Global marketing Essay

Global marketing

            The aim of the work is to compare and contrast the three different global marketing strategies – standardized, differentiated and concentrated; these three strategies are used in the modern world of business and it will be also interesting not only to compare their theoretical bases but to see how global companies apply them in their business development.

            Standardized global marketing relates to the strategy chosen by the company, when it goes with the similar marketing mix for all marketing segments in all targeted countries. This strategy does not need specific approach on the basis of the cultural changes in different countries, as well as the changes which different marketing segments require. Global marketing as such is used by the global companies, which try to conduct their productive activity looking at world as one single global market, on which regional and national differences do not play significant role. (Philips 2007) While standardized global marketing strategy may seem too simple and even not beneficial for the company, it should be looked at from another viewpoint – it is focused on the general features which are peculiar of the consumers at which the product is targeted; it also requires large effort to find and exercise these common features. One of the bright examples of the global companies, which have become the world leader due to the standardized global marketing approach, is Phillip Morris. On the surface it may seem that the company has used standardized approach using the same basic promotional strategies across the markets, but the core of this strategy for Phillip Morris has been in deep research of the young adults’ interests and tastes. (Dipasquale, 2002)

‘Companies with a standardized promotional approach will strive for customers to perceive a similar brand image across markets while those adopting an adaptive approach may allow customers to perceive differing images for the same brand with the goal of establishing the highest equity for that brand in each local market.’ (Dipasquale, 2002)

Philip Morris has been able to identify the values among adults which are supposed to be universal, and these universal values have been laid into the basis of the already mentioned standardized approach.

            There is an opinion that the companies which assume that the strategy designed for their own countries will work on the global market make the wrong choice, and thus the result will be total failure of the marketing campaign. However, the bright example has proved that no matter what strategy the company chooses, the matter is that the chosen strategy should be properly designed and used; but for the companies which want to make another different choice, there are also concentrated and differentiated global marketing approaches. They differ from the standardized campaigns, and can be even contrasted to it.

            Concentrated global marketing is a kind of the global marketing strategy which cannot be contrasted to the standardized approach, but which is a different choice for the company which wants to achieve success in one single chosen global market segment. This kind of marketing is used when the organization has large share of market in one or several small segments opposed to the concentration of efforts in the small share of a large segment. (Kotabe ; Helsen, 2004) Concentrated global marketing is effective for the companies with the limited resources and for the companies of small business, but for the global companies it is essential to have a high reputation of the product; for example, the acquisition of the EnviroSystems by the Telecomm sales Network in 2006 has become one of the recent examples of the chosen concentrated marketing strategy on the global market; it may be similar to the standardized approach because it does not require changes in the strategy, but while the standardized approach is applied to all segments, the concentrated one is used only within the limited marketing segment or several segments. (Phillips, 2007) EnviroSystems is the company specializing in the production of disinfecting products, which presupposes in it that the company should use only concentrated approach due to the very special products it offers.

            Differentiated global marketing can be totally contrasted to the standardized approach, because its use is focused on the application of different products or marketing mixes depending on the specific segment targeted by the company. Through the use of this strategy the company strives for the possession of several market segments simultaneously; but these segments are aimed with the development of the differentiated products and specific marketing policies. (Acito, 2006) Creating different approaches depending on the targeted segment, the company always counts to achieve higher sales volumes, as well as conquering stronger position in each targeted segment. As it is seen, the strategy is totally different from the one Philip Morris used; differentiated approach is seen when used by such companies as Levis – while jeans are bought and worn by all types and kinds of consumers, they cannot be targeted with the use of the uniform approach, this is why the company has developed several marketing mixes under different names and aiming different consumer segments – Traditionalist, Price Shopper, Mainstream, Utilitarian Guy. (Acito, 2006)


            The three different marketing strategies used in global marketing are characterized in different ways, have different aims and use different instruments for the achievement of set goals; moreover, the targeted customer audience in the three cases is also different, and while standardized and concentrated global marketing strategies are somewhat similar, the standardized and differentiated strategies represent the two opposite approaches to the general design of the marketing campaign. However, all three strategies described are successful if properly applied, and the three examples of the global companies have proved this assumption. In reality, the choice of the global marketing strategy, depends on the specific characteristics of the company and the segments it wants to conquer; if all segments are aimed, it is possible to create differentiated campaign with variety of products or standardized campaign appealing to the common interests of consumers; concentrated strategy will work for the conquering one large portion of one or several marketing segments.


Acito, F 2006, ‘Development of archetypes of international marketing strategy’, Journal of

International Business Studies, vol. 37, no. 4, pp. 499-508

Dipasquale, S 2002, ‘Philip Morris plans $350M in price promos’, Advertising Age, August

Kotabe, M ; Helsen, K 2004, Global marketing management, John Wiley ; Sons.

Phillips, P 2007, ‘The global facets of marketing: Whether a company is small or large, it is

necessary to adopt a global marketing strategy to ensure success in the future’, Coatings World, January.