Global marketing arises when international companies consider the idea of taking advantage of the opportunities offered by the use of economies of scale when creating marketing strategies on a global scale. When marketing activity is focused on a global level, it segments the world as if it were a large market, dividing consumers with similar needs.
The strategies used in this kind of marketing are designed for a product or service within a single world market, which includes many markets or countries simultaneously. The challenge for the company is to ensure that its strategies are successful in all markets where it is applied. Ultimately, global marketing is the last piece in the development of international marketing.
A company has several options when it wants to enter the world market, options that range from the simple export of its products, to working together through alliances with foreign companies, which allows it to be able to direct its own operations abroad..
Before starting a global commercialization, companies should ask themselves the following questions: Where should it be produced? Who are your global competitors and what are their strategies? What strategic alliances should be established with other multinational companies? In addition to this, you must know the restrictions that exist in each country, for example in the area of tariffs and exchange control.
The biggest advantage that global marketing offers is that it allows the company to take advantage of economies of scale. When you market the same product around the world, you can buy the raw material in bulk, saving the company a significant amount of money annually.
Among the advantages is that the strategies applied within this marketing may not work in all markets, this is due to the tastes and preferences of consumers. The products that are sold may be popular in one country but not in others. Deciding in which country the product will be most popular can be a problem, and can lead to significant financial losses.
