Updated April 26, 2023
Introduction to Global Marketing vs International Marketing
Although many marketers perceive them as interchangeable, international and global marketing are two distinct concepts. International marketing refers to the marketing strategies utilized by marketers who possess knowledge of the specific markets in different countries. Conversely, global marketing is a marketing approach that involves the creation of marketing efforts that target the unique characteristics of the global market.
We can understand that these two terms sometimes sound similar to most people most of the time, but actually, they are not. They aren’t analogous by any means. In the words of Oxford University Press, global marketing is when an organization utilizes an exact promotional tactic worldwide – like Nike or Wal-Mart. Under the purview of global marketing, the entire world is considered one market, and products or services, distribution channels, and communication are not adjusted to regional requirements.
Alternatively, International marketing refers to a situation wherein a company opens a subsidiary in a new country and permits that subsidiary to look after the market in that region and pay consideration to local customs like religion, diet, and lifestyle habits.
International Marketing vs Global Marketing
Here are some of the key differences between the two terms that show that these are not similar:
1. Service or Product Offering
In global marketing, a company provides the exact product or service offerings to customers in all its countries. For example, banks, insurance companies, and big retail chains like Walmart. In international marketing, however, each market is served with specifically tailored products especially suited to only the customers in that market. Let’s talk about the Sharia finance products only offered to Muslim customers in Muslim countries or non-Muslim countries.
2. Marketing Personnel
The marketing staffs of companies employing the global marketing strategy work at the company’s head office and are generally quite different from each other in terms of ethnicity, age, gender, and also the nature of work. They have distinct skills from each other, which, when combined, produce effective results for the company and its global view.
On the other hand, in international marketing, there is much less dissimilarity among the team members, and they generally hail from the company’s country of origin.
3. Marketing Budget
The corporate headquarters finalizes and approves the marketing budget for a company adopting the global marketing policy. For example, Nike finalizes a said amount of budget at its headquarters, which then drops down to local branch offices subsequently.
In international marketing, the budget is segregated into each subsidiary office, which has the authority to formulate its budget. For example, McDonald’s runs ads in local languages and according to local traditions that can be found in those regions only.
4. Promotion Tactics
In global marketing, the company tries to make and air (on TV and radio) ads that are in sync with the worldwide audience and similarly does other marketing efforts. A relevant example of this would be the television ads that were aired during the 2014 FIFA World Cup. It was a mix of global events, passionate viewers, and the game of football.
In international marketing, all the marketing efforts, including television commercials, are tailored to the local market.
5. Marketing Autonomy
In global marketing, every marketing strategy is devised and implemented from the corporate headquarters, whereas in international marketing, the marketing efforts are generated from within the domestic markets.
6. Use of Social Media
Reviewing their social media pages, one can contemplate the company’s marketing policy. For example, brands like McDonald’s have separate Facebook pages for numerous countries such as Malaysia, Brazil, Italy, and Spain. Companies like Nike and Caterpillar have just a solitary Facebook page for their customers, regardless of region or country.
7. Customers Engagement
Customers’ engagement is more visible in International Marketing. A company can better connect with its customers by installing in place better communication channels. Global marketing is also as effective regarding customer engagement. Only the international marketing strategies are a little different. However, it is proved that international marketing seems to create a greater amount of engagement than global marketing does.
8. Advertising
In the global marketing concept, the advertisements are typically aired on worldwide mediums; however, in international marketing, companies tend to air the advertisements in local markets or markets with similar characteristics. Some global marketing products respond well to global advertising. However, others cannot exist in certain countries due to legal restrictions.
9. R&D and Marketing Research
In real terms, marketing research and R&D are as thorough and widespread in global marketing as in international marketing. There are some instances when companies don’t do their international marketing research properly; thus, their products fail miserably in the global market. For example, the Ben-Gay Aspirin, McDonald’s Arch Deluxe, and Redux Beverages’ Cocaine Energy drink.
10. Hybrid Structure
This point is not a direct comparison between global and international marketing but emphasizes that a hybrid structure of the two forms of marketing can be very useful for companies. For example, in the early days, Coca-Cola successfully adopted this tactic, and now every company seems to follow it. For example, Frito-Lay, Proctor and Gamble, McDonald and Mercedes Benz have taken this approach.
International Marketing Definition
The international market is the marketing approach in which a company sells international marketing products in more than one country.
Marketing Environment of International Marketing
- The Political Environment: These kinds of government comprise the political & ethical base such as democracy, socialism, dictatorship, monarchy, or consumerism.
- The Legal Environment: The administration’s ruling on goods and services is important to an international marketing organization. If the law drives the market, it supports the price and circulation of products and services.
- Cultural Factor: The culture of any country is hugely significant in international marketing since it helps the organization know the international marketing features they must keep in their purview. In the event of developing countries, this is not the case, as foreign goods are highly liked as compared with locally made ones.
Global Marketing Definition
It discusses the marketing actions coordinated and assimilated across numerous markets. Jonny K Johansson has defined Global Marketing as “a bigger brother to international marketing” i.e. it’s just an extension of international marketing. Muhlbacher, Helmuth, and Dahringer have defined it as “Global/transnational Marketing focuses upon leveraging a company’s assets, experience and products globally and upon adapting to what is truly unique and different in each country”.
Global Marketing Advantages
The following are the advantages of global marketing
- Whenever a business turns global, it is empirical that it should take advantage of the myriad opportunities the Internet can bestow upon it.
- Apart from the limitless sales potential that the business eventually enjoys by keeping a worldwide existence, a particular brand must also invest in Internet resources that the customers can readily relate to, irrespective of where they might be.
- Higher profits, increased sales, fresh knowledge, and skill development are marked advantages of global marketing.
Global Marketing Disadvantages
- The competitive dissimilarities amongst the various brands and manufacturers.
- Their regions impact the differences in customer liking, such as needs and desires.
- The differences in authorized concerns may clash with the native market.
- There may be language barriers, a changed mindset of consumers, and/or additional costs incurred in production.
It is a great deal different from international marketing. Although they are perceived to be similar when a company decides to expand and create its business, it needs to know the differences between them. By choosing between international and global marketing, the company can be well-prepared for expansion without further concerns.
The Oxford University Press defines it as “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities to meet global objectives.” Thus, global marketing means selling your products all over the globe. It is very close to international marketing, but the two have many differences.
It does happen when a company deems the entire worldwide market as one. There is no difference between the local market and the market that is 10000 miles distant in the company’s view. It perceives the entire market with the same eye and makes no distinction between any particular markets. It is followed by large retail stores that sell certain fixed products. The company would not introduce anything new or per the local people’s religious sentiments since it’s an international brand operating in that region as a foreigner. They won’t even bring in certain foods and products from the host country but would only sell those found in their own country. Every product of theirs is the same as you would find in the country of their origin or that can be found in any other country.
To adopt the global marketing strategy, a company must use the ‘4P’s of marketing’: product, price, place, and promotion. A company can’t become a global company overnight but has to take several steps to become one. First, they must possess a global team. Second, they must possess a universal marketing plan. Naturally, it takes some time (and effort) for a local company to sell its products globally.
International marketing is in many ways different from global marketing. International marketing is when a company headquartered in one country starts selling its products in another or many other countries. It then opens head offices and manufacturing units in those countries. It is just like opening a new franchise in another country. The company is still in charge of the international marketing business and its operations and marketing goals. Still, the responsibility of the local markets now lies with the locally headquartered units of the company, which look after them in their way.
It is still possible to keep a large chain using international marketing. The chain and franchises have the same company logo and missions but sell products according to the tastes and religious sentiments of those markets. For example, an American company dealing in international marketing would sell American products and French products.
International marketing has many advantages too. One of them is the availability of local and competent staff from the country of operation, who have a sound knowledge of the local customs and traditions and thus are of great value to the company. This kind of franchise can still operate and make its marketing policies but ultimately have to report to the main headquarter in the country of origin to report all the sales and revenue figures. The decision for a new company that has just started to operate needing to expand its business activities, whether to adopt global or international marketing, has to be taken after considering the nature of its products and other pros and cons.
Conclusion
Whether a business chooses international marketing or global marketing is, eventually, the company’s own decision. Ultimately the chosen marketing approach must fit the business’ mission, vision, operational structure, and brand policy. It is worth mentioning that a company must attain a safe operational stature before adopting a global marketing policy.
Most international marketing managers who decide to enter the global market don’t evaluate along with their boards how a decision regarding the marketing tactic the company would adopt would fare. Like, interpreting a brochure from English to Chinese is better for global marketing companies than for international marketers, who are better at locating a decent local copywriter for themselves.
We hope that after reading International Marketing vs Global Marketing article, the confusion as to the distinction between international marketing and global marketing in the minds of our readers would have gone. We hope that you also found our article informative and interesting. Many thanks for reading!
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