We're Read Internationally!
Developing A Global Vision can impact a companies expansion and financial gain in an instance. Many companies view domestic markets as their Cash Cows in terms of stable target markets and familiar distribution & pricing settings. Although domestic markets can experience significant marketing changes, like trends and component lifestyles, many demographic factors stay the same such as language, cultures, and distribution settings. A countries domestic market is their comfort zone, laws, taxes, and other governmental business components are easily understood. Should a company like Martha Stewart Living continue to remain a domestic brand name product, or should they take a risk and expand globally to places like The United Kingdom, China, Greece, and Latin America.
Establishing a Global Market has allowed many countries to increase their profits and develop new target markets around the world. According to MKTG Marketing Text Book Student Edition 7 "World Trade climbed $200 Billion in a year to over $ 12.5 Trillion a year in 2009". McDonalds, Frito Lays, and Coca Cola are all American companies that have experienced financial success worldwide by adapting a Global Marketing Standardization. This allows a company like McDonalds to create their signature foods like French Fries, Hamburgers, and Wraps in other countries because the idea is that customers in markets around the world want to experience eating the same foods they serve in the Untied States. Knowing a countries demographics and laws allows the foreign company to market their products successfully by respecting their lifestyle components . For instance Mcdonalds serves a sandwich called Chicken Maharaja in India that is marketed like a Big Mac burger, but it does not contain beef because one of the main religions in India is Hindu, and in this religion they worship the Cow. This strategic concept is called Product Adaptation. The foreign company should adapt to the new environment in order to market their product to that target audience.
Many other aspects of Global Marketing are important to consider when introducing a new product to a foreign country such as Economic Development, Political Structures and Actions. Marketers have to largely consider the economy and the target audiences financial income. Does this country have a sophisticated societal system, or is it an under developed system? Does this country allow it's citizens a great deal of independence, or is Non-Democratic government. Legal considerations are can vary depending on the governmental structure existing in a particular country. If your product or service is considered offensive to the people in the new potential country, you can lose credibility and ultimately lose the target market.
Martha Stewart Living Magazine is now available in countries like Thailand, Indonesia, and Germany among many other countries. Her famous domestic products are advertised and displayed throughout the magazines and her readers are now interested in obtaining her linen, cooking utensils, and cookware. By distributing her magazines in various global countries, Martha Stewart is creating a demand for her products, therefore already attracting a new large target audience. The Marketing director can begin to calculate the highest demand and create a global marketing plan catering to the specific needs and wants that the country has. The products that can be offered are used throughout the world, bed linens, cookware, and home decor is a popular staple in many countries around the world. Martha Stewart can become a leading Direct Investor with an active ownership in a new foreign market. Because Martha Stewart has a large social media following, the company can benefit from the comments and interests written on her blogs.
Thus gaining a bigger insight on her domestic market, but also on her potential new foreign markets.
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