MK0389 Lec Glob_Gloc_Loc St

8/9/2019 MK0389 Lec Glob_Gloc_Loc St

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MK0389 Global Marketing &Communication

International Marketing Strategies:

Globalisation/Localisation/Glocalisation:Standardisation verses Adaptation


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Objectives

To consider different aroac!es toGlobal Marketing

To discuss t!estandardisation"adatation debate

To confuse ourselves #it! t!e different

vocabular$% To areciate t!at globalisation is notal#a$s best%

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Globalisation

Globalisation 'a business initiativebased on t!e remise t!at t!e #orld isbecoming more !omogenous and t!atdistinctions bet#een national marketsare not onl$ fading but for someroducts #ill eventuall$ disaear(%C)inkota et al *+99,-


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./ecent roduct"brand !istor$

+980s C!r$sler offered one million auto configurations

1lack & 2ecker sold +9 t$es of iron

Colgate & Crest offered more t!an 3, t$es ofackaging and toot!aste

evitt said t!is #as un#arranted%


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Global branded roducts

+990s 456 & 7uroean comanies rus!ing into t!eglobal marketlace and #anted to offer globalbranded roducts

+990s Global market entr$ #as eit!er via

6dating a domestic brand to suit local marketconditions Mc2onalds Coca cola

Or ac:uisition of a anol$ of local brands e%g% ;estle and 4nilever

'Global branded roducts usuall$ start from localbranded roducts% T!e$ !ave to build a relations!ifrom scratc! in eac! ne# market and t!en e008-


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Global Marketing '/efers to marketing activities coordinated

and integrated across multile countr$markets% T!e integration can involve

standardised roducts

uniform ackaging identical brand names and similaradvertising messages?% T!e rinciles are roughly similar#!et!er one

talks of +0 or ,0 countries%( *@o!annson +99A- 5o Globalised B 5tandardised


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5tandardisation

D is reserving some level of consistencyin roduct sales and romotionadvertising distribution and ot!er

marketing mi< essentials t!roug! multiplemarkets% *@o!ansson *>000-

D is universal marketing agenda alied on

global origins% Global roducts and usuall$brand names are same in eac! countr$ *@ain+989-


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;egative outcomes of globalisedmarketing

Disadvantages

Eroducts lack uni:ueness

ocalised mi< re:uirements

6ntiDglobalisation t!reats

OffDtarget

Fulnerable to trade barriers

5trong local cometitors

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7nvironmental factors influencing t!e balancebet#een standardisation and adatation

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Standardisation

Balance

Adaptation

Economic/political integrationInternet economy

(Source: Hollensen)

Cross-cultural diversityari!!/non tari!! "arriers


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Mi< elements forstandardisation"adatation

asiest

1rand name

mage

Eackaging 6dvertising

Eroduct c!aracteristics

abelling Hualit$

More difficult

Ericing

6dvertising

5ervice 6fterDsales

Guarantees

2eliver$

#$


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ocalisation

ocalisation derived from #ord .locale meaning smallarea of vicinit$%

ocalisation involves taking a roduct and making itculturall$ and linguisticall$ aroriate to t!e targetlocale language region and countr$ #!ere t!eroduct #ill be used and sold to t!at secificmarket% Iocali)ation ndustr$ 5tandard 6ssociation *56-*7sselink >000-J

6datation of a roduct to meet t!e local taste sot!at t!e users feel t!e roduct is suitable for t!em%


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6datation allo#s for

#inning secific bu$ers andma


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Focabular$ debate

ocalisation

6datation

2ifferentiation

#%


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2oes localisation B adatation C)inkota & /onkainen *+99- state adatation is

adating t!e #!ole marketing mi< to suit t!e localmarket%

@o!ansson *>000- argues adatation & localisationdoes not mean t!e same% Localisationstands for necessaryc!anges to enable t!e

roduct or service to function in a ne# nation state 7%g% batter$ c!argers for mobile !ones re:uiring different

jacks to suit foreign lugs

Adaptationrefers to c!anges to suit customer flavours andinclinations% Meeting customer needs rat!er t!an tec!nical or legal

necessities% 7%g% =aagen 2a)s Green Tea iceDcream for 6sia


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Continuum

Globalisation

Standardisation

Glocalisation

Adaptation/Diferentiati

on

LocalProducts/brands

Localisation Adaptation


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Continuum

Globalisation

Standardisation

Glocalisation


on


Localisation


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GL&!ALISA'I&(

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Glocalisation 2erived form t!e #ords .global and localisation Glocalisation means t!e simultaneit$ t!e coDresence of

bot! universali)ing and articulari)ing tendencies */obertson+99A-%

Meaning t!e creation of roducts or services customised to

suit a local culture but are intended for a global market% 'a combination of globalisation and localisation linking

standardisation #it! adatation advantages *Lill >00-

.t!e best aroac! to international markets

*2e EelsmackerGeuens & Fan den 1erg! >00+-

;ot c!ea but can a$ off in long run 1rand name and image almost al#a$s sta$ t!e same%


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Coman$ 5trategies !oca !ola C7O 2ouglas

2aft 'Ours is a localbusiness #e #ill t!inklocall$ and act locall$% Nebecame one of t!e bestmarketers in t!e #orldbecause #e understandt!at no one drinks.globall$?% 4nderstandingt!e local culture and actingon t!at understanding isaramount to success( *in

4sunier & ee >000-

t!e resident ofMcDonald)s International!as insisted t!at t!ecoman$ is .as muc! a art

of local culture as ossible*:uoted in /it)er >00-


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Glocalisation e


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imits to global roduct brands Le# brands establis! dominating

ositions in multile countries%

1rands t!at are distributed acrossmultile countries tend to !ave #eakeroverall relations!is #it! consumerst!an brands t!at stick close to !ome%


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L&!AL *"&D+!'S/#"A(DS

2%


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ocal roducts

ocal roducts can still survive and roserne1 some local services are ver$ imortant Eersonal attention

Last deliver$ EromtDafter sales service


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1onding #it! brands

&uggests t'at "rands t'atcompete in more countries

tend to 'ave (ea)er

*Bonding* scores overall


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6dvantages of local brands

Can !ave t!e !omeDfield advantagerovided t!e$ :ualif$ as strong brands int!eir o#n rig!t%

T!e different #a$s in #!ic! a brand can beerceived as art of t!e local cultureinclude t!e follo#ing Meeting uni:ue local needs or tastes

;ostalgia being a brand eole gre# u #it! ocal oerational or logistical advantages

5trong communit$ ties

Cultural identit$


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Continuum

Globalisation

Standardisation

Glocalisation


on


Think global

act global

Localisation Think global

act local

Think local act

local (?)

+lo"al "randed products live on a continuum !rom

glo"ally consistent to locally adapted,


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Summary

Man$ different terms

6ut!ors disagree on t!eir meaning

Global Glocal

ocal

2ecision is based on customer need 6ll !ave advantages"disadvantages

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MK0389 Lec Glob_Gloc_Loc St

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