The literature of global marketing approaches

The literature of global marketing approaches

Research Question: What factors determine highly effective global marketing strategies?

H1: As the application of local market approaches to international markets increases, the performance of the firm in the global market decreases.

Overview

(Chetty & Hunt, 2004) have asserted the need for more market-specific policies highlighting” a need to appreciate the dynamics of the changing global market in comparison to the local markets. “additionally, the research conducted states that one of the ways to appreciate global markets is to view them as a separate “animal” from local markets that can be easily” tamed”.

The study of global market approaches is not a new endeavor. The problems have always arisen with the lack of adequate emphasis on the dynamics of the global markets and, thus, the development of research that can adequately address the same as well as relevant business policies (Lasserre, 2017). Our narrative shows the progression from global markets to it’s antecedent, local markets. We discuss, work on the dynamics of the global markets and, work on the global market approaches that transition from local market approaches in international marketing. This review also notes that a majority of the research is highly theoretical, and very little empirical data can be found on the same.

What we already know: Global market approaches; The product life cycle theory

The dynamics of the international business market has been noted severally over the years in different streams of literature .one of the earliest probes into the dynamics of the global market include (Meenaghan & Turnbull, 1981)& (Tellis & Crawford, 1981) who highlighted the growing significance of a more targeted approach to marketing in the global markets, (Meenaghan & Turnbull, 1981)suggested that the global market was more dynamic. The strategies used in the local martlet could transition the global market unless advanced in various ways to meet international requirements’, (Meenaghan & Turnbull, 1981) followed up these arguments by formulating the product life theory as a more pervasive strategy on the global market approaches. The product life theory states that a product life cycle has three distinct stages: (1) new product, (2) maturing product, and (3) standardized product. The relation between the product cycle theory and global market approaches has been supported by (Schlegelmilch, 2016) who suggested that the third state of a product is more appropriate in comparison to the other stages that suit the local market. Additional contributions have established an empirical relationship between the product cycle theory and the development of successful global market approaches.

Existing Empirical Work

Among the few empirical articles published on global market approaches’, (Chetty & Hunt, 2004)examined the performance of businesses in the global market depending on the stage of the products that were sold in the global scene. Although these results were not tested against local market forecasts and applications of the same theory, the results of the article revealed an inverse relation between the approaches in the local market and the global market (Meenaghan & Turnbull, 1981). In this particular study, it was noted that “global market approaches are more applicable to local markets than vice versa.” Also, while findings so suggest a decrease in performance dependent upon the product cycle theory, there is still an empirical gap in the determination of how effective specific local strategies can work in the international market. Notwithstanding the emphasis on the product cycle theory, this work provided for the basis of analyzing the dynamics and differences between the local and global markets and their interrelationships in determining business performance (Schlegelmilch, 2016).

Modern Global market approach theory

In his theoretical works, (Schlegelmilch, 2016) asserted the importance of the product life theory in determining the success of a business in international markets. He also suggested a framework that can be used to distinguish between the requirements of a thriving local market and a flourishing global market.

Gaps in the Literature

While (Tellis & Crawford, 1981)explore the factors affecting any good global market approach and an insistence on the product life theory as the primary determinant of local vs. global market approaches, (Chetty & Hunt, 2004) put emphasis on the integration of the two in order to smoothly transition local market straggles to the worldwide scene. Research has ignored the fact that marketing strategies developed at the local level may also work for the global market and therefore ion some cases depending on the products itself, it may be beneficial to stock with a single approach both in the local and global markets., asserted the impact of a failing global strategy on business performance suing empirical evidence by (Meenaghan & Turnbull, 1981)to support their claims, however(as stated earlier) the undue influence of the local market approaches on the global market approaches may also be empirically tested in order to provide a relation to the decrease in business performance when adopted in the long run in the global market.

Contribution of This paper

The most refined theory work on global market approaches is presently that of (Schlegelmilch, 2016) who offer an adequate exposition of the global marketing approaches and their interaction with local market approaches, in the long run, see also, (Lasserre, 2017).

References

Chetty, S., & Campbell-Hunt, C. (2004). A strategic approach to internationalization: a traditional versus a “born-global” approach. Journal of International marketing, 12(1), 57-81.

Meenaghan, A., & Turnbull, P. W. (1981). The application of product life cycle theory to popular record marketing. European Journal of Marketing, 15(5), 1-50.

Tellis, G. J., & Crawford, C. M. (1981). An evolutionary approach to product growth theory. Journal of marketing, 45(4), 125-132.

Lasserre, Philippe. Global strategic management. Macmillan International Higher Education, 2017.

Schlegelmilch, B. B. (2016). Global Marketing Strategy. Management for Professionals.