1. What is global marketing? Define its scope and major trends.
Global marketing occurs when a company markets and sells its brand across
international borders, however, it is more than simply making a product available
world-wide but understanding each area and creating a plan that works both globally
and locally. Nike serves as a great example. Although the brand remains true to its
values of performance, empowerment, innovation, it customizes campaigns by location
and embeds local relevance. A very visible difference from one country to another is the
ambassadors Nike chooses, as evidenced by the following examples. The first showcases
a famous soccer player featured predominantly in Europe. The second example unveiled
a variety of campaigns focusing more on basketball culture in China. It is important to
note, one trend around global marketing is that brands are growing smarter around
globalization keeping their core values but adapting visuals, slogans, and/or
ambassadors to the respective culture. The other major trend is sustainability and Nike
has sought to connect with sustainability by launching eco-conscious collections, such as
"Move to Zero". Nike recognizes these collections represent a global display of
accountability and positive practices in consumer choices.
2. Name and explain a company’s market entry options for international markets.
Companies like Nike utilize a variety of market entry strategies on a country by country
basis. The simplest of which is exporting, which could be sports shoes sold via an online
retail offering, via an intermediary agent or boutique operation in an emerging space.
Nike can also leverage franchising and licensing, particularly for retail outlets in areas
where it may not yet have developed a market presence. Nike may also leverage joint
ventures, where they partner with a local business to navigate the market, and
effectively bootstrap the relationship as outlined, primarily because the local partner
understands the market need and products; Nike must also build trust and relationships
toward full if exclusive market entry. In some markets like China, and Europe, Nike will
pursue direct investment or fully operate branded stores in the markets by opening
flagship stores, or a regional headquarters, to gain full control and establish the brand
experience.
3. What environmental factors must marketers consider when enter foreign markets?
Nike has a lot of environmental factors to consider when it enters a foreign market to
ensure that its strategy is effective. Cultural elements are quite significant and Nike
carefully tailors its messaging to respect and to honour specific values. For example,
Nike can communicate values about Equality and Community in the U.S., as it
contemplates values based on performance and national pride in Japan or Brazil. The
economic conditions in that local market operating context are also important when
pricing a product, or considering the marketability of a category of item, such as
whether limited edition sneakers are likely to sell in a specific market. The political and
legal systems in that foreign market have implications for Nike, including import laws,
labor laws, and trade policies as well. Last, technology and infrastructure are important.
The vast majority of Nike's business is conducted digitally and via mobile apps.
However, that only works in markets where there is reliable access to smartphones,
social media, and on-line payment systems as well.
4. What are the best ways to develop and execute global marketing strategies?
A successful global marketing strategy involves research and consideration of the
audience, market conditions, and what people hold as valuable means and insights in
each region. This forms a foundation for Nike to land on a balance between what is
globally consistent and locally relevant. The swoosh and "Just Do It" does not change
around the globe, but the campaigns shift. In the Middle East, for example, the brand
launched a performance hijab line; a series of products that respect and have cultural
awareness and remain on brand. The execution side of things also means working with
local influencers, athletes, and creatives to engage communities authentically. Finally,
Nike utilized data and feedback loops to monitor how campaigns are functioning around
the globe. Nike is able to respond quickly to both social media engagement, app
engagement as well as retail performance.
