Challenges of a global marketing strategy
Clarke Ricks School of Business,
Liberty University
BUSI 690: Policy and Strategy in Global Competition
Dr. Hicks
June 30, 2022
Challenges of a global marketing strategy
However, having a global marketing strategy also comes with some potential problems,
which can include:
Compliance issues: Different markets have different rules regarding data protection and
security, such as GDPR in the European Union and the California Consumer Privacy Act (CCPA).
You must ensure that your company follows the rules when doing business in other countries.
Adapting to new markets: It is critical to adapt your marketing strategy to fit new
geographical locations. Ever wonder why Starbucks is not as ubiquitous in Australia as it is in
the rest of the world? Well, as local coffee is king in the Australian coffee market, people found
the chain to be too expensive. Localizing your strategy is essential to success.
Language barriers: Businesses need to be extra-diligent where language barriers are
present. A local agency should approve all translations to avoid embarrassment — for example,
when Pepsi launched the slogan "Pepsi Brings You Back to Life" in China, it translated as "Pepsi
Brings You Back From the Grave."
Examples of successful global marketing strategies
There's no one-size-fits-all approach to global marketing. You can find many examples
when you look at the brands dominating their respective industries. Here are examples of
successful global marketing strategies.
Starbucks taps into what makes local audiences tick, providing localized menus — for
instance, Dragon Dumplings in Hong Kong.
Lay's adapts flavor offerings to suit local tastes and uses different brand names: Lay's in
the US, Smith's in Australia, and Walkers in the UK. This approach is based on maintaining
consumer connections with the branding that they already know.
Netflix commissions local productions within a global infrastructure. The company's
massive global marketing highlights the value of linguistic and cultural connections.
Domino's changes toppings to reflect each market's tastes. The basic pizza recipe
remains the same, but the toppings deliver local appeal.
Airbnb embraces the power of social media. Their #OneLessStranger campaign engaged
three million people around the world in three weeks.
Nike captures global attention by carefully choosing international sponsorships. Demand
rises seasonally because of triggers like world championships and tournaments.
Shopify creates sites with localized language and content. For each region, you are
directed to a fully localized website. Localized content marketing helps Shopify grow massively
globally.
Uber adapts fluidly to local customs and spending habits. As the company expands into
new markets, it offers solutions for each context. In some locations, where cash is preferred to
card payments, Uber has adapted its product and marketing message to suit.
What you need to know about global market segmentation
Global market segmentation is the process of dividing your target market into defined
groups with specific characteristics. The purpose of segmentation is to identify distinct groups
within your target market so that you can deliver more targeted and niche-focused messaging
and products. There are four types of global market segmentation:
1. Behavioral segmentation: Behavioral market segmentation categorizes your market
based on their previous behavior with your brand. Some of the traits within this type include
purchase patterns, previous purchases, awareness of your business, and product rating.
2. Demographic segmentation: Demographic market segmentation focuses on who the
customer is. The traits placed in this segment depend on whether you run a B2B or B2C
business. B2B companies would include industry type, company size, years of practice, and
revenue range. Traits in a B2C company would include age, education, gender, occupation,
family status, and income.
3. Geographic segmentation: Geographic market segmentation allows you to split your
market audience based on their location, which is sometimes a helpful purchase decision-
making factor.
4. Psychographic segmentation: Psychographic market segmentation separates markets
based on their personalities. Traits within this segmentation include lifestyle, attitudes, values,
and interests.
When you enter a new market, effective communication is one of the best ways to
differentiate your business. Market segmentation helps to pinpoint the messaging that will
drive your customers to make a purchase, helping you create better marketing
communications. When your marketing campaigns are targeted to specific customer subsets,
you get a better response rate than a campaign that uses generic descriptors that apply to
anyone but appeal to no one.
How to plan a global brand strategy with Wrike
Planning a global brand strategy may seem overwhelming at first. Wrike helps simplify this
process for you and your team by providing a digital workspace where you can gather market
research, put together a team with varied permissions, roles, and access, and detail your
marketing strategy.
