Here’s a common dilemma you might be facing: your brand’s identity is strong and recognizable locally, but as you seek to expand, you find that it falls flat with international audiences.
Does this mean you should throw in the towel and forego the international market completely?
Absolutely not!
You can equip yourself with an understanding of local and global markets, and learn how your business can cater to both. Keep reading!
Understanding local and global markets
Local markets are usually smaller, geographically defined, and brimming with distinctive cultural, social, and economic characteristics influencing consumer behavior and preferences. Here, people often feel connected with their community, which helps businesses establish personal connections.
On the flip side, global markets are vast and varied, encompassing cultures, languages, and regulations, offering numerous opportunities to broaden a customer base and, consequently, increase revenue. With its vastness also comes challenges such as cultural differences, language barriers, and legal requirements.
As a business owner looking to cater to both markets, the fundamental contrast between local and global markets boils down to scale and diversity. Local markets are characterized by their homogeneity, where consumers share similar cultural, social, and economic backgrounds. Global markets are highly heterogeneous, comprising mixes of cultures and consumer segments with distinct needs, preferences, and behaviors.
Your brand needs to be able to scale up (or down) to meet both markets where they are! For that, you need a strong, bespoke brand strategy that speaks both a local and global language.
Developing a local brand strategy
The key principle businesses need to grasp when developing a local brand strategy is the utmost importance of practicing cultural sensitivity. This means respecting and understanding the cultural nuances (local customs, traditions, and values), especially when crafting marketing messages and campaigns that deeply resonate and avoid any cultural faux pas.
Here are some strategies to apply:
1. Conduct focus groups and surveys about your target demographic’s needs, preferences, and buying habits.
2. Analyze local market trends, including economic, demographic, and competitive data.
3. Engage with local community leaders and leaders to gain a deeper understanding of local culture and consumer sentiment.
Crafting a global brand strategy
When planning a global brand strategy, on the other hand, it is important to maintain a consistent core message, visual identity, and set of values across borders to build recognition and trust among global consumers, regardless of the market.
For example, Nike’s iconic “Just Do It” tagline and check logo are instantly recognizable across the globe.
Adapting to global consumer trends
Global consumer trends, like sustainability, digitalization, and personalization, are shaping the way businesses approach the global market. Those who are successful stay abreast of these trends and adapt their strategies accordingly to remain competitive.
Here are some strategies to apply:
1. Conduct online surveys and focus groups from a diverse pool of international consumers.
2. Track global market trends to understand the playing field.
3. Partner with global influencers and industry experts to gain a better understanding of global consumer sentiment and market dynamics.
Balancing local and global brand strategies
“Glocal” is the practice of integrating global strategy with local market elements to create a distinct and personalized approach for different markets while maintaining brand consistency. This can be achieved through local/global marketing messages, product offerings, and partnerships with businesses and influencers based on location preferences.
For example, Starbucks curates their menus, merchandise, and store designs to suit local tastes and preferences, while Netflix, invests in local content production, creating shows that resonate with regional viewers’ entertainment tastes.
Challenges in tailoring brand strategies
Some challenges that a business may encounter when looking to enter different local or global markets can include:
● Legal Concerns – Different markets have varying regulatory requirements. Therefore, businesses must ensure compliance with local laws to avoid legal trouble and reputational damage.
● Brand Perception – Managing brand perception across different markets can be tricky, hence continuously monitor and adapt strategies to ensure a consistent and positive perception globally.
Best practices for tailoring your brand strategy
● Collaborate with locals – Leveraging local partnerships and engaging with local businesses, influencers, and community organizations can enhance businesses’ grasp of the local market and create more impactful, targeted marketing plans. This approach can help in building credibility with local consumers.
● Utilize digital marketing for targeted outreach – Employing targeted digital marketing strategies like social media advertising, email marketing, and search engine optimization, businesses can guarantee that their marketing messages reach the right people at the right time.
● Monitor and adapt strategies -Continuously monitoring market trends and consumer behavior, brands can stay competitive in today’s volatile market. This allows them to promptly spot opportunities and adjust their tactics accordingly.
To truly win over audiences, businesses must adapt their strategies to each market (both local and global). This involves taking a comprehensive approach to understanding and incorporating cultural nuances, shopping habits, and even a sense of humor necessary to create a more personalized and culturally relevant experience for the consumers.
However, it’s worth noting that the wheel doesn’t require complete reinvention. In fact, it’s imperative to leverage the core brand as the foundation, and only from there should the approach be tweaked to ensure consistency and avoid any confusion. This is why some brands may choose to engage in local public relations agencies to help them enter local markets; or globally-known PR agencies when entering global markets.
By following these, not only will the company stay ahead of emerging trends, but also remain relevant and effective with customers worldwide.Photo by Andrew Neel on Unsplash
