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Global Marketing Strategy Development Benefits


This paper examines the various marketing strategies that are essential for success of any company within the global market. It begins by introducing the idea of the global markets, and then discusses the common factors that influence the channel structures involved in distribution of products. Then it looks at the steps that the global companies undertake to ensure that they benefit from the global brands and the advertising campaigns. In this case brand imaging is distinguished from what is called sales promotion and how it relates to advertisement. Finally the paper discusses the role of sales promotion within the global market and the differences that exist between the industrial and consumer sales promotion. The paper then draws a conclusion on the benefits of all the strategies within the global market and the negative challenges that might be encountered.

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Within the global market, companies compete in winning consumers’ trust by producing quality goods and services. They capitalize on opportunities to cut on the prizes of goods and shorten the life cycle of products. Companies have flooded the global market with the aim of building strong customer bases and maximizing on profits. However, there are some major challenges that Companies encounter which acts as barriers to fair global competition (Keegan & Green, 2002).

Factors Influencing the Channel Structures and Strategies Available to Global Marketers

Market channels and structures used by managers from various companies must all follow the principles of globalization. For appropriate and effective channels to be used they must consider the needs of both local and international markets. The factors that influence the channel structures include several paradigms some of which are discussed below (Rosenbloom and Larsen 2008).

System flow paradigm

This represents a number of processes and activities that have influence on institutions within the global market. These institutions are owned by wholesalers, sales agents and retailers. These institutions form the link between the sellers and the buyers without which the global marketing may not operate. For any marketing strategy to succeed, these channels must be well coordinated and managed. This flow has since been interrupted by the introduction of internet where a customer can transact business direct with the producer without involving any intermediaries (Vaile, Grether and Cox, 1952, pp. 113-129).

Divergence views on product categorization

This involves the differences in perception on particular goods from the manufacturers and consumers perspective. While those producing the goods focus on the efficiencies that accompany its production, consumers focus on the benefits derived from using of the same products. This has made it difficult when it comes to assorting goods for the satisfaction of the diversified global demand (Alderson, 1954, pp 5-22).

Relationship Paradigm

This involves the kind of relationship which exists amongst those involved in global business transactions. Conflict of goals, objectives and opinions are inevitable amongst the suppliers, retailers and the consumers and this brings about disharmony within the smooth channels of distribution. This is sometimes enhanced by the differences in cultural beliefs amongst members from different countries (Rosenbloom 2007).

Use of Power within the channel

This is the situation whereby some members within the distribution channel use their influence to manipulate others and ultimately the smooth flow of products. This determines the level of satisfaction, conflict and relationship amongst players within the global market (Lusch and Ross 1985).

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Ways in Which Global Brands and Global Advertising Campaigns Benefit Companies

In global marketing approach, development of global brands that has same characteristics in all markets is considered the most successful strategy. The global branding has got some of the most important roles that it plays in the growth of a company. First it brings large economies of scale to a company and gives the company admirable global image. Large economies of scale are profitable when it comes to reduction of production costs hence changing the financial status of the company (Alden, Steenkamp and Batra, 1999).

A global brand creates unique images of a specific company worldwide helping in the development of one specified advertising strategy that can be used internationally. This assists the company in reducing expenditure costs. Global brands help in delivering good quality products hence are considered trustworthy irrespective of the country of origin. Before a brand becomes global it must have strong local support from origin country which enhances its quality (Ramachander, 2000).

However, in terms of global advertisement, research has revealed that an advertising campaign that succeeds in the native country may sometimes not successfully penetrate other international market segments. This calls for extensive research to establish the effectiveness of advertising methods in some regions before a product is released. The difference in perception and tastes are brought by differences in culture and beliefs (Kaynak and Cavusgil, 1983).

The Role of Sales Promotion in the marketing mix and How the Role Differ for Industrial and Consumer Products

Sales promotion has become a crucial part within the global market economic system. Its introduction has enabled so many companies to meet their targets within the global market. It is crucial for survival in the present dynamic market where the Company besides producing quality products must also make efforts to identify and create awareness amongst potential customers. This defines the role of sales promotion which is luring the consumers towards making quick purchases of a particular product, leading to an increase in sales. Extra prices are given to the customers for every purchase they make of a particular product (Andromida, 2010).

Sales promotion provides a means for building strategies that can help under stiff market competition. The promotion style helps in winning loyalty of customers for particular products. Sales promotion for industrial products is the situation whereby trade and consumer promotional ideas are incorporated into the industrial market environment. It is promotion that takes place within the business to business environment and is between business companies. While on the other hand consumer promotion is the sales promotion between businesses and consumers within the market. This where the consumers are offered one free product on top of every product bought while in Industrial sales promotion businesses are lured to buy one product and maybe granted free services for a duration of time (Andromida, 2010).


More research needs to be done to establish on the strong influences that majorly affect channels of distribution and also on the level of satisfaction of brands within global market. The building of global brands is of great benefit to consumers since it regulates costs and prizes of goods and services. The use of sales promotion is an effective way of marketing since it helps in improving the value attached to products.


Alden, D., Steenkamp, M., & Batra, R., (1999). Brand positioning through advertising in Asia, North America and Europe: The role of global consumer culture. Journal of Marketing, (63), 75-87.

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Alderson W., (1954). Factors Governing the Development of Marketing Channels, Richard M. Clewett (ed.), Marketing Channels for Manufactured Products, Homewood, Illinois, pp. 5-22.

Andromida, (2010). Consumer Sales Promotion marketing mix Strategy and ideas and methods. Web.

Kaynak, E. & Cavusgil, T., (1983). Consumer attitudes towards products of foreign origin: do they vary across product classes. International Journal of Advertising (2), 147-157

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

Lusch R. F., &Ross R., (1985).The Nature of Power in a Marketing Channel. Journal of the Academy of Marketing Science, (7), 39-56.

Ramachander, S., (2000). Effects of brand local and non local origin on consumer Attitudes in developing countries. Journal of Consumer psychology, (9), 83-95.

Rosenbloom B. & Larsen T., (2008).Wholesalers as global marketers. Journal of Marketing Channels,15(1,), 235-252.

Rosenbloom B., (2007). Multi-Channel Strategy in Business-to-Business Markets: Prospects and Problems. Industrial Marketing Management, (1), 4-9.

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Vaile R., & Grether, T., & Cox R., (1952). Marketing in the American Economy. Ronald Press, New York, pp. 113-129.

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