Pros and Cons of Global and Multi Domestic Approach

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Date Submitted: 09/04/2016 06:19 PM

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What are the pros and cons of a global versus a multidomestic approach to marketing golf clubs for Callaway? Which approach do you feel would have more merit and why?

The Callaway golf company made their brand name in a short span of time by starting in the year 1982. The success of the Big Bertha products made the Callaway Golf a major player in the golf club business. After this success they also include the FT-3, FT-5, and FT-I irons and drivers. Also their Odyssey putter line is the most popular putter in US but Europe and Japan too. With a global approach, the Callaway golf company need to develop and market the same product solution universally. With globalization they can reach to a lot more customers. If their product has a demand in an overseas market, there is a customer base. According to Wesley Johnston who is a marketing professor at Georgia State University, a product that sells successfully at home will often do well in global markets. The people in different countries have different preferences and needs. They might not show much interest in buying a product. But Golf equipment is crazy all around the world, they don’t need to worry much about the success of their golf product.

With a multidomestic approach, they need to tailor their products to the needs of the individual markets. When countries perceive different benefits, they need to communicate with each of them in a way that affects the local market. The multidomestic approach is generally very expensive to implement. It requires investment to investigate the particular needs and premiums of every individual business sector. Then they have to design and develop a message strategy for each country. Companies sometimes develop distribution processes or new products to fit each and every market. Multidomestic showcases additional conflicts with the organization's capacity to build up a worldwide brand image. This means when customers around the globe interact about the product, they may have...