Tuesday, June 24, 2008

How Global And Domestic Marketing Differ

By Linda P. Morton

Global and domestic marketing varies considerably because people differ by countries.

Some companies use a one-size-fits-all marketing approach. This approach is doomed to fail because what people in one culture like, another those in another nation abhor.

Using market segmentation to determine values, concerns, and attitudes of target market members requires market research specific to each nation and groups of people within each nation.

Global and Domestic Marketing: Consider Differences In People By Nations

The market segment of the United States is dependent on many different factors, ranging from the demographics of the public to what the public needs, want and will buy. But information about USA publics doesn't apply in different nations.

Even with USA residents, culture differs by national origin. Yet, most USA residents have been somewhat assimilated into the USA culture. So differences intensify across borders.

Global and Domestic Marketing: Demographic Characteristics Vary By Nation and Culture

In addition, many market segmentation criteria change from nation to nation. For example, generations are influenced by cultural and historical events they experience. Some of those events may be similar across nations, but they are not experienced the same.

The World War II generation in the USA was influenced by the second world war just like most people in the Western world. However, the influence of Pearl Harbor on the USA WWII generation was greater than for those in the rest of the world.

So you can't take characteristics that best define a USA generation and transfer those characteristics world wide.

Global and Domestic Marketing: People From Different Nations Think Differently

Psychographic characteristics also differ by nations. For one reason, culture, morals, values and attitudes are learned within a society. Different nations develop different social pressures and expectations. They teach different values and attitudes within families and schools.

What is considered "good" in one nation may be considered "bad" in another.

For example, it was once common for USA Caucasian families to teach their children that African or Black Americans were inferior and should be treated as such. Some organizations like the Klu Klux Klan even regularly practiced murdering and torturing Blacks and got away with it. And this was after World War I when the Nazis were considered abhorrent for their racial hatred.

So psychographic characteristics like attitudes, values, and concerns change drastically across borders.

Global and Domestic Marketing: Buying Behaviors Differ

Each nation's economic well-being influences buying habits of its citizens.

But spending preferences go beyond people's ability to buy. It is closely tied to culture, social pressure, ideas of success and many other nationally specific characteristics.

For example, people buy even the most basic needs according to buying habits within their nations. Many buy groceries daily from local "farmer's markets."

But in the USA, we buy from large chains that freeze, can, dehydrate and process in other ways so that food lasts for a long time. Then we buy at least enough for a week at a time, and some people buy for a month at a time. We think shopping everyday would be a terrible inconvenience and that we are just too busy with our careers and family to spend that much time buying groceries.

People in some nations probably think that USA residents have their priorities messed up to avoid spending their time buying and preparing fresh, healthy foods.

If we are so different in the way we purchase survival products like food, how much more different are we when it comes to buying other products.

Global and Domestic Marketing: Conclusion

Marketing campaigns can not be successfully transferred from one nation to another.

International marketing demands that a unique marketing program be created for each nation and that marketers know characteristics of the people in each nation.

Unfortunately, there is little systematic research being accumulated and shared with business owners about people in other nations. As the world gets smaller and the Internet gets larger, that has to change. We must do a better job of global and domestic marketing.

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