Discussion 4 : Global Marketing Management

Discussion 4

"Global Segmentation, Positioning, and Marketing Strategies" Please respond to the following:

· Companies utilize market segmentation to meet the needs of various consumer preferences. It is difficult, if not impossible, for one company to meet the needs or wants of every customer. Describe three (3) ways that the global marketing approach to segmentation differs from the domestic marketing approach to segmentation (possible classifications: geography, culture, language, political, wealth, population, age, macro, micro, etc.). Next, determine the main advantages or disadvantages that a regional marketing strategy has compared to a global marketing strategy.

Response 1 (David) :

"Global Segmentation, Positioning, and Marketing Strategies" Please respond to the following:

· Companies utilize market segmentation to meet the needs of various consumer preferences. It is difficult, if not impossible, for one company to meet the needs or wants of every customer. Describe three (3) ways that the global marketing approach to segmentation differs from the domestic marketing approach to segmentation (possible classifications: geography, culture, language, political, wealth, population, age, macro, micro, etc.). Next, determine the main advantages or disadvantages that a regional marketing strategy has compared to a global marketing strategy.

When it comes to marketing the most important part is segmentation. Segmentation takes a very precise and in-depth analysis of the targeted consumer. The differences between global And domestic strategies are very close. For example, when developing a global product, language and culture should be the first things that are taken into consideration. Language is very important because the product must translate into the culture that it is being sold in. The product must also appeal to the culture. All products do not translate well to other countries. This is the reason why you do not see many Burger King's in India because the franchise doesn't translate well, due to religious regions. However, you will see a McDonald's in India that caters to the local taste and culture of the country. The same way that you will see McDonald's franchises all throughout America. However, there are franchises that cater to local tastes. For example, the McDonald's in the Philadelphia area serves Philly cheesesteaks on its menu. This sandwich is a local delicacy of the area and the company aims to capitalize off the local taste and delicacies.

The main advantages of using a regional marketing strategy compared to a global marketing strategy depend on the business or product. For example, a local donut shop would not use a global strategy because its customers are locally based. A regional marketing strategy would give a company deeper insights into local culture, taste,  and slogans. The advantages of having a regional marketing strategy allow for a more intimate relationship with the local consumer. A global marketing strategy could be adopted once the local company has a demand or interest in the global market.

Response 2 (Jasmine) :

"Global Segmentation, Positioning, and Marketing Strategies" Please respond to the following:

· Companies utilize market segmentation to meet the needs of various consumer preferences. It is difficult, if not impossible, for one company to meet the needs or wants of every customer. Describe three (3) ways that the global marketing approach to segmentation differs from the domestic marketing approach to segmentation (possible classifications: geography, culture, language, political, wealth, population, age, macro, micro, etc.). Next, determine the main advantages or disadvantages that a regional marketing strategy has compared to a global marketing strategy.

     Without market segmentation, companies would not have the ability to determine what products work best for a particular group of individuals or if they are meeting the needs of their customers in order to be successful. The requirements for global and domestic marketing approaches are the same: stability, sizable, actionable, and identifiable. Three ways the global marketing approach is unlike the domestic marketing approach is country screening, culture, and geography. Since multiple countries are researched for global marketing, the first step is country screening. Analysts rely on secondary data to identify attractive market opportunities. Culture varies by country as opposed to with domestic marketing there's not a major difference in culture within one country. A product may excel in one country and not the other all because of the differences in culture. Geography plays a factor also and it relates to culture. The culture may similar in countries within close proximity of each other and the product meets the needs of the consumer and not in a country on another continent.

     There are pros and cons of a regional marketing strategy compared to a global strategy. A regional strategy is more precise with less people and less microeconomic differences. Some benefits of a regional strategy are increased competitive advantage, cost reduction, and improved products. A few disadvantages of a regional strategy are legal environments and restrictions, diversity of local markets, and lack of transnational communication.

Kotabe, M., & Helsen, K. (2017). Global marketing management (7th ed.). Hoboken, N.J.: John Wiley & Sons, Inc.