In general terms, a global marketing strategy is the approach a business takes in marketing its company and products around the world. The term is also used to describe a specific form of worldwide marketing strategy in which a company's message is consistent.
Types of Global Marketing
When a company operates in multiple countries, the marketing strategy it implements plays a major role in its success or failure. The two general types of global marketing strategies are the global, or universal, approach and the international or multidomestic approach. The primary difference is that a global strategy means you offer the same basic products and services backed by consistent promotion, and multidomestic means you tailor your marketing to fit each particular market.
Global Marketing Pros and Cons
Relative to a multidomestic approach, a global marketing strategy has a few primary strengths and weaknesses. Core strengths include:
- Cost-efficiency: Delivering a global brand is much more cost-efficient than adapting to each market. When you can develop the same goods and promote them with a singular strategy in multiple markets, you don't have to design advertising campaigns for each country.
- Universality: Building a consistent brand image is important in marketing. With a global strategy, you view your brand image as universal, as opposed to different in each market. This approach works well in countries that have similar preferences, resources and cultural values.
Primary drawbacks include:
- Lack of customization: By its nature, you don't customize a global message. Therefore, this strategy doesn't allow for optimized marketing efforts in each country. The business accepts this lack of optimization as a trade-off for the cost advantages.
- Market limitations: Opting for a global strategy can also limit the number and types of countries you enter. Building a brand across 10 to 12 countries, for instance, may inhibit your ability to enter markets where that brand image wouldn't work.
A product recognized and used consistently across the world contributes to the formulation of a global marketing strategy.