How to Globalize Through Marketing Innovation
Currently, there are more than 25,000 Japanese companies expanding operations globally. However, many executives feel that global expansion is not proceeding sufficiently, and are carrying out various forms of restructuring and investing in order to encourage innovation. So, what sort of innovation is key to successful globalization?
Keys to successful global marketing innovation
According to Teikoku Databank's "Questionnaire for Reviewing Trade Policy Regarding Japanese Companies' Global Operations Strategies", about half of the Japanese companies that answered the questionnaire engaged in "product innovation"1 defined as the development of new products and services, and “process innovation"1, known as major reform of production methods.
On the other hand, only one-third of the companies answered that they are engaging in “marketing innovation"1 defined as major reform of design, sales, and pricing and “organizational innovation"1 which is the development of new business management methods.
Upon analyzing this data, the Japanese Ministry of Economy, Trade, and Industry found that companies which answered that they "have attained" innovation in regards to the relationship between innovation and global expansion are more likely to be expanding globally, compared with those that “have not attained" innovation. In fact, more than 60% of the companies which answered that they have attained marketing innovation have expanded globally - two times more than those companies which answered that they have not attained innovation.
Three things we should ask ourselves when seeking to attain global marketing innovation
In short, the analyzed results show that although developing new products (product innovation) and the KAIZEN of production methods (process innovation) are both important, it is the innovation of sales practices (marketing innovation) that holds the key to global expansion.
So, what sorts of ideas and practices are necessary in order to achieve globalized marketing innovation? The following three questions are said to be essential:
- Who is our company's target customer?
- What value can we provide to our future customers?
- Through what means of distribution, at what prices, and with what means of promotion will we provide this value?
These questions can prove difficult to answer but inevitably prove valuable. In proceeding with global expansion, it is often necessary to contradict the company's past success stories, studies, and accumulated know-how.
ITS™ and globalized marketing innovation
One effective way to move forward, which we offer, is known as “globalized marketing innovation utilizing ITS™".
ITS™ is short for Innovative Thinking System™, and it is systematic training which helps you do the following:
- transcend past success stories and assumptions
- perceive the market from a fresh perspective
- make innovations in marketing strategies
Let's achieve marketing innovation and succeed at globalization!
Notes:
1: The four types of innovation are from OECD's Oslo manual.
References: Ministry of Economy, Trade, and Industry's White Paper on Trade (2013) Section 3. "The role of innovation in the advancement of productivity"?
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