strategy across the
globe. As marketers gained more experience, many other types of global marketing strategies
became apparent. Some of those were much less complicated and exposed a smaller aspect of a
marketing strategy to globalization. A more common approach is for a company to globalize its
product strategy (product lines, product designs and brand names) and localize distribution and
marketing communication.
Integrated Global Marketing Strategy: When a company pursues an integrated global marketing
strategy, most elements of the marketing strategy have been globalized. Globalization includes
not only the product but also the communications strategy, pricing and distribution as well as
such strategic elements as segmentation and positioning. Such a strategy may be advisable for
companies that face completely globalized customers along the lines. It also assumes that the
way a given industry works is highly similar everywhere, thus allowing a company to unfold its
strategy along similar paths in country by country. One company that fits the description of an
integrated global marketing strategy to a large degree is Coca-Cola. That company has achieved
a coherent, consistent and integrated global marketing strategy that covers almost all elements
of its marketing programme from segmentation to positioning, branding, distribution, bottling,
advertising and more.

Reality tells us that completely integrated global marketing strategies will continue to be the
exception. However, there are many other types of partially globalized marketing strategies;
each may be tailored to specific industry and competitive circumstances.
Global Product Category Strategy: Possibly the least integrated type of global marketing strategy
is the global product category strategy. Leverage is gained from competing in the same category
country after country and may come in the form of product technology or development costs.
Selecting the form of global product category implies that the company while staying within
that category will consider targeting different segments in each category or varying the product,
advertising and branding according to local market requirements. Companies competing in
the multi-domestic mode are frequently applying the global category strategy and leveraging
knowledge across markets without pursuing standardization. That strategy works best if there
are significant differences across markets and when few segments are present in market after
market. Several traditional multinational players who had for decades pursued a multi-domestic
marketing approach tailoring marketing strategies to local market conditions and assigning
management to local management teams- have been moving toward the global category strategy.
Among them are Nestle, Unilever and Procter & Gamble, three large international consumer
goods companies doing business in food and household goods.
Global Segment Strategy: A company that decides to target the same segment in many countries
is following a global segment strategy. The company may develop an understanding of its
customer base and leverage that experience around the world. In both consumer and industrial
industries significant knowledge is accumulated when a company gains in-depth understanding
of a niche or segment. A pure global segment strategy will even allow for different products,
brands or advertising although some standardization is expected. The choices may consist of
competing always in the upper or middle segment of a given consumer market or for a particular
technical application in an industrial segment. Segment strategies are relatively new to global
marketing.
Global Marketing Mix Element Strategies: These strategies pursue globalization along individual
marketing mix elements such as pricing, distribution, place, promotion, communications or
product. They are partially globalized strategies that allow a company that customize other

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