Global Market Strategies for Small Businesses
A global market is an exchange of goods and services that crosses national borders. Although giant corporations have always had a hand in global marketing through having operations, representatives and employees in foreign countries, small businesses can also participate. It’s essential for a business to develop a comprehensive strategy that addresses the challenges of marketing their products in a variety of cultural and economic environments.
The forces of globalization and technology are converging. The result is a world marketplace of standardized consumer products on a previously unimaginable scale. Corporations that have adapted to this new reality enjoy enormous economies of scale in production, distribution, and marketing. This translates into reduced world prices and decimates competitors that have not adjusted to this new commercial reality.
This is the true force behind a company’s need to diversify its markets and seek growth internationally. Companies that are unable to tap into the potential of other markets, even those that are relatively smaller, may find themselves vulnerable during an economic slowdown.
In addition to providing more opportunities for revenue growth, expanding into global markets helps a company ride out economic downturns and reduce its risk of financial collapse. One study by Chief Executive magazine found that companies that operate in multiple international markets are more likely to retain their market share during a downturn, as profits in other regions offset declines in domestic sales.
It’s critical to have a thorough understanding of the regulations and laws in the country into which a business wants to expand, as well as a detailed understanding of the culture of that nation and how it relates to a particular product or service. Global market research is a vital part of this process, as it helps a business feel out foreign markets to determine whether they’re ready for a product launch and to see how their existing product might be received by customers abroad.
The fast-food restaurant chain KFC has developed several clever strategies to achieve global marketing success. Its association of its chicken with Christmas in Japan, for example, has led to Japanese consumers lining up outside KFC restaurants every year to get their fix of the chain’s holiday menu.
The transforming winds whipped up by technology have proletarianized communication and travel, and they’ve pushed world markets toward a commonality of tastes and preferences. Ancient differences in taste, standards and institutions die slowly or disappear completely. Some vestiges survive, however, and prosper in world-wide proportions: Chinese food, pita bread, country and western music, pizza and jazz are among the many so-called ethnic markets that exist everywhere.
A global market is an exchange of goods and services that crosses national borders. Although giant corporations have always had a hand in global marketing through having operations, representatives and employees in foreign countries, small businesses can also participate. It’s essential for a business to develop a comprehensive strategy that addresses the challenges of marketing their products in a variety of cultural and economic environments. The forces of globalization and technology are converging. The result is a world marketplace of standardized consumer products on a previously unimaginable scale. Corporations that have adapted to this new reality enjoy enormous economies of scale in production, distribution, and marketing. This translates into reduced world prices and decimates competitors that have not adjusted to this new commercial reality. This is the true force behind a company’s need to diversify its markets and seek growth internationally. Companies that are unable to tap into the potential of other markets, even those that are relatively smaller, may find themselves vulnerable during an economic slowdown. In addition to providing more opportunities for revenue growth, expanding into global markets helps a company ride out economic downturns and reduce its risk of financial collapse. One study by Chief Executive magazine found that companies that operate in multiple international markets are more likely to retain their market share during a downturn, as profits in other regions offset declines in domestic sales. It’s critical to have a thorough understanding of the regulations and laws in the country into which a business wants to expand, as well as a detailed understanding of the culture of that nation and how it relates to a particular product or service. Global market research is a vital part of this process, as it helps a business feel out foreign markets to determine whether they’re ready for a product launch and to see how their existing product might be received by customers abroad. The fast-food restaurant chain KFC has developed several clever strategies to achieve global marketing success. Its association of its chicken with Christmas in Japan, for example, has led to Japanese consumers lining up outside KFC restaurants every year to get their fix of the chain’s holiday menu. The transforming winds whipped up by technology have proletarianized communication and travel, and they’ve pushed world markets toward a commonality of tastes and preferences. Ancient differences in taste, standards and institutions die slowly or disappear completely. Some vestiges survive, however, and prosper in world-wide proportions: Chinese food, pita bread, country and western music, pizza and jazz are among the many so-called ethnic markets that exist everywhere.