The internationalization of businesses is the seat of the growing global economy. In this process, the external markets are analyzed by the marketers using the most effective marketing tool called the Marketing Mix. Product, Price, Place and Promotion constitute the marketing mix in the home market, but, in the external markets, it extends its tangents to People, Processes, and Physical Evidence. The goal of the marketers is to minimize the costs and focus on the profitability of the venture. However, the complexity that globalization entails cultural, societal, economic, and political factors. In some cases, the marketing mix undergoes complete customization. Nevertheless, the brand aims to maintain a consistent message in the global markets. Before going global, a brand gains insight into the needs, attitudes, and economic well-being of the foreign market. Based on the initial research, marketers choose the mode of entry (how to deliver the product physically/online distribution) and adjust the product, price, and promotion elements of the brand.
Introduction to Globalization of the Marketing Mix
Globalization of the products demands a thorough study of the competitors, target market, and market trends in the foreign markets. The process of taking the brand global encompasses two approaches- Standardization and Adaptation. As the terms suggest, Standardization is best suited when brands want to save on cost and maintain economies of scale. Here, the processes of distribution, promotion methods and product attributes are kept uniform because of the homogeneous needs of customers in the foreign and home markets.
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