The use of global centralized marketing and its importance:
To understand this topic, we’ve to first understand what this term means. Global marketing as the term suggests would signify pricing, promoting and placing your product on the global scale to cater to foreign markets as well. Centralization is where all the instructions and decisions are taken by top management and expected to be followed by everyone else in the organization, in this case, for marketing. This approach works for businesses with highly competent and funded marketing teams that can make all their decisions.
They use experts of the localities they are to market in to aid them in this process while in decentralization, marketing is outsourced from locals in the country they are about to set up with. Centralized global marketing definitely has its advantages wherein marketing remains within the business, allowing them to maintain their brand image. But, when planning to become a global brand, it is really important that businesses have complete knowledge about cultures, customs and traditions of other countries so as to not offend and better cater to the marketing required in the region. This is an important factor to consider when deciding what marketing approach to use and just one the essential decisions global businesses have to make to propel their growth.
In a centralized marketing approach, there is a large and heavy marketing team in base at the headquarter branch of the brand or a company which takes major decisions about all marketing and branding related matters for all countries where the brand is present. There is always less room for innovation and creativity and understanding local cultures and creating tailor made and customized brand campaigns if a company follows centralized global marketing strategy.
said Mr. Ananth Arumugam
M.B.A. (Marketing)
This Abstract is a part of EIU-Paris weekly expert quotes on various trending topics.