Global Marketing
Global marketing refers to a situation whereby a company adjusts its marketing strategies to adapt to the business environment of other nations. Notably, global marketing goes beyond the selling of products or services internationally. Importantly, advertising strategies need to differ across countries and be contingent on demographics, culture, and other elements of the location in which the establishment intends to venture (Budianto, 2018). In this case, where the company plans to enter the Brazilian market with the same advertising message used in the U.S, the CEO is wrong. Brazil is an emerging market as opposed to the U.S, which is a developed economy. The preferences and tastes, cultural beliefs, and values of Brazilian consumers are different from those of Americans. For instance, while it can be progressive to air an advertisement that shows a man changing diapers, in other nations, the message can be misinterpreted or lost. Therefore, promoting the diapers with the same message will not be effective for the firm. The organization should craft a different marketing strategy that resonates with Brazilian consumers.
Concerning the products pricing decisions in the new market, the CEO is also wrong in leaving it to the local managers. Notably, price elasticity and local demand decisions are crucial for the organization in Brazil. In an organization that seeks to expand globally, there are two types of strategies, namely; the local or regional strategy and the global strategy. For the concern to accomplish its goals, there should be an alignment of the local strategy with the global strategy for the firm to be mission-oriented and be highly cost-effective. For instance, the company may want to price and position the product similarly in both the U.S. and Brazil. Therefore, leaving the pricing decisions to the local managers in Brazil can be fatal. This is attributed to the fact that they are likely to deviate from the business’s overall strategy.
Reference
Budianto, A. (2018). Advertising promotion strategy and quality of service effect against customer loyalty (A study on customers of modern market in Ciamis region). Sustainable Collaboration in Business, Technology, Information and Innovation (SCBTII), 1(1).