R U N N I N G H E A D : G L O B A L M A R K E T I N G P a g e | 1
Global Marketing
Donnie Drake
Liberty University
Strategic Market Management
BUSI 520-D02
Dr. Andrew Honeycutt
April 17, 2018
G l o b a l M a r k e t i n g P a g e | 2
Global Marketing
1. Explain the concept of the marketing management topic selected for your paper.
Competition from developing market firms and major corporations is growing at an
accelerated rate, especially within the global market. Many global firms plan, operate, and
coordinate their activities on a worldwide basis (Kotler & Keller, 2016). As businesses grow, the
faster they learn, and the more they learn, the more effective they become at rolling out a new
and improved product and service offerings. Most companies prefer to remain domestic however,
as their domestic market continues to grow it may be considered whether to take their business
globally. The following factors can draw a companies into the global marketing arena.
Better profit opportunities in the global market vs. the domestic market
The need for a larger customer base to achieve economies of scale
Reduction on the company’s dependence on any one market
The ability to counterattack global competitors in their home markets
Losing customers that require international service
When creating a global marketing strategy, companies see the most success if they focus in
on three factors. These factors will inform their success both as they build out new global
marketing efforts and expand on the ones they have in place (Schrader, 2017). First, companies
must have the correct balance between global and regional strategies. To strike this balance, the
company’s headquarters should provide a content strategy aligned with overarching business
G l o b a l M a r k e t i n g P a g e | 3
goals, but driven by regional information and insights (Schrader, 2017). Second, new insights
and practices need to be implemented to existing company marketing management strategies.
Existing marketing management models are either too decentralized to unite behind one global
marketing strategy, or too centralized to allow for region-specific campaigns (Schrader, 2017).
Shifting to a more balance approach lays the foundation for creating a centralized global
marketing strategy. The third and possibly the most important factor is communication.
Communication is the single most important element of executing successful global marketing
strategies and is an important tool for establishing an effective feedback loop between
headquarters and local teams.
2. Examine at least 1 practical application/example for your topic.
All marketing strategies are built on segmentation, targeting, and positioning (STP) (Kotler &
Keller, 2016). Many companies are naturals in competing in the local business markets and later
finds success in the global markets. Cinnabon LLC is a practical example of how a company can
develop and achieve success in multiple geographical areas. Founded in Seattle in 1985 and now
based in Atlanta, Cinnabon LLC, is the market leader among cinnamon roll bakeries. Cinnabon,
one of the world's most beloved and irresistible brands, finished 2015 with $143 million in U.S.
system-wide sales (Burek, 2016). Multi-channel growth and international expansion were key
drivers for the brand globally, which also helped develop new partnerships with multi-unit
franchise owners from other high-profile restaurant brands and by existing franchisees. Cinnabon
discovered that products that is developed for Central and South America were finding success in
the United States, given its large Hispanic population (Kotler & Keller, 2016). Through global
expansions and product adaption in different geographical areas, big businesses such as
Cinnabon have transferred their ideas or services into these different areas by appealing to
different cultures and ethnicities.
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3. Formulate a question about your topic that your classmates will respond to.
Consumer perceptions about a company’s country of origin can play a critical role on
whether a particular brand or business is successful on the global stage. Brand perception sends a
quality signal, taps into cultural myths, or reinforces a sense of responsibility and may lend
creditability and respect (Kotler & Keller, 2016). Marketers must look at the country of origin
perceptions from both a domestic and a foreign perspective. As international business trade
grows, the competition and consumers may view certain brands as symbolic of offensive
depending on the country’s cultural identity and beliefs. Assuming a new company is operating
in a market area where there are strong cultural beliefs, what avenues can the firm take to make
sure that the reputation and brand are not misrepresented and that the company’s products or
services are not perceived as offensive?
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References
Burek, P. (2016, March 21). Cinnabon Celebrates Successful Year for Franchise Sales in 2015.
Retrieved from CISION PR NEWSWIRE: https://www.prnewswire.com/news-
releases/cinnabon-celebrates-successful-year-for-franchise-sales-in-2015-
300238549.html
Kotler, P. T., & Keller, K. L. (2016). Marketing management (Custom 15th ed.). Upper Saddle
River, NJ: Pearson, Inc. ISBN: 9780133856460.\
Schrader, C. (2017, November 7). Global Marketing Success Depends on Three Factors.
Retrieved from Conductor Spotlight: https://www.conductor.com/blog/2017/11/global-
marketing-strategy/
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