Development of global product and global promotion strategies are part of what any international business seeks to facilitate in its operations globally. For any international business, development of global product and global promotion strategies involves global marketing and is necessary since it is what pushes the operations of the business through and help increase its sales in international markets (John 678-889). However, there are different strategies in diverse types of international businesses especially in the way they strategize on their marketing. This is because there are respective factors, which dictate the type of marketing and promotional strategies each business is to adopt for its success in the global market. This part of the paper discusses the potential impact of culture upon the development of global product and global promotion strategies. In particular, it explains how culture influences the perception of dependable service and desirable global brands and cultural influence in the development of a firm’s global advertising strategy evaluating what firms can do to meet these challenges and perfect their marketing.
Culture is among the social factors, which affect global promotion strategies for organizations. They are in the definition, the demographic characteristics of the international population as well as its values. Some of the cultural influences include consumers’ buying patterns, gender differences, attitudes, and diversity. Customers are essential in marketing a product, which is why they have an effect in the respective global promotion strategies (Tomas 672-876). The customers, who are influenced by culture, are extremely essential in every department of any company, without the consumers there would be in an ideal world no purpose for the organization or firm, since it would not operate. Regardless of the service or product of the company, a company must have the ability to leverage their own marketing and global advertising strategies or even the organization production, ensuring that they gratify customer demand (Tony 352-389). This is because the diversity of culture due to globalization has resulted in diverse knowledge over products for instance; the Internet culture provokes many customers who have access to knowledge about products and services.
Especially in the 21st century where globalization has an impact among key cultures worldwide, the customers have become well informed, make appropriate choices based on their judgments, which means that business marketing and promotional strategies has taken another shape, and needs seriousness in it for development of a firm’s global advertising strategy. Therefore, even with the great plans of expanding the company internationally, not a single company can give a blind eye to the operations of other countries in terms of the cultural influence (John 678-889). It is a new era where cultures have interacted and exchanged knowledge leading to a difficult time for global business to succeed with the traditional marketing strategies.
For a firm to succeed in development of a global advertising strategy, a firm will have to generate an enormous niche of customers to help in developing a fast movement of goods, and services it provides, and this is what has an impact on the marketing approaches selected. Winning the trust of these customers is the most notable aspect above all in the factors of which it is a difficult time for the marketers because they are dealing with informed customers who are not ready for any exaggerations. Tomas (672-876) cites in his works that people, who are the customers, have ideally shifted in thought more than even the commercial businesses. A prominent example is the increased use of social sites across the globe. It is a new culture especially among the youth leading many firms to consider taking their global advertising to these sites. The media of use in promotional strategies is slowly taking shape only online as compared to the earlier cultural practices when the Internet was no avilable. This means that the Internet culture, which is widely, spread has a potential impact upon the development of global product and global promotion strategies because firms have to reconsider their strategies and shift their strategies online (John 678-889).
An immense probability is found in that, in an ideal world, abyss separates companies and individual consumers (Tony 352-389). Therefore, Companies that involve the appropriate marketing and learning to change with their respective customers will develop immense benefits from the expansion of the consumer confidence and enjoy the increased buying (Tony 352-389). It is an era full of challenges and many customers are going for what they want because there is a culture of absolute knowledge (John 678-889). The new influences of technology in culture, therefore, influences the perception of meritorious service and desirable global brands because the customer who is part of the culture, makes the decision out of the knowledge acquired on these products.
To handle this impact of culture on global advertising strategy of a firm, and perfect marketing, the firms need to think globally and change with the existing changes. First, they need to understand the customer’s age group and purchasing power when doing the marketing, which is equally indispensable (Tony 352-389). Additionally, if customers have shifted focus more in social sites and online shopping, then firms need to change routine and shift online. This is because there is no other way to reach the respective customers and market the brands. As espoused earlier, only companies moving online in the global world and in this century of developed Internet advertising will succeed in marketing and reap from the competitive advantage among their competitors.
Major challenges associated with the development of global distribution and global pricing strategies
The development of global distribution and global pricing strategies is part of a business operating in the global market. This is because they are elements, which dictate how the consumer receives the products, as well as the purchasing behavior of the consumer. Global distribution majorly involves ensuring that the products or services from a particular firm reach the destination for consumption by the targeted consumers (David 360). This is a dominant process in global trade because without the distribution satisfying the demand of the respective product is not possible. On the other hand, global pricing is a concept in marketing of products globally. It is the pricing of the products or services determining the prices at which, the respective product or service will be offered to consumers. This paper looks into the significant challenges associated with the development of global distribution and global pricing strategies.
One notable challenge is the standardization of global distribution and pricing programs, which is particularly influential when marketing products globally. This is what global firms toil hard to reach a consensus on the standardization for a uniform global price as well as distribution. Global pricing is ideally one of the most complex and critical issues, which a global firms face (Daniel 246). A firm’s pricing policy is intrinsically a cross-functional process ideally based on inputs particularly from the firm’s tax, manufacturing, finance, accounting, and legal divisions. The major challenge in global pricing strategies how to coordinate the respective pricing policy across many different countries. The challenge is that lack of coordination of the pricing develops into gray market situations.
Gray market situations involve legal products but which are sold, outside normal distribution channels. This, therefore, is a challenge to the standardization of global distribution by companies that may have no relationship particularly with the goods’ producer (John & Gordon 1-10). The gray market creates the price of itemm considerably higher in a particular country than another. The situation commonly is prevalent with electronic equipments for instance cameras (Daniel 246). It compromises standardization of distribution because many entrepreneurs in respective countries buy the product in places where it is cheaply available, often at retail price but at times at wholesale, importing it legally to the market (David 360). The importers then sell the product at a price high enough that will provide a profit, but which is under the market price. Standardization from the manufacturing firms, therefore, becomes difficult, and distribution becomes even more difficult.
Another major challenge in an effort to standardize global distribution and global pricing strategies is the diverse government regulations in respective countries where the firms expand their market. The irregular regulations force firms distributing products to respective regions conform to the respective regulations differently. There are places where some tariffs of trade are higher that the others while, in some places, they ate welcomed without any tariffs since they are deemed to develop economies. All the same, distribution and pricing cannot be similar under such circumstances.
On the same note, some of the International efforts in promoting free trade among them reduced tariffs as well as harmonized national standards lead to irregular distribution and pricing of products (David 360). The situation created in normally manufacturers attempting to preserve disparate pricing. This creates a situation in which the firms distributing the products compromise on the respective regions and creates a situation in which there are prices and distributions, which are not uniform.
The consumer purchasing power is also another challenge for developing and standardizing global distribution and global pricing strategies (John & Gordon 1-10). Out rightly, firm-distributing products to particular regions depend on the purchasing power of the region to know the amount to distribute and the price at which to provide the product to consumers. This pertains to the nature of customers in respective regions (Daniel 246). Where the products are on low demand, it is expected that prices will be lower than where the demand is high to lure people into buying products. Therefore, this makes it a challenge to standardize distribution, as well as pricing.
Among other key factors is the Nature of competition in respective regions. This is also apart of the concept of market integration (David 360). The competition is diverse in the respective region meaning that prices of products have to consider the competition to keep in line and maintain customers (John & Gordon 1-10). Out of this, it is apparent that marketers of particular products will lower prices in high competitive regions and maintain different prices across other regions globally; therefore, standardization is a formidable challenge (Daniel 246).
To handle these challenges, the firms need to come up with strategies for standardization of distribution and pricing of products. One of the foremost solutions is to adopt a supply chain in distribution. The established supply chain with a collaboration of respective intermediaries is apparent and useful is handling the diverse distribution channels of the products. The supply chain will help manage the distribution and maintain a standard while dealing with the problem of the gray market (David 360). On the other hand, to solve the nonstandard prices is difficult but the supply chain will also be valuable because there will be no brokers who hike or lower the prices of the products. Another radical solution is enforcing a trademark or intellectual-property rights particularly against the grey market. The rights are exceedingly exercised against the sale, import or advertisement of other gray imports, which bring in challenges in the standardization process. It helps control other distributors and handle the irregular pricing of the products.