Globalization involves marketing activities that are coordinated and integrated across multiple countries. According to a study conducted by a US-based research firm ACNielsen, a brand only 43 brands could be called 'global' 1 . The report argued that a global brand should be available with the same name in most parts of the world, and its global sales should exceed $1 billion annually, with at least 5 percent outside the home country. However, there are different factors that drive the globalization of a company. These include market, technology, costs, and competitive drives. Marketing, the strongest driver of globalizing a brand, involves consumer needs, global customers, channels, and a transferrable market according to the research. When customers in different countries have the same need in a product or services of a company, the need becomes a compelling factor for the company to go global. The process of a company taking its products or services global starts with foreign entry whereby factors such as a country’s attractiveness should be considered 2 . After gaining entry, the company expands its exports by analyzing barriers of entries, including tariffs and discriminatory customs. Marketing then follows with specific marketing strategies for emerging, new, and mature markets. Finally, the company integrates its marketing efforts globally through a global management system. For a company to impact its products or service globally though marketing, the organization should use global pricing strategies, branding, and advertising.
Household names such as Apple, Nike, Samsung, and HP have successfully rolled out a global brand strategy that is used by companies around the world with the same ambition. A company's principal brand is a major asset and worth billions to the firm. According to Statista, some of the most valuable brands such as Amazon and Google are worth over $ 150 billion 3 . Brands can be categorized into corporate, family, product, or endorsement brands. Corporate brands represent the value of a company while product brands are specific to products, for example, Budweiser beer. Recognizing the importance of a brand is important in marketing to make memorable impressions and allowing customers what to expect from a product or service.
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Global pricing is another aspect discussed in the journal that is important to marketing. In global pricing, domestic pricing is much simpler than global pricing since domestic markets have straight-forward implementation strategies 4 . As pricing will determine what a company will receive in exchange for services or products, there are several factors that affect its international pricing. Such factors include competition, quality of the product, market condition, and distribution channels. The marketing of a product is directly affected by its prices and other external factors such as currency exchange rates, grants, and local taxes.
Finally, global advertising involves the promotion of products or services, company values, or ideas in several countries. Marketers view advertising as part of a standard promotional strategy that should be adopted to increase sales or brand awareness. Global advertising is important to a company since it enhances the company’s reputation, reminds customers and potential clients about your products, and promotes the business to investors.
It’s clear that globalization in marketing requires a harmonious relationship between branding, advertising, and pricing. Not only do these strategies increase the company's revenues, but they also improve the customer's trust with the brand. Research has shown that companies with strong marketing campaigns endorse banding, advertising, and pricing as their strategy while developing a global mass campaign 5 . Even though external pressure from government taxes, inflation, and competition might be unavoidable, a company that seeks to have a global impact should use the three tools to their advantage to conquer international boundaries.
Bibliography
Johansson, Johny K. Global marketing: foreign entry, local marketing, & global management . Boston: McGraw-Hill Irwin, 2009.
1 Johansson, Johny K. Global marketing: foreign entry, local marketing, & global management . Boston: McGraw-Hill Irwin, 2009.
2 Johny, 89
3 Johny, 48
4 Johny, 52
5 Johny, 151
