Pros & Cons of a Global Marketing Strategy

[Md. Anikuzzaman]

To be successful these days, even small businesses must plan their marketing strategies to attract consumer interest outside of their local markets. Although there are risks involved, there also are plenty of advantages to expanding a business worldwide. If you don't offer a product on the world market, a competitor probably will.

About Globilization
Some types of businesses are more appropriate than others for global market expansion. But any type of business can benefit as long as it requires few changes in its marketing strategy to reach consumer markets anywhere in the world. Even small businesses that have a Web site can connect with potential customers in other countries. Taking a business worldwide lets you find new markets for your company's products or services, reach new consumers overseas, and go into markets with little competition.

Pros
The main benefit of globalization is that it lets you reach a lot more customers. As long as there is demand in an overseas market for a product or service your business offers, there is a customer base. A product that sells successfully at home will often do well in international markets, says Wesley Johnston, a marketing professor at Georgia State University. Electronics and other tech products are examples of consumer goods that sell well on the global market.

Taking Advantage of Opportunities
Small businesses can take advantage of global market opportunities in several ways. One option is to franchise your business. Franchising is a fast, cost-effective way to expand a business into new markets. The franchisee typically takes on the financial burden, paying you a fee for the right to own one of your franchises. Another option is to partner with businesses based in other countries. For example, if you manufacture a product, you can partner with a distributor in another country and split the proceeds.

Cons
Before taking your business worldwide, make sure there is a market for it. Consumers in other countries often have different preferences and needs and might not have much interest in buying your product. For example, if you sell Canadian flags, you might not find much demand in countries outside Canada. Another risk of going global is that it can be costly. This is especially true if you decide to set up operations in other countries. Finally, different countries have different regulatory standards. Products that can be made and sold freely in some markets might run up against stiff regulatory hurdles in other countries.

Source: http://smallbusiness.chron.com/pros-cons-global-marketing-strategy-40456.html