Monday, June 23, 2008

Global And Domestic Marketing Require Different Strategies

By Linda P. Morton

The world is a small place thanks to the Internet, but there are still plenty of differences between people by nations. Those differences often translate into global and domestic marketing problems.

Some companies use a one-size-fits-all marketing approach. This approach is doomed to fail because what people in one culture like, another those in another nation abhor.

Using market segmentation to determine values, concerns, and attitudes of target market members requires market research specific to each nation and groups of people within each nation.

Global and Domestic Marketing: Targets Different Types of People

USA market segmentation concentrates on demographics, psychographics and buying behavior. But the information provided by these characteristics doesn't cross borders.

Even with USA residents, culture differs by national origin. Yet, most USA residents have been somewhat assimilated into the USA culture. So differences intensify across borders.

Global and Domestic Marketing: Demographic Characteristics Vary By Nation and Culture

Demographic segments vary across the world. For example, some characteristics for Generation Y in the USA may be similar worldwide, but most will be quite different.

Most of the Western world experienced a baby boom after World War II, but Baby Boomers in the USA experienced birth control, civil rights, and women's rights differently than the rest of the world. Their ability to influence USA policy also gave them a believe that they could change society. This believe is not equally shared by people of that same generation in other nations.

So you can't take characteristics that best define a USA generation and transfer those characteristics world wide.

Global and Domestic Marketing: USA Psychographic Characteristics Don't Cross Borders

The experience of residents of a nation differ just like each nation's history differ. Psychographic characteristics change as experiences change across nations.

Every nation's culture differs so what is valued, expected, desired, and feared vary by nation.

Consider a change within USA attitudes. Not that long ago a man's wife and children were considered his property, and he had the right to abuse them in anyway that he saw fit. The USA and state governments didn't interfere. But that is not the case today. A man can be convicted for raping his wife, and children are frequently taken away from parents who abuse or even neglect them. But in some nations, a man still has the right to abuse his wife and children. Even murdering them is socially acceptable and legal in some nations.

This illustrates that many nationally specific events, beliefs and culture form the personalities of people. So personality characteristics must differ nation to nation.

Global and Domestic Marketing: Buying Behaviors Differ

Each nation's economic well-being influences buying habits of its citizens.

But spending preferences go beyond people's ability to buy. It is closely tied to culture, social pressure, ideas of success and many other nationally specific characteristics.

Take grocery shopping as an example. In many prosperous European nations, people still buy fresh groceries from local markets and purchase every day for that day's meals.

In the USA, we don't buy groceries like that. Instead, we buy many processed foods weekly or monthly. We also eat lots of fast food although we know that most of it isn't as healthy as what we could cook at home. We just think we are too busy to spend lots of time shopping and cooking.

I'm sure that many European residents are appalled by our over-processed food and would never consider serving it to their families.

If we are so different in the way we purchase survival products like food, how much more different are we when it comes to buying other products.

Global and Domestic Marketing: Conclusion

Developing a marketing campaign for the people in one nation and trying to transfer that campaign to another nation doesn't work.

International marketing demands that a unique marketing program be created for each nation and that marketers know characteristics of the people in each nation.

Unfortunately, there is little systematic research being accumulated and shared with business owners about people in other nations. As the world gets smaller and the Internet gets larger, that has to change. We must do a better job of global and domestic marketing.

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