Marketing describes the way a company sells its policies to ensure that the consumer benefits from the company’s products raising the net worth of the business and the name of the companies’ products (Janes, 2008). Multinational marketing refers to the process of selling goods and services of a company throughout the world. The scenario is also called global in marketing. There are differences of the local level in the way the company sells its products. Some of the differences range from the way the company advertises its products, trade barriers between different countries that use different currencies.
Some of the strategies that have been put in place to ensure multinational marketing succeeds include standardization versus localization, competitive pricing, forming strategic alliances, electronic distribution channels and the export of goods or services from another country, licensing trademark and providing patent rights to manufacturing plants to those companies they have established themselves. It will ensure there are substantial costs saved by the business franchise, ensures there are better planning and control of companies resources and exploration of ideas that will make the company have a global appeal.
Standardization versus localisation it is very tricky to find a balance between local consumers of the enterprise’s products and the companies policies. There is a need to balance what customers want at the local level with the objectives of the enterprise. It has proved futile in some instances where the company intends to begin in a new place with new ideologies. Customers are attracted to a company when they buy goods at a lower price and of high quality (Hiam, 2014). It is costly for the company that seeks to establish itself for the first time.
Competitive pricing selling the same product throughout in every market limits the competitive ability of the product. The product can earn higher revenue in other places compared to others. The product can be sold at a higher price value in other economies, which are considered developed for example across Europe like Germany, Italy, and France. The USA is also a high-income economy. The aspect will ensure the competitiveness of the product.
Forming strategic alliance through establishing a global platform for selling and marketing, the company’s products can be very expensive hence; the company enters into a partnership in a country where there is an already established distributor. The distributor can earn commissions in return.
Electronic distribution channels reduce the cost of creating new premises. It can be reduced when the company adopts the use of new communication media such as the utilization of the internet, social media like Facebook that reaches many people and mobile phones. Multinational corporations in marketing their products have used this new strategy. Companies can now sell their products through an advertising platform in their web pages. There are also tax implications and shipping costs on the goods ordered from the net. Businesses have to implement new strategies to sell globally. They do not have to sell the same product the same way within a particular jurisdiction.
Examples of companies that have received multinational appeal include Pepsi Cola that bottles in 465 plants and sold in 110 countries outside the United States. Pepsi does its foreign advertising using multimedia techniques such as films. Its policy includes the production of overseas films in one market and advertising in other countries, which is cheaper, compared to setting up the industries in the destined countries. Other companies that have received multinational appeal include Nestle Company, international business machines, DSTV Multichoice digital satellite TV service in Africa.
References
Janes, D. (2008). Shopping for Jesus: Faith in marketing in the USA. Washington, DC: New Academia Pub.
Hiam, A. (2014). Marketing For dummies.
