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Analysis and Strategy in Global Marketing


The paper examines the various strategies used in global marketing. The paper starts with introduction then outlines the Porter’s five forces model in industry competition and the effects of the barriers in global marketing. Then the paper examines the differences that exist among local, national, international and global product giving examples of each. The approaches to global pricing its disadvantages and other means of pricing that can be effectively applied in the marketing environment are discussed and the recommended alternative that can be effectively and profitably applied by any aspiring company in the global marketing environment. The paper then finally ends with the conclusion on important issues that should be considered when analyzing the strategies to be applied in global marketing.

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International marketing is defined as the process where a firm makes decisions related to marketing beyond the national boundaries (Calof and Beamish, 1995). Marketing strategies like pricing, promotion, development and distribution have to be implemented appropriately by the global company. The value that consumers attach on any product is dependent on the price, brand name and the place where it originates from. This is evident in so many countries based on the product branding and consumer preferences (Doole and Lowe, 2008).

Porter’s Five Forces Model of Industry Competition

According to porter’s five forces, the level of attractiveness and profitability of any industry is determined by the following five forces;

  1. The Threat Posed by The number of New Entrants. According to Keegan and Green (2002), the entry of new businesses within the industry raises the level of existing competition; this ultimately may lower the degree of attractiveness towards the same industry. However, there are barriers in every industry that help in regulating the number of entrants. These barriers can be in form of capital, customer interests, attitude of already existing industries, economies of scale and availability of distribution channels (Keegan and Green, 2002).
  2. Presence of Substitutes. The existence of substitute products may lower the rate of consumer turnout towards any industry. This ultimately leads to low profitability due to price tension between the industry and substitute products. The threat posed by substitute products largely depend on; the consumers’ attitude towards the substitute, their willingness to purchase it and the pricing of the substitute (Tutor2u, 2010).
  3. The Position of Suppliers. The rate and the cost of supplied materials determine the performance of an industry within the market. Supplier’s high bargaining power can have a negative influence on the whole industry. This is only possible on the condition that the number of suppliers is less within the market, the existence of products that are highly rated and the decision by suppliers to sell supplies through their owned retail outlets (Tutor2u, 2010)
  4. The Nature of Consumers Bargain. The demand by the buyers within the industry can have tremendous effect on the company’s profitability. The level of demand of consumers can be a barrier when; the number of sellers is higher than that of buyers, buyers decide to buy direct from the suppliers, the suppliers fail to be consistent with their supplies and when products are of low quality (Keegan and Green, 2002).
  5. The Level of Competition Between Companies. The intensity of competition brings about rivalry which endangers the state of an industry. The level of rivalry is largely dependent on the market policies governing competition, cost, and the level of product differentiation, channels of growth strategies and the cost of exiting the industry.

Relevance of Various Barriers to Entry to Global Marketing

According to Chung (2003), these barriers are relevant to Global marketing on the fact that they determine the reasons as to why some international marketers under utilize their potentials, and the reason most firms fail when it comes to incurring their financial losses. The barriers make firms to create key strategies and evaluate trade policies before exploiting certain regional markets. This may act as a boost to their trade performances due to better selections made (Julian and O’Cass, 2004)

Differences among a local, National, an International, and Global Product or Brand

A product is referred to as local when its availability is confined to the boundaries of either town or region within nation state where it is produced. An example is the MTR spices whose marketability is confined within the markets in southern India. A national product is that whose sale and market is restricted within the confines of a nation for example ‘Appy’ product which is only sold within Indian market and not promoted internationally. While international product is that which has access to markets in several countries, an example is Honda vehicles which are sold in many countries despite being manufactured in Asia. Global products are those produced by various companies from different regions and sold within the global markets, good example is coca cola soft drink (Wills and Jacobs, 1991).

Alternative Approaches to Global Pricing

  1. Performance-based. Global businesses have developed performance-based strategy as an alternative to pricing since it presents greater value to customers and high levels of profitability. This presents a situation whereby those selling the products are rewarded based on the level of performance of products and services within the market. The more the seller provides the higher the reward depending on the measurable results of the product (Pinto, 2008).
  2. The reward based on level of risk. This is a situation whereby the value price of the product or service rendered is set before it is manufactured or provided. In this case the profit is established even before delivering the product while the customer is made to pay for all costs (Pinto, 2008).
  3. Customer-value based. This is where global companies first of all determine the worth of the products to the consumers. In this the companies are able to set achievable prices that are affordable to the customers in relation to the value of the product.

However, within the competitive global market the pricing based on costs is vulnerable to some fraudulent activities, and may present consumers with huge losses. Performance-based pricing is the recommendable alternative since it values quality and consumer interests. This pricing method also ensures that there is good relationship between seller and buyer based on charges. The buyer has the opportunity of paying only for the level of performance that is given which must be measurable (Pinto, 2008).


The international marketing body should ensure that all the strategies from companies conform to the already designed marketing policies, and has the capability of achieving the global competitive advantages. This ensures the maintenance of any society across the nations through creation of business related opportunities. The various barriers to international trade should be reviewed as the world closer to globalizing free trade (Chung, 2003).

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Calof, L. & Beamish, W. (1995). Adapting to foreign markets: explaining Internationalization. International Business Review, 4(2),115-131.

Chung, L. (2003). International standardization strategies: the experiences of Australian and New Zealand firms operating in the greater China markets. Journal of International Marketing, 11(3), 48-82.

Doole, I. & Lowe, R. (2008). International Marketing Strategy. Web.

Julian, C. & O’Cass, A. (2004). The antecedents of export marketing performance: an Australian perspective. Journal of Asia Pacific Marketing, 3,(2-3), 99-113.

Keegan, M. & Green, K. (2002). Global marketing management. NY: Prentice hall.

Pinto, J. (2008). New Pricing Paradigms. Web.

Tutor2u, (2010). Analyzing competitive industry structure. Web.

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Wills, C. & Jacobs, L. (1991).Developing Global Products and Marketing Strategies: A construct And A Reach Agenda. Journal of the Academy of Marketing Science, 1(19):1-11

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