Global marketing can officially be defined as a state wherein companies no longer see their markets as a single entity and are aware that their decisions cannot be influenced by borders anymore. In a nutshell, it’s the kind of marketing that companies need to engage in if they intend to stay relevant in a business landscape that’s increasingly becoming global.
However, some businesses still have doubts about the necessity of global marketing. So, is it really that important?
Well, yes and that’s why we are here to find out just how important global marketing is.
It affects us all
To put it simply, global marketing, directly or indirectly, affects us all. It doesn’t matter if you work in an international corporation or run a small chain in your city. Paying attention to what businesses in other countries are doing is simply the smart thing to do. The decisions made by businesses and markets abroad does impact your local business.
Even if you really aren’t affected, it’s just better to be smarter about global marketing. Ignorance is never a good strategy. For instance, the automotive industry in the US is a great example of what happens if you choose to ignore your foreign competitors.
About 4 decades ago, Asian automobile manufacturers like Honda or Toyota had no sway over American consumers. But, ever since factors such as fuel consumption and general practicality became a concern, Japanese and Korean cars have been selling like hot cakes. American brands like Ford, GMC and Chrysler have had to put in a ton of effort to play catch up and sadly, they’re still doing so.
The opening of new doors
Taking your business outside your borders can open up tremendous opportunities. You see, domestic markets tend to stagnate after a point in time. So, starting operations abroad can be a great way to rekindle your business. Your product might just be what India or China wants.
For instance, the BRIC countries have become far more industrialised than they used to. This led to a demand for improved connectivity and other technological needs that European and American companies were able to meet. As a result, these western organisations were able to gain a foothold in those markets, which led to global expansion.
It’s the future
Thanks to technology evolving at such a fast rate, it has become significantly easier to trade goods and service across the border. For instance, just look at e-commerce – the global revenue for this industry in 2006 alone was $12.8 trillion and this is only predicted to increase.
The bottom line is clear – the global market is the future and those who ignore it, do it at their own expense.