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Global Marketing Strategy

Part 1. Marketing Strategy

  1. Johny K. Johansson

Published Online: 15 DEC 2010

DOI: 10.1002/9781444316568.wiem01024

Wiley International Encyclopedia of Marketing

Wiley International Encyclopedia of Marketing

How to Cite

Johansson, J. K. 2010. Global Marketing Strategy. Wiley International Encyclopedia of Marketing. 1.

Author Information

  1. Georgetown University, Washington, DC, USA

Publication History

  1. Published Online: 15 DEC 2010
Table 1. Components of a Global Marketing Strategy
Items Listed in Order of Descending Occurrence
  • Identical brand names

  • Uniform packaging

  • Standardized products

  • Similar advertising messages

  • Coordinated pricing

  • Synchronized product introductions

  • Coordinated sales campaigns

Table 2. General Pros and Cons of Global Marketing Strategies
• Revenue sideReinforced message, unique ideaCulturally insensitive
 Spillover of brand awarenessAntiglobal target
 Enhanced liking (mere exposure)Vulnerable to gray trade
• Cost sideReduces duplication, wasteRequires managerial time
 Uniform product design, packaging,Lowers morale in subsidiaries, agencies
 Quantity discounts in media buy 
Table 3. Advantages of Product Standardization
  • Cost reduction

  • Improved quality

  • Enhanced customer preference

Table 4. Disadvantages of Product Standardization
  • Off-target

  • Lack of uniqueness

Table 5. Benefits to Global Brands
  • Scale and scope economies

  • Demand spillover

  • Global customers

  • High esteem, status

  • Consistent quality

Table 6. Advantages for Local Brands
  • Local brand affinity

  • Motivated local employees

  • Prodomestic (and Antiglobalization) sentiment

Table 7. Selected Drivers of “Gray Trade”
  • Transportation is global and efficient

  • Trade barriers are low

  • Products and brands are standardized

  • Communication is global

Table 8. Why Global Coordination of Prices is Difficult
  • Currency exchange rates fluctuate

  • Local distributors are independent

  • Import prices to subsidiaries have to consider tariffs, taxes.

  • Local competition varies across countries

Table 9. Major Drivers of Global Advertising
Supply Side
  • Global ad agencies

  • Global media

Demand Side
  • Global customers

  • Preference convergence

Table 10. Advantages of Integrated Global Communications
  • Consistency of brand communications

  • Media spillover

  • Cost savings

  • Improved production

  • Leveraging a great idea

Table 11. The Disadvantages of Integrated Global Communications
  • Images and symbols might not be locally acceptable

  • Appropriate media might not be available

  • Product usage is not the same

  • Local creativity can be stifled