Wednesday, June 25, 2008

Insights on Global and Domestic Marketing

By Linda P. Morton

The world is every changing and dynamic, but even with all our technologies at our disposal, people still differ. Those differences can be economic, cultural, demographical, global or domestic and it causes a lot of problems for business owners who want to market their products to people across the globe.

As a result, marketing techniques require the use of national and cultural characteristics.

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 Segments Differ

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 building a marketing campaign on USA characteristics will not be effective in other nations.

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

Psychographic characteristics also differ by nations. For one reason, culture, morals, values and attitudes are learned within a society. Different nations develop different social pressures and expectations. They teach different values and attitudes within families and schools.

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

For example, religious freedom is a basic right in the USA. We consider forcing a certain religion on a person to be abhorrent. Yet, in other nations, governments and powerful people force their religious perspective on others even to the point of murdering those who don't accept their religion.

So psychographic characteristics like attitudes, values, and concerns change drastically across borders.

Global and Domestic Marketing: Buying Behaviors Differ

What people can afford to buy, how they buy, and what they buy changes from nation to nation.

Obviously, the people in some nations have more spending power and more discretionary income than those in other nations. But even among comparatively wealthy nations, people spend differently.

For example, people buy even the most basic needs according to buying habits within their nations. Many buy groceries daily from local "farmer's markets."

Here in the USA, we don't want to spend that much time buying groceries. We buy fast food on the way to and from work, or we buy food that has to be processed to last weekly or monthly.

People in some nations probably think that USA residents have their priorities messed up to avoid spending their time buying and preparing fresh, healthy foods.

This example illustrates that buying habits for even the most fundamental products differ across nations.

Global and Domestic Marketing: Conclusion

Marketing campaigns can not be successfully transferred from one nation to another.

To effectively market internationally, unique marketing campaigns must be developed for each nation. But first marketers and business owners must learn about the people in the targeted nation.

But the sad truth is that little nation-specific information about people's characteristics is being developed. And much of what is developed remains proprietary. If we are to improve every nation's ability to advance economically, we must accumulate and share this information. Only then will global and domestic marketing provide equal chances of success.

About the Author:

No comments:

Blog Archive