Global and Domestic Marketing

¶ … economic factor is probably the first to be considered when making a domestic or international marketing decision. In terms of the international marketing decisions, the economic factor will determine the initial export decision. Indeed, the economic factor practically summarizes everything in terms of the financial and economic health of the country in which the marketing decision will be applied, but with a direct impact on social or demographical factors as well. I am referring here to the population's income, for example, which will help determine whether some of the more expensive products of a product portfolio will have a chance of being commercialized in a certain country.

In this sense, the domestic marketing decision may possible be in two different situations. First of all, if the product is commercialized in a country with a similar economic condition, it is likely that the marketing decisions will bear a high rate of similitude. Indeed, a product commercialized in Great Britain will probably have a similar marketing strategy in the U.S. As well, at least from the economic point-of-view, given the similar development level in the two countries. On the other hand, if a product is commercialized in Great Britain (domestic market) at a high price, it is less likely it will be commercialized in Africa as well (international market), as the economic conditions do not permit it.

Besides the export decision, the advertising component is also affected by the economic factor on the international market the company wants to use for its products. First of all, you need to be aware of the impact your campaign will have. If you are selling a product that is not necessarily too expensive, but use an advertising campaign which will be judged as extremely expensive, in a country where the income levels are average, you may have a negative reaction from your audience.

Perhaps the cultural factor is the most important affecting international or domestic marketing decisions. Cultural differences have perhaps the most notable influence on international business and decisions in an international environment. In terms of cultural differences and the cultural factor, we need to consider everything from color to language to traditions and habits.

Let's discuss a practical example. A fashion and design company decides to launch a line of clothing to Japan. The first problem: in Japan, white is the color of morning. This means, form the beginning, that the line of clothing will exclude white clothes. The second problem is less related to the cultural factor, but can be included in the overall characteristics of the Japanese people: the physical factor. The Japanese anatomical conformation is somewhat different than what we would expect on the Western market. Indeed, men are shorter, while women tend to have larger hips. The product needs to be perfectly adapted to the physical requirements of the target customers.

The means of promotion will bear the language burden. In this sense, it is obvious that the promotion channels need to be locals for whom Japanese is the native language rather than implants from the domestic market. It is often the case that promotion campaigns that are done with people who are not native language speakers will not properly contain the right sense to certain words or phrases. Sometimes, the error committed can be bad enough to blow an entire campaign.

Perhaps the traditions and customs of each people, a clear mark of the cultural factor, are the most important issue to mention when referring to international marketing decisions. Marketing is always closely related to the question "what the customers want?" Advertising will tell people what they want, but marketing in its ensemble needs to identify what to sell on a market before deciding how to sell it. In this sense, one of the fundamental marketing decisions is what to sell. The cultural factor, through its traditions and customs, will partially tell a company what to sell on a market, even by pointing out what not to sell.

Deciding to sell lady jeans to a fundamentalist Islamic country may even have political repercussions. It is a question of religious traditions here: women in Islamic countries are bound to wear a rigorous line of clothing, as established by the Koran and by the habits in such countries.

In this sense, we may draw relevant comparisons in terms of differences between international and domestic marketing decisions, from a cultural perspective. Domestic and international marketing decisions need to be fully matched to the requirements of the targeted customer. The problem with international marketing decisions is that it becomes more difficult to know what the culture is like in a distant location. A rigorous research before the product or service is launched will help avoid unfortunate problems later on.

The connection between the cultural factor and the ethical factor in terms of international marketing decisions is quite obvious. Indeed, cultural differences and the particular and individual characteristics of each culture in part will modify business ethics accordingly. Certainly, we need to consider that we have some universal business ethics that need to be respected. According to these, for example, one cannot break an agreement, even if it may be only a verbal agreement. Nevertheless, things that may be considered unethical in one country may become neutral or even positive aspects in another.

A strict example in this sense is, for example, China. It is a custom here to present your fellow negotiators with certain gifts, not necessarily cheap ones, gifts that will facilitate a more favorable decision. Of course, in a country belonging to the Western civilization and culture, this is unheard of and it will probably be considered a bride, hence, an offense assuming that the fellow negotiator is corruptible.