Tuesday, February 25, 2014

Creating Successful Global Marketing Strategies

Companies moving onto the global scene are conducting business around the world 24/7. Increased trade requires new research to help understand the factors that make the difference.  Research by Akkrawimut, et. al. (2011) of 154 Thailand jewelry exporters helps define what makes some companies successful global marketers. Their strategies can are used to encourage other executives to formulate their own approaches.

 Global marketing strategy is important for reaching those customers most likely to purchase products. It can be defined as the marketing activities a company uses to turn global through standardization and integration (Cavusgil, et. al 2004). Focus shifts from domestic to a dynamic global far-reaching approach. 

Companies cannot engage in global marketing without some capabilities. Teece et. al. (1997) defines these capabilities as the firm’s ability to integrate, build, and reconfigure competencies (internal and external) to address shifting market needs. The company will become more complex and adjustable to address global marketing needs of varying countries. 

Global marketing and company capacities should come with a global marketing strategy. Global marketing strategy can be defined as the role of strategic management in the integration and coordination of marketing activities across international markets (Johansson, 2000). Executives have the intelligence and ability to make good judgment out of truckloads of information contained in each market. 

Of course strategy is not likely to be successful unless there is some experience in its formation and use. Foreign marketplace experience can be conceptualized into knowledge and applied to solve problems and weigh alternative options to achieve long-term objectives (Hsu and Arun, 2008). This formalization process may be seen as applied knowledge where experience and theory work together to create transactional functionality. 

The study found that global marketing strategy and firm survival had an impact on the success of the company. The factors are executive global vision, entrepreneurial culture, technology advancement and competitive relationships. The full extent of these factors is moderated by technology adaptation and international experience. In other words, when companies have a sound global strategy and can create an entrepreneurial culture, adopt enhancing technology and can use international experience they are likely to be more successful.  

Akkrawimut, et. al. (2011). Dynamic global marketing strategy and firm survival: evidence from exporting jewelry businesses in Thailand. International Journal of Business Strategy, 11 (2).  

Cavusgil, S. et. al. (2004). The framework of a global company: A conceptualization and preliminary validation. Industrial Marketing Management,33(8):711-716.

Hsu, Chin-Chun. and Pereira, Arun. 2008. Internationalization and Performance- The Moderating Effects of Organizational Learning. OMEGA International Journal of Management Science, 36(2): 188-205.

Johansson, Johny K. 2000. Global Marketing: foreign entry, local marketing & global management. Boston: Irwin McGraw-Hill Companies Inc.

Teece, David J., G. Pisano and A. Shuen. 1997. Dynamic Capabilities and Strategic Management. Strategic Management Journal, 8(7): 509-533.

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