Question

1. How do marketing channels differ around the world?
2. Why is it sometimes hard for firms to penetrate foreign markets?

Answer 1

Marketing channels depend on many factors. Some of them are listed below.

(a) Demographic features of the target population, viz. their education, their competency level with technology, age group etc. Educated and technologically competent population makes it easy for the company to use the social media and other technology based marketing platforms while the elderly population is more comfortable with traditional marketing channels like the news ad or TV ads.

(b) Economic viability of the marketing channels and the expected return on investment. In some areas, the traditional channels are cheaper and more efficient whereas in some, technology based channels are more effective and feasible.

(c) Cultural factors, which determine the beliefs and preferences of the local population. For example, some cultures are more inclined to the artistic representations and rendering of their day to day life, hence a TV ad would be more appropriate.

These factors determine the choice of right marketing channel to reach out to the customers in most effective way.

2.

Every market has its own characterstics that is determined by the cultural, socio economic and demographic attributes, where the customers have their specific beliefs and aspirations from life, which determine their preferences. For successful penetration of the foreign markets, the company needs to have a sound understanding of the local culture and customs and beliefs before deciding on the product offerings for that market and be able to find the right way of customer communication to make them aware, relate to their needs, lifestyle and aspirations and prompt them for a purchase.

Many companies, very successful in their home countries or in some other culturally similar nations, either find it difficult to understand the psyche of local customers, which are culturally and demographically different, or unable to understand their needs, and thereby fail to connect to them. The result is a wrong product offering that does not add value to the lives of the customers and does not provide solution to their problems, or wrong customer communication that does not move the target market. The belief in the company's products and emotional connect is absolutely essential for a long term customer relationship and sustainable business.