Amidst the backlash of international turmoil regarding trade agreements and impacting changes like Brexit, therein lies a global opportunity to collectively explore the concept of Glocalization. This word is a mixture of the terms globalization and local, referring to unified strategies to approach widely dispersed markets without losing that local feel. For many business owners, the idea of local marketing is grudgingly considered. One might experience an even higher level of mental anguish when executing marketing campaigns designed to interact with consumers around the world.
Glocalization has the potential to affect businesses of all sizes, which gives reason for much analysis. Fortunately, this concept might gain more popularity as leaders discover mounting opportunities available within these emerging markets. While approaching an exciting decade of innovation and discovery, there are many reasons why businesses can and should go glocal.
1. Potential Profits
Image via Flickr by 401(K) 2013
The first reason to explore glocalization is the potential to build revenues by gaining new customers. Creating strategic campaigns that focus on new markets can equate to big bucks. As business leaders invest in expanding messages across borders, they open the door to boundless revenue streams.
Companies like Alibaba have experienced rapid growth by allowing businesses to easily position brands in international markets. Consumers are always searching for new products. Discovering different brands can be exciting and intriguing, especially if the product or service distinctively meets customer needs.
2. Local Consumer Needs
Companies who are able to serve local markets are likely to experience positive results. They can benefit from learning about audiences and analyzing the availability of specific products or services within the region. Market researchers can also explore key demographics, culture, and competition to proactively engage clients.
Subway and Taco Bell are two major brands who have leveraged these insights to cater to local markets. For example, Subway excludes certain meats to accommodate local patrons, and Taco Bell offers additional food selections based on the trends within geographic regions. Kentucky Fried Chicken has developed vegetarian menu items for Indian customers, and Starbucks adapts its atmosphere within local communities.
3. Proven Methods
Another reason to consider glocalization is the opportunity to easily duplicate effective marketing and branding campaigns. Franchises are known for accessing new markets to build profits, while using established operational models. Popular companies who form a foundation in one region can easily transition these products and services with less risk. This could prove especially beneficial for companies driven by tourism.
In addition, recognized brands can easily drive momentum through digital campaigns. Satisfying local customers and building online audiences can produce results that extend beyond localities. Regional customers who rant and rave about a recent store visit on the web using social media and online reviews can launch brands into widely dispersed markets. Modern campaigns are valuable and well regarded, but word of mouth is still a useful mechanism for building demand.
4. Effectively Managing Business Resources
Glocal campaigns allow business leaders to deliberately plan initiatives to maximize return on investment. Executives evaluating market potential will discover ways to reduce costs and streamline campaigns. They are more likely to exhaustively consider pros and cons, while carefully allocating resources.
This is even more important for small businesses. Unchartered territory often elicits fear and uncertainty. Naturally, leaders might consider massive risk and volatility, causing them to shy away from aggressive global campaigns. Although former reports focused on possible revenue loss, threats, and unmanageable competition, smart leaders can overcome these projections. With comprehensive research, planning, testing, and analysis, global marketing initiatives can parallel the simplicity of local marketing campaigns.
5. Remain Competitive
Everybody is doing it. This may not seem like the appropriate reason to make an important business decision to go global, but market trends are important. Brands can more easily access new customers in more ways than ever. Consumers are continually connecting using resources and platforms that allow them to rapidly exchange information. Good brands who take on the challenge to increase brand visibility in international markets, while moderately adapting products and services can lead the pack.
As established brands set the pace of glocalization, previous notions are likely to dissipate. There are already countless examples of brands who have demonstrated this vast sea of opportunity. Consumers benefit as well because consumers searching for specific products or services can more easily find that very thing that they have been looking for. The challenge is for brands to understand what customers are looking for and to make a bold introduction.
Local Meets Global
This may seem complicated, but international customers are closer than they appear. Digital campaigns allow marketers to engage clients at the click of a button. Glocalization is a major consideration because of the opportunity to build revenues by serving local markets. Marketers can benefit from the ease in duplicating thriving campaigns within established markets. There is the likeliness of more deliberate resource allocation. Also, it is imperative for all businesses to explore the value of competitiveness. Despite former hesitations and alarming reports, there is much to gain.
Likewise, there are many marketing resources available to eliminate the woes and increase the wins. Although the reduction of geographical barriers may initially seem unstable, marketers can plan their way to success. Glocal campaigns may require more in-depth research and analysis, but marketers can take a closer look at the methods used by major brands for help.
Know Your Audience
McDonald’s optimized global campaigns by changing menu selections and restaurant layouts. Consumers may notice similar adaptations within local communities. Pursuing growth within global markets is quite similar. Marketers can explore culture, family size, income, and lifestyle to identify needs. They can also research potential competitors or engage customers who have encountered their brand while traveling or vacationing.
Leaders can manage risks by taking a closer look at their potential customers and their local environment. With research and analysis marketers can take on the challenge with ease. Although seemingly daunting, there is great potential to achieve revenue goals and impact local markets by presenting valuable products and services to meet the needs of consumers.