Ps of Marketing Global Implications

¶ … Ps of Marketing

Global Implications of the Marketing Mix:

An Assessment of the 4Ps and their Role in Marketing Strategy

Global Implications of the Marketing Mix:

An Assessment of the 4Ps and their Role in Marketing Strategy

The globalization of marketing is re-ordering the emphasis, strategies and structures enterprises rely on to attain their go-to-market strategies and profitably grow their businesses (Czinkota, 2011). The two extremes of providing subsidiaries with complete control of all marketing mix variables vs. centralizing them is a debate that continues in even the most advanced multinational corporations (MNCs) today. The argument in favor of localized marketing mix control is often supported with the fact that cultures vary greatly across regions and even in the same nation making focused, personalized marketing critical to success (Shahhosseini, Ardahaey, 2011). Conversely the argument that of all attributes, pricing can be most controlled or standardized is often made in industries where there is heavy price competition and lower gross margins per product generated as a result (Czinkota, 2011). The centralization and quasi-standardization of pricing, it is argued, is critical for an enterprise to keep its operations in profitable balance (Rosenbloom, Dimitrova, 2011). Critics of the centralized pricing approach to marketing management contend that elasticity, like product features, varies significantly across geographies and needs to be treated as such (Czinkota, 2011). Many organizations find that global headquarters needs to dictate pricing to ensure uniformity and consistency of strategy, while also coordinating pricing to ensure consistency of branding is supported (Shahhosseini, Ardahaey, 2011). Of all marketing mix variables, pricing is often the one most centralized due to the need to roll up all country and regional financials and attain the most accurate level of forecasting possible.

In contrast to pricing being centralized, product definition, product strategies, promotion and distribution strategies are all best managed at the country or regional level. These are the aspects of any marketing mix that must be precisely aligned to the needs of a given audience in order for as marketing strategy to attain its objectives and the products to gain sales in each region and nation they are targeted for (Czinkota, 2011). Proctor & Gamble, Unilever and other companies have Research & Development (R&D) labs in the nations where the market size and potential for sales can substantiate an investment (Shahhosseini, Ardahaey, 2011). This gives these companies insights and market intelligence they can use in designing next-generation products that closely align with their target customers' unique needs. This strategy of also allowing the product, promotion and place or distribution aspects of the marketing mix to be controlled locally has shown significant value over time in generating brand loyalty (Rosenbloom, Dimitrova, 2011). This can be attributed to how effectively these R&D centers get at matching the unmet needs of prospects with the products being developed by companies known for their marketing expertise, for example Proctor & Gamble.