Successfully positioning products on a global scale requires marketers to determine the target market’s preferred combination of attributes.
- Placement in global marketing involves conducting extensive research to accurately define the market, as well as the attributes that define the product’s potential environment.
- Regardless of its size or visibility, a global brand must adjust its country strategies to take into account placement and distribution in the marketing mix.
- In addition to where products are placed, global marketers must consider how these products will be distributed across the different shopping venues and communication channels unique to that particular country or market.
- Positioning: The act of positioning; placement. Positioning involves ascertaining how a product or a company is or should be perceived in the minds of consumers. Positioning is the underpinning of messages created to promote a product or company in order to generate positive perceptions in the minds of consumers.
- Marketing mix: A business tool used in marketing products; often crucial when determining a product or brand’s unique selling point. Often synonymous with the four Ps:price, product, promotion, and place.
- Dollar store: A retail store selling inexpensive items, especially one in which all items have a price of one dollar.
Changes in Placement
The global marketing mix comprises four main elements: product, price, placement and promotion. Although product development, promotional tactics and pricing mechanisms are the most visible during the marketing process, placement is just as important in determining how the product is distributed. Placement determines the various channels used to distribute a product across different countries, taking in factors such as competition and how similar brands are being offered to the target market.
Global marketing presents more challenges compared to domestic or local marketing. Consequently, brands competing in the global marketplace often conduct extensive research to accurately define the market, as well as the attributes that define the product’s potential environment. Successfully positioning products on a global scale also requires marketers to determine each product’s current location in the product space, as well as the target market’s preferred combination of attributes. These attributes span the range of the marketing mix, including price, promotion, distribution, packaging and competition.
Regardless of its size or visibility, a global brand must adjust its country strategies to take into account placement and distribution in the marketing mix. For example, not all cultures use or have access to vending machines. In the United States, beverages are sold by the pallet via warehouse stores. However, in India, this is not an option.
Moreover, placement decisions must also consider the product’s positioning in the marketplace. A global luxury brand would not want to be distributed via a “dollar store” in the United States. Conversely, low-end shoemakers would likely be ignored by shoppers browsing in an Italian boutique store.
In addition to where products are placed, global marketers must consider how these products will be distributed across the different shopping venues unique to that particular country or market. Customizing these placement strategies for national and local markets while retaining a strong and consistent brand image can help companies gain significant competitive advantages in the global market.
A characteristic or quality of a thing.
A name, symbol, logo, or other item used to distinguish a product, service, or its provider. The reputation of an organization, a product, or a person among some segment of the population.
The method a sender uses to send a message to a receiver. The most common channels humans use are auditory and visual. A distribution channel.
When two or more benefits are demonstrated in an advertisement.
The concept or state of exchanging information between entities. An instance of information transfer.
Something that places a company or a person above the competition. The strategic advantage one business entity has over its rival entities within its competitive industry. Achieving competitive advantage strengthens and positions a business better within the business environment.
The beliefs, values, behavior and material objects that constitute a people’s way of life; the arts, customs, and habits that characterize a particular society or nation. The sum of learned beliefs, values, and customs that regulate the behavior of members of a particular society. The arts, customs, and habits that characterize a particular society or nation. The language and peculiarities of a geographical location. A culture is the combination of the language that you speak and the geographical location you belong to. The distinct ways that people living in different parts of the world classified and represented their experiences.
Development is the application of research findings to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems, or services, before the start of commercial production or use. Human resource development consists of training, organization, and career development efforts to improve individual, group, and organizational effectiveness. The process of developing; growth, directed change. The complete process of bringing a new product to market. The process of soliciting and gathering voluntary contributions of money or other resources by requesting donations from individuals, businesses, charitable foundations, or governmental agencies.
Global marketing is marketing on a worldwide scale, reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives.
An attitude or lifestyle advertisers attempt to link to a product.
A group of potential customers for one’s product. One of the many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange.
The process of communicating the value of a product or service to customers. The promotion, distribution and selling of a product or service; includes market research and advertising.
The price is the amount a customer pays for the product. The quantity of payment or compensation given by one party to another in return for goods or services. The cost required to gain possession of something.
The process of making a product or service accessible for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries.
Promotion represents all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion. Dissemination of information about a product, product line, brand, or company. The advancement of an employee’s rank or position in an organizational hierarchy system.
A series of events to produce a result, especially as contrasted to product. In reference to capabilities, a process is how the capability is executed.
Any tangible or intangible good or service that is a result of a process and that is intended for delivery to a customer or end user. Anything, either tangible or intangible, offered by the firm as a solution to the needs and wants of the consumer; something that is profitable or potentially profitable; goods or a service that meets the requirements of the various governing offices or society.
A plan of action intended to accomplish a specific goal.
The achievement of objectives through strategy.
A person (or group of people) that a person or organization is trying to employ or to have as a customer, audience etc.
A group of people whose needs and preferences match the product range of a company and to whom those products are marketed. A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise toward.