mk0389 lec glob_gloc_loc st
TRANSCRIPT
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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
Adaptation/Diferentiati
on
LocalProducts/brands
Localisation
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GL&!ALISA'I&(
#8
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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
Adaptation/Diferentiati
on
LocalProducts/brands
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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