Implementing a global marketing strategy is similar to implementing a domestic s
ID: 388381 • Letter: I
Question
Implementing a global marketing strategy is similar to implementing a domestic strategy in some ways because in both cases marketers consider consumers’ basic demographics. However, when implementing a global strategy, marketers must consider additional factors, including cultural differences, trade regulations and trade agreements, and the complexities of the Fair Trade initiative.
1.) What are some barriers to global marketing for small producers in small countries?
2.) How can these producers overcome these barriers?
3.) Which strategies are typically most successful, and why?
Explanation / Answer
1. Some barriers to global marketing for small producers in small countries are relating to the intellectual property and strategic and regulatory standards. Being a small firm the risk of losing the intellectual property in the large global market is more. Another issue can be of the regulatory and standards barriers. Getting permits, patent rights, trade licenses etc can become a hassle for small firms. They can become a target of unethical business practices. The customs formalities, trade approvals and market entry procedures are too complicated for such firms to get through at once easily. Sometimes several documents have to be submitted for these approvals to different agencies which takes a lot of time and money of the small firms. Above all this, the tariff rates and formalities at the border are so much that entering the international market becomes a difficult task for such small firms.
2. To overcome these barriers the firms have to be proactive in the protection of the intellectual property, brand name or technology. All measures have to be taken to ensure the safeguarding of the intellectual property while entering the new market. Avoiding such countries where intellectual property can be at stake is also a form of avoiding such a situation. For overcoming the issue of regulatory and standards, the company has to make a research on the country and its policies and regulations regarding the licenses and approvals much in advance. A proper strategy has to be formed wherein the company will get the approvals and paperwork done one by one step by step and thus will not face any obstacle or delay.
3. Forming strategies to overcome the trade barriers is the most amicable way for the small producers. These strategies should be formed keeping in view the barriers and the goals to be achieved by the firm by getting globalized. The producer will have to develop an export infrastructure, improving the financing conditions and strengthening the channels of marketing,