EVOLUTION OF GLOBAL MARKETING

Generally markets are composed of local, regional, and international brand.

A local brand is one marketed in a single country. A regional brand is one marketed throughout a region (for example, North America or Europe). An international brand is available virtually everywhere in the world. Marketing emerged when the emphasis changed from importing products (tea and species, silk, gold, and silver) to exporting products. Advertising was used to introduce, explain and sell the benefits of a product especially a branded product in markets outside the home country. Advertising that promotes the same product in several countries is known as international advertising. It starts with product that begins to reach the saturation point in its home market and cannot grow faster. Recapture strategy is used either by introducing new products in its home market or expanding into foreign markets. The following are the reasons for companies to venture outside the home market:

• Saturation of the home market
• Market research that shows market potential for products in other countries,
• Mergers and acquisitions with foreign businesses, and
• Moving into other markets to preempt development by competitors

Export

Exporting a product, requires placing the product in the distribution system of another country. The exporter typically appoints a distributor or importer, who assumes responsibility for marketing and advertising in the new country. As volume grows, the complexity of product sizes, product lines, pricing, and local adaptation increases. The exporter might send an employee to work with the importer and act as a liaison between the exporter and the importer. Some companies prefer to appoint a local distributor who knows the language and the distribution system and can therefore handle customers and the government better than a foreigner could. Starbucks, for instance, appointed a local distributor in several Asian countries, including Thailand. Exporting is still the first step in international marketing. For example, 2 years ago Brazil-based chocolate manufacturer Garoto (which means "boy" in Portuguese) decided to export to other Latin American countries. Even though only $25 million of Garoto's $592 million sales come from exports, the company is already Latin America's biggest chocolate exporter. Although sales outside Latin America aren't big enough to merit media advertising beyond the region, Garoto does participate in promotional opportunities such as major food fairs. International marketing and advertising is not the exclusive province of large companies.

Nationalization and Regionalization

If the sales grow in export markets, the exporter may send a manager to work in the importer's organization or to supervise the importer. That manager typically must secure approval of plans, obtain funds for operations, and defend sales forecasts to a company management that is concerned chiefly with its domestic market.

If sales grow even further, the exporter may want greater control or a larger profit share and may either buy back the importer's rights and handle distribution or set up assembly (or manufacturing) facilities in the importing country. That is, management and manufacturing get transferred from the home country to the foreign one At this point, key marketing decisions focus on acquiring or introducing products specifically for the local market. For example, BMW set up a U.S. manufacturing plant to build American versions of its German cars. Once the exporter becomes nationalized in several countries in a regional bloc, the company establishes a regional management center and transfers day-to-day management responsibilities from the home country to that office. When a company is regionalized, it may still focus on its domestic market, but international considerations become more important as that of Coca-Cola.