Bringing your market to you
Created by Ryan Howard
1. In today’s developing economy and increasingly interconnected world, it is becoming more and more important for businesses to take action and research into the globalisation of its’ products and services. Internationalisation of goods and services can help to expand sales, increase competitiveness and reach new and potentially more profitable markets (Hollensen 2007). However, in order for a business to be successful in its expansion, a key understanding of the potential markets and a successful strategy formulation is needed (Staack et al 2006).
As you are aware the global market is changing and this particularly applies to the youth market. Euromonitor 2011 describes the youth market as being more ‘tech-savvy’ and now equipped with their own discretionary income. Technology is often a key factor in providing the most cutting edge and therefore most appealing product to the youth of today.
“In many countries, more than half the population is pre adult, creating one of the world’s biggest single markets, the youth market.” (Doole and Lowe 2008).
The Oxford English Dictionary defines youth as ‘The period between childhood and adult age.’ Generally speaking 18 and under is considered the youth market however in regards to marketing this is often broken down further.
A market named generation Z or ‘GenZers’ refers to those born between 1995 – 2010 or 5 – 15 years of age (Scollen et al 2012). Other markets our babies or toddlers, tweens (8 – 12), and of course teenagers (13 – 19).
GenZer’s represent one of the single biggest markets and will exceed all others as a premier global market segment (Doole and Lowe 2008 pg4). Progressive Marketing Limited feel this is the market of interest for the product in question.
How young people are coping with an imperfect future is of great interest to brands. Many marketers are focusing on the youth relationship to and expression through tech-led communications in their wish to decipher this transient audience segment (Euromonitor 2012).
The more readily availability if electrical an IT related products is meaning that children from a young age are exposed to new technology and advertising much earlier than in previous years. Commodities such as mobile phones, handheld games platforms, TV and the internet are now becoming more common with children on a global scale.
A new arena for advertising is the internet. It is estimated that about four million children are using the internet world-wide and this figure is bound to increase dramatically over the next few years (The Economist 2010).
According to the director of Saatchi & Saatchi Interactive, "This is a medium for advertisers that is unprecedented... there's probably no other product or service that we can think of that is like it in terms of capturing kids' interest."
Given the evidence previously discussed, PML believes it paramount therefore to utilise the means of the internet and advancing technology in order to market effectively. Using technology in conjunction with other more traditional forms of marketing is becoming a necessity in today’s global market environment.
2. The next question is whether to adopt the same product strategy or differentiate according to the country (standardisation vs. adaptation)?
“For the largest companies in the world benefits of marketing standardised products are very significant indeed. But whilst firms may be prepared to invest heavily to achieve standardisation, in practice virtually all products must be adapted to some degree” (Doole and Lowe 2008 pg. 270”).
Doole and Lowe highlighted certain main benefits from standardisation:
• Economies of scale
• Reduced cost of modification
• Faster learning _ increasing efficiency and effectiveness.