Global marketing is the focus on marketing an organisation’s products or services in the international marketplace – and in an increasingly global society, with people more connected than ever before, it’s an increasingly important area of marketing management.

Global marketing sees the world as one unique, individual market. This means that a global business’s marketing messages and approach will be largely the same no matter where in the world they’re seen or heard.

This uniform approach also means that:

• marketing efforts are typically developed and coordinated from one central location, such as an organisation’s headquarters, rather than within individual markets
• products and services are largely the same regardless of location – for example, the ingredients and process used to make a can of Coca-Cola are the same in all countries
• marketing campaigns and brand imagery are typically the same in all countries.

Global marketing is particularly suited to products and services that have universal appeal, and where market research has indicated the products or services are likely to be well-received.

What is the difference between global marketing and international marketing?

Global marketing and international marketing are similar in that they are both focused on the development of marketing strategies that reach people around the world.

There is a key difference, though: while global marketing focuses on a single marketing strategy for a worldwide market – effectively treating the world as a single market – international marketing adapts its marketing strategy and tactics for different countries, typically with marketers knowledgeable in specific regions tailoring marketing activities to suit different markets, different languages, and different cultures. 

It’s worth noting, though, that marketing in a global society doesn’t have to be an either/or proposition, with global marketing on one side, international marketing on the other, and no common ground between. For example, in an article in the Harvard Business Review, John Quelch and Edward J. Hoff at Harvard Business School argued that a global approach can fall anywhere on a spectrum:

“In applying the global marketing concept and making it work, flexibility is essential,” they wrote. “Managers need to tailor the approach they use to each element of the business system and marketing program. For example, a manufacturer might market the same product under different brand names in different countries or market the same brands using different product formulas.”

What are the benefits of global marketing?

Global marketing offers a number of advantages. For example, running a single marketing campaign that aims to appeal to all consumers, rather than several campaigns that are adapted to different target markets, means that businesses can achieve huge cost savings and reduce spend on marketing. They can also benefit from the economies of scale that come with increased production to meet global market demands.

Other benefits can include the following.

Wider audience and expanded customer base

Appealing to the international marketplace means that international brands and even small businesses can grow beyond the limits of their domestic market borders. This diversification also means that organisations are less reliant on single markets – particularly uncertain or volatile ones.

Enhanced brand awareness and reputation

World-wide brands and global companies often have a competitive advantage simply due to familiarity, name recognition, and ease of access.

Additional insight

With a larger target audience and customer base comes more opportunities to gather insight and feedback – especially in online spaces such as social media, where people are more likely to engage with globally recognised brands.

Global marketing strategies

In many ways, a global marketing strategy is like any other marketing strategy. It should outline the four Ps of any marketing mix – product, price, place, and promotion – and take an evidenced-based approach to decision making.

A strong global marketing strategy should also:

• be underpinned by a strong, consistent global brand that will resonate with audiences around the world
• include a strong digital component to strengthen the organisation’s reach to people in any country
• be flexible enough to adjust where required, particularly where cultural differences and sensitivities might arise

Real-world examples of global marketing 

Here are a couple of commonly cited examples of global marketing.

Nike

Nike has grown to become one of the most recognised brands on the planet through a combination of global marketing tactics, and strategic international sponsorships and partnerships that appeal to audiences around the world. Nike was one of the earliest adopters of digital marketing such as email marketing and social media marketing.

Coca-Cola

Coca-Cola is ubiquitous in dozens of countries thanks to its global marketing practices. Its brand, taste, and marketing are more or less identical whether you buy a bottle in New York or Hong Kong.

What does the term “glocal” mean and how is it used in global marketing?

Glocal is a combination of global and local. It’s a concept used in more flexible global marketing strategies where there’s a mix of standardised product offerings and marketing as well as local market or local culture components.

For example, a McDonald’s Big Mac sandwich is the same whether someone is in the United Kingdom or any other country – except in India, where the beef is replaced with a vegetarian alternative – but McDonald’s also has glocal, or region-specific menu items. These have included:

• the McArabia, a pita bread sandwich specific to McDonald’s restaurants in the Middle East
• McSpaghetti, a pasta menu item specific to McDonald’s restaurants in the Philippines
• the Teritama burger, a spring menu item at McDonald’s restaurants in Japan; Japanese customers also have an autumn option – the Tsukimi burger
• the Cheddar McMelt – a burger with extra cheese, onions, and soy sauce – specific to McDonald’s restaurants in Brazil

Challenges in global marketing

Cultural barriers are one of the biggest challenges in global marketing. For example, marketing messages that are appropriate in Sweden might not translate in South Korea and vice versa. So, even the most standardised global marketing strategies need a degree of flexibility. A multinational or international business should also be aware of important cultural and religious events, such as Christmas, Ramadan, and so on.

Businesses should also be mindful of different laws and legislation in different countries and foreign markets. Regulations can differ in everything from advertising standards to ingredients – not to mention taxes – so being aware of these differences before launching into new markets is crucial.

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Marketing in a global society is one of the key modules on this programme, so you’ll examine global marketing in business and explore the marketing challenges that all organisations face. You will also develop the capacity to learn and engage with the opportunities and challenges of communicating brand images and corporate values across national, linguistic, and cultural borders to a variety of consumers, and consider a variety of methods, including new social media, as a mechanism of distributing knowledge and information.

Living and working in our interconnected, global age – where, for many businesses, employees may be spread across the world – requires leaders to be highly aware of, and skilled at, cross-cultural management. For those organisations without global teams, there is still the requirement to manage effectively across multicultural teams, where backgrounds, experiences, cultural values and communication styles may be richly diverse.

With multicultural and global teams increasingly the norm, employers are seeking business leaders with the tools and understanding to embrace cultural differences and develop high-performing teams.

What is managing across cultures?

Multicultural and cross-cultural teams are those where team members have diverse backgrounds. This diversity may include ethnicity, nationality, age, religion, gender, socioeconomic status, sexual orientation or other identifiable characteristic. As well as varied lived experiences, it also includes employees working in different countries, continents and time zones.

Leaders and managers must recognise, acknowledge and support these various differences and similarities to lead teams effectively and with minimal conflict.

Benefits and challenges of managing across cultures

There are numerous benefits that arise from having teams based in different countries and teams with unique cultural contexts. Multicultural teams bring a wider variety of talents, skills, perspectives, knowledge and experiences – which can be combined and drawn upon to work towards common goals. These elements can also bring about boosts in creativity – as fresh ideas and different ways of thinking are added to the team mix – leading to innovation, improved ways of working and potential business opportunities. Crucially, it also serves human resource management; a larger talent pool, made possible through global working, allows businesses to hire the most-skilled and capable candidates. This, in turn, can boost brand image, reputation, competitive advantage and profits.

Research statistics collated by InStride further demonstrate the tangible benefits to cross-cultural working:

• more diverse – and inclusive – teams are 35% more likely to outperform competitors
• diverse companies are 80% more likely to capture new markets
• diverse teams are 87% better at making decisions
• diversity within management leads to 19% higher revenue

However, while diversity is both vital and beneficial in the work environment, it has the potential to cause challenges for leaders who don’t possess the skills to support their teams.

Communication

Communication is one of the most-common barriers that leaders are likely to encounter. As well as language barriers – where some team members may find it harder to engage with day-to-day processes due to communication breakdown – this can also span different communication styles, phrases, colloquialisms, slang, dialect and non-verbal communication. The example given by global human resource organisation, Oyster, is communication differences between Eastern and Western cultures; the former tend to be indirect in communication, while the latter generally favour a more-direct, to-the-point style. Not addressing communication issues can mean employees face difficulties in conveying ideas and engaging with colleagues and, in the worst cases, are considered less-competent due to language barriers.

Work styles

Work styles can differ significantly in cross-cultural teams. Are some team members used to hierarchical structures, or more-collective decision-making? How is authority perceived? Or employee autonomy and independence? Each of these factors, together with numerous others, can present challenges for how teams work together and how individuals expect to be treated in the workplace.

Engagement

Engagement and motivation can often fail to take into account cultural differences within teams. Do team members want promotions, pay rises, more autonomy, different benefits or praise? A one-size-fits-all approach may not be suitable for recognition and reward initiatives and may lead to dissatisfied staff, increased attrition rates and decreased productivity.

Information sharing

Sharing and disclosing information, and business interactions relating to this, may vary between employees. Factors such as personal information, discussing emotions, examining conflicts and misunderstanding can have a significant impact on team dynamics.

Nevertheless, there are tools and approaches that leaders can take to overcome these cross-cultural challenges and reap the rewards of the benefits.

The best ways to manage across cultures

Which management practices should be examined and embedded in teams which contain different cultures?

Prioritise open communication

Company cultures that instil the value of honest, respectful two-way communication – between managers and employees, and amongst employees themselves – make room for all individuals to share their thoughts, ideas and opinions. Communicate messages clearly and transparently so that they are understood regardless of culture.

Get to know team members and listen to them

Getting to know the individuals within teams helps to build personal bonds, facilitates working relationships and demonstrates that team members are seen and appreciated on an individual level – regardless of background. Additionally, encourage team members to get to know one another better through social events and collaborative work activities. Leaders should also practise active listening, aiming to remove assumptions and biases and encourage trust and collaboration in their place.

Develop cross-cultural intelligence – and be flexible

Cultural intelligence and awareness is vital in our modern workplaces. Policies that apply to all employees, regardless of position or background, reinforces equitable treatment and helps to avoid conflict. Cultural learning programmes can help to embrace and celebrate differences, and could be made mandatory for all employees. If training cannot be offered in-house, there are plenty of providers who can address this requirement; LinkedIn Learning, for example, offers a whole suite of online programmes to support cross-cultural management. Leaders who understand specific cultural differences should also be flexible, where reasonable and possible, regarding diverse needs and requirements.

Address conflict

Work conflicts will arise – and, when they do, they should be dealt with promptly and effectively. Seek to bridge the gap between conflicting parties, and pursue resolutions that respect and benefit all individuals involved, as well as the wider team.

It’s worth stating that all of the business practices and considerations related to global leadership and managing across cultures are, as a general rule, useful business practices and considerations full stop. They have the potential to positively impact organisational behaviour and ethos for everyone.

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Managers are an important part of any organisation. They oversee the day-to-day activities of the business, make sure work is assigned and completed, and take care of administrative tasks, such as budgeting and scheduling, along the way.

But what separates managers from leaders? The words might be used synonymously, but they’re not actually the same thing. People work for a manager – but they follow a leader. And this distinction is important, because while some jobs may require nothing more than a bit of rote direction, many roles are becoming increasingly complex, and require an environment that:

• enables innovation and creativity
• fosters engaged, motivated, and empowered employees
• supports change

This is where effective leadership is required. Leaders are visionaries: they think strategically, they inspire others, and they help develop the culture – and the future – of their organisations. According to Forbes, leaders are agents of change, while managers work to maintain the status quo. In fact, it’s often said that a leader shapes the vision of their organisation, while a manager follows it. So it’s important to note that while a leader can both lead and manage people, a manager can’t always lead the people they manage. Unless, of course, they work to develop their leadership skills and a leadership style.

Why is leadership important?

The 21st century has seen significant changes in the working world. Technology plays an increasingly important role in businesses and organisations, from automated tasks to communication methods. Meanwhile, the COVID-19 pandemic created a seismic shift in working habits, with more people working flexibly and remotely than ever before. 

Within this shifting landscape, leaders have been instrumental in shaping and directing the flow of change within their organisations. They have ensured that their employees have remained engaged and motivated, and that their businesses have adapted as necessary. These leaders have not been afraid to take risks, try new ideas, implement changes, and make the occasional mistake in service to improving overall performance.

Signs of a good leader

Great leaders vary greatly in terms of leadership styles, but they all commonly demonstrate a number of important qualities, traits, and skillsets. 

Communication

Leaders are honest, direct, and transparent in their communications with colleagues. They share their vision, they share their priorities – aligning them to organisational goals – and they share their ideas. Crucially, they also welcome input and feedback from their colleagues and stakeholders, actively listening to all comments and taking other points of view on board – regardless of whether the comments come from a junior staff member or someone in a senior management role.

Emotional intelligence 

Leaders understand feelings – their own, and those of the people around them. They harness this knowledge to understand their employees, demonstrate empathy, offer personalised praise for successful work and initiatives, and acknowledge challenges that have been tackled and overcome. 

Knowledge 

Leaders are experts in their fields, and they share their knowledge and expertise. They encourage and enable professional development – and development programmes – within their teams, and dedicate time to mentoring and coaching people. They are also learners themselves, making time for their own personal development through learning resources such as:

• in-person leadership development courses
• training courses to hone their everyday management skills
• online courses, particularly leadership programmes and management courses, through websites such as LinkedIn

Influence 

Because of their communication skills, emotional intelligence, and knowledge, a leader will have a wide circle of influence. Whether it’s within their team, the wider organisation, or external stakeholders, leaders can effectively and respectfully persuade and negotiate with people to help steer conversations, direct interventions, and influence actions.

Accountability 

Leaders are confident in their decision-making and effective in their problem-solving. However, they’re not afraid to share responsibility with their colleagues – on the contrary, they actively empower people to explore different solutions to the challenges they face. But a leader is always accountable for the decisions made under their watch.

What are the different styles of leadership?

There are a number of different leadership styles to choose from, and the most suitable for any given leader, team, or organisation, can vary greatly. 

According to the Institute of Leadership & Development (ILM), a professional body focused on leadership, the most appropriate leadership style will depend on factors such as the leader’s personality and their current circumstances. With this in mind, the ILM argues that a leader’s style should reflect the situation they’re in – known as situational leadership – rather than their own personal references. 

Transformational leadership

Transformational leaders are focused on inspiring their employees for the benefit of organisational transformation and success. They seek improvements and innovation as part of their standard process, and trust their staff to help deliver results. While this style is ideal within organisations that value new ideas and ways of working, it isn’t always appropriate within organisations that value established processes and doing things the way they’ve always been done.

Democratic leadership

Democratic leaders regularly solicit their team members in their decision-making process. While these leaders will frequently guide conversations and will make final decisions, they also openly encourage debate and new ideas. Also known as participative leadership, this leadership style is effective in engaging employees and encouraging innovation, but can be difficult when a decision needs to be made quickly.

Servant leadership

Servant leaders are focused on people first and foremost. By helping and supporting people as their primary task, servant leaders elevate and empower those around them to achieve results. This style of leadership can create inclusive and dynamic company cultures, but can also create challenges around ownership and accountability.

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A business strategy outlines the specific ways in which an organisation plans to position itself, achieve its short-term and long-term goals, and grow over a period of time. It draws on other important business resources, such as the organisation’s mission, its vision, and its values, to help chart its direction forward and deliver on its objectives.

A business strategy helps underpin an organisation’s other important strategies – for example, functional operational strategies – and helps staff, customers, investors, and other stakeholders better understand how it plans to achieve its goals.

A successful business strategy also ensures that an organisation – regardless of whether it’s a startup, a small business, or a global corporation– maintains a competitive advantage in its market. It’s there to help guide decision-making, particularly on matters such as business priorities, and resource allocation.

Where business strategies sit within organisations

A business strategy typically comes second to an organisation’s corporate strategy. The corporate strategy looks at the bigger picture – the market a business is operating in, new markets that may be profitable to enter, and how best to ensure company growth. 

The business strategy helps feed into the corporate strategy, and acts as a roadmap to help deliver on the corporate strategy. Sometimes, it may also feed into a competitive strategy, which outlines methods for strengthening an organisation’s market position, attracting clients away from competitors, and defining the unique selling points within the brand as well as its products and services.

At the same time, the functional and operating strategies feed into the business strategy. These two frameworks are responsible for effectively and efficiently delivering on the organisation’s objectives as outlined in the corporate, competitive, and business strategies.

It’s also worth noting that there are a number of other strategies that typically sit under an organisation’s business strategy. These can include the:

• marketing strategy
• pricing strategy
• brand strategy
• sales strategy
• communications strategy
• advertising strategy
• PR and media strategy
• social media strategy
• promotion strategy

What is the difference between a business strategy and a business plan?

While a business strategy acts as an overarching strategic framework within an organisation, a business plan is more granular, outlining day-to-day activities and work. Effectively, a business plan is one of the tools that helps deliver the business strategy.

Business strategies are also separate to business models, which are the methods used to generate sales and growth within a business. Examples of business models include direct sales, subscriptions, and franchises.

Five questions a business strategy should answer

Global employment network Indeed suggests that there are five main questions a business strategy needs to answer in order to be useful to its business.

1. Why is the organisation in business?
2. What are its key selling points or core strengths?
3. Who are its ideal customers?
4. Which offers provide the best results for its customers and its company bottom-line?
5. Will this strategic framework help the business achieve its goals and objectives?

Adequately answering these questions can help a business create or improve its market value, establish or enhance its reputation, and acquire customers in greater numbers.

What makes a good business strategy?

A lot of work goes on behind the scenes during business strategy formulation. 

Strategic management, including CEOs and business leaders, need to be on board and help drive the new strategy forward. 

This requires extensive analysis – in everything from the supply chain to market research –, as well as a thorough understanding of the organisation’s competitive position and competencies. This can be better understood through simple tools, such as a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis or template.

Stakeholders – such as staff groups – should also be brought into the development process to help ensure its success.

The Chartered Management Institute (CMI) recommends that a good strategy is developed to be:

• flexible
• responsive
• creative
• challenging
• realistic
• focused
• engaging

And in order to be effective, strategic planning also needs to be implemented appropriately. The CMI recommends implementation techniques such as: 

• ensuring that plans are aligned with the organisation’s mission, vision and values
• building an effective leadership team
• creating a dedicated implementation plan
• allocating sufficient budgetary resources
• assigning objectives and responsibilities to the appropriate people
• aligning structures, processes, and people throughout the organisation
• communicating the strategy
• reviewing and reporting on progress
• making strategic adjustments as necessary
• developing an organisational culture that supports the strategy

Types of business strategies

There are a number of different business strategies used within the business world.

Common business strategy examples include:

• Cost leadership. Cost leadership business strategies focus on beating competitors’ prices. For example, businesses such as Amazon look for ways to increase efficiencies or reduce production costs so that their prices are lower than their competitors’ prices. They often rely on economies of scale.
• Differentiation. Differentiation business strategies highlight the unique features of products and services to stand out from competitors.
• Focused differentiation. Focused differentiation is typically used by businesses that target niche markets. For example, an eco-friendly child toy company might market itself specifically to environmentally conscious parents. 
• Focused low-cost. Focused low-cost business strategies are similar to focused differentiation strategies, but their point of differentiation is specifically lower-cost products and services. 
• Integrated low-cost/differentiation. An integrated low-cost/differentiation strategy is the middle ground between focused differentiation and focused low-cost business strategies. It’s effectively a hybrid model where differentiated products are sold at a lower-than-average price point.
• Structuralist. A structuralist business strategy is one that is built around current market and industry norms. Everything from products to processes is structured around current market conditions and industry standards, and the business strategy is developed around this structure.
• Growth. Growth strategies are suitable for businesses that want to actively expand into new markets and introduce new products or services. Their focus is on continual growth, increased revenue, and new business.
• Price-skimming. Price-skimming strategies aim to quickly recoup initial expenses for things like production, manufacturing, and marketing. Businesses charge a higher-than-average price for their product or service to swiftly recover costs, and is commonly employed for organisations launching unique and innovative products to market for the first time.
• Acquisition. An acquisition strategy relies on business purchases and mergers to grow an organisation. Benefits can include gaining valuable skills and staff – in addition to new funding pools and assets – as well as increasing market share, reducing competition, and diversification of products and services.

What is the main difference between a defensive and offensive strategy?

An offensive business strategy targets an organisation’s competitors. Whether it’s through lower, more competitive prices, new enhancements to products or services, or even marketing plans that directly attack the competition, an offensive strategy aims to take on a bigger share of the market.

A defensive business strategy, meanwhile, protects an organisation from its competitors. It aims to inspire customer loyalty and safeguard its market share, and will use tactics such as incentives, exclusive products – or exclusive arrangements with suppliers or partners – as well as above-average customer service, to entice and retain customers and maintain its competitive position.

Create business strategies that work

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