Introduction
Most organizations and their business associates are growing instantly across the globe, searching for new opportunities and facing different cultures. While functioning in various geographical locations, they must focus on diverse cultural groups fundamental to their overall growth and functionality. Organizations that show a more profound comprehension of culture improves their recognition and global acceptance. Marketing strategies that consider social values and norms are likely to be successful because they define consumers’ behavior preferences and purchasing habits. Therefore, the research paper explores the different marketing strategies, their effectiveness, and the companies that perform best internationally.
Cause Marketing (CM)
Most businesses rely on cause marketing as a form of Corporate Social Responsibility (CSR), whereby a company increases profits while adding value to society. Gao (2020) defines course marketing as a way a business donates a portion of its revenue from sales to a charity for a social cause when consumers buy its commodities. Ideally, cause marketing links a company and its products and services to a social issue or cause.
Effectiveness
When a business supports any given cause, they often enjoy a series of marketing benefits, including improving its brand image to its potential customers. While the question of whether course marketing is effective lies in its services, several sources argue that cause marketing campaigns are usually winning approaches to the consumers, the cause, and firms. However, according to De Vries and Duque’s (2018) research, small firms are more likely to perform well with course marketing. De Vries and Duque (2018) argue that small cause marketing is more effective for a small-sized business than for large ones because consumers perceive more significant efforts by such firms. The small firms are often perceived as sincere, which serves to induce appreciation in consumers. Example of companies that are doing well internationally with CM includes Starbucks and Uber.
Relationship Marketing (RM)
Relationship marketing majorly focuses on developing close relationships with the business customers. The two key concepts in this marketing strategy are customer satisfaction and retention. These concepts are associated with existing customers, increasing their loyalty and improve long-term engagement with the business. Organizations utilize relationship marketing to provide their customers with information based on their interests and needs to develop strong connections (Hoque, Awang, & Salam, 2017). Other benefits tied to relationship marketing include obtaining high returns on investments, getting an honest perspective on decisions for the business, and enhancing customer dependence.
Effectiveness
Organizational trust and relations commitment contribute to customer loyalty, and similarity and frequency of interactions have no impact on SMEs’ customers. Moreover, relationship marketing forms one of the small and medium enterprises (Hoque, Awang, & Salam, 2017). The strategy effectively provides positive business outcomes, including solid relations with the surrounding consumer culture, which increase overall production and sales. Product prices influence customers’ purchasing power, and their relationships with the business equally influence them. Relationship marketing offers an avenue from which a company’s brand image is built. Notable examples of companies that perform best internationally with relationship marketing include Lay’s and Zappos.
Content Marketing
Organizations utilize content marketing to target specific customers purposely to create strong consumer engagement. The strategy aims to attract, acquire, and retain specific prospective potential customers who might have stopped purchasing from the business due to particular difficulties, including increased prices or changes in business behavior. Vinerean (2017) observes that content marketing goes beyond selling and pre-modern marketing strategies and aims to provide consumers with relevant information and knowledge regarding the business’s products. More specifically, content marketing is part of digital inbound marketing, which in most cases takes place online via the internet, and is focused on providing consumer value and realizing its profitability goals.
Effectiveness
Anyone would argue that content marketing is an effective marketing strategy for any business, especially in this 21st century, where almost everyone can access the internet. With this marketing strategy, a business can reach a broad customer base and improves its brand image fostering consumer loyalty (Vinerean, 2017). Most prominent companies worldwide that leverage content marketing include Cisco systems, P&G, and Microsoft, have experienced increased profits and overall business growth.
Undercover Marketing (UM)
Undercover marketing refers to any form of marketing strategy in which consumers are advertised without prior knowledge (Ikram & Kusumawati, 2019). Ideally, ad agents behave like regular people who introduce products to consumers who are often unaware of the marketing push until they are told. From another perspective, the undercover marketing strategy can be viewed as an attempt to reach out to consumers without their knowledge of being persuaded (Ikram & Kusumawati, 2019). Ikram and Kusumawati (2019) argue that undercover marketing is the exact opposite of disclosed marketing, where the target audience is informed before an advertisement is made. Therefore, organizations who incorporate undercover marketing strategy experience positive outcomes, including increased profits and improved diversity.
Effectiveness
Undercover marketing is an effective strategy characterized by its cost-effective nature and captures a broad customer base. The ability to generate word-of-mouth recommendations also serves as a benefit that contributes to its effectiveness. The strategy is ideal for any firm, regardless of size. Ikram and Kusumawati (2018) conclude that undercover marketing is an effective marketing strategy because it eliminates extra costs involved in marketing and attracts a higher consumer engagement.
Scarcity Marketing (SM)
Scarcity Marketing refers to a marketing strategy in which a business creates an imaginary shortage of products (Chen, Yeh, & Wang, 2020). The approach fosters customers to purchase company products with a mentality that items may be out of stock. Ideally, the strategy capitalized on the fear of missing out by the customer who would strive to purchase the product while it still lasts; it is perceived that fear motivates individuals to act. Chen, Yeh, & Wang (2020) reveal that scarcity marketing creates desirability for consumers, increasing their purchasing power.
Effectiveness
It should be noted that humans often fear missing out, which makes scarcity marketing an effective marketing strategy. An example of a multinational company that excels through scarcity marketing is Amazon; often, they include a timer for a customer to check out their product from the cart before it’s gone. Therefore, scarcity marketing is an effective marketing strategy critical for organizational diversity.
Conclusion
In conclusion, marketing strategies should foster the progress and realization of business goals and objectives. Generally, internationally companies’ marketing strategies should be designed to incorporate cultural norms and values fundamental to organizational success. Different companies use various marketing strategies that correspond to their corporate goals and lead to profitable business and growth across multiple cultural dimensions.
More importantly, the strategy has to comply with the surrounding environment, including consumer behaviors. Organizations should differentiate ethical and unethical business strategies vital to their overall growth. Different marketing strategies discussed include relationship marketing, undercover marketing, scarcity marketing, cause marketing, and content marketing. Therefore, businesses should implement social norms and values critical to complimenting consumer behavior and employ effective marketing strategies for their operations in multiple consumer cultures.
References
Chen, T. Y., Yeh, T. L., & Wang, Y. J. (2020). The drivers of desirability in scarcity marketing. Asia Pacific Journal of Marketing and Logistics.
De Vries, E. L., & Duque, L. C. (2018). Small but sincere: How firm size and gratitude determine the effectiveness of cause marketing campaigns. Journal of Retailing, 94(4), 352-363.
Gao, F. (2020). Cause marketing: Product pricing, design, and distribution. Manufacturing & Service Operations Management, 22(4), 775-791.
Hoque, A. S. M. M., Awang, Z., & Salam, S. (2017). The effects of Relationship Marketing on firm performance: small and medium enterprises (SMEs) in Bangladesh. In 1st International Conference on Business and Management (ICBM-2017), BRAC Business School (BBS), BRAC University, Dhaka, Bangladesh, September (pp. 21-22).
Ikram, T. N., & Kusumawati, N. (2019). Marketing goes undercover; an experimental study on undercover vs. Disclose marketing in social media, the moderating role of the advertising source. Open Journal Systems, 56(5), 3440-6267.
Vinerean, S. (2017). Content marketing strategy. Definition, objectives, and tactics. Expert Journal of Marketing, 5(2), 92-98.