There are factors that affect selling products globally. The video involves a discussion with Kathleen Griffiths and Simon Kanat to give insights on the diverse factors that determine products, their pricing, and positioning in world markets successfully. Selling a product in the global market requires standardization or customization based on the market's characteristics. For instance, language, government regulations, and lifestyle determine the changes to make in a product or its pricing. The changes require an in-depth analysis of a market's lifestyle to determine consumer patterns and government regulations to determine factors such as packaging, products' content, and labeling. The analysis facilitates regional grouping to enhance effective marketing strategies.
Regional grouping enhances product standardization and facilitates economies of scale. Marketing becomes easy when dealing with a wide region while selling the same product. Additionally, standardization builds customer trust since they realize the brand's confidence and strength, thereby appreciating its originality and uniqueness. However, standardization may show a lack of customer understanding and appreciation of their culture to make the necessary changes to the product, making the product undesirable to address their needs. Thus, if standardization fails, customization is essential to appeal to customers. However, customization may lead to a loss of product originality, and consequently, loss of brand identity.
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Marketing products globally influence the pricing strategy. Tariffs and subsidies influence product pricing in different world markets. Other factors that affect pricing include laws, interest rates, and exchange rates. Since countries have different laws and tariffs, it is hard to have a global price for a specific product. Businesses also consider factors such as affordability and target population to guarantee a profitable market share. However, when businesses maintain their brand identity through standardization, such as Apple, they maintain the price rather than offering cheap and poor quality products. The competition also influences brand pricing. Competitive pricing enhances competitive positioning based on the brand's competitors.
Global marketing requires competitive positioning by being mindful of the customer's perceptions towards a brand's price. A low price may trigger customers' thoughts on a poor quality product, while affordable prices may attract customers through better quality perceptions. Thus, prices are not just based on competition. Businesses employ to adopt a price that suits the market, such as packing smaller products or maintaining the quantity while reducing the price. Pricing is, however, sensitive because it can confuse consumers, lead to cultural mismatch, and taint brand integrity. Therefore, adopting global marketing requires business intelligence on the best positioning factors based on its quality and brand.
The video has successfully touched on diverse factors businesses should consider in global marketing: pricing, standardization, and customization. According to Peng (2016), global marketing can be strengthened when managers adopt the VIRO framework since imitation, comparison, or benchmarking may not always be a successful strategy. The framework involves adopting resources that add value, rarity, immutability, and organization aspects of global marketing. A VIRO framework enables managers to establish resources and capacity to weather competition in the future. Besides the price factor, businesses should consider distribution channel structure and strategies and advertising strategies. According to Otuedon (2016), the distribution channel is critical in product distribution despite the price's attractiveness. Due to market heterogeneity, advertising uniformity significantly enhances effective advertising strategies that favor product acceptance in the new markets.
In conclusion, price is a major element that determines a product's success in the international market. The price depends on tariffs, subsidies, interest rates, and exchange rates of the new markets. A change of pricing strategy may be required through standardizing or customizing the product based on market needs. However, to position the brand competitively in the global market without compromising on brand identity and quality, factors such as adopting a VIRO framework, distribution channel structure, and advertising strategies should be considered.
References
Otuedon, M. (2016). Factors Affecting International Marketing Strategies: Pricing, Channel Structures, and Advertising. European Journal of Business and Management, 8 (5), 42-52. https://core.ac.uk/download/pdf/234627095.pdf
Peng, M. (2016). Global Business: Leveraging Resources and Capabilities . Cengage Learning.
