According to Peng (2022), Global Marketing in business is the marketing and promotion of products and services in a global market that gives the brand more significant cash flows and builds a reputation and a competitive advantage over its counterparts in the local market.
Advantages and Disadvantages
The package of advantages comes from the lower cost of materials and trained labor in certain countries compared to the United States. In addition, targeting a more significant number of potential customers and building global relationships make the brand reach heights that it would not have reached if it had continued locally only (Hassan & Yazdanifard, 2019).
Conversely, disadvantages include the fact that some products and services do not work well in other countries because of cultural, economic, and governmental barriers (Ratten, 2017). Also, the burdens and costs of operating globally may hinder the parent company from continuing its local activities.
Theoretical Underpinnings
According to (Motohashi, 2015), There are four theoretical underpinnings for Global Marketing in business:
Comparative Advantage: Some countries or companies have a specific specialization that distinguishes them from others, which means they can move beyond the narrow scope of their country of origin and move towards globalization. This can be seen in American technology companies, the first of which is Apple, and it can also be seen in dairy companies in some European countries.
Product Trade Cycle: This model indicates that some countries and companies monopolize work in a specific product or service for some time. Until another country or company ascends, it can take the lead globally. We see this in the example of Chinese and Indian companies, now taking a significant share in developing countries' technology and automobile markets.
Perlmutter's Business Orientation: There are four directions for companies that want to go global. The first is "Ethnocentric Orientation." The system of work and production is unified globally, as in the parent company, just like Apple's iPhone, which is one worldwide. The second is "Regiocentric Orientation." It is to work with the host country's culture or a group of countries.
For example, when launching products in the Arab or Islamic world, McDonald's can't include pork or non-halal meat. "Geocentric Orientation is the tendency to work professionally by searching for the best strategies to overcome the host country's legal, political, and cultural barriers. This tendency appears in international contracting and engineering consulting companies, as building codes and materials differ.
Saudi Arabia, for example, has concrete bricks, and no residential or commercial buildings are made of wood, as is the case in the United States. "Polycentric Orientation" This trend is to work entirely separately for each country; what products are offered in one country are not provided in another. This appears, for example, in some Fanta drinks found in certain countries and not even produced in the original country, the United States.
Apple Global Marketing Strategies
Apple uses a strategy of unifying products and services in all countries. The products offered in the United States are the same as those provided in developing and poor countries. Apple focuses on quality and perfection in its brand. The company relies on its competitive advantage over companies that operate in the same field, in addition to its customers' wide acceptance and loyalty (Tien, 2019).
Conclusion
Global marketing requires companies that understand well what they sell in terms of products and services, in addition to a deep understanding of each market in each country separately and the requirements and needs of customers in each market. Can the products be offered as they are in the original region? Or should the product and service specifications be changed? Finally, the product and service promotion must be compatible with the popular culture and customs prevailing in each country.
References
Hassan, A., & Yazdanifard, R. (2019). Global Marketing Practices that Created Controversies and How They Could Possibly Be Avoided. International Journal of Management, Accounting & Economics, 6(8), 640–654. Retrieved from EBSCO Multi-search
Motohashi, K. (2015). Marketing Theory in Global Business Context. Global Business Strategy: Multinational Corporations Venturing into Emerging Markets, 137-154.
Peng, M. W. (2022). Global business. Cengage learning. https://www.cengage.com/c/global-business-5e-peng/9780357716403
Ratten, V. (2017). Gender Entrepreneurship and Global Marketing. Journal of Global Marketing, 30(3), 114–121. https://doi.org/10.1080/08911762.2017.1316532. Retrieved from EBSCO Multi-search
Tien, N. H. (2019). International distribution policy comparative analysis between Samsung and Apple. International journal of marketing management and sales research, 2020(1), 2.