Global Business Environment vs. Local, National, and North American Environment

Subject: Strategic Marketing
Pages: 3
Words: 715
Reading time:
3 min

Marketing strategies of a business in the global environment is different from that of a local or national business environment. A global marketing environment necessitates policies and strategies focused on creating global customer satisfaction and capable of competing with global competitors. In the local or national business environment, the marketing strategies are based on the local customers’ behavior and cultural values. According to the specific feature of the market environment, business firms have to follow diverse marketing strategies. Different aspects of marketing in different business environment are discussed below:

Product development and promotion

Product development and promotion in the local business environment is focused on local community needs and interests. In the global business environment, while developing the product and its promotional strategies, the tastes and interests of the customers on a global basis have to be identified. The potential needs of the customers of global community have to be identified specifically to attain the customer acceptance. It is a difficult process and is not feasible for marketing of all types of commodities. Different modes of product-promotion techniques are required to reach to the entire community in the global business world. Quality and standardization of products and process are the main criteria for sustaining in the global business environment.

No single product or marketing strategy is enough for attaining customer satisfaction in the global market. In this situation each customer group in different communities across the world have to be specifically included in the production and marketing strategy to ensure customer satisfaction. The needs and interests of consumers across diverse markets are always discrepancy in nature. For serving large customer base, companies have to develop core product with minor customization along with standardization of product features. A global economy always imposes pressure on companies to get better competency and efficiency by offering customary products and services at the optimum standard level.

Branding strategy

Specific branding strategy appealing to the local customers can be accurately developed by the business firm locally. In the global business environment, the branding strategy of business firm requires to focus on global customers. Thus, globally acceptable branding strategy has to be adopted in the global business environment focusing on globally standardized quality and competitive pricing strategies. In the local business environment, quality and pricing of products depend upon the local standards and government regulations.

Market research

In local business environment, the market research is for identifying the potential needs and preferences of local community whereas in the global environment while conducting market research a global approach has to be followed. The competitors’ strength and weakness in the global environment have to be identified for formulating corresponding strategies. In case of advertising, local environment needs limited local medias only. Different agencies including different subsidiaries have been adopted in the global business environment. Coordination of so many agencies becomes a crucial task in the global scenario.

Pricing

In the local or national environment, the price of a particular product of a firm is same for the entire market, whereas in the global marketing the prices of the products are differentiated in each market depending upon the buying behavior of the customers in each market. While adopting the pricing strategies, both global and local approaches shall be adopted in global environment. Formulation of buying motives in the marketing strategies also should be differentiated between local and global environment.

On the promotional side, the brand development activities are different from global to local. In the global brand management, identifying and exchanging of the brand’s core values have to govern globally. Particular style, tenor, and picture have to be applied in the communication process. In local brand management, the brand development has to be focused on communication in the local market. “Local brand building depends on an acute awareness of local trends; it’s all about leveraging knowledge that the international marketing department has no access to or sympathy with.” (Lindstrom). Local marketing involves the application of local marketing techniques, by identifying the needs and interest of the potential local customers. Local marketing can be extremely powerful especially for a niche business.