Global marketing strategy

Understanding cultural preferences – thinking globally and acting locally – for successful cross-border marketing and business development. By Laurie Young

Attitudes towards international marketing have changed over the past twenty years. Whereas once it was thought that a common global approach was possible, modern businesses are coming to understand that cultural differences are just as – if not more – important than ever. It is critical, therefore, for legal marketers to understand these issues when working across borders.

Global consistency or cultural customisation?
In the 1980s, Theodore Levitt published an article suggesting that people around the world have similar aspirations for their life and family, and that this was an opportunity for firms to create (through common processes in brand management, advertising and distribution) a new approach: global marketing. This would serve all equally well with a common offer. As a result there would eventually be a few ‘global brands’ in all product and service categories. The race for market dominance was on.

While demonstrating his sophisticated understanding of cultural differences, Levitt argued that these were declining in influence in the face of standardised products, which derive from a commonality of preference. “Different cultural preferences, national tastes and standards… are vestiges of the past. Some die and some become global propositions (Italian food, American rock music, French wine etcetera).”

He also suggested that multinationals which accommodated for national preferences were thoughtlessly conducting poor marketing. By contrast, a global strategy would create a cheap, reliable and ubiquitous product, which would appeal to a universal need. Global marketers needed to ‘create markets’ for these propositions by investing in powerful advertising to convince global audiences to buy.

However, in subsequent decades many firms that attempted a global marketing strategy were damaged by undertaking huge investment that did not pay back. Even some large professional partnerships committed themselves to a global strategy, creating a costly layer of management on top of their federal structures during the process. Much of this has since been cut back in the light of changed priorities and unjustifiable costs.

In fact, there has been a resurgence of national identity and a dislike of some western offers in much of the world. This, combined with high-profile failures to achieve global positioning, has caused all but a few established firms to attempt risky investment in truly global strategies.

Many are adopting a ‘think global and act local’ strategy that acknowledges the impact of local cultural differences on marketing. For example, disparate cultures respond differently to certain colours and music. This affects the work of international design, advertising and brand companies. Also, there are indications that business innovation occurs differently in certain cultures, so the style of propositions needs to be adapted. In fact, there appears to be a difference in attitude towards the adoption of new ideas, affecting the demand for professional advice based on thought leadership or innovative thinking. Moreover, some rank various professions more highly than others. There are, for example, different attitudes to litigation or approaches to law between, say, the UK and Sweden. The international law-firm marketer needs to understand these, taking a stance on the degree of customisation needed for their work.

Market prioritisation
It would be dangerous and wasteful for any firm to attempt to target the world with a broad and amorphous approach. All must begin by choosing a portion of the international market, a group of clients, to concentrate upon; the most obvious being countries. But choosing a country can also be a limitation. The firm is, in fact, restricting itself to borders and legal frameworks (many of which have resulted from long-forgotten peace conferences following centuries-old wars) that are irrelevant to modern business.

Therefore, some firms have created a broader grouping of clients based on cultural groups. For example, a Spanish emphasis is likely to appeal in Spain, South America and certain Spanish-influenced areas, such as Miami. An emphasis on ‘Anglo-Saxon’, Scandinavian, Germanic, and Chinese groups, for example, will also involve cross-border opportunities. In fact, some firms have found that successful penetration of cultural groups in this way has led them into valuable diasporas, which have developed from previous migrations of trading peoples. Others have followed ancient trade routes into new geographies. For example, some firms relate to clients in Southern America through Spanish offices; others have followed Chinese people who run the commerce of much of South-East Asia.

International brand strategy
Although partners may not recognise it, a law firm begins to make real money when its reputation develops into a brand. On the world stage, however, its leaders have several strategic decisions to take about the international positioning of their brand, which marketers should facilitate.

They may set out to ensure that it is perceived to be indigenous to each country in which it operates. It may be American in America, British in Britain, and Australian in Australia. This multinational brand strategy can evolve naturally for firms that have strong local offices staffed with good local professionals. The reputation of excellent local work will create a local brand in each country.

Alternatively, the brand could reflect the culture of the corporate headquarters. It is relatively easy to maintain the integrity of a brand that reflects national identity. It resonates with some cultures, creating opportunity. In recent years, for example, the countries of eastern Europe have been very receptive to American professional-service firms, because they have assumed that they needed to catch up after years of communism.

More subtly, the brand could be presented as what a national culture is perceived to be. Clients in different countries often have certain perceptions of foreign cultures and their business practice, some of which are unrealistic images based on media and iconic moments in history. For example, in some markets British business is perceived to be efficient, courteous and fair. This may not always be the case, but a brand positioning that exploits the indigenous market’s perception is open to a UK firm.

Finally, is the firm going to attempt a global brand? This is an entity that commands allegiance
from buyers in many parts of the world. It has equity and the same identity in many markets. Commonality of design, distribution and advertising allows its owners to reap efficiencies of spend that competitors are unable to achieve. However, there are caveats to this and marketers need to consider the approach extremely carefully.

International market communication
A firm working on the international stage has to communicate with client markets. Just as with domestic communication, it needs to use techniques to pave the way for personal dialogue with client-service staff. It needs a strategic communications plan, good message management, clear media selection, programme-management processes and response mechanisms.

In the international context, differences in language, taste, colour preference and humour need to be accommodated. The design and message of all communication pieces should be checked with internal representatives of different cultures at the planning stage. There need to be clear processes, which engage every communications team in the company in the development of programmes.

International business development and client-management strategy
Many of the approaches to personal- business generation apply in the international context. It is possible, for example, to build a personal network of international clients and handle them effectively, while managing case work.

However, relationship management is one of those phrases that is interpreted differently by different cultures. The way in which American, British, French or Asian professionals manage business relationships is different. Western professionals feel at ease approaching
all levels of a client organisation and would expect to receive honest, clear feedback about the firm. By contrast, some Asian cultures stress the placement of people at different levels in society. Junior employees will not express any view that appears critical of senior management, even if those views are strongly held. Very often, they will be uncomfortable spending any time or developing any relationship with professionals serving top executives. Relationship management must, therefore, vary across different cultures.

Law firms, whatever their size, will find themselves faced with international work thanks to a combination of modern technology and the expansion of clients into new markets. Understanding the issues involved in working across borders has thus become imperative for their marketers. They need to resolve some difficult questions if they are to succeed in cross-border projects. But it can be done.

Laurie Young is a specialist in marketing and business development. His latest book ‘Marketing the Professional Services Firm; applying the principles and the science of marketing to the professions’ was published by Wiley last year. He can be contacted at lauriedyoung@aol.com

Reference
‘The globalization of markets’, Theodore Levitt, Harvard Business Review,
May 1983