Global and Domestic Marketing

While planning is an important part of any successful campaign, there are some considerations which are vital to the successful launch of a product domestically and globally. Some instances are identified in the following table: Domestic PlanningInternational Planning 1. Single language and nationality1. Multilingual/multinational/multicultural factors 2. Relatively homogeneous market2. Fragmented and diverse markets 3. Data available, usually accurate and collection easy3. Data collection a large task requiring significantly higher budgets and personnel allocation 4.

Political factors relatively unimportant4. Political factors frequently vital 5. Relative freedom from government interference5. Involvement in national economic plans; government influences business decisions 6. Individual corporation has little effect on environment6. “Gravitational” distortion by large companies 7. Chauvinism helps7. Chauvinism hinders 8. Relatively stable business environment8. Multiple environments, many of which are highly unstable (but may be highly profitable) 9. Uniform financial climate9.

Variety of financial climates ranging from over-conservative to wildly inflationary 10Single currency10. Currencies differing in stability and real value 11Business “rules of the game” mature and understood11. Rules diverse, changeable and unclear 12Management generally accustomed to sharing responsibilities and using financial controls12. Management frequently unautonomous and unfamiliar with budgets and controls (http://www. fao. org/docrep/W5973E/w5973e0h. htm) One of the factors identified in the above table was political.

Political factors are an important aspect to be concerned with when controlling marketing decisions. The Iraqi war has been portrayed several different ways by the media, both in the US and around the world. Domestic marketing decisions are fueled by the post 9-11 and Iraqi War pro-America, pro-patriotism, and pro-military movements. (Allow me to specify there is an enormous difference in being pro-military and not pro-Iraqi War. ) Many marketing geniuses took the time to say “thank you to our country’s troops with special military fares and discounts.

One of these companies was Ford Motor Corporation. Ford offered a military discount which equaled the employee discount it is currently promoting. It was advertised in newspapers, on television, and highly visible on US military installations. However, this ad was based strictly in the continental United States. The decision against broadcasting it in European countries was based on the unpopularity of the Iraqi War, and more importantly the increasing lack of support of President Bush.

Due to the wavering opinions abroad, Ford decided against taking the chance of promoting pro-military campaigns in foreign countries for fear of losing revenue. A second external factor that would affect global and domestic marketing decisions differently would be the cultural aspect. The United States is a mecca of cultural intertwining. Products advertised in the US are, by majority, based on sex appeal. Victoria’s Secret promotes lean, toned, voluptuous women whose provocative modeling is required for campaigns. The sexier the campaign, the more revenue will be brought in. Their ?

ANGELS’ campaign from 2000 reportedly brought in $15M in new global business. (www. vs. com/corp/aff/7840) However, if the same marketing was to occur in deeply religious nations like Turkey or the Philippines, Muslim and Catholic respectively, a public outcry would take place and Victoria’s Secret in that country would be ruined. If one takes a look at the different styles of undergarments that are advertised in those countries, one will notice that the same slinky camisole that is tame in either the United States or the United Kingdom is scandalous and risque in countries like India and China.

Much more conservative underwear is advertised and sold in these countries. A shocking, sexy Victoria’s Secret marketing campaign would invade the fundamental beliefs of any deeply religious country and would be marked as morale and cultural decay. Finally, the third example of a factor affecting both arenas of marketing involves legality. Domestically, it is illegal to promote cigarettes by means of radio or television thanks to the Master Settlement Agreement (MSA) signed November 23, 1998.

The MSA established guidelines for cigarette companies, such as to stop targeting teenagers in their advertisements, as well as prohibited from advertising in movies, video games, radio and TV. Globally, this is not necessarily the case. While Japan filtered out cigarette ads in 1997 and the United Kingdom did so in 2003, many countries such as France, Canada, and Pakistan still air them. Cigarette manufacturers spend about $5B a year in advertising their products globally. Approximately . 05% of that is spent in the United States (Coleman and Cressey “Social Problems” Harper Collins, 1996.

) The marketing campaigns tobacco companies are using involve young, good-looking people. The 2004 Surgeon General’s report on smoking concluded that the money spent on global advertising is well spent for tobacco tycoons as there has been a steady increase in smoking amongst the young, which includes all smokers under 25 years old. (Marlene Cimons, “Teenagers Face Special Smoking Risk, Report Warns,” Los Angeles Times, February 25, 2004 P. A19) As overall sales of cigarettes have decreased in recent years, the tobacco industry has responded with an ever-more sophisticated global marketing campaign.

Worldwide, the popularity of smoking among women is certainly related to the special efforts the tobacco companies have made to marketing to that group, particularly the target audiences of 18-25 and 25-34. Similar campaigns directed at African and Latin Countries have increased smoking dramatically in those areas. (Donna K. H. Walters, “Cigarettes Makes Aim at Specials Niches to Boost Sales” Los Angeles Times, September 15, 1985 Sec. 5, P. A3) Not surprisingly, the rates of heart disease, lung cancer and other respiratory diseases have shown an alarming increase among the targeted groups in recent years.

Global marketing, whether it be local, domestic or international must be carefully thought out and planned. Taking all aspects of a countries’ culture, religion, politics and ecology into account when making sound marketing decisions is the only way to achieve a true global campaign. Many large companies choose to have field marketing offices in the regions of their largest sale areas simply to have an intimate knowledge of their consumers’ backgrounds and potential new marketplaces.