UNIT V. Thinking Globally: Nueva Ecija University of Science and Technology

Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY

Cabanatuan City, Nueva Ecija, Philippines
ISO 9001:2015 CERTIFIED
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UNIT V. Thinking Globally

(Global Marketing – Universal Demand )
A Final Requirement
for Services Marketing (Elective 13)
Florin, Ma. Antoinette T.

BSBA MM 4A
Transforming Communities through Science and Technology

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UNIT V. Thinking Globally
Overview
This topic focuses on the concept of global marketing – universal demand, as well as the
advantages and disadvantages of global marketing and the different examples.
Lesson Objectives
At the end of the unit, I am able to:
 Define the global marketing – universal demand

 Advantages and Disadvantages of global marketing
Lesson Proper
Global Marketing – universal demand
Global marketing is a marketing strategy that is used to expand a business into markets
worldwide. It occurs when a company uses marketing strategies on a global level; effective global
marketing plans result in goods and services being marketed on an international scale in an effort
to broaden the customer base to span the globe. Global marketing is an especially important
strategy for goods and services that have a universal demand. Products with a universal demand
include products that customers of all countries and geographic areas need, such as food or clothing.

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Examples

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Advantages of Global Marketing
1. You can reach a wider audience.

- If your company grows constantly, you can find out that there are few consumers in the
country to increase your revenue. This is the time to start product promotion abroad. Global
marketing allows you to sell more products, attract more customers and enlarge your
market share in different countries.
2. Your brand influence will increase.

- Building a well-known brand's reputation gives you a powerful competitive advantage in
local markets of different countries. Moreover, by adopting your advertisements to the
peculiarities of each culture, you can make the audience more loyal to your company.
Brands with a strong reputation, like Coca-Cola or Nike, can influence not only consumers'
purchases but their worldview and lifestyle.
3. You can reduce costs on product development.

- Working with the global market means attaining the economy of scale that helps you
avoid overspending, particularly on shipping raw materials. Also, you can locate your
plants or factories in the countries with loyal taxation policies to save company's money.
Global marketing allows businesses to sell worldwide and reduce spending on raw materials
by standardizing.

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4. Your company can get much more feedback.

- This fact will influence the speed of your growth directly. Knowledge of your brand’s
weaknesses and problems in markets of different countries means the possibility to
improve them much faster. Global marketing can help you gain feedback worldwide in a
few clicks, especially by using social media advertising and email marketing.
Disadvantages of Global Marketing
It can be difficult to overcome cultural barriers.

- Adopting your promotion strategy to the global market means satisfying audiences with different
cultural backgrounds.
Your company should adapt to the legislation of foreign countries.

- It can be costly and risky to start working without understanding the laws and taxations of the
new markets. Sometimes businesses need lawyers’ help to make their start abroad smoother and
avoid fines. This process may be time-consuming, but it is necessary before launching the
promotional campaign.
It may be difficult to avoid overspending on buying raw materials.

- If you start working with foreign markets without proper research, the inventory costs can
increase significantly. Firstly, it may be challenging to find the balance between supply and
demand because the results of your promotional campaigns will not be the same as in your country.
Secondly, if you start working with local suppliers, finding the cheapest resources in the area
requires time to save your costs.
Summary
Global marketing is especially crucial for products and services that have universal demand.
For example, food is a product with universal demand, i.e., everybody needs and buys food.
Insurance is an example of a service with universal demand. Every country in the world has people
and businesses and need and buy insurance. The advantages of global marketing are you can reach
a wider audience, your brand influence will increase, you can reduce costs on product development
and your company can get much more feedback. While the disadvantages are, it can be difficult to
overcome cultural barriers, your company should adapt to the legislation of foreign countries and
it may be difficult to avoid overspending on buying raw materials.
Activity
Name: Score:
Course/Year/Section: Date:

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Direction: Look at the pictures, write UD if the pictures are examples of global marketing
universal demand and if not, write NO.
1.
2.
3.

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4.
5.
Answer Key

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True or False
1. NO
2. UD
3. UD
4. UD
5. NO
References
https://sendpulse.com/support/glossary/global-marketing
https://images.app.goo.gl/22ZRAoDzC2mckX7r9
https://images.app.goo.gl/iLUoM7aAn8Equeaf6
https://images.app.goo.gl/crdARrmcG6QNJGcG6

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Republic of the Philippines

NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY

SAN ISIDRO CAMPUS