Changes in Placement
The global marketing mix comprises four main elements: product, price, placement and promotion. Although product development, promotional tactics and pricing mechanisms are the most visible during the marketing process, placement is just as important in determining how the product is distributed. Placement determines the various channels used to distribute a product across different countries, taking in factors such as competition and how similar brands are being offered to the target market.
Product Placement in Supermarket
Global brands attempt to place products in locations where consumers will be most receptive to their messaging.
Global marketing presents more challenges compared to domestic or local marketing. Consequently, brands competing in the global marketplace often conduct extensive research to accurately define the market, as well as the attributes that define the product's potential environment. Successfully positioning products on a global scale also requires marketers to determine each product's current location in the product space, as well as the target market's preferred combination of attributes. These attributes span the range of the marketing mix, including price, promotion, distribution, packaging and competition.
Regardless of its size or visibility, a global brand must adjust its country strategies to take into account placement and distribution in the marketing mix. For example, not all cultures use or have access to vending machines. In the United States, beverages are sold by the pallet via warehouse stores. However, in India, this is not an option.
Moreover, placement decisions must also consider the product's positioning in the marketplace. A global luxury brand would not want to be distributed via a "dollar store" in the United States. Conversely, low-end shoemakers would likely be ignored by shoppers browsing in an Italian boutique store.
In addition to where products are placed, global marketers must consider how these products will be distributed across the different shopping venues unique to that particular country or market. Customizing these placement strategies for national and local markets while retaining a strong and consistent brand image can help companies gain significant competitive advantages in the global market.