We can choose a future where we export more products and outsource fewer jobs. After a decade that was defined by what we bought and borrowed, we’re getting back to basics, and doing what America has always done best: We’re making things again. i
—Barack Obama, former president of the United States
Having isolated a target market, it is equally important that you prepare a global marketing plan that, like your domestic marketing plan, details the target market’s needs/wants and determines the actions and factors that enable your business to satisfy them better than any competitor. As you know from producing your domestic market plan, the key is a disciplined, but logical planning process, that allows you to define issues, answer questions correctly, and make correct decisions. The most frequently cited shortcomings of global marketing plans, according to marketing executives, are a lack of realism, insufficient competitive analysis, and a short-run focus. Your plan needs to address long-term operations in a foreign market.
The key is a disciplined, but logical planning process, that allows you to define issues, correctly answer questions, and make marketing decisions.
How then does a global marketing plan differ from a domestic marketing plan? What does it contain beyond the following typical domestic marketing plan items?
Marketing background – the information base from which the marketing plan is developed.
Marketing plan – direction for execution in the marketplace.
Marketing execution – the actual interaction with the target market.
Marketing evaluation – measurement of the level of success of the plan’s execution.
Figure 10-1, Domestic vs. International Marketing Plans, compares a domestic versus global marketing plan detailing elements you are familiar with—problems/ opportunities, sales goals, marketing objectives, competitive analysis, and a description of the target market, etc., against key differences for a global marketing plan. Among them is a thorough cultural analysis, a competitive analysis, the orientation of the marketing mix tools (product, promotion, place, and pricing) toward international customer requirements, competitive analysis, and government participation. Consult the Central Intelligence Agency’s (CIA) World Factbookii and the 2017 Index of Economic Freedomiii for additional information.
Figure 10-1. Domestic vs. International Marketing Plans
The cultural analysis should thoroughly describe the country in which your product is to be marketed, selecting pieces of information that show how or why your product is suitable for the country’s culture. You may or may not include:
Country’s relevant history and/or recent events.
Geographical Setting: location, climate, and typography.
Description of Political System: political structure and parties, stability of government.
Population and Demographics: total population size, distribution.
Economic Statistics and Descriptions: gross national product, personal income per capita, average family income, inflation rate, government social programs, labor force, principal industries, foreign investment, transportation modes and availability, communication systems, international trade statistics, description of religion and its impact on daily life, language, description of daily life and lifestyles, types of housing, recreation/sports and leisure activities, impact of technology, availability and impact of media, availability of channels of distribution.
Your competitive analysis needs to describe the competitive situation you face in your target global market:
Compare and contrast your product with competitors’ products: competitive brands (domestic and foreign) available in the market (features, packaging, pricing, promotion and advertising methods used, relative market shares and strengths enjoyed in the market).
Estimated annual industry-wide sales (or volume) of all brands.
Market Conditions Faced: forms of available transportation and communication in the region, consumer buying habits—product feature preferences, use patterns, and shopping patterns,iv distribution of similar or competitive products—typical retail outlets used and sales by other middlemen, advertising and promotion (media that can be used to reach target market, sales promotions customarily used in this product category (samples, coupons, etc.), pricing—customary markups and types of discounts available for this kind of product.
Customized to your target market(s), your global marketing mix must take into account:
Your product strategy: differentiation, packaging, and support services.
Your pricing strategy: handling expenses (pier charges, wharfage fees, loading/unloading charges), customs duties, import taxes, wholesale and retail markups, company’s gross margin, retail price, methods of payment (cash in advance, open account, consignment, sight/time/date draft, letter of credit, etc.). All your costs must be accounted for to identify cost and arrive at a price the market can afford and profit level you can accept.
Your distribution strategy (macro): port selection (origin and destination), delivery mode selection—specify your mode of choice and discuss the advantages/disadvantages of each mode for reaching your country (railroad, air carrier, ocean carrier, motor carrier), documentation required (bill of lading, dock receipt or air waybill, commercial invoice, certificate of origin, electronic export information, shipper’s letter of instruction [See Appendix A for a description, consult a logistics professional for use and completion of these and other exporting forms].
Your distribution strategy (micro): distribution channel, warehousing needs, retailers—type of retail stores, the scale of operation (large or small), and retail markup, wholesalers—type, the scale of operation, and wholesale markups, import/export agents.
Last, but not least, your international marketing plan must also take into account government participation, agencies at home and in the target market, as well as the regulations you must follow.
You want to be open minded and innovative, but also methodical and consistent as you prepare and write your marketing plan. As you prepare the background section and the marketing plan itself, have separate sheets of paper handy with headings of the problems, opportunities, and each step of the marketing plan under which you can jot down relevant ideas as they occur to you. Evaluate the application of each idea as you actually write each section of the marketing plan to which it pertains.
By this disciplined approach to crafting your global marketing plan, you can avoid the risk of losing sales, minimize cost, and maximize profits. Take note of the difference between a domestic and global marketing plan. There are significant differences that require research and cannot be overlooked. You have generated a marketing plan here in your domestic market. It is equally doable and important for an overseas market as well.