Introduction:
The idea of approaching the global market comes with entrance to an overseas market. Many factors can play a significant role in such decisions as a high rate of competition in the domestic market, geographical diversification of risk, or just wanting to pursue the growth endeavor of the company. Reasons for entering the global market are not restricted to these factors.
A company has to look forward to various measures while approaching the global market to sell its product to a new audience. Global marketing helps the organization to reach out to a new audience. It guides the organization to understand the environment of the market. Organizations always look forward to new audiences through global marketing.
Entering New Market:
Entering the new market comes with the responsibility of analyzing the market condition before entering it. Organizations need to have a complete look at economic stability, Literacy rate, age, preferences, etc.
An organization can enter into these markets through many ways, such as:
Contract
Franchise
Joint Venture
Merger/ Acquisition
These are some of the ways the=rough which an organization can have an entry into the global market.
Market Research:
Market research is crucial while approaching the global audience because of the cultural differences across the regions. Companies need to adopt different strategies. Firstly, they need to know about the taste and preferences of the audience. A prepared questionnaire can do the work. Organizations can ask the audience about the first impression of their product.
Questions should be away from being personal or to make the people uncomfortable. The same questionnaire can be helpful in a region with a similar language and culture.
Market research plays a significant role for the business because you want to know where your audience is.
Most of the time, consumer’s needs are dependent upon the environment they are living in.
For instance, a person living in a colder climate will be less likely to demand an air conditioner than someone living in a warmer place.
First of All, target your audience as per their intent, demographic conditions, and the resources
Available.
Market research will not only tell you about your potential customers but will also tell you about your competition and what they are doing to retain their customers.
Competition analysis Helps you to identify The dos and don’ts of the market.
Market research and competition analysis will give you enough data to perform a SWOT analysis.
Advertising:
Advertising can be difficult because of cultural differences. A region can interpret an ad in a different way than another region.
The mode of media also tells another story. The mode of media changes with changes in age distribution or geographical conditions. If the company’s targeted audience is between the age group of 15-30, they need to target social media. If the audience is more towards the older generation, chances are, ads running on T.V or newspapers can be the best buy for the money.
The area of your audience also plays a significant role as someone who is living in a rural area, where television is not that prevalent, running ads on the radio seems to be a viable decision.
Pricing:
Pricing creates a tricky situation for a company by putting them in the dilemma of whether to go with local or global pricing.
Dependency of pricing on many factors, one of them being heavy taxes on foreign goods. The increased cost of the product makes the customers hesitant to buy the same product at extra cost for absolutely the same product.
To reduce these increased costs, companies have to start compromising either with the features or the build quality.
Pricing also depends upon the level of competition. To save the market share, companies have to price their product similar to their competitor.
Sales and Distribution:
Selling a product is something for which companies are taking such risks. Selling the product can be different for different regions. In some areas, door-to-door selling is the best option. The sale of the product in a showroom seems to be the perfect way of showcasing their product to the customer.
With the emergence of e-commerce, people are moving towards buying products online. Online became a global marketplace, where anyone can buy anything from anywhere in the world.
Amazon is one such example of online shopping.
A distribution channel is also crucial for an organization. An organization needs to take a call on whether to create the goods in the local market or open a manufacturing unit in the overseas market they are sending the goods.
Opening a manufacturing unit is a viable option when the demand for the product is very high. It also helps to reduce some costs of the company.
