Benefits and risks of global marketing

In the past decennary, footings such as “ globalisation ” and “ planetary small town ” have become well-known and really stylish. The universe is shriveling quickly with the coming of faster communicating, transit, and fiscal flows. Countries around the universe are all seeking to acquire into the planetary market and sell their goods and services on a world-wide graduated table to maximise their net income. If you look at the figures published by the World Bank in recent old ages, you can see that the universe and companies are going more and more mutualist. Import accounted only1 % of GNP in the US back in 1954, but 30 twelvemonth subsequently, the per centum has increased to 10 % . ( FAO Corporate Document Repository, n.d. ) International trade is besides dining and harmonizing to informations gathered from WTO, it accounts for 25 % of U.S GDP. To understand the universe economic system better, the paper will discourse the difference between planetary and domestic selling, the motives for planetary market enlargement and the troubles for maketing merchandises globally and how to get the better of them. Besides, two international trade names and their selling mixes will be presented in the undermentioned paper.


The research aims to supply a deeper apprehension of the benefits and hazards of planetary selling and seek to come with several schemes based on the research of the 2 planetary trade names to get the better of the troubles of marketing a merchandise in the planetary market. Global selling can bring forth more net income for companies, which is besides the basic intent of marketing internationally, as more people will hold the opportunity to buy your merchandises. Global selling will besides assist to increase the range of the merchandise ‘s production and distribution and through world-wide advertisement, your trade name may finally hold and established world-wide presence ; therefore the undermentioned publicity will go much cost and time-effective. Marketing globally is besides a great tract for inventions and new thoughts because people from all sorts of civilizations and backgrounds come together to work out one peculiar job or better one sort of merchandise. In this study, 2 planetary trade names are chosen-McDonald and Starbucks. The ground why these two companies are chosen is that, doubtless, these trade names are two of the most successful planetary trade names because of their advanced and practical selling schemes.

Research Methodology

In finishing the study, I chiefly got the information from the Internet. I browsed the place web sites of the 2 trade names and analyzed its planetary selling schemes. I besides interviewed 2 business communities, Mr. Yang and Ms. Zhao, to understand the advantages and disadvantages of planetary selling. Besides, I asked what selling mixes companies should utilize if they want to spread out their market globally.

Research Findingss

Global Marketing – Theory

Contrast global/domestic selling

“ The focal point of domestic selling is chiefly marketing carried out within a defined national or geographic boundary where the seller is comparatively free to be after, implement, and command selling programs, including determinations on the selling mix ( i.e. the ‘controllable ‘ ) , within a comparatively known and easy researchable selling environment ( i.e. the’uncontrollable ‘ ) . “ ( OUP, 2010 ) In domestic selling, the companies do non hold to concern the political, cultural and economic differences, so it can implement their ends and advance their merchandises more freely and swimmingly. As for planetary selling, the universe is going borderless and all states are take parting in one large market place. In this elephantine market, companies are able to confront consumers all around the universe and corporate with foreign companies and by and large huge net income can be generated through this procedure. In fact, “ consumer penchants can be, and are, invariably being reshaped by common exogenic ( instead than endogenous ) forces, ensuing in the convergence of many consumers ‘ wants and desires ‘ ” ( Perry, 1999: 48 ) Undoubtedly, the hazard and cost are besides much higher for planetary selling because the company has to research a whole new market and set up its repute from abrasion, but the cost and hazards ever come with greater chances and benefits. Different from domestic selling, the planetary selling requires the usage of more advanced engineering and takes advantage of assorted sorts of new communicating channel. However, planetary market can bring forth much more net income than merely selling merchandise inside parent state.

Motivation for planetary selling

The primary and most obvious motive of planetary selling is that companies can acquire entree to new market. When a company ‘s concern has become mature and saturated domestically, it has to happen a new market to go on developing and to do more net income. Another motive for houses to prosecute in planetary selling is to increase merchandises ‘ life rhythm. For case, many electronic merchandises in the U.S market that have become out of day of the month or obsolete can still sell really good abroad. “ By increasing a merchandise ‘s life span, a company is able to cut down new merchandise development costs and capitalise on erudite efficiencies particular to the merchandise related to production, distribution, and selling. “ ( Encyclopedia of Business, n.d. ) Global selling besides provides benefits from oversea fabrication and collaborating with foreign endeavors to develop or publicize merchandises. Companies get great net income from extinguishing domestic work force and travel them to put where labour is comparatively inexpensive and have abundant natural resources. In add-on, by collaborating with companies from other states, new thoughts, invention and engineering can be shared or spread, ensuing in common development and betterment.

Troubles of marketing a merchandise globally and schemes for get the better ofing these troubles

First, companies that want to spread out their trade names overseas have to understand that consumer demands and merchandise acknowledgment can change greatly from state to state. Therefore, they will hold to be careful to take the right merchandises to sell and utilize appropriate attack to advance them. Besides, there will be difference in political, economic and legal environment. These differences can be really difficult to accommodate and get the better of and the effects of errors in these issues are serious. To get the better of the troubles, the company should see exhaustively and make up one’s mind carefully before traveling internationally. They should besides see with market to come in so that they can maximise net income and do a smooth passage. It is indispensable for houses to supervise and detect the taking companies in the market where they want to put so as to first set up a similar or relevant market presence. The freshly established subdivision should better be polycentric and the companies are encouraged to use and advance many local employees as they are familiar with the market and have much more experience in covering with local concern. In order to appeal to more consumers locally, the company should merely sell merchandises that cater to local gustatory sensation and publicize the merchandises in a manner that the local people find favourable. Firms should besides seek to accommodate some selling elements from the local market place, trusting for a larger market portion and return. Companies should besides command their monetary value to forestall the monetary value from fluctuating excessively much off from the monetary value in the domestic market.

Global Marketing – Practice

Designation and presentation of two planetary trade names

McDonald ‘s is the largest speedy service eating house organisation in the universe, more than 30,000 eating houses in more than 120 states worldwide. ( McDonald ‘s, 2011 ) The organisation was founded by Raymond Albert Krov in 1955. “ In the United States, it has 12,450 US mercantile establishments, most of them in stand-alone locations that generate a 42 % portion of the state ‘s fast-food beefburger concern. Corporate communications states that a new McDonald ‘s eating house opens every 8 hours. ” ( McDonald ‘s 1999 ) Starbucks is the largest cafe company in the universe, with more than 17,000 shops in 50 states. Starbucks is based in Seattle, Washington, co-established in 1971 by three people: English instructor Jerry Baldwin, history instructor Zev Siegl and author Gordon Bowker.

Comparison/contrast of their planetary selling mix

The footing of McDonald ‘s selling scheme is to understand clients and respond to the client ‘s and market ‘s altering demands. The company besides conducts in-depth client research and keep regular meeting to set their bill of fare consequently. Besides, they conduct research into other local nutrient industries in order to cognize their rivals better. The bill of fare of McDonald and gustatory sensation of their nutrient may change greatly from state to state as they are ever seeking to provide local gustatory sensation. The company adapts polycentric direction, they employee local directors and employees. As for Starbucks, the company places a immense accent on merchandise quality. “ Their java, even if priced somewhat more expensive than expected, is ill-famed for fulfilling clients with its rich, delightful gustatory sensation and olfactory property. “ ( Voteforus, n.d. ) Starbucks is besides dedicated to making atmosphere and doing people experience relaxed in the java house. Both McDonald and Starbucks values innovation really much, with new merchandise released about every twenty-four hours. However, McDonald ‘s selling schemes are seeking to convey clients convenience and their favourable gustatory sensation ; Starbucks ‘ attack is to do consumers relaxed and larn to bask high quality life.

Appraisal of research effectivity

I browsed the place pages of the 2 companies to cognize some basic information of the 2 trade names, and so I researched their selling schemes by looking at essays and study. I spent a batch of clip reading and analyse the truth and genuineness of the resources. My ain reading and sentiment were besides added in the paper. I interviewed 2 business communities about the market schemes of the 2 trade names and they provided me with some new position and led me to believe even deeper. Generally talking, I believe my research on this subject is thorough and deep, though I do appreciate the opportunity to make on-the-scene probe.


Through my research of the theory and pattern of planetary selling, I think that the 2 trade names are both really successful in planetary selling. In the regional degree, they are supposed to be every bit successful. However, in the planetary position, McDonald is making better than Starbucks, as the 17,000 shops of Starbucks includes 11,000 in the U.S, 1000 in Canada and 700 in UK, so about 75 % of the shops are located in English-speaking western states. Starbucks ‘ range of planetary market needs to be extended. The success of the McDonald is that the organisation genuinely listens to its clients and keeps bettering and introducing ; it adapts local selling schemes, synthesizes local gustatory sensation into their original bill of fare and accepts local direction manner every bit good as publicity attack.