What is Global Marketing?

Global marketing is defined as the process of promoting a product and making it available beyond its country of origin. Hence, it can also be referred to as international marketing. When a product reaches a consumer beyond domestic boundaries, it is called global marketing. Global marketing is a sub-part of marketing. It is not just limited to selling the product worldwide; but also involves proper planning, procurement of materials, manufacturing of a product, placing, and promotion for the product, and introducing it in the domestic and the international markets. Global marketing is not only important for the success of a business but also helpful in the retention of a large consumer base. Various business organizations or companies have failed due to the shortcoming of proper marketing techniques.

Global Marketing and Consumer Behavior

Nowadays, almost all businesses need new markets in order to maintain and expand profits. The global market opens a wide variety of consumers to every business. Opportunities for global marketing are mainly influenced by five factors. These factors include expanded communications, technology, changing political situations, increased competition, and changing demographics.

Elements of Global Marketing Plan

A marketing plan with an international emphasis should include the following topics:

• How will the geographic, cultural, and political factors influence global marketing activities?
• Can the product or service be sold in a standardized form, or will it need to be adapted to local situations?
• Will the people be able to afford the product or service, or will the price have to be revised for global customers?
• Does the infrastructure of other countries allow efficient and low-cost distribution?
• Should advertising be similar to or different from the promotions used in other countries?
• Is the use of strategic partnerships, such as joint ventures, appropriate for doing international marketing?

Consumer Behavior

The success of every business depends on the consumers’ behavior towards the products and services of a business organization. Consumer behavior not only helps in attracting new consumers but also focuses on the retention of the older ones. This plays a vital role in forming a good marketing strategy, and consumer purchases involve several factors depending on the demographics and geography.

Importance of Consumer Behavior

• Consumer behavior is not only important in attracting new consumers but also helps in retaining the previous or old consumers.
• It helps in analyzing the market and also in developing relevant marketing plans.
• It contributes to the prediction of a product’s status in the market.
• It facilitates the innovation of new products and services as per the needs of the consumers.
• It improves the services and after-sale services to the consumers.
• It gives an overview of the status of the competitors' products in the market.

Factors affecting Consumer Behavior in Global Marketing

Physical and Emotional needs

Physical and emotional needs include air, water, food, shelter, clothing, and health care. However, these basic needs can be different for people in different countries. People in under-developed countries and economies may have modest housing, homegrown food, and clothing.

Geographic and Demographic factors

The surroundings and society influence the buying habits of people in a significant manner. People living in warm places and weather require different housing and clothing and may prefer different foods, as compared to someone who lives in a cold climate. Living in the mountains or hilly areas requires different types of transportation and consumer products, which is contrary to those living in desert regions.

Demographic factors such as gender, age, and family situations influence how consumers spend their money. Other factors such as income, level of education, the standard of living, and housing situations differ from country to country and would have a strong effect on a company’s marketing plan.

Personality and Psychographic factors

Attitudes also influence a consumer’s behavior. Personality traits, people’s attitudes towards risk, change, convenience, and competition are some of the personality factors that are known to affect the behavior of the consumers. Marketing managers use such data to influence and attract a large number of customers to certain goods and services.

Psychographic factors are factors that are related to the lifestyle of people and psychological influences, such as activities, interests, and opinions. Other factors may include hobbies, family activities, work interests, and political and social opinions.

Social and Cultural factors

Social and cultural factors are primary factors that affect the needs of consumers in society. A consumer’s choices are impacted by the buying decisions of another consumer. Social and cultural factors include families, friends, business organizations, political parties, community activities, and religious affiliations that can affect the buying behavior of the consumers. An understanding of cultural factors such as social structure and religion is critical and significant for the success of international marketing decisions.

Benefits of Global Marketing

• Global marketing gives a wide reach for selling products and services.
• It decreases various costs like that of production.
• It brings in global feedback from different consumer groups that further helps in enhancing the product.

It helps earn more profit margin and break the geographic constraints.

Limitations of Global Marketing

• The most important limitation of global marketing is the existence of cultural and social barriers. Different countries have different cultures, according to which people live.
• The acceptance of foreign products and services is not easy for all.
• The political and legal constraints of a particular region may affect the selling of products and services.
• The timely delivery of products and services is a big task for all business organizations. Therefore, inventory management is one of the limitations of global marketing.

Context and Applications

In the global market, the goods and services of one country are traded to the people of other countries. It leverages the existing marketing strategies and tools for export, besides the companies' relationship strategies. Therefore, it is an important part of various management courses and training programs, like:

• Bachelors in Business Administration (Marketing)
• Masters in Business Administration (Marketing)

Practice Problems

1. Which of the following factors affect consumer behavior in global marketing decisions?

1. Social and cultural
2. Demographic and geographical
3. Emotional needs
4. All of the above

Answer: Option d

Explanation: All the given factors affect consumer behavior in global marketing decisions.

2. What is global marketing also known as?

1. International marketing
2. Universal marketing
3. Intranational marketing
4. Domestic marketing

Answer: Option a

Explanation: Global marketing is marketing the product and services beyond the geographical boundaries of one another country which takes place on a global level.

3. List out the four Ps of the marketing mix.

1. Product & Price
2. Technology
3. Place & Promotion
4. Both (a) and (c) are correct

Answer: Option d

Explanation: Primary four Ps of the marketing mix are product, price, place, and promotion.

4. Which of these statements is true with respect to global marketing?

1. The activities of marketing take place in more than one country.
2. The activities of marketing take place in one country only.
3. The activities of marketing take place in the host country only.
4. The activities of marketing must take place in all the countries.

Answer: Option a

Explanation: Marketing activities occur in more than one country. This is called global marketing.

5. Which of the following options is the simplest way to enter a foreign market?

1. Joint venturing
2. Direct investment
3. Export
4. All of the above

Answer: Option c

Explanation: Exporting products and services is the simplest way to enter a foreign market.