International Marketing - Wal-Mart Stores, Toyota Motor Corporation and Procter & Gamble Company - Essay Example

? Recently, there has been a considerable rise in the number of multinational companies globally. The global business environment is increasingly becoming competitive and uncertain, necessitating these multinational companies to adopt diverse marketing strategies depending on the market and scope of operation. The marketing strategies employed in the international markets vary depending on the unique needs of the specific countries such as culture, geography, language and religion. However, they also show some similarities particularly where similar marketing strategies, such as using local media for advertising, are employed over a region or in several countries. Examples of multinational companies are Wal-Mart Stores, Inc., Toyota Motor Corporation and Procter & Gamble Company (Doole & Lowe, 2008). International Marketing In international marketing, multinational companies may adopt either a global marketing approach or a multi-domestic marketing approach. The global marketing approach involves developing a standardized marketing plan, which is implemented with minimal modifications in both home and all international markets. An advantage of global marketing approach is the economies of scale to production and marketing activities. This standardized strategy cuts costs since it allows large-scale production runs and strengthens the image of the brand. A global marketing strategy can nurture collaborative innovation and can excellently boost sales of goods and services to across markets that have common cultures and languages. This strategy is effective particularly in marketing goods with strong, universal appeal. Global advertising media such as international print and broadcasting channels help companies to convey a single message to the international audience (Kaynak, 2002). Cost-effectiveness in the implementation of the global marketing approach is its major but most multinational companies are often faced with the need to segment their international markets and develop marketing strategies that meet the unique needs of the target market in specific countries. Multi-domestic marketing approach takes into consideration the differences between the characteristics of different international markets and develops marketing strategies tailored for each market. Most multi-national companies modify their marketing approaches to successfully appeal to individual target markets in the belief that most goods and services demand multi-domestic marketing approaches to give them an appeal on the global market. Market characteristics such as geography, culture and language make it difficult to employ a single market strategy across different segments of international markets. Nevertheless, some particular situations may let multinational companies standardize some aspects of the marketing strategies but tailor others. Some multi-domestic marketing mix approaches for selecting the most appropriate marketing strategy for a particular international market are product invention, straight extension, dual adaptation, promotion adaptation and product adaptation (Onkvisit & Shaw, 2008). Multinational companies may also choose among countertrade, distribution and distribution strategies. Wal-Mart Stores, Inc. Wal-Mart is one of the largest retail chains globally operating diverse kinds of retail stores. The stores range from neighborhood stores, supercenters, discount stores and online retail stores/clubs. Wal-Mart offers wide-ranging products, goods and services including drugs and pharmaceutical products; fitness and beauty aids; cameras, optical supplies and photograph processing; household goods and chemicals; apparels; clothes and shoes; stationery and books; housewares and furnishings; electronics; appliances; automobile accessories; horticultural products, sporting merchandises; toys; pet food and items (Kaynak, 2002). The neighborhood markets include fresh groceries, meat and dairy products, deli, baked foods, frozen foods, medications, paper goods and general merchandise stores. The SAM’s club division deals with Wal-Mart’s membership clubs in the US and online selling hard goods, software, electronics, jewels, sporting merchandises, toys, tires, stationery, chows, and private labels. Currently, Wal-Mart operates eight thousand five hundred stores distributed fifteen countries in Europe, North America and Asia. Wal-Mart was established in 1945, with its headquarters in Bentonville, Arkansas (Kaynak, 2002). Differences among Wal-Mart’s Marketing Strategies Wal-Mart's marketing strategies demonstrates how cultural factors impact on effective segmentation of markets, development of strategy and the importance of culture in international marketing. In the United States and China, Wal-Mart uses the great discounts and low price always strategy since the culture of the consumers is that they are traditionally attracted by low prices, super bargains and great discounts. In contrast, in Japan, this strategy is unsuccessful because consumers here prefer paying high prices for the highest quality and are less likely to discuss purchasing goods at a discount. Even if Japanese consumers buy goods at a discount, they have a tendency not to pass the information about it to others. While the American and Chinese consumers have a culture that favors bargains, discounts and low prices, Japanese consumers considers the low prices as an indicator of low quality making Wal-Mart’s strategy to fail (Kaynak, 2002). The cultural differences between Japan, the U.S. and China is the reason the low prices and great discounts strategy has led to huge success of Wal-Mart’s success in the U.S and Chinese markets and yet the main reason Wal-Mart is struggling in the Japanese market. Wal-Mart’s entry into Germany also highlights the effect of cultural differences on marketing. Germans have different culture-based attitudes concerning friendliness and possessions compared to the Americans. What the Americans consider as service-oriented friendliness, is viewed by most Germans as insincere phoniness, undesirable intrusiveness and lack of authenticity. Wal-Mart’s top management has even acknowledged that the poor performance in Germany is because the company failed to develop its strategy based on cultural competence (Kaynak, 2002). Similarity among Wal-Mart’s Marketing Strategies The similarity of Wal-Mart's marketing strategies in all regions is that the company involves establishing commitments and good relationships with the local communities for instance through participation in community development projects, offering scholarships and sponsoring students and making donations towards community programs. Another similarity of Wal-Mart’s unique marketing strategy is the focus on low prices and avoidance of bigger competitors, in vast, mature markets instead opting for smaller, middle-income areas. The marketing strategies are all centered by achieving low prices. Toyota Motor Corporation The Toyota motors corporation is among the largest and most profitable automobile manufacturers globally. It was founded in 1937as Toyota motor company, although any significant growths were not recorded until 1952 when it began exporting automobile units, spares and accessories to South America (Doole & Lowe, 2008). Half a decade later, it expanded its market to North America by entering the United States market. In 1982, the Toyota motor sales company and Toyota motor company merged to form Toyota Motor Corporation. Currently, the multination corporation owns about 522 subsidiaries, employing about 0.3million workers with a dozen factories in the home country and 51 in other regions spread over 26 countries (Doole & Lowe, 2008). In 2007, the corporation led in terms of share prices among the automobile manufacturing industry. In the following year, the corporation achieved a massive sale of over 8.972 million automobile units and a turnover of $240 billion annually. In the same period, it rose to the rank of the world’s largest car manufacturer although this has been affected by the recent global financial meltdown and huge worldwide recalls of their cars due to sticking gas pedals. Differences among the Marketing Strategies of Toyota Motor Corporation In India, Toyota centered on cost cutting and price reduction the company acknowledged that the price floor was increasing rapidly, yet the environment was driven by the market price. It undertook various cost cutting strategies to decrease the price floor ultimately reducing the reduction of unit prices (Doole & Lowe, 2008). Another strategy employed by Toyota is to customize its automobiles to accommodate global variations in economic conditions, transport system and road infrastructure and the intended use of the automobile. In the US, the Toyota focused on being profitable and reacting swiftly to market changes (for instance, introducing the Lexus brand in the class of luxury cars) as well as evolving a policy of manufacturing where they sell (Doole & Lowe, 2008). They realized that a product made in USA boosted the sales volumes. Similarity of Toyota Motor Corporation Marketing Strategies A common marketing strategy is the company’s extensive adherence to its corporate culture, which determines how it keeps its operations together into one entity and commitment to the international marketplace. The Toyota culture embodies continuous improvement, going to the source, viewing problems positively as a chance to make their performance better, teamwork and respect for other people. All its global marketing strategies favor no specific country including the home country hence boosting the global identity. They extensively use the local media for advertising and boosting sales. Procter and Gamble Company Procter & Gamble is among the biggest manufacturers of consumer goods globally. Its headquarters are based in Cincinnati, Ohio (Onkvisit & Shaw, 2008). Its main products include personal care products such as beauty products and soaps, cleaning and laundry, and food and beverages. Procter & gamble was founded in 1837 following a business merger between the William Procter candle making and James Gamble’s soap manufacturing companies (Onkvisit & Shaw, 2008). This makes it be among the oldest and most successful companies globally with over a hundred-thousand employees in hundred countries. Differences In Proctor & Gamble Company’s Marketing Strategies One of Procter & Gamble’s marketing mixes involves the reverse marketing strategy when it decided to reverse its product flow and started to market within the Hispanic communities of the United States (Onkvisit & Shaw, 2008). Another marketing strategy used in other countries involves test marketing a product for a long time prior to final introduction into the market. For instance, the Bounce fabric softener and Duncan Hines frosting were test-marketed for long periods before their final introduction (Onkvisit & Shaw, 2008). A difference in the marketing strategies includes the increased focus on e-commerce in American and European markets compared to other regions such as Asia, Africa and South America. The company is keen to increase the current e-commerce sales by boosting the resources spent on digital media and online ads. Some of its products, such as pampers, have their own sites, the company is developing an e-store to boost its e-commerce, and research on consumer needs (Onkvisit & Shaw, 2008). Similarity of Proctor & Gamble Company’s Marketing Strategies A similarity among its marketing strategies used over different regions is the ‘doing the right attitude’. The company relies on actual, tangible and up-to-date information when analyzing a business environment. All its marketing strategies are heavily reliant on polling and market research and the company accepts no substitute for the raw data, which covers the variety of important indicators in various markets. They also use local media to advertise and increase their market share in individual countries. Conclusion International marketing involves determining the best strategy to employ in the foreign market taking into consideration the various market characteristics such as culture, language and geography. The strategy can be global market based or multi-domestic market mix. The global marketing approach involves developing a standardized marketing plan in all markets, both home and international while multi-domestic marketing takes into consideration the differences between the characteristics of different international markets and develops marketing strategies tailored for each market. References Doole, I. and Lowe, R. (2008). International marketing strategy: analysis, development and implementation, 5th edition. London: Cengage learning EMEA. Kaynak, E. (2002). Strategic global marketing: Issues and trends. New York: international Business press. Onkvisit, S and Shaw, J. J. (2008). International marketing: strategy and theory, 5th edition. New York: Routledge, a Taylor & Francis company. Read More