As I start off I will try to define the word “globalisation”, so I can move on with my argumentation on basis of this definition.
Via internet, just like in several journals, magazines and books, one can find numerous definitions and essays about what “globalisation” is supposed to be.
Just to give the reader some impression on the variety, I wrote down a few of them.
On an official homepage of the Canadian government is written: “The term “globalisation” describes the increased mobility of goods, services, labour, technology and capital throughout the world. Although “globalisation” is not a new development, it’s pace has increased with the advent of new technologies especially in the area of communications.” .
At http://www.globalisation101.org you will read “Globalisation is a term used to describe the acceleration and intensification of economic interaction among the people, companies, and governments of different nations.”.
In the opinion of Prof. Werner Antweiler “Globalisation is the process by which nationality and geographic location become increasingly irrelevant for economic activities.” .
As you recognize, “Globalisation” is a word which lacks of a definite definition. Hence I have decided to define “Globalisation” as follows.
Globalisation will be seen as a strategy of; on global basis operating corporations, with the focus on the establishment of a worldwide competitive advantage, through the use of local benefits and economies of scale. This definition is build upon the convergence-theory whereafter the interests and desires of various nations draw close. The reason is the technological and economical evolution which gradually makes cultural differences
obsolete.
Table of Contents
- 1. Globalisation and Marketing
- 1.1 The definition of Globalisation
- 1.2 The necessity of a global Marketing as a result of Globalisation
- 2. Standardisation as an instrument of global success?
- 2.1 Standardisation vs. Adaptation/Individualisation
- 2.1.1 Reasons for standardisation/ global branding
- 2.1.2 Counterarguments and Barriers to standardization
- 2.1.2.1 Market characteristics
- 2.1.2.2 Development Stage
- 2.1.2.3 Cultural Factors
- 2.1.2.4 Legal Restrictions
- 2.2 CASES
- 2.2.1 IKEA
Objectives and Key Themes
This paper examines the prevalent trend among companies to standardize their global marketing mixes. Its objective is to explore the reasons behind this strategy while simultaneously analyzing the limitations and challenges associated with a standardized approach. The paper uses examples to illustrate these limitations.
- The definition and implications of globalization for marketing strategies.
- The rationale behind standardizing global marketing mixes (advantages of standardization).
- The limitations and barriers to standardization of global marketing mixes (e.g., cultural differences, legal restrictions).
- Case studies demonstrating the challenges of global marketing standardization.
- The ongoing debate between standardization and adaptation in global marketing.
Chapter Summaries
1. Globalisation and Marketing: This chapter begins by defining globalization, presenting various interpretations from different sources, and settling on a definition emphasizing the pursuit of worldwide competitive advantage through local benefits and economies of scale. It then explores the necessity of global marketing strategies as a response to several factors including rapid technological advancements, improved global communication, easier and cheaper transportation, and the emergence of new markets due to political and economic changes (e.g., the end of the Cold War). The chapter argues that companies must adapt to the changing needs and desires of a globally connected consumer, influenced by worldwide communication and media. It concludes by setting up the central debate of the paper: the tension between standardizing and adapting marketing strategies in a globalized world.
2. Standardisation as an instrument of global success?: This chapter delves into the core debate of the paper: the comparison between standardized and adapted global marketing strategies. It initially presents both perspectives; the argument for standardization highlighting the transferability of marketing expertise and emerging consumer similarities, while the counterargument emphasizes the persistence of cultural differences and the need for tailored approaches. The chapter lays the groundwork for the subsequent case studies, which are meant to illustrate the practical implications and challenges of each strategy. The chapter's significance lies in its framing of the central conflict that underlies the rest of the work.
Keywords
Globalization, global marketing, marketing standardization, marketing adaptation, global branding, cultural factors, legal restrictions, case studies, IKEA, competitive advantage, economies of scale.
Frequently Asked Questions: A Comprehensive Language Preview on Global Marketing Standardization
What is the main topic of this document?
This document explores the prevalent trend of standardizing global marketing mixes. It investigates the reasons behind this strategy, analyzes its limitations and challenges, and uses case studies to illustrate these challenges. The central theme is the ongoing debate between standardization and adaptation in global marketing within the context of globalization.
What are the key themes discussed in this document?
The key themes include the definition and implications of globalization for marketing strategies; the advantages and disadvantages of standardizing global marketing mixes; the barriers to standardization, such as cultural differences and legal restrictions; and case studies illustrating the challenges of global marketing standardization. The document also focuses on the ongoing debate between standardization and adaptation.
What is globalization's impact on marketing strategies, as discussed in the document?
The document argues that globalization necessitates global marketing strategies due to factors like technological advancements, improved communication, cheaper transportation, and the emergence of new markets. Companies must adapt to the changing needs of a globally connected consumer influenced by worldwide communication and media. This leads to the core question of the balance between standardization and adaptation in marketing.
What are the arguments for and against standardizing global marketing mixes?
Arguments for standardization highlight the transferability of marketing expertise and emerging consumer similarities, leading to cost savings and efficiency. Counterarguments emphasize the persistence of cultural differences and the need for tailored approaches to resonate with specific markets, thereby potentially increasing effectiveness despite higher costs.
What are some examples of barriers to standardization in global marketing?
The document cites several barriers to standardization, including market characteristics, the stage of market development, cultural factors, and legal restrictions. These factors often necessitate adapting marketing strategies to specific local contexts.
What case studies are included in the document?
While the provided preview only mentions IKEA as a case study, it indicates that the full document includes further examples to illustrate the challenges of global marketing standardization in practice. These case studies aim to highlight the practical implications of both standardized and adapted strategies.
What are the objectives of this document?
The main objective is to explore the reasons behind the standardization of global marketing mixes while simultaneously analyzing the limitations and challenges associated with this approach. It aims to provide a balanced perspective on the ongoing debate between standardization and adaptation in a globalized world.
What are the key chapters covered?
The document outlines two main chapters: Chapter 1, "Globalization and Marketing," defines globalization and discusses the necessity of global marketing strategies. Chapter 2, "Standardization as an instrument of global success?", delves into the core debate between standardization and adaptation in global marketing, providing arguments for both sides and laying the groundwork for case studies.
What are the keywords associated with this document?
The keywords include globalization, global marketing, marketing standardization, marketing adaptation, global branding, cultural factors, legal restrictions, case studies, IKEA, competitive advantage, and economies of scale.
- Quote paper
- Stefan Lüer (Author), 2003, Why are so many companies trying to standardize their global marketing mixes? With examples show the limitations to this approach!, Munich, GRIN Verlag, https://www.grin.com/document/31375
