23 Pros and Cons of Global Marketing And Strategy
The world is getting smaller. With the help of the internet, we have conquered the distance.
The Internet has created many opportunities for everyone. It has opened a global door for business.
You do not need to own a big company to go global. You can run your small business globally and grow from your home. Many people are already doing this.
So, if you want to go global too, then you must know:
- What is global marketing?
- Why is Global Marketing Important?
- Good global marketing strategy.
- The pros and cons of global marketing.
Don’t worry. You do not have to do a lot of research. All of these can be learned in one location. And you are already there.
Let’s get started.
Table of Content
- Global Marketing Definition
- Why is Global Marketing Important?
- Good Global Marketing Strategy
- Pros and Cons of Global Marketing
- Advantages of Global Marketing
- Disadvantages of Global Marketing
- Final Thought
Global Marketing Definition
Global marketing is a complicated process. It involves planning, producing, placing, and promoting a business on a worldwide scale.
Big companies have representatives in different countries. They do the marketing for them.
However, small companies cannot afford to have representatives everywhere. Today, they can take part in global marketing through the internet and social media.
Why is Global Marketing Important?
There are many benefits to global marketing. That is why it has become important for business. It offers the opportunity to:
- develop more revenue sources
- increase brand awareness and reputation
- discover more about your products and services
- make adjustments for better service quality
Good Global Marketing Strategy
A global marketing strategy is planning to expand your business globally. It is the first step in making your business global.
For that, you need to have a proper plan for your:
- public relations
- brand promotion
- foreign channels
- ways to blend into different cultures
Strategies for successful global marketing:
To have success on an international scale, you need to have a proper strategy. While making your strategy, you must keep in mind the following things:
- Create a well-known and well-received brand and image.
- use a consistent strategy.
- Draft a marketing strategy.
- Adapt your strategy.
- customizing promotions.
- Observe and understand the origins of your target market.
- Adapt your items to the markets where they are offered.
- Adapt your message to the situation.
- Include a local marketer on your team.
- Use the appropriate hardware and software.
Pros and Cons of Global Marketing
Global marketing has both advantages and disadvantages but before making your decision, you should know both parts.
Advantages of Global Marketing
There are many benefits of global marketing. Here is a short list of the 13 most important ones.
1. Reach More Customers
It is a simple fact. If there is demand, you supply.
You can reach more customers through global marketing. Obviously, there are more people globally than in your locality.
You can supply your products to places where there is demand. Often products have more demand in international markets than local ones.
2. New Ideas
When you go global you get exposure to new ideas. Different countries have different customs and cultures. You need new ideas to suit every society.
Also, you get employees from different parts of the world. They share new ideas. And it helps your business grow.
3. Increasing The Visibility of Your Brand
Branding is important for global marketing. You reach new places, people see your brand more. The visibility of the brand increases. This opens future opportunities.
It can work as a cornerstone. It becomes simpler to take advantage of these chances with each successive campaign.
4. Higher Revenues
You make more money the more you sell. Isn’t it obvious? Even if you lessen the price. With more consumers, you can earn more.
Yes, global marketing has its cost. But the opportunity is huge.
Besides, when you are doing business globally, it makes your brand more trustworthy. People believe in you. They believe in your products. It increases sales. And that adds money to your bank account.
5. Reduces Your Competition
Does it sound crazy? You go global and competition decreases? That is actually true.
Human psychology is interesting. When you go global, your reputation grows. People start to believe you. Your reputation reduces the chance of other local companies.
However, you need to ensure that your brand has a close connection with your customers. That is important.
6. Create New Relationships
You go global and meet new people.
You meet new experts.
You can meet them through social media. You add them to your marketing team.
You can do your meetings through skype, meet, or many other platforms.
These new relationships are important for you. They come with local expertise.
7. Greater Stability
Every industry needs to evolve with time. What is popular today, might now work tomorrow. Global marketing helps you to cope with this evolution.
All the local markets are unique. They have different demands. They value different products.
Going global increases your connection. You get ideas. What is popular today in Asia, can become popular in America too. You can bring new products to new areas.
This evolution will keep your brand relevant.
8. Help More People
Businesses open employment for workers. When you go global, you are hiring more people. More people are earning because of you. Also, if you do not get enough qualified workers in one place, you can look in another. You will not run out of employees.
9. Greater Access to Talent
This is another important benefit of global marketing. You go global, and you can meet new talents and hire them for you.
They will bring new ideas. New ideas bring new profits.
Global marketing allows you to work with people around the world.
Diversified ideas flow on the table. You can pick the best ones. You are not short of new ideas.
That is important to compete with big companies. Besides, many young people are interested in working in foreign companies. So, you get an advantage to get the best talents.
10. Learning a New Culture
Some may say it is a disadvantage. That depends on how you deal with it. Before going to a new place, you do research.
You get to know the culture of the place. The mentality of the local people. You establish a standard to deal with the customers.
Sometimes, this helps you to come up with new ideas. You do something new to please Asian customers and realize this can help your brand more in Europe too.
11. Foreign Investment
Foreign investment is both important and profitable. It is increasing with each year. When you do business in a global market, you can invest in other businesses as well.
You get to know the market. You can invest in local markets. That will make your brand more popular. This will expand your business. Making global investment also lowers taxes for you.
12. Lower Production Cost
Now, this may not be true for everyone. It depends on where you are from and where you are doing business. Currencies are not equal. They have a huge gap.
If you are from America and want to do business in Asia, you have an advantage. The labour is cheap here. Your currency has great value here.
Statistics show that you get two times more labour at the same price in Asia. So, the production cost is lowered. And you get more profit.
13. Diversifying Company Markets
You are doing business in your locality. You are doing great. You feel satisfied.
But what if something terrible happens? What if there is a natural disaster? Or, the economy of the area collapses? Or, what if people lose interest in the product?
These are your worst nightmares. Global marketing saves you from this.
You get a diversified market. You can shift your focus at any time. If one area is in problem, you run smoothly in another area. The business remains steady. This way, floods, cyclones, and weather cannot disturb you.
Disadvantages of Global Marketing
Of course, there are so many benefits of global marketing. But they do not come without any cons. To be successful in the global market, you need to face the following problems.
Challenges in Global Marketing include:
14. Difficult to Determine If There Is An Available Market
Your product is doing great in your locality. That does not guarantee that it will do well in an international market. Different areas have different customs and rules.
In middle-east, perfumes with alcohol do not have a demand. You need to choose your marketplace wisely.
Going global does not mean you have to do business everywhere. Sometimes, good products are not suitable in many places because of the high price.
Not everyone in every area can afford the same product. So, it is a challenge to determine a suitable market for your brand.
15. There Is A Risk
You cannot expect so many benefits without risk. Can you? The cost of global marketing has decreased a lot over the years. They still exist though.
Sometimes you need time to make your product popular. It becomes difficult for small businesses. You need to have a strong cash flow. Still, there is no guarantee. It can happen that both your time and money get completely wasted. The return profit is zero. The risk is immense.
16. Different Laws and Standards
This is a great challenge. Some places have banned some ingredients. For example,
- In Arabs, anything made of “pork” is banned. Though it has a great market in America.
- Horse meat is very popular in Mexico, Switzerland, and Belgium but is not allowed to sell in America.
- Famous drinks like “Mountain Dew” are banned in Europe.
So, it is a problem. You need to have a good idea about the law and customs of different places. That is important for global success. Unless you will end up in custody.
17. Numerous Barriers to Entry
There are many things that can restrict you from entering a new market. Some governments have strict policies about foreign investments. Besides, there are:
- language barriers
- cultural barriers
- religious barriers
Though there is google Translate. And you can hire local translators as well. Cultural and religious barriers often play vital roles. People in many places do not want to trust foreign companies. This will be a big challenge to gain their confidence.
18. Politics And Market Conditions
Politics play an important role in the global market. Both local and international politics.
Changes in the relationship between two countries can affect your business dramatically. Overnight you can suffer a collapse.
In 2016, billions of dollars were eliminated because of the Brexit vote.
Political changes also have an impact on your business. A new government may reduce the benefits you had before. It is a great threat to small businesses.
Even the strengthening of a currency can put you in great danger.
19. International Product Delivery
Delivery is a big problem. Especially if you do not have manufacturing companies in every country.
Your product has a demand in foreign places. You want to sell them. But the delivery becomes a barrier.
Shipment cost sometimes reduces your sales. Moreover, there is tax and tariffs. All these increase the purchasing cost for the customers. They change their minds. And select a local alternative. This hampers your business.
20. Competition in The Market
You have the best product in the market. Your brand has a great reputation. Still, there is competition.
Local businesses run the nationality trick.
They advertise their products as people’s own. People get emotional and move to them.
To win the problem, you need to come up with something brilliant. You need to give a message that will convince the people to choose you. And that is a challenge.
21. Increased Costs
Maintaining a global strategy is expensive. You need financial resources to expand your business. You need more workers, more storehouses and more shops.
You also need to make changes to adapt to new cultures. This gets costly too.
For some places, you have to redesign, translate and advertise your products. All these add more costs.
22. Crisis Management
You already know that politics can affect your business. So, you need to be ready for crisis management. But that is not easy when you deal in a global market.
Sometimes, several areas can go crazy. That will create a hazardous situation for you. You cannot focus on a particular area only.
Besides, there will be inequality in payment methods in different areas. At any moment, your employees in a particular area can call for a strike. You need to be prepared for them.
Various currencies have various values. Their value keeps changing. A little change may not affect your business. However, sometimes the values get a drastic change. And that is risky for your business. It can increase your cost overnight.
You need to have proper knowledge about currencies before investing. And remember to research every now and then.
Making your business a global one is not easy. There are both pros and cons to global marketing. If you can face the challenges, you can have many benefits. It is more profitable and sustainable. You need to be wise though to make decisions.