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Marketing in a Global
Environment
Martha Taylor
10/4/2013
1
Marketing in a Global Environment
Table of Content
Table of Content………………………………………………………………………………… 1
Introduction………………………………………………………………………………………2
The Impact of Social and Cultural Elements……………………………………………………..3
Tailoring a Brand or Product is a Smart Move…………………………………………………..4
Becoming Part of the Local Culture……………………………………………………………..5
Maintaining a Brand Balance……………………………………………………………………5
Summary…………………………………………………………………………………………6
References……………………………………………………………………………………….7
2
Marketing in a Global Environment
Marketing in a Global Environment
Introduction
Global market places are an exciting environment for companies, but can come with
challenges. For example, what is the impact of social and cultural elements when introducing a
new or branded product into a global market? Companies need to be sensitive to cultural
differences if they want to compete and establish a relationship with global consumers.
Companies that want to compete in global markets are constantly analyzing similarities and
differences among their global consumers.
Brands may need to tailor slightly to establish themselves in a new global market. For
example, Coke introduced flavors that consumers recognized along with their famous “Coca
Cola”. Successful brands know that tailoring is a way to break into a market which otherwise
would not except these brands. (Kerin, Hartley and Rudelius) The challenge is to maintain the
authenticity of a brand while breaking into a new market. Successful firms have learned to
navigate the delicate balance of both local culture and brand integrity. In the research paper
assigned to this class, I would like to illustrate some challenges and strategies companies use to
develop a successful marketing plan for new global consumers. First, I will explain how the
impact of social and cultural elements can play a role in marketing strategies. Then, why
tailoring a brand or product is a smart move when exploring global markets. Next, becoming part
of the local culture will establish a brand as part of the local environment. Finally, maintaining a
brand balance in an overseas market.
3
Marketing in a Global Environment
The impact of socialcultural elements
The impact of social and cultural elements can play a role in marketing strategies. As
many companies have found in recent year, it is important to understand the culture and social
elements of a market. If companies neglect this element it could be the down fall of even an
established brand. Global branding cannot rely only on consistency of a brand with packaging
and marketing, it will need to be flexible to changing as a culture dictates the meaning and
relationship with consumers from different countries. Cultural differences, for example, a brand
of chocolate drink in the UK is associated with bedtime drink were as in Nigeria customers see
the same chocolate drink as “made the blood strong” (Ramsay) Even though it is the same
product marketed globally, each local environment saw the product differently. That is why
knowing the local culture is so important. (Hollis) “Unilever has changed its global brand names
with band names that are familiar to a local population.” (Hollis)
Differences in culture are still a large factor and firms need to examine these differences
in cross border business environments. Language barriers, geographic location, and
administration (the way a cross border companies run the operations of a business) are some of
the main areas firms need to consider. Some tough questions will need answers--will these
differences have such an impact to which it would inhibit adding value to a firm or will these
differences benefit the firm. In other words, would a cross border venture add value to our
company?
4
Marketing in a Global Environment
Tailoring a brand or product is a smart move
L’Oreal, one of the world’s leading cosmetic companies, has tailored their product lines
to appeal to a growing Chinese market. According to the “Bloomberg Businessweek”, Chinese
culture places a great deal of emphasis on beauty and skin care. To accommodate these needs
L’Oreal has tailored a line of cosmetic balm and skin oils for Chinese men to cover facial
blemishes using traditional herbal remedies. (Lin). Months of research and innovation goes into a
product line before it released into a new market. Extensive research has paid off for companies
like L’Oreal and Proctor & Gamble who have tailored their health care products according to the
needs of the consumers in different global locations. Increasing sales and market share in these
markets have proven the benefits of tailoring brands to fit a market needs while still maintaining
brand integrity.
Automobile manufactures similarly tailor their line of cars depending on the geographic
location the automobile will be sold. For instance, smaller more compact automobiles are sold
and favored in European countries where as in the United States, larger more spaces automobiles
are preferred.
Not only are products tailored to a market, packaging can also be a factor in placement
and design. Some countries do not have large department stores and roomie outlet stores as the
United States so packaging of products are usually in smaller quantities to accommodate the
smaller scale stores and shelving.
By tailoring to the needs of a market will help a firm become part of the local
community.
5
Marketing in a Global Environment
Becoming part of the localculture
“The Best Drink Created Worldwide” is Pepsi cola’s slogan for 2012. PepsiCo's products are
sold in more than 200 countries and territories around the world. Therefore, with that said Pepsi
has worked hard to create a global marketing strategy to become part of local cultures around the
world. “We are steadfastly dedicated to building a profitable and sustainable 21st century
corporation — one that is a good investment for our shareholders, a good environment for our
employees, a good citizen in our communities and a good steward of our planet’s resources,”
said Indra Nooyi, chairman and CEO of PepsiCo. (PEPSICO) Pepsi has focus efforts on
becoming part of the local culture and expressing concern for the local environment. Their
campaign has won global awards for their efforts for water conservation. This has been a very
successful strategy for PepsiCo and has truly set them as a global brand and “The Best Drink
Created Worldwide”.
Maintaining a Brand Balance
Keeping the original sense of a brands unspoiled will be part of your success when
working to maintain balance in a global environment. For example, Budweiser Beer is no longer
and American owned company, but consumers only see Budweiser beer as all American, and
people who buy Budweiser aren’t just getting a beer, but the experience and feelings of “NFL”
football and Saturday BBQ’s.
Other examples of balance in the global market would be the utilization of cultural
diversity in the workforce. By engaging and providing a diverse workforce it will promote
growth and bring to the table a world of knowledge not only of your products but of the local
6
Marketing in a Global Environment
culture as well. Maintaining this balance can be difficult, but some companies have been very
successful.
Summary
The global market provides exciting opportunities and challenges. Establishing oneself as
a brand that people around the world recognize and want can be a difficult but exciting
opportunity. Global market strategies should incorporate and take into considerate the impact of
cultural elements, working to become part of the local culture, tailoring ones brand to meet the
consumer needs and how to maintain balance while marketing in overseas environments.
7
Marketing in a Global Environment
References
Works Cited
Ghemawat,Pankaj. Pankaj Ghemawat:Whatinthe World.8 Octobe 2007. 23 September2013
<http://idscussionleader.hbsp.com/ghemawat/>.
Hollis,Nigel."The Global Brand."Hollis,Nigel. The Global Brand.New York:PALGRAVEMACMILLAN,
2008.
Kerin,Hartley,Rudelius."A Global Environmental Scan."Kerin,Hartley,Rudelius. MarketingEleventh
Edition.NewYork:The McGraw-Hill Companies,2013. 171-186.
Kerin,Roger,StevenHartleyandWilliamsRudelius. MarketingEleventhEdition.New York:McGraw-Hill
Irwin,2013.
Margaret Fletcher,SimonHarris,RobertRicheyJr."InternationalizationKnowledge:What,Why,Where,
and When?"Journal of International MarketingVol.21.No.3( 2013): pp.47-71.
Ramsay,Bill."WhitherGlodal Branding?" Journal of BrandManagement (2003):11, 9-21.

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Marketing in a Global Environment

  • 1. Marketing in a Global Environment Martha Taylor 10/4/2013
  • 2. 1 Marketing in a Global Environment Table of Content Table of Content………………………………………………………………………………… 1 Introduction………………………………………………………………………………………2 The Impact of Social and Cultural Elements……………………………………………………..3 Tailoring a Brand or Product is a Smart Move…………………………………………………..4 Becoming Part of the Local Culture……………………………………………………………..5 Maintaining a Brand Balance……………………………………………………………………5 Summary…………………………………………………………………………………………6 References……………………………………………………………………………………….7
  • 3. 2 Marketing in a Global Environment Marketing in a Global Environment Introduction Global market places are an exciting environment for companies, but can come with challenges. For example, what is the impact of social and cultural elements when introducing a new or branded product into a global market? Companies need to be sensitive to cultural differences if they want to compete and establish a relationship with global consumers. Companies that want to compete in global markets are constantly analyzing similarities and differences among their global consumers. Brands may need to tailor slightly to establish themselves in a new global market. For example, Coke introduced flavors that consumers recognized along with their famous “Coca Cola”. Successful brands know that tailoring is a way to break into a market which otherwise would not except these brands. (Kerin, Hartley and Rudelius) The challenge is to maintain the authenticity of a brand while breaking into a new market. Successful firms have learned to navigate the delicate balance of both local culture and brand integrity. In the research paper assigned to this class, I would like to illustrate some challenges and strategies companies use to develop a successful marketing plan for new global consumers. First, I will explain how the impact of social and cultural elements can play a role in marketing strategies. Then, why tailoring a brand or product is a smart move when exploring global markets. Next, becoming part of the local culture will establish a brand as part of the local environment. Finally, maintaining a brand balance in an overseas market.
  • 4. 3 Marketing in a Global Environment The impact of socialcultural elements The impact of social and cultural elements can play a role in marketing strategies. As many companies have found in recent year, it is important to understand the culture and social elements of a market. If companies neglect this element it could be the down fall of even an established brand. Global branding cannot rely only on consistency of a brand with packaging and marketing, it will need to be flexible to changing as a culture dictates the meaning and relationship with consumers from different countries. Cultural differences, for example, a brand of chocolate drink in the UK is associated with bedtime drink were as in Nigeria customers see the same chocolate drink as “made the blood strong” (Ramsay) Even though it is the same product marketed globally, each local environment saw the product differently. That is why knowing the local culture is so important. (Hollis) “Unilever has changed its global brand names with band names that are familiar to a local population.” (Hollis) Differences in culture are still a large factor and firms need to examine these differences in cross border business environments. Language barriers, geographic location, and administration (the way a cross border companies run the operations of a business) are some of the main areas firms need to consider. Some tough questions will need answers--will these differences have such an impact to which it would inhibit adding value to a firm or will these differences benefit the firm. In other words, would a cross border venture add value to our company?
  • 5. 4 Marketing in a Global Environment Tailoring a brand or product is a smart move L’Oreal, one of the world’s leading cosmetic companies, has tailored their product lines to appeal to a growing Chinese market. According to the “Bloomberg Businessweek”, Chinese culture places a great deal of emphasis on beauty and skin care. To accommodate these needs L’Oreal has tailored a line of cosmetic balm and skin oils for Chinese men to cover facial blemishes using traditional herbal remedies. (Lin). Months of research and innovation goes into a product line before it released into a new market. Extensive research has paid off for companies like L’Oreal and Proctor & Gamble who have tailored their health care products according to the needs of the consumers in different global locations. Increasing sales and market share in these markets have proven the benefits of tailoring brands to fit a market needs while still maintaining brand integrity. Automobile manufactures similarly tailor their line of cars depending on the geographic location the automobile will be sold. For instance, smaller more compact automobiles are sold and favored in European countries where as in the United States, larger more spaces automobiles are preferred. Not only are products tailored to a market, packaging can also be a factor in placement and design. Some countries do not have large department stores and roomie outlet stores as the United States so packaging of products are usually in smaller quantities to accommodate the smaller scale stores and shelving. By tailoring to the needs of a market will help a firm become part of the local community.
  • 6. 5 Marketing in a Global Environment Becoming part of the localculture “The Best Drink Created Worldwide” is Pepsi cola’s slogan for 2012. PepsiCo's products are sold in more than 200 countries and territories around the world. Therefore, with that said Pepsi has worked hard to create a global marketing strategy to become part of local cultures around the world. “We are steadfastly dedicated to building a profitable and sustainable 21st century corporation — one that is a good investment for our shareholders, a good environment for our employees, a good citizen in our communities and a good steward of our planet’s resources,” said Indra Nooyi, chairman and CEO of PepsiCo. (PEPSICO) Pepsi has focus efforts on becoming part of the local culture and expressing concern for the local environment. Their campaign has won global awards for their efforts for water conservation. This has been a very successful strategy for PepsiCo and has truly set them as a global brand and “The Best Drink Created Worldwide”. Maintaining a Brand Balance Keeping the original sense of a brands unspoiled will be part of your success when working to maintain balance in a global environment. For example, Budweiser Beer is no longer and American owned company, but consumers only see Budweiser beer as all American, and people who buy Budweiser aren’t just getting a beer, but the experience and feelings of “NFL” football and Saturday BBQ’s. Other examples of balance in the global market would be the utilization of cultural diversity in the workforce. By engaging and providing a diverse workforce it will promote growth and bring to the table a world of knowledge not only of your products but of the local
  • 7. 6 Marketing in a Global Environment culture as well. Maintaining this balance can be difficult, but some companies have been very successful. Summary The global market provides exciting opportunities and challenges. Establishing oneself as a brand that people around the world recognize and want can be a difficult but exciting opportunity. Global market strategies should incorporate and take into considerate the impact of cultural elements, working to become part of the local culture, tailoring ones brand to meet the consumer needs and how to maintain balance while marketing in overseas environments.
  • 8. 7 Marketing in a Global Environment References Works Cited Ghemawat,Pankaj. Pankaj Ghemawat:Whatinthe World.8 Octobe 2007. 23 September2013 <http://idscussionleader.hbsp.com/ghemawat/>. Hollis,Nigel."The Global Brand."Hollis,Nigel. The Global Brand.New York:PALGRAVEMACMILLAN, 2008. Kerin,Hartley,Rudelius."A Global Environmental Scan."Kerin,Hartley,Rudelius. MarketingEleventh Edition.NewYork:The McGraw-Hill Companies,2013. 171-186. Kerin,Roger,StevenHartleyandWilliamsRudelius. MarketingEleventhEdition.New York:McGraw-Hill Irwin,2013. Margaret Fletcher,SimonHarris,RobertRicheyJr."InternationalizationKnowledge:What,Why,Where, and When?"Journal of International MarketingVol.21.No.3( 2013): pp.47-71. Ramsay,Bill."WhitherGlodal Branding?" Journal of BrandManagement (2003):11, 9-21.