Implementing Global Market Strategies

By M. Isi Eromosele

The development and implementation of global market strategies for companies must be linked to specific target markets. As such, the target markets should be the focal points of winning market strategies that would serve as rock-solid underpinning for overall corporate-wide strategy. International market strategies concentrate on the viewpoints of the global markets to be served.

Market scope is one aspect of global market strategy. A company may endeavor to go after a whole market or split it into specific segments. A second one would be geographical dimension. A company may decide to concentrate on a local, national, regional or international market. Conversely, it may decide to focus on all of them. The third one is time of entry into the market. Based on its timing, a company may be the first to enter a market or the last to do so.

In context, market scope strategy relates to how large an area of the market the company wants to serve. Within this context, a company may choose between three alternative approaches: single market strategy, multi-market strategy and total market strategy.

Single Market Strategy

A company may choose to focus its market development efforts on a single section of the market. The reasoning could be that it finds a distinctive niche in a market and decides to focus its strengths to serving this niche. The key here is for a company to conduct a thorough analysis of the market and identify a segment that is not being adequately served. Then it should wholesomely focus on that segment.

Implementing a single market strategy also involves seeking out a market segment that larger companies consider too small, too risky or simply choose to ignore. In concentrating on a single market, a company would accrue advantages that include being able to respond quickly to market opportunities.

Multi Market Strategy

A company may choose to serve several distinctive segments of a chosen market. In choosing distinctive segments, the company needs to choose the ones that are most promising to do business in, avoiding confrontation with larger companies. The multi- market strategy can be implemented in one of two ways - either by selling different products in different segments or by distributing the same product in a number of segments. Multi market strategy has become the norm, not the exception.

The emergence of the networked global economy and interactive business technology has facilitated the ability of companies to maintain a global presence. All the segments chosen must be served through the prism of a global marketing vision that is adaptable to each target segment.Converging marketing strategies applied in each of the segments offer a variety of opportunities for generating new revenues, reducing costs and creating valuable growth options for the future.

Total Market Strategy

In deciding to implement a Total Market Strategy, a company sells to the entire market by selling different products within different segments of the market. A company may start with a single product. As the market grows, mainly due to the emergence of new segments, the product line is expanded to serve the needs of the new segments. The total market strategy is not without risk. Embracing an entire market requires lots of resources as well as complete top management commitment. Only companies in a strong financial position can implement this strategy.

The fit between the key requirements of a market and the specific competencies of a firm competing in that market occurs only sporadically. As such, it is prudent for companies not to permanently align themselves to a specific market strategy.

Market environments experience continuous changes that require fast strategic response from companies. Global markets are like moving targets. A company’s business strategy needs to be adaptable to this moving market targets.

M. Isi Eromosele is the President | Chief Executive Officer | Executive Creative Director of Oseme Group - Oseme Creative | Oseme Consulting | Oseme Finance

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