Challenges of Global Marketing
Many companies are becoming worldwide and globalize their marketing. International marketing brings some challenges to the companies. The main ones include the coordination of marketing activities among several countries, satisfying the consumers’ wants and needs in different countries, the use of new technologies, challenges with pricing, and some other issues (branding, decision-making, measuring and reporting). In order to overcome such difficulties companies should combine digital and traditional marketing, study every market and its consumers, determine price factors in every country and follow some other recommendations. The American College of Emergency Physicians (ACEP) copes with international marketing challenges in emergency medicine.
Nowadays, many companies are becoming global. As a result, they need to do marketing activities at the global level, too. As all countries are unique, marketing activities may present some challenges if they are not performed properly. The main stumbling blocks in international marketing include the challenge of activities coordination among several countries, addressing the consumers’ wants and needs in every country, the use of new technologies, pricing issues and many other.
The Challenge of Activities Coordination
In the international marketing it is important to coordinate different activities of a company across several countries. This task is quite arduous. It is difficult to control one marketing campaign in several countries. The problem usually arises as most people focus on their local market first and then on the other global markets (Freedman, 2014). Within the coordination of activities, coordination of marketing channels is important and presents some challenges. The use of digital and traditional channels as well as their integration is often problematic. According to the survey, 37% of senior marketers consider that marketing activities of their companies are not integrated completely into digital and traditional channels. The opportunity to increase income from multi-channel customers requires much investment in digital marketing. Although costing too much for a single market; however, it can be used for integration and localization. “The bottom line is that senior marketers need to adopt the “global mindset” that will let them displace strong organizational silos, specialized partners and a reliance on traditional single-channel campaigns in order to realize the benefits of cross-channel experiences”. In addition, executive branches of CEO, CMO and CTO often have overlapping duties. Therefore, it may cause problems in effective organization of marketing activities in a new country. Digital and traditional marketing are not always coordinated (Five Challenges for Tomorrow’s Global Marketing Leaders: Study, 2012).
Reaching the Consumers’ Wants and Needs in Every Country
The market and consumers are unique in every country. Approaches to reach them and sell products successfully should be different, too. Marketing campaigns need to be adapted to the local markets. The messages used in the marketing process should be individualized for every market in order to make the customers understand them properly. Otherwise, campaigns may fail (Freedman, 2014). At the same time, local markets are becoming more and more integrated due to globalization processes, the Internet and other modern technologies. According to a survey, 82% of senior marketers considered that their companies had problems with consumers worldwide. Customers become interconnected globally. At the same time, local peculiarities remain important. Therefore, marketers have a challenge of combining global marketing strategies with the local ones with the goal of reaching new consumers and staying with old ones (Five Challenges for Tomorrow’s Global Marketing Leaders: Study, 2012).
The Use of New Technologies
The use of new technologies is very important in international marketing. New technologies can help to coordinate marketing campaigns in different countries. Nevertheless, using them can present some challenges. An important one is related to social marketing. Social media sites provide a unique opportunity advertising and promoting products at the global level for free or at low expense. However, it is quite hard to measure and report the efficiency of the use of social media marketing because the reports cannot be represented in financial terms. New technologies seem to be fruitful for marketing on the global level. However, they can bring some difficulties. It is important to control the use of new technologies and not to let them become more important than creativity. Creative ideas are always important in marketing, even in modern technology age (Freedman, 2014). One more problem is that most senior marketers do not know very much about modern technologies in marketing. Therefore, they may choose the wrong technology, and the marketing campaign may fail completely (Five Challenges for Tomorrow’s Global Marketing Leaders: Study, 2012).
Pricing in different countries can be quite difficult in international marketing. Determining prices is difficult because prices are affected by many factors. Those factors provide some difficulties in pricing decisions. The most important factors will be mentioned. Currency exchange rates and their fluctuations are very important in international marketing because a product can be produced in one country and sold in another. Therefore, exchange rate fluctuations influence a lot: a company should set a price that is reasonable for local consumers and at the same time provides profits to the company. In addition, it is difficult to predict exchange rates in the future, and their changes can cut profits. Inflation processes significant too. If inflation is very high, profits may be reduced dramatically. Government control is also an important factor. Many countries control prices for imported goods in order to support domestic producers. If they set a very high minimum price, the sellers of imported products can fail because their products will not be purchased. Very often, it is difficult to choose a good pricing strategy in international marketing (Zaribaf, 2008).
Other Challenges in International Marketing
Despite the main challenges described above, there are also many other challenges that can cause problems in international marketing. Brand decisions can cause some issues. A company should create a brand that is consistent, promotes a future value, and is appropriate for both global and local levels. Marketing decision-making can cause issues, too. Many companies cannot decide whether to make decisions at the centralized or decentralized level. One more challenge is the use of marketing channels. A company should decide whether to establish a marketing organization in every country or to rely on local channel partners (Schermer, 2010). One more important challenge in international marketing includes measuring and reporting. It is quite difficult to combine and analyze data from different countries. Moreover, traditional focus on ROI does not always work in international marketing (Freedman, 2014).
Marketing is functioning at international level. While being positive for companies and consumers; however, this may cause some serious issues. The main challenges in international marketing include the coordination of different marketing activities between executives and countries, satisfying the wants and needs of consumers in different markets, the use of new technologies if they are not applied properly, problems with setting prices in different countries, issues with branding, marketing decision-making, measuring and reporting. In order to overcome those issues companies should use some recommendations that are provided below.
In order to coordinate marketing activities, managers should study digital and traditional marketing properly. It can help to combine it successfully at international level. It is also important to identify clearly the tasks of CEO, CMO and CTO. The companies can also create a position of CXO (chief experience officer) who should be responsible for the combination of digital and traditional marketing (Five Challenges for Tomorrow’s Global Marketing Leaders: Study, 2012).
In order to satisfy consumers in different countries, marketing departments should study all national peculiarities including fashion, tastes, traditions, income level, and so on properly. Marketing campaigns may become completely different for different countries in order to make them effective. Nevertheless, it is important to consider the globalizing trends in modern markets. Therefore, companies should combine national and international marketing in the right proportions.
In order to use modern technologies efficiently, marketers should study them properly. It is important to study every new technology that is developed and decide whether it is appropriate for the particular product or market. Different technologies can be efficient or inefficient for different products. At the same time, technologies should be combined with the creative process. Even in modern technological age, creativity is still vitally important in marketing (Freedman, 2014).
In order to cope with pricing issues, companies should use different approaches including transfer pricing, cost-based pricing, and market-based pricing. Each strategy should be chosen depending on the market and the product. It is also important to study the situation with exchange rates and inflation as well as their forecasts for every country in order to establish reasonable prices (Zaribaf, 2008).
International marketing challenges can be met indifferent spheres including emergency services. The challenges are overcome in different ways. In emergency medicine, the American College of Emergency Physicians (ACEP) supports different activities including overcoming of international marketing challenges. This organization promotes emergency services in different countries and copes with marketing issues of they arise (International Development and Promotion of Emergency Medicine, n. d.).