6 Pros and Cons of Unified Global Marketing Strategy

When a company enters a market, it must develop an in-depth understanding of the demographic, competitive, regulatory and industry characteristics of the market and establish local distribution channels. For efficiency, a company may pursue a common marketing strategy for all the markets in which it has a presence. But there are pros and cons of a global marketing strategy.

Pros of global marketing strategy

1. Cost-effective: By laying out a common, unified global marketing strategy across different regions, a company can save time, money and effort in its marketing efforts. A global marketing strategy enables a company to focus on improving sales rather than wasting precious time and resources on developing a new marketing strategy for each region that it enters.
2. Branding: A global marketing strategy allows companies to maintain a consistent image in each country.
3. Molding successful strategies: A company that adopts a global marketing strategy usually replicates a strategy that has worked for it in one market. Therefore, the success rate will usually be higher, especially when the new markets are similar to the original market.

Cons of global marketing strategy

1. Different consumer needs: In markets where consumer needs are very different, adopting a unified approach will not work. Hence, a unified global marketing strategy will be unsuccessful in markets that are diverse. For example, Best Buy, the U.S.-based electronics retailer, entered China with the same strategy it used in the U.S. But the company soon realized that the price-conscious Chinese weren’t as attracted to superior after-sales service as they were to low prices.
2. Government policy: Companies formulate their marketing strategies in keeping with the laws of their home country. However, these strategies may sometimes be inconsistent with the laws of foreign countries. Restrictions imposed by foreign governments, such as those relating to minimum local ownership levels or trade barriers, can impede a global marketing strategy. For example, Ikea, the Swedish furniture company, prefers to own its stores. But in the Middle East, local laws prohibit 100 percent ownership. So, it is forced to enter into a joint venture with a local company.
3. Resource constraints: While a strategy may be cost-effective in one market, it may be extremely costly in another. So, having a global marketing approach may sometimes be more expensive than having a local approach.