Global Marketing

Global Marketing

Discuss about the Global Marketing.



Irrespective of the fact that a firm is able to market the products and services, they produce domestically or internationally the concept of marketing still is applicable to each. Nonetheless, the concept of marketing is essentially broaden especially if a group decides to sell across the international market. (Gravens & Piercy, 2006) This is due to the aspect of many dimensions that a company has to account. Marketing it entails the process of creating relationships through aspect of planning, executing and by controlling the price, promoting and distribution of the products, ideas, and services. International marketing entails organization making a marketing mix decisions across the national boundaries. (Mooji, 2013) It thus involves the firm from in the establishment of the processing facilities at different parts of the world and coordinates the various marketing strategies across the world. It is important to understand some firms may opt to venture marketing internationally by just signing on an agreement of distribution with a foreign agent who have duties of pricing, promoting, and dissemination. In this paper, the choice of the organization in Australia that am familiar and would like to work is Red Bull Company. There is need to explain to the management on the need to expand their involvement in international marketing so as to have a wider marketing share across the globe. (Schlegelmilch, 2016)The paper seeks to explain international marketing drivers they can employ and theories to efficient market their product around the world.

Brief Information of the Company

Red Bull is an energy drink that was created early 1980s from partnership that emerged between Dietrich Masteschitz who sold toothpaste at Austria and a Thai businessperson Chaleo Yoovidhya. The two went into partnership after Masteschitz tasted the local energy drink Krating Daeng that was manufactured by Yoovidhya Company (Schlegelmilch, 2016). They spent some years on how to make the brew perfect to enable them launch it to different markets. The Red Bull Company has target group, which is based on various interest like outdoor activities and having fun.

International Marketing Drivers

Market Need

Over the last decades, international marketing has grown significantly due to the market demands that have driven development forward. On the globe, many marketing opportunities have presented themselves from the cluster of the markets globally. Many similar segments that exist worldwide can be met through global orientation (Gravens & Piercy, 2006). Red Bull as an energy drink can be comprehensive marketed as a global energy drink that is alcoholic free. The more the commodity is culturally unbounded, there could be more clustering on a global scale thus there would have a standardized approach to the design of the marketing programs. The market needs arises due to the consumer taste and preference which have become increasingly worldwide, and they have become more knowledgeable about the product they are willing to try the new foreign alternatives. The theory to explain this aspect is new trade theory. On this theory, it looks at the benefits of the economies of scale. It is only a few firms that would be able to prosper to any of the industries (Schlegelmilch, 2016). Every country that is involved has a trade pattern, which is influenced by the profile of the large industry that they possess. An example the qualities of perceptions of the products differ on each of the categories as the case of the energy drink.


Technology is another important driver of international marketing. The use of technology helps to create of a leap of communication, the financial flows, and transportation aspect of an organization (Hollensen, 2007). There is a need to employ technology in marketing as the company, and the consumer would be able to conduct business almost every country around the world more so due to the aspect of international trade. Technology advancement has increased the international trade in that it helps to diffusion of information and provision of products that are competitive globally. To explain the concept is firm specific advantage theories. On this theory, it has stipulated that a given product is unique to a particular enterprise. There is a need for a particular firm to have a certain aspect in the market example on the control of the raw material, the process of technology and the marketing skills. In the case of Red Bull Company, they have control of different distribution channels (Mooji, 2013). These can be beneficial if the company engages in the international trade to enable them to reach more customers.

Cost scale

On the cost scale driver, it entails the aspects of export and import or outsourcing. On the export, the Red Bull company would require a significant capital for the investments in the plants and the machinery (Schlegelmilch, 2016). They would also need the incentives to spreading on the costs of the fixed costs to a large area of units they produce. On the outsourcing in response to the consumer demands, example Red Bull Company can offer goods at the lowest price possible, and they can move some manufacturing to the overseas to cut down on the cost of production. They may also get incentives to lower the production costs. The transactional cost model analysis can be used to explain this component (Gravens & Piercy, 2006). On this theory, it elaborates on the issues on the organization international activities and the choice of the global market method of entry. It looks on the aspect of the transactions cost through externalization. If they are higher than the cost of control on the international, hierarchical system, the firm should seek to internalize those activities (Schlegelmilch, 2016).


There has been underlying forces, concepts, and theories that have given rise to the political aspect in regards to the development of the international market. Government needs to set the platform for the international trade so that companies may engage in the trade (Hollensen, 2007). An example the Australian government has provided policies that help support businesses to be involved in the international trade. Red Bull Company should, take advantage of the systems that are in Australia so that they can penetrate the global market. The theoretical approach that can be enumerated is the theory of the comparative advantage that demonstrate that a country is able to gain from trade despite having the absolute demerits to the production of all the commodities. There is a need for the Red Bull company to specialize in their area of the output of energy drink and then trade and exchange with others (Mooji, 2013).


On this driver, it looks at the lower cost and the quality of communication should be high due to technological advancement (Schlegelmilch, 2016). To explain this concept is the Comparative advantage theory that exists when there is a free trade between two countries that may yield the economic payoffs to the other countries. For example, Red Bull Company produces the energy drink, and they do so by creating the best product (Mooji, 2013). 


Gravens, D. W., & Piercy, N. (2006). Strategic marketing (Vol. 7). New York : McGraw-Hill.
Hollensen, S. (2007). Global marketing: A decision-oriented approach. Pearson education.
Mooji, D. (2013). Global marketing and advertising: Understanding cultural paradoxes. Sage Publications.
Schlegelmilch, B. B. (2016). Assessing Global Marketing Opportunities. In Global Marketing Strategy. Springer International Publishing.
Schlegelmilch, B. B. (2016). Organizational Design for Global Marketing Strategy. In Global Marketing Strategy(pp.177-193). Springer International Publishing.
Schlegelmilch, B. B. (2016). The Future of Global Marketing Strategy. In Global Marketing Strategy (pp.221-249). Springer International Publishing.