Qualities of a Successful International Marketing Strategy - Essay Example

?Qualities of a Successful International Marketing Strategy Introduction International marketing strategy is mostly focused on the global scale and harmonisation of marketing operations, and the level of product and/or service adaptation and standardisation, advertising, and branding. An international marketing strategy involves a global point of view, aiming to merge the advantages of local and global aspects. Marketing strategy largely depends on correct global positioning and segmentation strategies, alongside an international marketing mix that is derived from a global point of view of advertising, brand, and products merged with localisation efforts (Kleindl, 2006). International marketing strategy is rooted in an investigation of the level of globalisation of different features of the market setting, such as variations and similarities in consumer preferences, culture, socioeconomic standing, technological standards, and so on. Therefore, it is evident that companies aspiring to compete successfully in global markets have to develop a decisive, purposeful, and appropriately designed international marketing strategy that is derived from a comprehensive knowledge of the markets which the organisation is operating in or aiming at. The Three Qualities Global markets are an aggressive environment that demands regular monitoring and assessment. Marketing strategies should be able to adapt to the dynamic nature of global markets. Innovation is an integral success factor, not merely with regard to product and/or service but the entire process of marketing. Value-oriented marketing and financial strategies are all turning out to be vital factors in the execution of a successful international marketing strategy (Doole & Lowe, 2008). Therefore, the mission of international marketing is to guarantee that all global strategies have the strength of comprehensive analysis and knowledge and precise assessment of what is needed to gain the most coveted competitive advantage. There are numerous essential qualities for successful international marketing strategy. But this essay focuses only on three qualities, namely, successful development of recognised local brands, strong brand extensions, and solid customer relations. First, a successful international marketing strategy is able to expand a local brand into a global brand, bringing brand strategy and value to a larger number of countries. The most excellent case in point of an initially national brand that eventually became international is Coca-Cola. In 1902, Coca-Cola decided to go beyond the United States. It was able to penetrate the market of 76 nations by 1929 (Hill & Jones, 2012, p. 286). During the Second World War, the company already has 63 factories across the globe. Its international expansion carried on after the war, motivated partly by the assumption that the U.S. market would sooner or later mature and by the belief that massive prospects for growth rest abroad (Hill & Jones, 2012, p. 286). Until the 1980s, Coca-Cola’s marketing strategy may most appropriately be described as a localisation strategy. Local marketing activities were given a high level of autonomy to handle their own activities. But everything changed when Roberto Goizueta became the company’s chief executive in 1981. He restored focus on the leading brands of Coca-Cola, which were expanded with the launching of Cherry Coke, Diet Coke, and others (Doole & Lowe, 2008, p. 8). His main assumption was that the major dissimilarity between the global markets and the United States was the lower consumption level of the global markets. Goizueta transformed the company into a global one, consolidating much of the marketing operations and management at the company’s head office in Atlanta, placing emphasis on major brands. This wholesale strategy was based on standardisation by, for instance, employing the same marketing strategy across the globe (Hill & Jones, 2012, p. 286). However, this wholesale marketing strategy eventually became ineffective due to the growth in numbers of competitive local beverages. The succeeding CEOs of Coca-Cola eventually decided to localise their marketing strategy once more. They believed that marketing, product development, and strategy should be adapted to the needs and demands of the local population (Hill & Jones, 2012, p. 286). Unfortunately, the transition towards localisation was largely unsuccessful. And so, in 2004, CEO Neville Isdell started analysing and directing product development and local marketing but took on the assumption that strategy, as well as marketing message, product differentiations, and pricing, should differ from market to market to complement local situations. Hence, recently, Coca-cola successfully transformed national brands into a global one (Doole & Lowe, 2008, pp. 8-9). For instance, having witnessed the success of the Georgia Coffee in Japan, the company decided to initiate a strategic agreement with one of the leading coffee manufacturers in Italy—Illycaffe—in 2007 to create an international franchise for bottled or canned coffee drinks. Likewise, the company’s subsidiary in China created a cheap, noncarbonated beverage in 2003 that has quickly become one of the most popular beverages in the country (Hill & Jones, 2012, p. 286). Coca-cola is now marketing the beverage in other Asian nations. The second quality of a successful international marketing strategy is strong brand extensions. In addition to razors, Gillette produces deodorants and shaving creams. Besides baby care products, Gerber is now offering health care, beverage, food, and personal care products. A benefit of brand extensions is bringing in the strengths of international marketing initiatives (De Mooij, 2009). One of the best examples of a company that has a strong brand extension is L’Oreal. The company decided to abandon its traditional brand strategy when Nivea, whose marketing strategy capitalised on brand loyalty through brand extensions, strongly competed with those of L’Oreal. The company identified the weaknesses of a flagship-brand technique within which L’Oreal Paris simply advertised several sub-brands, like Plenitude, Elnet, and Elseve (Kapferer, 2008, p. 303). Aside from the fact that the resources for promotion were disjointed, there was no efficient financing. The company thus replaced their ‘house of brands’ strategy with a ‘branded house’ strategy, a flagship brand with a central identity and a quite unique variety (Kapferer, 2008, p. 303). This is when the ‘dream team’ surfaced on the global arena—an assemblage of globally prominent celebrities and models, each endorsing a sub-brand from the house of L’Oreal Paris, employing the same promotional mark. Simultaneously, the brand name L’Oreal Paris became more popular and bigger on the in-store merchandising and packaging (Kapferer, 2008, p. 303). By developing strong brand extensions, L’Oreal Paris was also trying to build strong customer commitment and loyalty across the various sectors of the brand. The third quality of a successful international marketing strategy is strong customer relations. A successful relationship strategy is attained through well-built customer relations, a commitment to customer service, and a dedication to premium products and/or service across global markets. A classic illustration of a company that became internationally successful because of strong customer relations is Marriott Hotels. The demand for a larger number of occupancy had motivated Marriott to depend greatly on price-oriented and publicity marketing (Mukerjee, 2007, p. 52). However, the company realised that in the service sector the most effective marketing strategy is developing an emotional brand. By 2004, the company was in the middle of acquiring new beds and facilities to boost the experience of their guests. A plain but highly effective message that captured the promise of an excellent experience for the customers was created by the company—Revive (Capon & Hulbert, 2007, p. 210). The advertisements showed restored, revitalised customers all over the world. Marriott Hotels created the Customer Service Strategy to enhance the capacity of the company to respond immediately and productively to the complaints or issues of their guests across the globe. A committee was created to discern how the company responds to and deals with customer feedback and what must be carried out to realise full customer satisfaction. The company knows that opportunities abound to create a competitive advantage through international marketing strategy focused on service quality and customer satisfaction (Capon & Hulberr, 2007, pp. 210-211). Because of this realisation the company decided to implement a ‘total quality management’ programme. In this manner, the company is not only focusing on the customer but also on the satisfaction of their employees across the globe (Mukerjee, 2007). Marriott Hotels believe that an international marketing strategy will only be successful if the people behind it (e.g. customers, employees, shareholders) are fully satisfied. Discussion and Conclusions The above cases only prove that companies should become skilled at penetrating foreign markets and enhance their competitiveness globally. Companies that do expand overseas discover that the global market is remotely different from the local marketplace. Marketing strategies, customer preferences, and market sizes all differ, indicating that global marketers should thoroughly assess every market segment where in they plan to compete. For numerous companies, like Coca-Cola, L’Oreal, and Marriott Hotels, the move to expand globally remains a crucial and challenging task. Normally, there are numerous concerns underlying a company’s choice to enter into global competition. For several companies, expanding globally is the outcome of an intentional policy initiative, such as taking advantage of market growth and opportunities; for other firms, it is a response to certain business prospects or competitors. Still, a choice of this enormity is consistently a strategic decision instead of sheer response. The three qualities of successful international marketing strategy discussed above are all based on the nature of competition, demographic factors, economic patterns, and comparative advantage. To flourish in international marketing companies have to evaluate thoroughly their geographic growth. To a certain extent, a company intentionally decides about the level of its expansion by picking a position, either standardisation or localisation, for instance. In the creation of a global marketing strategy, the company may choose to focus on the home country or the host country. An industry where in a company operates is also integral in implementing various strategies. For instance, a company which operates in a highly globalised industry like the service industry (e.g. Marriott Hotels) has to form its unique strategies to handle international competitors. Analysing the expansion of the three abovementioned companies reflects a persistent, chronological pattern of growth. First is to gain knowledge of the global marketing environment; second is to choose which specific markets to penetrate; third, the company has to make a decision how to successfully cater to their target market segment; and finally, the company should create an efficient and appropriate system for implementing international marketing. These are the basic steps in creating a successful international marketing strategy. Basically, every major company has been largely successful in creating a branding strategy. Majority of these companies offer various brands. Furthermore, the well-built brand reputation has been essential for leading companies either to expand globally or to create new product lines. And, ultimately, the most successful global companies were able to develop a strong customer base through various customer-oriented marketing strategies. Like L’Oreal and Marriott Hotels, thriving global companies are benefitting from their inimitable competitive advantage—high levels of customer satisfaction, loyalty, and commitment. References Capon, N. & Hulbert, J. (2007) Managing Marketing in the 21st Century. UK: Wessex Publishing. De Mooij, M. (2009) Global Marketing and Advertising: Understanding Cultural Paradoxes. London: Sage. Doole, I. & Lowe, R. (2008) International Marketing Strategy: Analysis, Development and Implementation. Mason, OH: Cengage Learning. Hill, C. & Jones, G. (2012) Strategic Management Theory: An Integrated Approach. Mason, OH: Cengage Learning. Kapferer, J. (2008) The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term. UK: Kogan Page Publishers. Kleindl, B. (2006) International Marketing. Mason, OH: Cengage Learning. Mukerjee, K. (2007) Customers Relationship Management: A Strategic Approach to Marketing. UK: PHI Learning Pvt. Ltd. Read More