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Domestic and Global Marketing Plans

1. What are some differences between domestic and global marketing plans?

Marketing can be defined as the "process of building lasting relationships through planning, executing and controlling the conception, pricing, promotion, and distribution of ideas, goods and services to create mutual exchange that satisfy individual and organizational needs and objectives" (Carter, 1988, p.13).

Whether an organization markets its goods and services domestically or globally, the definition of marketing still applies. However, the cope of marketing is broadened when the organization decides to sell across the international boundaries. This is because the organization has to account for the numerous dimensions involved in global marketing. Domestic marketing is about knowing the customer or organization in a context which includes the competition, government policy and regulations, and the broader economic, social and political macro forces that shape the evolution of markets. Global marketing, apart from considering these factors, additionally emphasises on forging alliances (relationships) or developing networks, working with home country government officials and industry competitors to gain access to target market. As compared to domestic marketing where the objective lies in satisfying the organizational goals, global marketing brings about a shift in objective towards one of satisfying the stakeholders – including employees, society, government, etc.

Though both, domestic and global, marketing plans require the identification of product/market objectives, and analysis of internal and external environment, the differences between the two lie in the degree of market similarities and differences, and the extent to which the product to be marketed is environmentally sensitive.


2. How do environmental factors differ in domestic and global marketing plans?

Environmental factors positively or negatively impact the industry and the market growth potential of the product/service. According to Keegan (1989), environmental factors to consider in marketing include:

Government Actions: Government actions can either support or inhibit the marketing strategy. Such actions can involve subsidies, operational regulations, licensing requirements, price controls and materials access restrictions. For global marketing plans, additional factor can be trade barriers, taxation considerations, foreign exchange regulations, etc.

Demographic Changes: Demographics play a vital role in the success or failure of a marketing strategy. Factors to consider are education, age, income and geographic location. For global marketing plans, it is crucial to have accurate information on demographics so as to ensure that product/service is aimed at the right target.

Emerging Technology: Keeping pace with technological change is vital for any marketing strategy, be it domestic or global.

Cultural Trends: Cultural factors affect market penetration of a product/service. In particular, global marketing plans should place greater emphasis on prevailing cultural trends in the target country.

Environmental factors can significantly influence domestic and global marketing decisions. It is an organization's marketing manager's responsibility to research legal, social, ecological, cultural, and technological factors that may negatively impact the success of a product marketed. Past, present or future, it pays to invest in market research in the hope of revealing the potential of all environmental factors before launching a product or services either domestically or globally.


3. What ethical considerations must be taken into account when marketing a product globally or domestically?

Answer: Any marketing plan is incomplete without incorporating ethical considerations.

Decision areas that likely require an ethical thought are:
Employment Practices and Policies
Consumer Protection
Environmental Protection
Basic human rights and fundamental freedoms
Involvement in political affairs of the country

Today's heightened interest in the role businesses in society has been promoted by increased sensitivity to ethical issues. Issues like environmental damage, improper treatment of workers, and faulty production of leading to customer's inconvenience, etc.
It is imperative that marketing plans, whether aimed at domestic or global audience, consider ethical issues. Enterprises should be obliged to make decisions based not only on financial/economic factors but also on the ethical consequences of their activities (Hartman, 2004).





REFERENCES

Carter, S. "Multinational and International Marketing in Constraint Economies." The Quarterly Review of Marketing, Summer 1988, pp 13-18.

Hartman, L. "Perspectives in Business Ethics". Burr Ridge, McGraw-Hill, 2004.

Keegan, W. J. "Global Marketing Management" 4th Edition. Prentice Hall International Edition 1989.
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Posted by: Jeffrey J. Thomson

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