British American Tobacco: Global vs. Local Marketing

This report analyzes the global and local approaches to marketing, emphasizing the strategic decisions of British American Tobacco (BAT) in international markets. It details the pros and cons of each approach, highlighting the importance of adapting the marketing mix (product, price, place, and promotion) to suit different international contexts. The report investigates how these marketing mix elements vary across international markets, offering practical examples of how BAT can tailor its strategies for success. It also addresses key factors such as cultural differences, consumer preferences, economic conditions, and government regulations. The report concludes that a flexible approach, which combines elements of both global and local strategies, is often the most effective for maximizing market penetration and profitability in the international market.

PART - TWO
LO – 3

TABLE OF CONTENTS
• Introduction
• Pros and cons of global and local approach to marketing
• Key arguments in the global and local debate
• Context and circumstances to adopt a global or local approach
• Investigating how marketing mix varies in international markets
• Adapting the marketing mix in different international markets
• Critical evaluation of how marketing mix is applied in different international markets
• Conclusion

INTRODUCTION
 There are different firms who are looking forward to expand their operations in the international markets
and so is the British American tobacco company
 The main aim of the current presentation is to focus on the ways different components of the marketing
plan can be adapted or standardised across international markets
 Within this, emphasis will be made on pros and cons of a global approach to marketing as opposed to a
local approach and marketing mix will be adapted to different international markets

PROS AND CONS OF GLOBAL APPROACH
AND LOCAL APPROACH TO MARKETING
Evaluating the global as well as local marketing in a comprehensive way is essential before entering into the
international markets. There are different pros and cons of a global approach to marketing as opposed to a
local approach to marketing and is being elaborated in the subsequent section:
• Pros and cons of Local approach
Pros Cons
No need to conduct thorough market
research
Limited market reach
Higher profits as taste, preferences and
market demand are already known
Cannot attain competitive advantage while
operating at the local level

CONTINUED…
• Pros and cons of Global approach
Pros Cons
Large market reach and wider
expansion
Extensive and detailed market
research is required to be done
which involves huge costs
Attainment of competitive
advantage while operating in the
global market
Very risky and challenging to
adopt the national and corporate
culture

KEY ARGUMENTS IN THE GLOBAL AND
LOCAL DEBATE
Factors of argument Local market Global market
Operations of the business
In the local market, businesses are not very
much complex and it is quite too easy to
deal with. The firm runs as per the
domestic rules and regulations (Özsomer,
2019).
Conducting business in the international
market is not that easy and the complexity
is very much dependent on the region
Need of the capital
The firm in the local market generally
needs little capital funding for the purpose
of management as well as broadcasting
The need of capital funding in the global
market is relatively more in the context of
management as well as broadcasting
Area being served
When the company operates in the local
market, they only operate with traders
within the territory of the nation.
On the other hand, the global market
functions as well as serves the business
within as well as extending the territory.

CONTINUED…
Factors of argument Local market Global market
Risk factors
As the business is being carried out in
the local market, the British American
Tobacco company has to come across or
face lower risk. Many a times, the risk
being faced in this market is in terms of
populated areas (Cateora and et.al.,
2020)
On the other side, when the business is
being carried out in the global market,
the British American Tobacco company
has to come across or face higher
amount of risk. However, the risks can
be avoided though adoption of certain
strategies.
Interference of the government The intervention of the government
while operating in the local market is
relatively low. Local businesses get
ample of opportunities in terms of
incentives for attaining higher growth
and progress.
The intervention of the government
while operating in the global market is
relatively high. The business has to
follow different rules, laws and
regulations according to the system of a
particular nation.

CONTEXT AND CIRCUMSTANCES TO ADOPT
A GLOBAL OR LOCAL APPROACH
 British American Tobacco company should adopt local approach to marketing in the condition if they have
not covered some particular areas of the UK and
 The company should adopt global approach to marketing in the condition when the local market has
already been covered and saturated
Based on the discussion being performed in regards with the pros and cons being involved of both the
global and local market strategies and evaluation of the key arguments, British American Tobacco company
should adopt international or global approach to marketing.

CONTINUED…
Highlighting implications of adopting a global approach to marketing
• Increase profitability and sales – The global approach to marketing will be able to offer new markets for
growth to British American Tobacco company. It will also offer growth in terms of the sales as well as
revenue.
• Enlarge the customer base – The global markets will be wider and more diverse and thus, will provide novel
possible customers and buyers for the products and services of the firm.
• Benefits from economies of scale – The global nations across the world will better offer advantages of the
economies of the scale by the way of decreasing the production cost of the products in varied nations (Chen
and et.Al., 2017).

INVESTIGATING HOW MARKETING MIX
VARIES IN INTERNATIONAL MARKETS
Talking in relation with the marketing mix, it is being referred as the tool of marketing which is very crucial and is being utilized by the
firms to follow their key aims and goals of the marketing. There are four Ps being comprised in the marketing mix which are needed to
be evaluated for launching any product that is appropriate for the specified nation where the firm desires to expand their business. In
this regard, there is must be an examination of the product, price, promotion and price (Turnbull and Paliwoda, 2018).
 Place – It is the element which involves distribution of the products and services. In relation with the expansion of the business of
British American Tobacco company in the international or global markets, there are certain aspects that varied from nation to nation.
For expanding the business, it is essential that the business should be located at the place where the clients can easily make purchase
of the product by reaching out the firm. For example, British American Tobacco wants to provide their products in India and China
through their exclusive stores. It is also important to make sure that the delivery of the products is being done at right time.
 Pricing – It is being regarded as the most important element as each and everything is based on the cost and price of the product. It is
mandatory for the firm to consider the two issues that is the perception of the clients and the objectives and aims of the firm.
Different other factors also need to be considered while setting prices in the international markets such as transportation costs, rate of
exchange, duties and tariffs. All these factors should be taken care by British American Tobacco. Economic condition of a particular
nation should be considered prior making pricing decisions (Pruthi, Basu and Wright, 2018).

CONTINUED…
 Product – It is being defined as the item which is being produced for satisfying the desires and requirements of the clients. the basic notion of marketing
explains that more and more products will be sold of there is an aim of accomplishing the needs of the target market. on contrary to this, in the global
markets, there will be contribution of different factors like culture of a particular nation, buying habits, taste, preferences, background and purchasing
power of the clients. Further, the argument for the standardization explains that the procedure for adapting the products in the local scale performs quite
more as compared to the total cost of manufacturing the product on the global scale. British American Tobacco company needs to understand the needs
of the clients that what kind of products they need and accordingly such products should to be produced (Londhe, 2014).
 Promotion – It is again an important factor that plays a very crucial role in boosting the overall sales and profits of the products. There is a need of
promotion along with advertisement of the products in the global nations where the firm desires to expand their business in order to being awareness
between the clients. Some of the common approaches of promotion that the firm can adopt are advertising, sales promotion, personal selling, newspaper
and social media marketing, flyers etc. For varied international context, varied promotional methods can be utilized by the firm. For example, in China
the main source of promotion or advertisement is television while operating in Canada or US they need to adopt social media advertising.
The British American Tobacco company will standardise and adapt the ‘Product’ to tap the markets of India. It required to work quite hard on the
development of products. Furthermore, they are requiring to add on the element of uniqueness in their products which can support the firm in capturing
higher share in the market successfully (Someh and Shanks, 2016). Further, the argument of the standardization stated that the process for adopting the
products in local scale explains that the procedure for adapting the products in the local scale performs quite more as compared to the total cost of
manufacturing the product on the global scale.

ADAPTING THE MARKETING MIX IN
DIFFERENT INTERNATIONAL MARKETS
It is important on the part of British American Tobacco company to develop such marketing mix for the international
market which is suitable as per the requirements and desires of the foreign clients. the marketing mix for the global
market is explained underneath:
•Products: There might be same kind of products and services in the international market which can be utilized by
most of the clients. For grabbing the most probable clients the firm should emphasize on innovation in their offerings.
Further, the culture along with preference needs to be emphasized (Weismann, Buscaglia and Peterson, 2014).
•Pricing: Pricing strategy in the international market is very critical because it explains the approach of the clients and
income of the firm. Clients always wants the quality of the products to be best at reasonable price however the cost of
producing can be the aspect which can influence the price.
•Promotion: The firm needs to emphasize on the marketing as well as promotional activities of the company at the
time of entering into new market because the people are not aware about their products.
•Place: In the international market, different countries might be using different distribution channels and thus, varied
factors must be considered while making decision in this regard such as cost, most favoured channel by competitors
and clients.

CRITICAL EVALUATION OF HOW MARKETING MIX IS
APPLIED IN DIFFERENT INTERNATIONAL MARKETS
• In the international marketing, British American Tobacco company use of the marketing mix to give the
most ideal items that anyone could hope to find in the best put on right price utilizing activities of
promotion. There are 4 Ps remembered for the marketing mix blend of the global market like promotion,
place, product and price. The firm is anticipating growing its business in the worldwide market of India and
for such reason, it actually should audit the assurance of the costs which can be founded on the few factors,
for example, the exchange rate, transportation costs, obligations, taxes on the items etc.
• The spot likewise assumes a vital part in the showcasing of the items and the spot ought to be at such area
which can be effectively open by the clients to effortlessly buy the items (Hult and et.al., 2018). To extend
the business, it is additionally important to advance the items presented by the association in the worldwide
market and toward the end, the items ought to be of such quality and types that satisfy the interest of the
clients

CONCLUSION
Thus, from the above evaluation it can be said that marketing is very essential and important
process which supports the firm in promotion of their goods and facilities. There are different pros
and cons to a global and local approach to marketing which have been discussed in the
presentation. For entering in the market, there are varied steps that the British American Tobacco is
required to consider and were all evaluated in the above section thoroughly in regards with the
firm. Key arguments in the context of global and local debate have been presented interestingly and
effectively. Additionally, there are varied elements of marketing and their adaption is very
important in the international context and thus, the adaptation process in the context of British
American Tobacco company was also elucidated above. Methods of marketing and their influence
on the goals as well as objectives of the firm have also been deliberated. The four Ps of marketing
were also explained.

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